Luu Quoc Viet, an investor in Hanoi, is considering buying an apartment for investment purposes. He currently has VND4 billion and wants to allocate this capital into real estate as an investment channel.

He is facing two common options. The first is to buy an off-plan apartment under a payment schedule, betting on price growth once the project is completed. Projects within this budget range are mostly located in suburban areas of Hanoi, with expected handover timelines of one to two years.

The advantage of this option is a lower entry price and staggered payments over time. However, the trade-off is that rental cash flow cannot be generated immediately and returns depend heavily on construction progress, the developer’s credibility, and future market conditions.

The second option is to buy a completed apartment to rent out right away. With the same level of capital, feasible choices are mostly apartments that have been in use for many years.

Although the building quality and infrastructure are no longer new, this asset group has the advantage of an established resident community, clear rental demand, and the ability to generate cash flow immediately after the transaction is completed. This helps investors reduce waiting time and short-term market risks.

Nguyen Tuan Anh, founder of FinPeace and co-author of Financial Peace, said the question of whether to buy a completed home or an off-plan project is a common concern. According to him, once someone starts hesitating between these two options, it shows they no longer see real estate simply as a place to live, but as a financial and investment decision.

The core issue is not which type to choose, but what the investor prioritizes: stable cash flow or capital appreciation. For those prioritizing price growth, off-plan projects are often the preferred choice. Buying at an early stage allows access to lower prices compared to the general market, while staggered payment schedules ease initial capital pressure.

If a project has a good location and is developed by a reputable developer, investors can benefit from a lower entry price. As a result, medium- and long-term profit margins are expected to be more attractive.

However, Tuan Anh noted that profit potential always comes with risks. Issues such as construction delays, incomplete legal status, or actual quality falling short of expectations can significantly affect investment performance. In particular, for inexperienced investors or those without stable cash flow, the risk of being unable to keep up with mid-term payment schedules is a serious concern.

On the other hand, if the goal is immediate cash flow and safety, completed properties are often a more suitable choice. These assets typically have stable resident communities, clearly observable rental prices, and can be leased almost immediately after purchase. 

Investors do not need to wait, and cash flow can return sooner. Moreover, if the property is located in an area benefiting from infrastructure investment, there may still be room for price appreciation over time.

Regardless of the option chosen, Nguyen Tuan Anh emphasized that legal status is a factor that cannot be overlooked. A property with clear legal documentation not only gives investors peace of mind during ownership but also determines future liquidity.

Conversely, deals with unclear legal status can trap investors for many years, tying up capital while creating psychological pressure and prolonged dispute risks.

If stable immediate income is the priority, completed properties are worth considering. If one is willing to accept controlled risk in exchange for higher expected returns, off-plan real estate may be more suitable. There is no universally correct choice, only what best fits each person’s goals and financial capacity at a given time.

According to Tuan Anh, only by placing real estate within the broader picture of cash flow, assets, and risk appetite can investors make appropriate decisions, rather than chasing short-term market trends.

Nguyen Le