Real estate is considered to be the safest, most efficient and profitable investment compared to other sources of investment such as stocks and gold. So, between apartments, townhouses or land plots, which type of investment should you invest in for more profits? To know the answer, let’s learn the pros and cons of these 3 types of real estate with Henkel.
What is real estate?
First of all we need to understand what is real estate? Real estate is also referred to as property or real estate. It is a legal term that has the meaning of land and its permanent attachments.
Something that is considered to be permanently attached, for example. Buildings, houses, garages above, mineral deposits, oil and gas below the land. All things that can be removed from the ground, such as tents, mobile homes …… , are not considered real estate.
Currently, there are 3 popular types of real estate. Those are apartments, townhouses and plots of land. So, which type of investment should be made to earn early profits and bring in bigger profits? Join us in the next section to find out.
Should I invest in condominiums, townhouses or land parcels to make more profit?
Each type of real estate investment has its advantages and disadvantages. Therefore, in order to know which type to invest in for greater returns, you need to understand the advantages and disadvantages of each type. Specifically.
Apartments
Pros
– The payment options for this type of condominium are quite flexible. You can pay in installments. In addition, banks support loans with low interest rates up to 70% of the value of the apartment.
– The demand for rental apartments is growing in 2020. Especially in developed cities like Hanoi.
With this type of investment, you can make a quick profit in the form of “surfing”.
Investing in condominiums in the form of “surf” investments can help you profit quickly Disadvantages However, there are still many condominium projects that are too “inflated” in value compared to reality. – The price cycle is stable, with a steady but fluctuating rise. On the other hand, investors also need to spend a lot of time to understand the market. Advantages of Investing in Townhouses With this type of townhouse, you can live in it as well as use it for your business. You can even rent out space for your business. So it is easy to see that the value of using this type is quite high. In addition, there is currently a very high demand for townhouses, especially in areas that are beautifully located in developed cities. – Stable monthly income, better than apartment type. Investing in townhouses can bring a stable monthly income, which is better than apartments
Disadvantages
However, investing in townhouses often requires a high amount of capital. This is because townhouses are much more expensive than ordinary houses in alleys. Especially in beautiful places, the higher the price of a townhouse on a major road.
The profit and liquidity of this type is often affected by the fluctuations of the real estate market. So it will be difficult for you to adjust the price according to your wishes.
Grounds
Advantages
– With this type of land, you do not need to have a lot of capital. The expected profit is also 2 to 3 times higher than the bank rate.
– The liquidity and profitability of this type of real estate are excellent.
– Also, the possibility of real estate prices falling is quite low. This is because it is less affected by market growth cycles.
Drawbacks
However, the legal status of some parcels of land remains unclear. This makes investors vulnerable to risk.
Summing up
Most real estate experts believe that investing in land will help us make greater profits. In particular, the likelihood of land prices falling is quite low. Although in some areas, the legal status of land is not clear. However, the plots are well located, in areas with convenient infrastructure, under planning and surrounded by many key projects with high profitability. Investors just need to pay attention to the legal requirements. Be a smart investor, observe well, and know how to seize the opportunity.
