There are many reasons to believe that the market for apartments for rent in Ho Chi Minh City has a lot of development prospects, of which the most important still comes from the real demand of the market. So what should investment in rental apartments consider?
Newly married couples, students studying in big cities, young people who love independent living are in need of renting apartments. Because of so many objects, the field of apartment investment in Ho Chi Minh has many opportunities for development. In addition to the increasing demand for rent, due to investment channels such as bank deposits, investment in buying gold or playing stocks due to low returns or risky risks, many investors have moved. to real estate business, namely apartment for rent.
1. Reasons to invest in apartments for rent in HCMC
a. Immigrant population is rising fast
Ho Chi Minh City is one of the major cities of the country, focusing on many economic and technical development activities, so it attracts many domestic and foreign immigrants to come and live here. According to data from the General Department of Population and Family Planning in Vietnam, the average growth rate of immigration is 1.5% / year for Hanoi and 2.2% / year for Saigon, equivalent to about 100,000 people in Hanoi and 150,000 people in apartment for rent in Ho Chi Minh City every year, of which 85% of immigrants are aged 15-29 years. The situation of crowded land is the main reason leading to the increase in demand for housing. In addition, housing prices and high interest expenses on banks have restricted the buying of houses of immigrants. Therefore, big cities are potential markets for apartments for rent in Thao Dien.
b. The need for freedom of the young
Many young people nowadays prefer the freedom to live independently with their families so they want to move out of their home but are not eligible to own a house, so renting is often the solution chosen by many young people. This group of people is very flexible in choosing a place to live, they often choose areas near schools, Thao Dien markets, entertainment places, own an average budget so they do not have too high requirements. For apartments, only priority security and good hygiene. Homeowners who have invested in fourth-grade apartments or cheap apartments have focused on exploiting this group.
c. Saigon apartment for rent is a long-term investment
When under the positive influence of such factors as gold prices, interest rates and falling housing prices, the investment in rental houses is an appropriate plan in the current period. In the meantime, the number of tenants is mainly businessmen, experts and foreign officials who are concentrated in big cities like Hanoi, Ho Chi Minh City or tourists in the city to travel, this is a channel. Long-term financial investments. From the owner perspective, this type of investment in apartments for rent brings many benefits. It is a low risk that apartments for rent have been completed and used. This is also considered as a collateral and the vision of 5-10 years will continue to increase in value, not counting the monthly rent still flowing into the property owner.
2. Factors that will help your business
a. Get in touch with necessary services
In order for your product to be known, you need a reputable broker, this service helps reduce the hassle when someone wants to see the house and apartment for rent in Thao Dien and representatives negotiate with the person who wants to hire. Using this service will bring many benefits when you want to rent an apartment:
· Introduce your home to thousands of people who are looking to rent Thao Dien in the area (make sure you choose an agent that can post on the website)
· Understand the regional market, needs, rents and tenants interested in your home.
· Manage and conduct guests to see the home, consult the tenant of your home, then give you feedback.
· Acting on your behalf with tenants when discussing rental rates
· Give you advice and guidance.
Once you’ve rented an apartment, if you’re busy working or traveling abroad for a while, you’ll need management services to make sure your home and tenants don’t have a problem when you’re not around. over there. Management services will include:
· Arrange the rental agreement and related terms
· Manage from beginning to end of rental period according to your instructions
· Organize rent collection and arrangement, repair during the rental period
· Instead of you periodically check the condition of the house
· Provide necessary advice and guidance during the cooperation process.
b. Understand the needs of each type of tenant
If you rent an apartment with students, they often care about transportation, distance to school, restaurants, entertainment. For households, they are concerned about regional security, parks and supermarkets so that their children can develop in the best living environment. Regarding the lease, there are tenants who need a temporary accommodation because their house is under repair or while they are waiting to move to a new house because the house is not completed … there are tenants who rent it indefinitely … Therefore, Depending on the location and utilities of the apartment, you can choose a suitable tenant.
c. Rental cost
You need to think carefully about the rental price, in addition to thinking about the profit, you must also consider other costs in the process of owning and renting an apartment:
· Monthly mortgage repayments to own the house (if you buy installments)
· Expenses related to upgrading the house, safety standards prescribed for utilities, fire protection.
· Furniture-exterior (if necessary)
· Expenses for leasing agent, management services
· Insurance fees
· Contingency costs for repair and maintenance problems.