Attractive profit margins: Townhouses and apartments for rent are still good investment channels
When comparing the average profit rate with bank loan interest rates, buying townhouses and apartments for rent are considered investment channels with the potential for stable profits.
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Rental property investment returns increase for 3rd consecutive year after pandemic
The rental property investment return is the gross profit margin from the property's potential appreciation and annual rental income.
According to data from Batdongsan.com.vn, from 2015 to 2023, the average selling price of apartments in Hanoi and Ho Chi Minh City increased by 56% and 82%, respectively. Due to the continuous increase in apartment prices and the high demand for buying and renting this type of property, the average profit margin when investing in apartments from 2015 to 2023 is up to 12.5%/year. In particular, the profit margin is on the path to recovery for 3 consecutive years, from the bottom of 10.1-10.3% due to the impact of the pandemic in 2021 to 11.6 - 12.4% in 2023. This margin in the pre-pandemic period was 16% - 17.9%.
For townhouses, according to DKRA Group, in the first quarter of 2024, the price of land, townhouses/villas in Ho Chi Minh City and surrounding areas will increase by 1 - 5%, so the rental price of this type of real estate will also increase in accordance with the value of the property.
Many experts predict that in the second half of 2024 and the next few years, townhouses and apartments for rent will continue to attract investors, especially when three new laws on Land, Housing and Real Estate Business take effect from August 1.
Investment direction with high and stable profitability
With a high average profit margin and the lowest interest rate in 20 years, investing in townhouses and apartments for rent in big cities like Hanoi and Ho Chi Minh City using bank loans is an investment direction with the ability to generate stable profits. Especially when the capital cost is optimized with preferential packages with features of Fast Loan, Easy Payment such as the loan package to buy townhouses and apartments with interest rates of 5.9% - 6.9% - 7.9% / year fixed for 6 months - 12 months - 24 months, no principal repayment for the first 4-5 years at VIB.
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| The most preferential home loan package on the market from VIB. |
With VIB's townhouse and apartment loan packages, investors can choose from three preferential interest rates of only 5.9% - 6.9% - 7.9%/year, fixed for 6 months - 12 months - 24 months, helping to reduce financial costs and increase profits for the investment. For investors who want to transfer loans to VIB, the bank reduces the interest rate by 0.4% and supports pre-disbursement to repay loans from other banks as well as free valuation for customers. In addition, the bank is also flexible for customers in proving their source of income.
Thus, in the first 2 years of borrowing at VIB, investors can enjoy preferential interest rates and not have to repay the principal. This provides financial flexibility for investors to easily maximize the rate of return on their investment when real estate prices reach expectations.
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| Borrowing at VIB offers the opportunity to maximize the return on investment when real estate prices reach expectations. |
In addition, borrowing from VIB, investors can be proactive in capital with a loan ratio of up to 85% of the value of the apartment and 80% of the value of the townhouse, with a loan term of up to 30 years, in which there is no need to pay the principal for up to 5 years for apartment loans and 4 years for townhouse loans. Or investors can flexibly choose to periodically pay the principal monthly, quarterly or pay the principal gradually in steps.
The State Bank's policy of continuing to reduce interest rates to support credit growth, combined with three new laws on land, housing and real estate business coming into effect from August 1, will be factors contributing to promoting the excitement of the general market and opening up many opportunities for investors.
Source: https://baodautu.vn/batdongsan/ty-suat-loi-nhuan-hap-dan-nha-pho-va-can-ho-cho-thue-van-la-kenh-dau-tu-tot-d221168.html
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