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Real estate investors advised to inject money in low cost houses
Purchasing cheap houses, leasing them to get money while waiting for opportunities, and selling them when the prices go up seems to be the best choice for many real estate developers in 2009.
Luong, a surfing investor, related that he injected money in all investment channels (gold, stocks, and dollars) in 2008, but all the investment brought loss. He said that now he is doing nothing, and he will return to the markets when he can see signs of the economic recovery.
Hung, another investor in Binh Thanh district in HCM City, said that he lost half of his sum of money last year due to ineffective investments.
Hung said that he will withdraw the money he is depositing at banks to purchase a house which he will lease to get some money. Hung revealed that he will sell the house later for profit if it can go for good prices.
Hung and many other investors, who have been tired of the investments in gold and stocks, have decided that it is now the right time to earn money by leasing houses for accommodation.
Those, who have little capital, like making investment in small and cheap houses worth less than VND 500 million which they can lease for monthly income, or sell when they think the sale can bring profit.
Analysts said that small investors could pocket several billions of VND in July 2008 with the small investments in low costs houses, when the market saw the so called ‘real estate bubble.’
Though the investments in small houses can only bring small profit, analysts believe that this proves to be the good choice in the context of economic difficulties expected to come in 2009.
There is another thing that can persuade investors to inject money in small houses that they can lease the houses for money while they try to seek the buyers for the houses. The leasing proves to be a profitable business nowadays as the real estate leasing market is hot.
Investors can get VND 2.5 million-3 million a month from leasing a house with the space area of thirty square metres in HCM City which he can buy between VND 400 million-500 million. Meanwhile, with the same sum of money he can deposit at banks and get the same income every month,but he will not have the house to sell later.
Tuan Hoang, Director of an import-export company in district 4, HCM City, also thinks that currently, when it is very difficult to boost export, it would be wiser to make investments in housing and land.
Hoang said that if investors can know well about the taste of clients and market information, they can earn VND 30 million-40 million for every land plot.
“The market nowadays prefer the real estate worth less than VND 1 billion, about VND 600 million-800 million,” Hoang said.
VNE
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