Investment wave of condotel at the center of Hanoi
According to experts in real estate, investors with understandings of the market and not so large investment at the beginning, investors can still make a sizeable profit with condotel right at the center of Hanoi with advantage of economic viability.
In a year, since the State bank of Vietnam (SBV) reduce the interest rate for USD to 0%, Nghiem Quan (Hoang Mai District) has been looking for new investment opportunities.
Investing in apartment for rent is more and more popular.
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However, according to his calculation, it would take investors a long time to find customers for rent, dealing with many occurring problems during the renting process and asset management. Profit from the market of apartment for rent in Hanoi is in range of 4 – 5% per year, excluding the amortization expense and commission fee.
“Fortunately, I was introduced by my friends the model of investing in apartment for rent right at the center of Thanh Xuan District. Instead of depositing USD in banks for 0% interest rate, now I have a solution for efficient investment” – Quan said.
In recent years, the development and increasing presence of foreign enterprises in Hanoi and in other provinces have resulted in a large number of foreign employees to Vietnam. According to survey, the budget to rent apartment from this group is in range from 2,000 – 7,000 USD per month, which is one of the reason for 4 and 5 - star hotels in Hanoi to be filled up at the rate of above 80%. Real estate expert said, current situation from the real estate market in first months of 2017 shows, the trend of investing in apartment for rent is more and more becoming popular compared to previous year. The segment of apartment for rent is less fluctuated, or has influence on the price or interest with regard to other investment channels.
Another advantage of investing in apartment for rent is the stable price and good liquidity compared to other kinds of apartment or villa, land plots. Moreover, this kind of apartment for rent is suitable for investor’s budget, due to the stable flow of liquidity through owned assets. The profit rate of luxury apartment for rent is at 10 – 15% per year, while the market is developed, this rate can be higher.
Anh Quan said, purchasing luxury apartment for rent will have high risks. Therefore, if there is an apartment in the center area, along with other functions and quality services, this will be a profitable project, especially when depositing USD in banks is less attractive.
According to financial expert Nguyen Tri Hieu, apartments for rent in Thanh Xuan district is always profitable as this is the transport hub with developed infrastructure, services and functions.
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Read The Hanoi Times to stay up to date on developments in Vietnam.
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