Investment in Hanoi apartments for rent: Easy or difficult?

Cheap apartments Hanoi for rent demand is very high nowadays – Catching this large demand for affordable housing of people, many businesses have shifted more attention to this segment. However, in the current context, management agencies as well as real estate companies need to renovate the method, how to do, soon improve the policy mechanism, facilitate the Hanoi apartment rental market development in the right direction.

Currently, investment in cheap apartments Hanoi for rent is becoming a trend. The purchase price of land is still too expensive if calculated on the average income of employees. The object of renting is very rich: students, workers, low-income workers, young families. Therefore, the rental market is always vibrant.

However, in order to earn money from renting, investors need to pay attention to a number of factors:

High investment rate, low rental price

In order to prepare for a large-scale boarding house, it is necessary to build at least 10 rooms with an average area of ​​20m2 or more. The investment for 1m2 room with basic furniture from 2-4 million / m2 depending on the level of investment from grade 4 to high-rise buildings.

Hanoi apartment rental market rents range from $1.5 to $3 million per month

In addition, the price of land in areas with potential rental accommodation such as universities and industrial parks are always stable and relatively high prices. In the areas surrounding Hanoi, there is potential to build houses such as My Dinh, Tu Liem, Cau Dien, Hoang Mai, etc the lowest price is 30 million / m2 for land.

The initial investment capital is relatively large, the lowest is from 2 to 3 billion. Hanoi apartment rental market rents range from $1.5 to $3 million per month and occupancy rates are almost never 100%, especially during the summer holidays. If not carefully calculated, the investor will easily fall into the state of silver, silver coins and it is more difficult to ensure profit if using bank loans to invest.

Incurred costs, complex management, low turnover

If you just finished building the house for rent and collect money every month, then everyone can invest. But in the process of renting the owner will face many difficulties arising out of control.

The investment time and cost incurred will certainly make many investors have to calculate carefully

Renters usually do not have to keep their home. As a result, the rooms are often degraded, the electricity and water systems, toilets are damaged. Investors will often have to pay the cost of repairing the damage, general hygiene if you want to keep your area long downhill.

Besides the procedures for registration of temporary residence, temporary absence, security lodge, the complexity of renters also cause many investors headache.

The filling of rooms to ensure revenue requires the owner to regularly manage or hire people to directly manage the accommodation. The investment time and cost incurred will certainly make many investors have to calculate carefully.

Land prices are hard to get as expected

Many investors build Hanoi apartments for rent with psychological hold to wait up. However, in the situation of the real estate market does not flourish as today, the possibility of land fever is difficult to happen again.

More and more renters are demanding high quality accommodation

Excluding those who use personal money to invest in or benefit from inheritance property, investors who use bank capital to trade resorts at this time will find it really difficult to calculate. carefully. Ensuring a balance between profit, revenue, cost, interest, and depreciation is a difficult problem to solve.

In addition, more and more renters are demanding high quality accommodation. The number of rental properties has increased, the quality competition and the price of accommodation have become increasingly acute. Demanding developers to invest in improving quality to attract customers and of course, profits will have to be reduced.

The above factors are the basic factors to consider when making investment decisions for cheap apartments Hanoi. However, despite many difficulties, the housing business will certainly bring long-term benefits to investors if the calculation is thorough: stable, long-term revenue, Increase of real estate price in the future, guaranteed assets do not lose, and the construction of rental housing is still a very interesting investment.

Thang Tran



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