Working in an office with a monthly salary of only 17 million VND, Mr. Tran Quoc Chung (29 years old, living in Thanh Xuan district, Hanoi) still has not thought about buying a house in Hanoi because house prices are getting higher and higher.
Mr. Chung shared that to stay in Hanoi, each month the cost of living, food, transportation, and rent... takes up 5-7 million VND of his salary. He limits his participation in other entertainment activities but still only saves about 10 million VND each month. That's not counting the months when there are constant parties or unexpected family events.
In total, Chung saved more than 100 million VND in the whole year. Meanwhile, to buy an apartment in Hanoi, you need to have at least 2 billion VND in hand. Therefore, Chung decided to continue renting a house and use the savings to find a way to do business and increase his income.
According to Mr. Chung, there are currently many young people who cannot afford to buy a house in big cities, so they are forced to choose to rent a house if they want to stay.
Mr. Chung's story is also the common situation of many young people working in big cities like Hanoi and Ho Chi Minh City with average incomes and unable to afford to buy a house.
This reality has opened up an extremely attractive investment opportunity with the rental apartment model. Evaluating this trend, experts say that renting out houses brings profits equivalent to savings.
This investment channel can bring investors a steady monthly income like a savings deposit, while also benefiting from the fact that real estate prices are increasingly "anchored" each year.
Investing in apartments for rent is becoming a trend in big cities today, especially in the context of Vietnam being in the "golden population" period.
With 9 years of experience in real estate investment for homestay, Ms. Vu Ha Linh (in Hanoi) often chooses projects in central locations, near supermarkets, hospitals, schools... with full amenities, ensuring security and privacy.
Ms. Linh shared that factors related to amenities, green and peaceful living space are also important factors for tenants to decide to invest.
Talking to Lao Dong reporter, real estate expert Nguyen The Diep - member of Vietnam Real Estate Association - said that normally when deciding to invest in apartments for rent, investors will prioritize apartments that have been handed over and have pink books to be able to borrow from banks.
This is the right time to invest in apartments for rent, because in the next 3-5 years, the supply of inner-city apartments will still be scarce due to the limited land fund for project development. Therefore, after a period of exploitation for rent, investors can sell to enjoy the price difference over time, while having additional cash flow from rent.
According to this expert, currently, people's access to apartments is becoming increasingly difficult as income growth cannot keep up with housing price growth.
In the future, primary apartment projects will have high prices because investors have to optimize profits when input costs are increasing. This partly explains the current trend of many young families renting houses.
However, for investors, buying a house to wait for price increase or exploit for rent at this time also needs careful calculation.
