In early September, Mr. Le Hong Phat (owner of a car garage, residing in District 12, Ho Chi Minh City) continued to hunt for suburban townhouses, even though he had previously bought 3 houses and was renovating them for sale. Mr. Phat said that he had withdrawn all his savings from the bank, and at the same time mobilized more money from friends and relatives to invest in order to "surf" at the end of the year.
With many years of experience in real estate trading, Mr. Phat predicts that from now until the end of the year, there will be many customers who want to buy townhouses priced under 4 billion VND to celebrate Tet, so this investment segment has a lot of potential. However, Mr. Phat also foresees the risks when investing in this type of townhouse segment and considers it a "gamble".
"In this segment, I mainly sell to customers who are office workers, civil servants, public employees, etc. who have housing needs and they buy for the main purpose of living. This group of customers will often try to save money to buy a house before Tet, with the desire to have a new house to celebrate Tet. However, to have 4 billion VND in finance for many customers is a large amount of money, if they cannot borrow more from relatives, friends or banks, they cannot buy. This means that the houses I invest in are at risk of not being sold at the end of the year and have to wait until next year or the following years" - Mr. Phat shared the risk.
The director of a real estate company in Tan Binh District, Ho Chi Minh City, said that the company is currently focusing on the land and townhouse segment in the suburbs of Ho Chi Minh City to sell to customers with real housing needs. Although this direction is expected to generate revenue to maintain the company's operations, it also contains many risks.
"For these types of townhouses, the company lets each individual own them and borrow 70-80% from the bank. The goal is to sell these houses no later than before Lunar New Year 2025, to recover capital and repay the loan to the bank. Customers are mainly those who want to buy for living and buy at the end of the year to celebrate Tet, so if we cannot sell the goods at this time, we will have to hold the debt until next year" - the director of the real estate company said.
The director of this real estate company also shared more information, holding debt until next year is a bad thing for the company, because debt piles up on debt, interest on interest will lead to the company's cash flow being negative. Therefore, investing in townhouses for sale at the end of the year is considered a new direction with the expectation of bringing in revenue, but is also considered a "gamble" for the company with the risk of holding more debt if the goods cannot be sold early.
