“Investing in Real Estate with Limited Funds: Strategies for Success”

The soaring property prices in major cities like Hanoi and Ho Chi Minh City have deterred new investors due to the high overall investment required. Currently, purchasing real estate in these two large cities demands a minimum investment of 4-5 billion VND, prompting investors to seek opportunities in provinces neighboring Hanoi and Ho Chi Minh City.

However, the challenge lies in finding areas and properties that can meet the total investment requirement of around 1 billion VND while offering profitability. According to expert Phan Cong Chanh, investors need to understand that there are two ways to make money from real estate: capital gains and cash flow. Capital gains refer to the profits made from buying and selling properties.

So, which markets still have room for growth and can offer opportunities to investors at this point? Observing the market, we see not only long-term real estate investors seeking new markets but also a large number of young and new investors joining the race. With nearly 1 billion VND in hand, many have ventured to find a “new horizon,” traveling to distant provinces with industrial parks on the outskirts of cities to invest in apartments.

The real estate sought by investors at this time usually needs to meet specific characteristics: proximity to major cities and industrial parks, high rental demand in the market, a unique segment with rare offerings rather than saturated luxury apartments, and superior cash flow policies.

Based on these criteria, Mr. Vu Cuong Quyet, CEO of Dat Xanh Northern Region, believes that rental apartments are a valuable choice for investors with limited capital at this time. “Currently, there is a shift in investment flow towards potential industrial provinces near Hanoi, such as Thai Nguyen – one of the leading industrial hubs in Northern Vietnam, and Binh Duong, the industrial center of the Southern region,” emphasized Mr. Quyet.

In reality, as the real estate market gradually recovers, “double profits” have become the goal of long-term investors. Properties with high rental potential to generate stable cash flow in the next 3–5 years and the potential for asset appreciation in the future are the products sought by investors.

With 48 industrial zones and clusters, Binh Duong currently ranks second only to Ho Chi Minh City and Hanoi in attracting foreign investment. As of June 2024, the province had 4,322 projects with a total registered capital of over 41 billion USD. The increase in FDI has also led to a large number of experts and high-quality labor from many countries coming to work long-term, increasing the demand for housing ownership and rentals in Binh Duong.

Mr. Minh Tan (42 years old, Ho Chi Minh City), a freelance investor, shared that he plans to sell a luxury apartment in Saigon and invest in Binh Duong. With just 1.1 billion VND, he can own a one-bedroom apartment in the Benhill project. Moreover, he only needs to pay 35% (equivalent to 385 million VND) until the apartment is handed over, and the bank offers an 18-month interest-free loan.

Mr. Tan calculated that after just over a year, he could rent the apartment immediately to experts and high-quality labor from the nearby industrial park. In addition to the stable annual cash flow, the apartment also has the potential for price appreciation in the next few years as the industry in Binh Duong is booming.

Similarly, Ms. Hai Hoa, a real estate investor in Hanoi, shared that she had just purchased a two-bedroom apartment in the Tecco Elite City project in Thai Nguyen. “After evaluating the project’s potential, location, and quality, I was already 70% convinced. The remaining 30% that made me decide to invest was the rental and buy-back guarantee policy, which is rarely seen in real estate projects,” she said.

According to Ms. Hoa, Thai Nguyen currently has nearly 100,000 workers in industrial parks, including tens of thousands of experts, managers, and engineers with high incomes. In addition, there are hundreds of thousands of students, lecturers, doctors, and medical staff studying and working in 59 post-secondary educational institutions and 12 large hospitals and medical centers. This provides a vast pool of potential tenants for apartments in the context of a limited supply of luxury apartments in Thai Nguyen.

Not only the leading industrial provinces like Binh Duong and Thai Nguyen but also secondary industrial markets like Ha Nam, Thai Binh, Long An, and Dong Nai are attracting investors’ attention as the industrial sector is booming.

According to statistics from Navigos Search, foreign managers and engineers earn high incomes ranging from 8,500 USD to 34,000 USD, equivalent to nearly 200 million to nearly 800 million VND per month. With their high incomes, they are willing to spend more on suitable real estate to enjoy a private living environment and premium amenities. Therefore, rental apartments near industrial hubs are currently attracting special attention from investors.

In conclusion, rental apartments near industrial parks are an optimal choice for investors with limited capital who want to maximize their profits in the current context. These assets offer both high returns and a stable investment. According to experts’ predictions, this product segment will attract significant investment after the apartment prices in Ho Chi Minh City and Hanoi reach their peak.