Sell ​​apartment to rent, use money to invest in land

ANH HUY |

Many young couples are selling their apartments and renting. They use the money to invest in suburban land, waiting for the day to make a profit.

Despite the objections of both families, in October 2024, Mr. Nguyen Trong Vu and his wife (in Nam Tu Liem district, Hanoi) decided to sell their apartment in Dai Mo, earning 3.2 billion VND. The couple moved to rent a house near their child's school for 7 million VND/month.

Mr. Vu and his wife bought this apartment in 2016 for 1.1 billion VND. Mr. Vu and his wife completed the interior for 150 million VND. After 8 years living here, when they transferred, the couple earned nearly 2 billion VND.

Currently, Mr. Vu works in a construction company, his wife is a real estate saleswoman. Mr. Vu and his wife have discussed many times and decided: sell the apartment, use the money to invest in residential land on the outskirts of Hanoi or go back to the province to buy land.

According to this couple's calculation, after 8 years with an investment of more than 1.2 billion VND but earning nearly 2 billion, the rate of return on assets is very low compared to investing in land.

“At this time, apartment prices are increasing, so my wife and I are selling to make a profit. I think it will be very difficult for apartment prices to continue to increase. Meanwhile, when looking at colleagues who have invested in residential land, they now have huge assets,” Mr. Vu confided.

Similar to Mr. Vu, Ms. Mai Thu (in Hoai Duc district, Hanoi) discussed with her husband and decided to sell the apartment they are living in. Ms. Thu and her husband currently have 3 children.

Previously, the couple rented a house. In 2021, they bought a 2-bedroom apartment to stabilize their family life and ensure their children's education.

However, Ms. Thu changed her mind about her plan for the next 5-10 years when she saw the sudden increase in apartment prices. Ms. Thu and her husband calculated that if they sold this apartment, they would earn 4.2 billion VND. With this amount of money, they could buy 2 beautiful plots of land in the suburbs of Hanoi.

The couple has calculated to spend 200 million VND for the rental fund. To rent a 2-bedroom apartment in the project they are currently living in, Thu and her husband only have to spend 10 million VND/month.

“If you calculate in the long run, the profit will be more than the capital buried in the apartment. Moreover, renting an apartment is very convenient now, fully furnished” - Ms. Thu said.

The story of Mr. Vu and Ms. Thu is not a rare case nowadays. Sharing with PV, Mr. Nguyen Anh Tuan - Director of Phuong Dong Real Estate Company Limited - said that choosing to rent an apartment and invest money is the choice of many young people, especially those who have experience in real estate investment.

Mr. Tuan analyzed that many young people today have thoughts of getting rich and accumulating assets. However, the characteristic of many young people is that they do not have a large amount of capital. If they have capital from selling their first apartment, they can use it to invest in many things.

If you invest in land, the rate of return will be faster. Therefore, renting an apartment will also be cheaper, based on the efficiency of capital. Even the cost of renting an apartment is always cheaper than the interest rate of savings deposits if the total amount of money to buy an apartment is put into the bank.

Moreover, young people today no longer place great importance on having to live in a fixed location. They choose to live simply and easily. They find that renting an apartment is not as difficult as before while still enjoying a modern life.

However, according to Mr. Tuan, the challenge in investing in land requires a long time of 3-5 years. On the other hand, choosing a beautiful plot of land is not easy if the buyer does not have experience, especially at the present time.

ANH HUY
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