Be careful “spending money”
The trend of investing in mini apartments for rent or for sale is no longer new. About ten years ago, the trend of investing in mini apartments flourished. At that time, this type was considered “the goose that lays golden eggs”, bringing “huge” profits to investors.
However, many experts warn that buying and selling mini apartments at this time is relatively “sensitive”, because the legality of this type of mini apartment is still unclear as well as the impact after the fire that killed 56 people. die.
Information about selling “cut losses” on mini apartments in Hanoi is increasing.
In addition, most mini apartment buildings built without permission, violating construction order (excessive floors, increased density, not approved for fire protection…) may be suspended and banned from doing business. or forced to renovate according to the license, thereby affecting the revenue and profits of investors.
Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Real Estate Brokers (VARS), said that mini apartments are a good investment for those with available cash flow. However, in addition to the risk issue if using financial leverage or loan capital to buy or build mini apartments, investors need to also pay attention to the legality of this type.
At the same time, investors need to pay attention to factors such as project location, legality, compliance with construction planning, actual market needs, fire protection acceptance… “In the short and medium term, the segment “We will continue to encounter more difficulties and pressures, so investors should consider carefully before investing money,” Mr. Dinh warned.
According to the City People’s Committee. Hanoi, in 2023, through inspection and review of compliance with construction laws for mini apartments and boarding house rental service establishments in the area of more than 69 thousand projects, discovered and handled Violations for 156 mini apartment buildings in violation. The main violations of mini apartment buildings can be mentioned as: Construction without permission, construction without permission, wrong planning, wrong design and other violations.
For the mini apartment type, the Department of Construction recommends urgently evaluating projects that have been put into use to detect violations of fire prevention and fighting for strict handling. At the same time, take measures to overcome shortcomings and limitations to ensure the safety of people’s health and property.
