The reason the rich Saigon pays billions to invest in rental flats

30/09/2017   Viewed: 956
Building and selling this property is an investment channel that has never been outdated and has rental income and expects land prices to increase.
General Director of Nam Phat Nam Investment Consultant Company - Nguyen Gia Hoai Nam - assessed that the real estate investment market is rented, typically a room worth billions of billion dollars being middle-class and the rich Popularity. According to the expert, there are five fundamental reasons for the special appeal of this investment model.

Never been outdated
Demand for hotel rooms is always high in large cities, especially populated cities such as Saigon. Demand may exceed expectations because of strong migration. With rapid population growth (an annual increase of more than 200,000 people), rapid urbanization creates a huge demand for housing. This rental market is therefore never outdated and will continue to grow for decades to come. To serve the real needs and affordability of various tenants, the market also formed many segments from the average to mid - high level. Budget Rooms (800,000 to 1.5 million VND per month). Office for lease (2-4 million VND) and high-grade rental room for rent (5 million VND or more).

Low risk
Rental housing is considered to be a low risk investment channel. Many people from the middle class are more willing to spend money but do not want to spend time, effort management or want to avoid slipping prices have chosen this solid investment. With a leveraged non-leveraged nature or if the loan to channel investment is below 50%, this capital market investor group can control revenue and profit with high stability.
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The middle class and wealthy Saigon people are "feverish" with the investment model of renting rooms, forming the market of the busy hotel room. Internet photos

The wealthy Saigon people when doing business for rent do not often put much effort because most of them apply the form of block rental. In fact, many of the participants in this investment channel are willing to allocate to an intermediary managing rooms. Wholesale prices are about 10% lower than retail prices but in return, they have an idle business model to spawn money. In this way, investors can earn a steady stream of money every month without spending time, effort or attention on issues arising when managing a hotel room because there is an intermediary stand. do it instead

Hug earth waiting for price increase
Most people who invest in rental homes have the goal of keeping the land as a cumulative way of saving valuable possessions. They have already had their houses and land available to build new ones, repair them to exploit or buy land to develop their rooms. Investors who have the goal of holding the land for a rental house often do not sell assets in the short to medium term but will keep it at all costs. The time spent hitting the land can be calculated as a decade or so. The common problem is that during the rental process, revenue, profit and depreciation are included in the existing works. Particularly the land fund is seen as a second investment opportunity (dual investment), which is waiting for a rise in price over time.

Immunity to crises
In spite of the real estate market's ups and downs, every month a rental investor always receives a steady stream of cash if the price is commensurate with the position and the rental arrangements have entered the reel. 3 needs: to eat, to wear, to be considered essential to human beings. Therefore, real estate for rent in large urban areas often maintain high exploitation capacity, even increase the price of rent period 1-2 years. The rental investment model is also considered as a safe haven of idle capital flows in the face of real estate crisis in particular and the economic crisis in general.

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