The risks when buying a shop-house apartment that investors need to know

You are planning to invest in a shophouse apartment and surely you are very concerned about the risks of this product line? Here are some key risks that investors may encounter when investing in a shophouse:

Price is higher than the apartment

 Shophouse is a unique product line and always has a price higher than at least 20% or more than the price of apartments in the same building. Even super-luxury shophouse projects have double the price of apartments and this is the main reason why investors are very worried about liquidity.

Although the product line has 2 features and the high price is natural, investors should also consider carefully the development potential of the project so that the investment can bring the best rate of return.

50 year ownership

Most of the shophouse apartments have a ownership for the house (house) is permanent and the business area (shop) is 50 years. This is also a barrier that many investors are concerned about when investing in the long term.

If you are a surfing investor, this is not a serious problem. But if you are investing in long-term, please read carefully the commitment of the investor, because some projects the investor is committed to extend the 20-year extension.

Risk of handover progress

Unlike investing in residential apartments, the risk of handover of the Shophouse product line has serious consequences for long-term investors. With the business premises being handed over by the investors a few months behind schedule, it may cause serious damage to investors on the maintenance cost of replacement sites, business profits or leasing.

Currently, a number of shophouse projects have been launched for sale such as Sunshine Wonder Villas, with great promises of profits and prospects. However, investors should have for themselves the correct information and the right choice.