4 things to consider when looking for a condominium as an investment asset.
As Vietnam is thrust into the spotlight as a great place to own property, many investors are purchasing condominiums as a lucrative investment asset. However, just because you own property does not mean that you necessarily going to do well out of it. Of course in a rising market everyone will benefit from capital appreciation, but some will profit more than others by ensuring that the investment that they make is the right one. Follow our online guide to make sure you are one of these people.
1. Think to the future.
When investing in a condominium there are two ways to make money. One is to speculate on the market selling it soon after you have purchased it. The other it so rent it out to generate a rental yield. With the first option you need the property to increase in value to be able to cover your costs and make a profit. This can either be achieved by buying a property in the first phase of a launch where prices tend to be lower to start generating interest in the building, or by making improvements to the property that will increase its value. With the latter, this is a longer term investment strategy and it is important that pick the right sort of property suited to the rental market.
2. Buy from an established developer.
With Vietnam’s property market becoming increasingly lucrative, this could be the time that new developers want to profit from it too. If you are buying off plan it is particularly important that you are buying from a trusted developer so you have an idea as to what the end product could be. Developers who have a number of successful projects under their belt enable you to go and visit these to gauge their benchmark, quality and standards.
3. Keep an eye on the market.
It really pays to do your homework. You need to work out what type of property is going to perform well. Are there any planned infrastructure networks that you can piggy back on the success from? Is a new shopping mall due to open closeby soon? If you are looking for a buy-to-let investment, make sure you find out from real estate agents as to what will let well. Where demand lies and whether one bedroom units are more popular than two bedroom units. Also remember to look forward to the saleability of the property too. Some properties may generate a healthy rental yield, but may not rise much in value. If you are looking to generate an income then this is ideal. However the best investment is one that generates an income and that goes up in value too.
4. Never take your eye off the ball.
You need to make sure that you continue to stay alert of any shifts in the market. In fact you need to become an expert in the property market. This will enable you to identify any windows of opportunity to make money. It will also help guide you to make the next decision on what to do with your property. As well as monitoring whether you could be achieving more rent in your buy-to-let property, it will also give you clues as to the next property hotspot if you follow the moves of developers closely