An apartment should be viewed as a consumable, not an investment

March 14, 2024 | 03:00 pm PT
I have always viewed my apartment unit as a place to stay and, similar to my car, a consumable instead of an investment that either brings loss or profit.

Recently, there has been much debate about whether to buy an apartment or a townhouse.

Personally, I have lived in both, so I consider my opinion on this topic to be rather objective.

In my opinion, everything comes with its price so it is very difficult to say which type of housing is better.

The key factor here is your finances and view.

Economically speaking, townhouses, which come with the land it is built on, will undoubtedly be better in value retention. Its price may increase significantly during real estate booms.

On the other hand, selling an apartment unit some years after the handover will inevitably result in a break-even or a loss.

You have to be lucky to make a small profit from apartments and even then the profit margin is nowhere near those of townhouses.

However, this viewpoint is only relevant if you see your apartment purchase as an investment.

If your goal is solely to find a place to live in and you prefer enjoyment, convenience and comfort, then buying an apartment is the most reasonable choice.

Conversely, if you simply want to have a valuable asset to pass on to your children in the future, like an inheritance, then townhouses are more suitable for you.

So, buying an apartment is somewhat similar to spending money on a car.

It will serve your current lifestyle almost like a consumable item.

Therefore, if you immediately think that you should have invested in something else whenever your car depreciates in value, then it is best not to buy a car or an apartment at all.

I used to live in a townhouse, but due to changes in my financial situation, I decided to sell the house and move to an apartment.

I, like many others, initially disliked living in apartments despite never having lived in them.

However, after a while, I had a change of heart. Now, if anyone asks me if I want to move back to a townhouse, then my answer would definitely be no.

I would only leave my apartment unit for a villa with a driveway and private parking located in a bustling residential area. Otherwise, I will stay in my apartment no matter what.

Currently, with my finances, I can afford to buy a two- or three-story townhouse in a car-accessible alley, but I would rather stay in my 70-square-meter apartment.

For me, my current apartment fits my lifestyle just fine, so I absolutely do not care about how much it is worth and whether selling it would result in a loss.

Besides, I also have a car and I consider them both consumables that primarily serve my needs.

This is just my personal view and I am not trying to say that living in an apartment is definitively better, because this largely depends on the conditions and perspectives of each individual. There will never be a choice that is right or wrong for everyone.

Having said that, what do you think about this topic?

Reader Kevin Nguyen

*This opinion was translated into English by AI. Readers’ views are personal and do not necessarily match VnExpress’ viewpoints.

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