With the amount of 3 billion in hand, many people prefer the safety will choose the option to save bank to enjoy interest rates from 6 – 8% per annum for the term of 12 months.
However, for small real estate investors, VND3 billion is just enough to start a business. But their biggest problem now is to invest in apartments, townhouses or land.
According to a specialist in real estate investment in Ho Chi Minh City, there are many types of real estate in the market for investment yields are equivalent to bank savings, besides the ability to increase the average price. average 7-15% per year. Specific analysis as follows:
For investment in townhouses
The amount of VND 3 billion is just enough for an investor to think of buying a house in the inner city area of HCM City. However, investors are only able to buy houses in the alley with area from 50 – 100sqm . Rental yields are stable at 6% per annum, with minimum growth rates of 5-7% per annum.
For apartment investment
With reasonable capital, about VND 3 billion, investors can choose apartments in the middle and high end segment in many good areas such as District 2, District 4, District 7, Binh District. Thanh … 5 to 10 km away from Ho Chi Minh City center. Rental rate of apartment rental will be at 7 – 9% per year. The rate of increase of high-grade apartments – apartments will not be as high as the city. Meanwhile, the segment of cheap apartments – average brighter than the high-end segment, but profitability is lower, reaching 5 – 6% per year and location further. Whether the investment is successful or not depends on the ability to choose the project, the location of the project, the time of purchase …
For land-based investment
Unlike townhouse and apartment investment, the rate of return on land rental is unlikely but the margin of appreciation is quite high, which can reach an average of 10 – 15% or more. The real estate market in Ho Chi Minh City is good. Particularly, there are more than 50-60% of the infrastructure in the area. When investing in land, investors need to spend a lot of time researching and valuating land around their area, which will help investors avoid being “over” or buying too high compared to the market value. . There are now a number of methods for determining land prices, such as: through banks for pricing or with assistance from local brokers.
For investment in kiosks
This is a special investment segment and not all investors want to jump in. The characteristic of kyodot investment is that it only exploits commercial features. The rate of growth and prospects of this asset will depend on the retail market in the region. Currently the retail sector is growing quite well so this channel is still promising.
For Garden House Investments
The garden now has a large area, average 200 m2 or more, 100% residential and located in the neighborhood or adjacent to Ho Chi Minh City. New segment added to the second resort / home segment. Rate of profit from rent is 7-10%, rate increases 10-15% per year.
For investment shop house
Shop house properties usually have a good profit ratio, even equal to or better than the rate of profit from apartment, can reach 7 – 9% per year. In addition, the price increase of the shop house is good position about 5 – 7% a year.
For the investment of the inn
Ho Chi Minh City is currently a city with high urbanization speed and immigration flow is huge, so the investment in the property group is the rental range is still great potential for development. Average interest rate is 5-6% per annum. The rate increases by 7 – 8% per year. However, investing in a chain of successful or failed motels will depend on management capacity.
With the above investment options, investors may consider some other important criteria as the real estate is very local. Consideration should be given to the location of the property and its ability to manage assets is one of the determinants of future profitability and growth.
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