Townhouses and apartments for rent remain a good investment channel.

Attractive return on investment: Townhouses and apartments for rent remain a good investment channel.

When comparing the average return on investment with bank loan interest rates, buying townhouses or apartments for rent is considered an investment channel with the potential for stable returns.

The return on investment for rental properties has increased for three consecutive years after the pandemic.

The return on investment for rental properties is the gross profit margin resulting from the property's potential for 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 consistently high demand for buying and renting this type of property, the average return on investment in apartments from 2015 to 2023 reached 12.5% ​​per year. In particular, the return on investment has been recovering for three consecutive years, rising from a low of 10.1-10.3% due to the pandemic in 2021 to 11.6-12.4% in 2023. This rate was 16%-17.9% before the pandemic.

According to DKRA Group, for townhouses, in the first quarter of 2024, land prices and townhouse/villa prices in Ho Chi Minh City and its surrounding areas increased by 1-5%, therefore, rental prices for this type of property will also increase correspondingly with the property value.

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 the three new laws on Land, Housing and Real Estate Business come into effect on August 1st.

Investment direction with high and stable profitability potential.

With high average profit margins and interest rates at their lowest levels in 20 years, investing in townhouses and apartments for rent in major cities like Hanoi and Ho Chi Minh City using bank loans is a potentially stable and profitable investment option. This is especially true when capital costs are optimized with attractive packages offering quick loans and easy repayment, such as the townhouse/apartment loan packages with fixed interest rates of 5.9% - 6.9% - 7.9% per year for 6, 12, or 24 months, and no principal repayment for the first 4-5 years atVIB .

VIB offers the most attractive home loan package on the market.

With VIB's home and apartment loan package, investors can choose from three preferential interest rates of only 5.9% - 6.9% - 7.9% per year, fixed for 6 months - 12 months - 24 months, helping to reduce financial costs and increase investment returns. For investors who want to transfer their loan to VIB, the bank offers an additional 0.4% interest rate reduction and supports early disbursement to repay other bank loans, as well as waiving valuation fees. Furthermore, the bank provides flexibility for customers in proving their income.

Thus, during the first two years of borrowing from VIB, investors can enjoy preferential interest rates while not having to repay the principal. This provides financial flexibility, allowing investors to easily maximize their return on investment when real estate prices reach their expectations.

Borrowing from VIB offers the opportunity to maximize the return on investment when real estate prices reach expectations.

Furthermore, with loans from VIB, investors can proactively manage their capital with loan ratios up to 85% of the value of apartment units and 80% of the value of townhouses, loan terms up to 30 years, including a grace period of up to 5 years for apartment loans and 4 years for townhouse loans. Alternatively, investors can choose flexible principal repayment schedules, such as monthly, quarterly, or progressively increasing principal payments.

The State Bank of Vietnam's policy of continuing to reduce lending rates to support credit growth, coupled with the upcoming effective date of August 1st for three new laws on land, housing, and real estate business, will contribute to the vibrancy of the overall market and open 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