With 3 billion VND in savings at the bank, and the maturity date approaching, Mr. Hoang Dung (Hanoi) is wondering whether he should buy an apartment and rent it out or continue to deposit it in the bank and wait for the apartment price to decrease further before buying?

Sharing his views on this issue, Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, said that waiting for apartment prices to drop sharply is very difficult. Supply cannot improve quickly because when the revised Law on Real Estate Business comes into effect, the number of investors meeting the requirements to implement the project will decrease.

Meanwhile, the need to own a house is always present, especially in large cities. Therefore, if you buy to live, you can transact when your finances allow to immediately meet the practical needs of settling down.

However, according to Mr. Quoc Anh, in the case of buying for investment, buyers should consider carefully.

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According to experts, for long-term investment, apartments are still a type of investment that can be considered. Photo: Thach Thao

“If you invest in the short term, you should not rush to put money down because the price and interest in apartments at this stage are not stable. When you need quick liquidity, investors will encounter difficulties. But if you invest in the long term and invest for the purpose of renting out for cash flow, apartments are still a type of investment that can be considered.

The reason is that the growth in apartment investment profits (price growth rate plus rental yield) in the period 2015-2023 reached 97%, ranking No. 1 compared to other types of investment such as stocks, gold, savings, foreign currency. This information is compiled by us based on price history and big data," Mr. Quoc Anh informed.

Mr. Quoc Anh also said that it is very difficult to detect the bottom or peak of apartment prices. Buyers and investors should clearly identify their needs, monitor the market situation and make decisions when their needs are met. Besides the price issue, it is necessary to carefully study many other important factors such as the investor's reputation, location and amenities to serve their lives well or ensure liquidity and effective rental.

Meanwhile, according to Ms. Cao Thi Thanh Huong, Senior Manager of Savills Ho Chi Minh City Research Department, when deciding to invest in apartments for rent, investors will usually prioritize apartments that have been handed over and have pink books to be able to borrow from banks. In the case of buying a new apartment, there are more calculations, it is possible that transferring a deposit to make a profit will be prioritized, then considering leasing and waiting for the price to increase.

Ms. Huong believes that now is the right time to invest in rental apartments, because in the next 3-5 years, the supply of inner-city apartments will still be scarce due to the limited land fund for project development. Therefore, after a period of rental exploitation, investors can sell to enjoy the price difference over time, while having additional cash flow from rental.

However, Ms. Huong noted that for investors, buying a house to wait for price increase or exploit for rent at this time also needs careful calculation.

First of all, the reputation of the investor, then the issue of apartment selling price. During the sales process, the houses sold in the later stages are often priced higher than the previous sales. Therefore, the investor will also implement many incentives and more diverse payment methods. Buyers need to compare and check prices carefully to decide whether to buy products from the previous or the next stage.

“Buying products in the earlier stages will have better prices but shorter payment terms, so you need to prepare financial resources in advance. In the later stages, although the prices are higher, the payment schedule will be longer, so the financial pressure will be reduced,” said Ms. Huong.

In addition, Savills experts note that if investors need to use additional financial leverage from banks to buy apartments, they must carefully consider their financial situation, avoiding borrowing too much, leading to a large debt burden. At the same time, they should consider carefully when choosing a loan limit because no bank or investor can accompany them with a long commitment of up to 15-20 years. Therefore, a loan of about 50% of the product value is appropriate, while a loan of 70% or more will be highly risky.

High-priced apartments, buyers turn to hunting for old collective houses worth 2 billion VND

High-priced apartments, buyers turn to hunting for old collective houses worth 2 billion VND

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The Vice Chairman of the Board of Directors of CenGroup Corporation said that apartments are currently generating a very good cash flow. If you spend about 15-20 billion VND to buy an apartment, you can rent it out for 30-40 million VND per month.