Should you choose a house or apartment?
Should you choose a house or apartment?
Experts advise that if you are new, inexperienced and are wondering whether to invest in an apartment or land, it is best to choose an apartment. Because in this segment, investors will be safe and easily choose better products than land plots.
Investing in land and apartments is the main real estate investment trend of many investors in recent years. Considered as two segments of mid-range and low-priced products, many people can own and invest in long-term.
But there is still a question that many new investors often wonder is whether to invest in land or apartments, which model will generate higher returns and minimize risk. “603 virtual staging” will answer your questions in the article below, readers for reference.
- Should you choose a house or apartment? What is land investment channel? advantages and disadvantages risks.
What is land investment?
Ground land is the original land plot that has not undergone any impact such as: digging, filling or leveling by machines or people. No matter how any impact interferes with the change of the soil, it will no longer be called the base soil.
Project land plots are plots of land in the investor’s planning. These plots of land are in the process of project research and have not had any impact by machines or humans.
Advantages of land investment channel
Effective money keeping channel: “Buy land never lose money” the saying is always true at all times, land prices always tend to increase well over time.Instead of saving money in banks with low interest rates, invest Land investment is a much more effective investment channel to keep money.
Booked – Fast bank mortgage: Currently, the land is appraised by banks for loans with 60% of the real estate value. This trend of cash flow rotation to invest in many places is being chosen by many people. For investment in land plot projects with available books, investors can mortgage the bank to borrow money to invest in other projects.
Land plots are usually affordable, have high liquidity, are less affected by the market growth cycle, and easily increase investment value through many methods such as leasing land, building houses for rent. or trading, transferring products…
Risks and disadvantages when investing in land
Losing money due to buying a “ghost” project: Many cases have lost “white” an amount of nearly a billion dong by mistakenly buying projects that are only on paper, completely non-existent in reality, not allowed by brokers. committed to the profession of fraud.
Only land in the periphery is cheap: Land prices in downtown areas are currently reaching the threshold. Thu Duc, District 9 are the suburban districts of Ho Chi Minh City, the land price 5 years ago was only 10 million/m2 but now the price is not less than 25 million/m2.
Land with good location and high liquidity will be very expensive, even difficult to resell or have to bury capital for a long time.
The legality of land plots in some areas is still unclear, making investors vulnerable to risks
The land fund for housing is getting narrower, so the supply is lower
Vulnerable to long-term burial of unfinished infrastructure around the land area.
- Should you choose a house or apartment? Apartment investment channel has advantages and disadvantages
Apartment is currently one of the modern housing trends, fully equipped with affordable prices for people if you want to choose to build a home in busy locations, near the city center.
Outstanding advantages when investing in apartments
The payment method of this type of apartment is quite flexible. You can pay in installments. Moreover, the bank also supports loans with low interest rates up to 70% of the value of the apartment.
Apartment is a safe surfing investment channel: The process for an apartment project from opening for sale to being formed is on average 1-3 years depending on the size. If customers buy in phase 1, they will own the cheapest price, high discount, the most flexible payment schedule plus the safest profitability. Normally, a project from opening for sale to completion and handover increases by 5-10%.
The demand for renting apartments in 2020 is growing
The apartment can be rented. Suppose an apartment of 60 square meters in the mid-high-end segment can be rented for 15-18 million/month. If the sale is not possible, there is still a rental method to recover long-term capital.
Risks when investing in apartments
In many projects, investors are incompetent, so they are “burdened” in the middle of the road, as a result, investors have to hold bitter fruits. Therefore, this is a playground for those with a little experience and understanding to avoid the traps of investors.
Prices increase slowly, increase or decrease depending on the market: Admittedly, compared to the land base, the value of apartments increases more slowly and the profit margin from apartments is not much.
Low valuation bank: Apartment when there is a bank with a valuation from 50%. In the near future, banks will send signals to real estate applications, so investors should tend to lend from 50% to 40%. This is sad news for residents who want to replace windows to have capital for business, or investment,…
If it were you, which form would you choose?
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