Investing in 2015 Property Market: What to Do with 1 Billion VND?
24/02/2015 14:08 | Source:
With a budget of 1 billion VND, the best way for investors to get high-return and low-risk investment in Ho Chi Minh property market in 2015 is choosing one of three segments below: project land, apartment or townhouse in suburbs.

According to Nguyen Mac Hoai Nam, General Director of Nam Phat Company, in 2015, property is said to be a relatively safe haven for idle cash flow. While other financial markets such as stock, savings, gold are still lack of attractiveness, real estate can ensure more stable profit margin over a period of 12-36 months. Investors who own 1 billion VND can choose three segments below to pour their money: 

Property investors with a budget of 1 billion VND can choose apartment, project land
or townhouse in suburbs to invest their money in 2015. (Photo: Vu Le) 

Apartment: investing in apartment in HCMC, you can have an immediate return of 5-7 million VND per month by renting it out. Moreover, the rent may be increased if the apartment is well managed and the project has high occupancy rate. In order to optimize the returns, investors can use financial leverage such as mortgaging apartments for bank loans. Although the liquidity of this type of property is relatively good, the chance of sudden price increase over the next 3 years is not high. Investors should choose projects which are located far from city center but convenient for transport such as: Binh Tan, Tan Phu, Nha Be, Thu Duc, Binh Chanh District 12, 9. Civilized community and good security are also preferential criteria for the selection.

Project land: with project land, you can’t immediately exploit the value of your property. However, the chance of sudden price increase over the next 2-3 years is quite good because future supply of land will be gradually limited. In the near future, investing in project land will benefit many favorable conditions: projects with quite good location have gradually been filled, and the land price list issued by the State tends to rise. However, many projects which are located quite far from the downtown, therefore, investors need to strengthen security. 

Small-sized townhouse in suburbs: you can get an immediate return of 4-5 million VND as a monthly rental. However, it is quite difficult to apply for bank loans when investing in this type of property. Townhouse segment in suburb has intermediate liquidity because of its location. Many small-sized townhouses are usually located in small alleys with width of 3-4 meters in districts: Binh Chanh, Nha Be, Go Vap, Hoc Mon, Binh Tan, Tan Phu.