(NLDO)- With 1 billion VND, investors can borrow more money to buy old apartments and rent them out immediately or buy land in the suburbs.
After Tet, many people have about one billion VND in idle money and want to invest in real estate, especially those who are unfamiliar or do not have much knowledge about other investment channels. So which segment and product should they choose to ensure efficiency and safety?
Mr. Tran Khanh Quang
According to Mr. Tran Khanh Quang, General Director of Viet An Hoa Real Estate Company, 1 billion VND is a small amount of money in the real estate sector but not without opportunities. If you really love real estate, investors can still find safe and effective solutions.
One of the feasible options is to buy an old apartment that has been handed over and has a pink book or an apartment with a loan contract from the bank so that it can be purchased and rented out immediately. Apartments priced at around 2.2 - 2.5 billion VND can be supported by the bank to borrow up to 60 - 70% of the value.
With this price, investors only need to spend about one billion VND in cash, the rest will be borrowed from the bank.
Once owned, the apartment can be rented out for 8-10 million VND/month, bringing in a profit rate of about 3-4%/year on cash flow. The rental income also helps the buyer pay the bank interest and principal every month. After 10-12 years, the loan will be paid off and the apartment will continue to be a stable source of income.
Mr. Quang commented that investing in apartments is a sustainable trend, because the demand for renting and living in apartments is currently quite large, especially in densely populated areas. Apartment prices also often increase steadily every year, averaging 3-5%, bringing double profits to investors from both renting and increasing asset value.
In case investors do not want to manage and rent apartments, they can turn to suburban real estate, especially land with red books and residential land. However, Mr. Quang warned investors to avoid buying subdivided agricultural land that has not been converted to residential land, because converting land use purposes is very costly and difficult to bring profit.
For land, buyers need to carefully choose areas with clear legal status, located near residential areas and with convenient transportation. Areas with potential for infrastructure development, such as major roads or important transportation projects, will help increase real estate value.
Currently, provinces such as Binh Duong, Tay Ninh, Long An, Dong Nai and Ba Ria - Vung Tau are potential destinations with quite cheap land prices. If choosing the right location, land prices can increase by 40 - 50% in a few years, and if lucky, investors can even double or triple their initial investment.
In addition, for those who love green space and want to invest in agricultural land, Mr. Quang advises them to consider buying garden land in provinces such as Binh Thuan, Binh Phuoc or Dak Nong, about 150 - 250 km from Ho Chi Minh City. With one billion VND, investors can buy several thousand square meters, even nearly 1 hectare of land.
However, if they choose this form, they need to really love agriculture, have the conditions to take care of the plants and choose to buy land in specialized areas with suitable soil. This is both a long-term investment opportunity and a way to reduce urban stress when owning a private garden.
Mr. Quang emphasized that with agricultural land, investors need to carefully research suitable agricultural products, soil conditions, and land managers and caretakers to optimize cash flow efficiency.
Source: https://nld.com.vn/co-1-ti-dong-mua-bat-dong-san-nao-de-sinh-loi-196250205055345837.htm
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