You should know 8 questions when investing in a Shophouse apartment

Investing the shophouse apartment needs a large capital, usually from VND 10 billion or more. Because of the large amount of investment, many people are quite shy when compared to this type of apartment or land. For more knowledge about shophouse, you need to know 8 issues below.

Question 1: How long does it take to own a Shophouse?

Answer: Shophouse has two types of apartments which you need to distinguish:

Shophouse is located at the first floor – second floor of apartment building: Term of ownership certificate is 50 years.

Shophouse is located in the townhouses in the urban area, villas adjacent to 4-5 floors: Form of ownership: Long red book.

Question 2: Buyers have the right to transfer, buy and sell?

Answer: Shophouse is also a normal type of property. Therefore, transferring or buying and reselling of a shophouse apartment is the same as a flat or house. Inside:

Shophouse recently signed a deposit agreement, agreement: Not signed purchase contract: No transfer fee.

Shophouse has signed a purchase contract but it has not handed over: Transfer fee is 2% of purchase contract and registration fee, red book to the new name.

Shophouse has handed over the house but it has not issued red book: transfer fee is  2% of purchase contract and registration fee, red book still issued the name of the old owner.

Shophouse has been issued red book: the fee to the name of the red book is 2% and the registration fee. Red book to name a new person.

Therefore the transfer name of the shophouse apartment as usual is not difficult.

Question 3: Is the shophouse easy to rent? How much is the average of rental charges for per square meter?

Answer: Renting a Shophouse is easy or difficult which depends on the location of the shophouse. If the shophouse is located in a crowded, crowded and easy to do business, the rental will be very easy. Revenue from rental apartment shophouse which is quite high compared with the average rental price is $ 25 – $ 35 / square meter / month. The rate of exploitation of shophouse apartment is about 8-12% per year. The cash flow generated by this product gives the owner to be higher than rental performance of the apartment, sending the bank is less risky than gold or stock.

Question 4: Is the potential for price increasing of shophouse apartments high?

Answer: As noted above, different locations will have  different rate of return. The average is from 8% to 12% per year.

With the high occupancy rate, residential community in this area will be more and more likely to generate demand for trading and service development. At that time, the value of shophouse was higher than that of commercial apartments.

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Question 5: Is the Shophouse apartment  handed over roughly or finished?

Answer: This will depend on the type of shophouse, the project that has different conditions of delivery:

Shophouse private home neighborhood – low floor usually handover the rough, finished exterior. The customer will finish an interior  or landlord will complete the basic interiors. Guests decorate their furniture according to décor brand business.

Shophouse block apartment insole usually handover roughly. Tenants complete themselves.

Question 6: What is the operating cost and shophouse service per month?

Answer: Depending on the type of shophouse, each project and the different investors, it will have specific regulations. Projects which are located in the prime locations of Ho Chi Minh City such as District 1 or District 4, the cost of operation and services will be higher than other areas.

Question 7: What is the best location for the business?

Answer: The prime location of the shophouse is located in the corner of the building, the large road, the location near the main gate of the urban area, the lots with sidewalks and large garden, nice view overlooking the lake. , parks … In general, you should choose the most beautiful property of the project. This will be easier to sell and easier to transfer than other shophouses.

Question 8: Notes before buying a shophouse?

Answer: Before signing a contract of buying a shophouse, investors should read and review the following terms:

• Delivery time of the shophouse
• Expense for management operation later when put it into business.
• Materials and handover detail conditions.
• Provisions and clauses of prohibited goods and restricted business at the shophouse.
• Who is the latter?
• How are water tariffs calculated for commercial townhouses?
• The risk when buying a shophouse apartment

Before investing in a shophouse apartment, what would investors be interested in the risk of this product? Here are some of the risks investors may face:

Shophouse price is higher than the price of the apartment: Shophouse is a specific service product line, the price is higher than at least 20% or more than the price of the same apartment building. In particular, there are super-projects to shophouse prices double the price of apartments. At this price, investors will be very anxious about liquidity.

With its two-storey product line, Shophouse, the price is obvious. However, investors need to carefully consider the potential of the project to make the best investment.

Shophouse has only 50 years of using: Most shophouse apartments have a lifetime of house space and a 50 year of shop area. This is also a barrier that many investors are concerned about when planning long-term investment.

If you are a surfing investor, this is not a serious problem. But if you invest in long distances, please read the commitment of the investor, the owner committed to extend the extension of 20 years of using for some projects.

Risk of handover progress: Unlike apartment investment, the risk of handover progresses to the Shophouse product has serious consequences for long-term investors. Investors who have been delayed the project for several months may cause the investor to suffer heavy losses on alternative maintenance, business or rental income.

Therefore, let’s find out about the project owner’s financial strength and the quality of the project … to review the previous projects invested by this investor. Are there any projects that are slow to progress? How long is the delay? Commitment to progress like?

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