PROS & CONS of Investing on Luxury Property in Vietnam

Are you thinking of investing in a luxury property in Vietnam ? Well, read below because in this article we will talk about the advantages and disadvantages of investing in a luxury property on the Vietnamese real estate market , everything you need to know about an investment of this proportions.

Grand Marina Saigon by Masterise Homes

Advantages of investing in a luxury property

The demand for luxury properties in Vietnam has risen a lot over the past year, mainly due to the rapid economic growth and the fact that more & more Vietnamese citizens are getting richer. In Cities like Ho Chi Minh, the luxury property market prices has seen a sharp increase over the past 3 years with some new projects costing up to 30,000 USD per square meter.

One of the reasons Investments of this type increased is because investors know for sure that they will reap large returns whether in the medium or long term. Here are some reasons to invest in luxurious homes in Vietnam:

  • The expectations on this investment are very high, this type of luxurious homes are sold in the medium or long term without any problem, giving the seller a good capital gain if he knew how to take advantage of the increase in prices.
  • They are easy to sell because the houses are finished with luxurious details and do not need any type of reform, since they are ready to move into.
  • Don’t you want to sell it? Do not worry, these homes are rented just as well as they are sold, you can get a lot of money by renting your apartment as they are generally located in prime areas of the city with very high demand from tenants.
  • Buyers of luxury homes are guided by the area and we all know that large houses or luxury homes are on the best neighborhoods of the city, that is, a good source of money, since renting a flat near downtown locations offers a good benefit to the owner and a greater profit at the time of sale.

Disadvantages of investing in a luxury property

There are not many disadvantages of investing in Luxury properties, if your property is located near well stablished neigborhoo or close to downtown (District 1) or in a big city (like Ho Chi Minh or Hanoi), the sale will be easy, therefore, there would be no disadvantages. The disadvantages would exist in the event that the home is not in an area with high traffic or in a large city.

Selling a luxury home can become very difficult if they are not located on premium areas, which is rearely the case in Vietnam.

Luxury homes are medium to long-term investments if we want to take good advantage of the increase in prices to obtain a greater capital gain.

For more information about the luxury real estate market in Vietnam, please contact me directly via email at: Your trusted Property Agent in Vietnam.

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