Shophouse is one of the most popular types of real estate on the market. However, what is a shophouse? And what are the attractive advantages to invest in shophouse?
Please refer to the information shared below to find yourself a new investment opportunity!
Shophouse and the most basic things to know about this type of real estate
In fact, it sounds a lot, but not everyone can distinguish the different types of real estate. So what about shophouse? Please understand these types of investment before investing
1. What is Shophouse?
Shophouse is a compound phrase of Shop and House, in which “Shop” is a store and “House” means house. In simpler words, this is a type of real estate that is a combination of shops and houses. In addition to living, the shophouse is also used for business and trade.
The most typical for this type of real estate is the commercial townhouse, so its location is usually on the first floor. The construction area is often chosen in the central or high traffic areas. This form is chosen mainly for business purposes or investment and rental for business.
2. What are the outstanding features of Shophouse?
Each type of real estate has its own advantages and disadvantages. However, to invest in a shophouse, let’s see what characteristics it has?
Shophouse premises often have a prominent position
Usually this type will be built in urban areas or clearly planned projects. The location is always adjacent to major roads, or main roads with many people passing through. Because this type of real estate is usually designed for the purpose of living and combining with business.
Shophouse has a pretty outstanding design
Simply because they are often used to lease business or serve business for the owner. Therefore, each type will be built in accordance with the project’s own brand. However, it will have 2 popular design forms:
Open floor design
That is, the floors of the shophouse will be designed to connect with each other with modern stairs.
It is a combination of housing with commercial and service businesses. Usually the business area will be located on the first floor, and the second floor will be designed as a residence. This form brings quite high business value to investors.
Commercial townhouse design
That is, the shophouses will be designed to form a chain adjacent to each other with many different utilities.
Therefore, depending on your ability and investment needs, you can choose the appropriate form of design.
5 most attractive advantages to invest in a shophouse apartment
1. The business location is quite attractive
As mentioned above, the construction location of this type of real estate is quite good. Because
- Concentrate on the first floor of buildings or commercial centers
- The location is usually located in densely populated places, busy areas
- Usually built at major roads or main roads in the area
Therefore, if you invest in this type, you find customers quite easily. Because the attractive location will make the business better and more convenient.
2. Convenient in the process of traffic, moving
Because it is built in central locations, it is convenient to move between apartments. Not only that, moving from accommodation to other areas is also more convenient. Because shophouses are often built in places near the parking lot or the entrance to the apartment…
Not only that, thanks to its location on the main road / main road, the traffic is also more open. You will be more comfortable when traveling in the surrounding areas. Not only that, in these locations are often designed parking stops and basements that are quite safe and convenient.
3. Shophouse is designed to enhance the utility level
The designs of this type of real estate are quite clever and striking. This gives customers more flexibility in the use process. You can use it to live in, but you can also do business or open an office. Or you can invest and lease back to customers.
4. Shophouse is highly competitive
Because the number of shophouses in a project or a residential area is quite small. Because of the following reasons
- These projects usually only serve residents in the project, so the number is also small compared to other types
- This type of real estate is also located on the first floor, so the quantity is also less than the demand
- In mid-range projects, this type only accounts for about 2% to 3% of the total project apartments. If the projects are large, the number of shophouses can account for up to 5%.
So if you are in need of business or business investment, this is an advantage. Because of the limited quantity, the demand for investment is large, so this type of investment becomes more and more attractive.
5. Investing in Shophouse gives you high profitability
Prime location, convenient transportation, invested utilities help shophouse have high investment value. Besides, if you have a business, it is also quite attractive to potential customers. Especially, if you have a solid business plan, the more successful you will be.
The rental price of a shophouse is usually much higher than that of other types of apartments. Therefore, if you do not have a need to live in, invest in renting. Surely, you will be assured of the profitability of this rental form.
What factors do you need to consider before investing?
In fact, before deciding to invest in any type of real estate, you also need to do thorough research. And to avoid risk while investing in shophouse, please consider the following factors
What do you buy for?
Before buying, you need to determine what the purpose of this investment is? Do you invest to live or do business or invest to rent out? Please calculate carefully before deciding to make the most reasonable investment.
Besides, you should try to evaluate the potential profit when investing in this type of real estate. Because each location as well as each project has different economic value and profitability. You must carefully investigate and evaluate the potential to increase your chances of successful investment.
Compare projects for the best option
The current real estate market has many different projects with shophouses. Each project will have its advantages and disadvantages as well as different investment values. Therefore, consult the prices as well as compare potential values to make the best choice.
Does the shophouse have any disadvantages?
Of course, besides the advantages, shophouse also has its disadvantages. Specifically like:
- Because of the high profitability, the investment cost is also quite large
- Because it is built in densely populated areas, it will be quite noisy
- Compared to other types, shophouse has a shelf life, which is a pretty big limitation
Therefore, you should consider before deciding to invest in this type of shophouse.
>>> See more: Shophouse – Projects to invest in Ho Chi Minh City
You can refer to some of the famous shophouses on mogi.vn. Who knows, you will find the most suitable opportunity to invest successfully!
– Van Anh (Content Writer) –