Is now a good time to invest in an apartment and then rent it out?

Normally, when deciding to invest in apartments for rent, investors will 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 consider exploiting the rental, waiting for the price to increase.

Ms. Cao Thi Thanh Huong, Senior Manager of Research Department, Savills HCMC said: This is the right time to invest in apartments for rent, because in the next 3-5 years, the supply of apartments in the inner city of HCMC will still be scarce due to the limited land fund for project development. Therefore, after a period of exploitation for rent, investors can sell to enjoy the price difference over time, while having additional cash flow from rent.

In the next 3-5 years, the supply of apartments in Ho Chi Minh City's inner city will remain scarce due to the limited land fund for project development. (Photo: ST)

Currently, people's access to apartments is becoming more and more difficult when the rate of income growth cannot keep up with the rate of house price increase. In the future, primary apartment projects will have high prices because investors have to optimize profits when input costs are increasing. This partly explains the trend of many young families renting houses today. However, for investors, buying a house to wait for price increase or exploiting for rent at this time also needs careful calculation.

Currently, the sales policies of investors are very good, but home buyers need to pay attention to the reputation of that investor, because offering many attractive policies is one thing, but whether or not they can implement them is another. In fact, there are many cases where, for many reasons, project investors "break down halfway", unable to fulfill their commitments to home buyers.

The next thing to note is the apartment 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 payment methods are also more diverse. 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 the payment period will be shorter, so you need to prepare financial resources in advance. In the later stages, although the price is higher, the payment period will be longer, so the financial pressure will be reduced," said Ms. Huong.

Finally, using financial leverage from banks to buy a house, according to Savills experts, normally, banks offer loan packages with preferential interest rates for a fixed period (2-3 years), after which the interest rate will be floating. Therefore, investors must carefully consider their financial situation, avoid borrowing too much leading to a large debt burden. Because if they borrow and cannot repay, they will have to sell off, leading to losses, or will break their commitment to the bank. At this time, the loan will be put on the bad credit list, affecting future borrowing.

"Investors 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, but a loan of 70% or more is high risk," Ms. Huong said.

Source: https://www.congluan.vn/hien-nay-la-thoi-diem-tot-de-dau-tu-can-ho-xong-cho-thue-lai-post296153.html