When investing in real estate, one of the important factors you should not ignore is how long can you own an officetel and whether it is suitable for a long-term strategy. With its flexibility, officetel has always been a model that has great appeal to investors. In today’s article, let’s find out more about how long can you own an officetel with Tuong Phat Land!
1. Learn about the concept of Officetel
The birthplace of Officetel in Korea, specifically in Mapo-gu district, Seoul around 1985. Officetel apartments appeared in Vietnam around the end of 2015 and quickly became a real estate model that many investors are interested in. This model is highly versatile, not only used for living but also can be used as offices for small businesses, startups or foreign businesses looking for representative offices in Vietnam.
Are you wondering about the name Officetel? In fact, this phrase is a combination of the words “Office” and “tel” in hotel, a name that can fully describe the nature of this type of apartment as both living and working. In some urban areas, people will call Officetel as OT apartment. Officetel has an area of about 30 – 35 m², with modern and flexible interior space, helping to optimize operating costs and ensure adequate amenities for users.
2. Detailed review of advantages and disadvantages of officetel apartments
How long can you own an officetel? Before investing in this type of apartment, let’s find out the detailed advantages and disadvantages of officetel with Tuong Phat Land.
2.1 Outstanding advantages
Enjoy the amenities in the project
This is still a fairly new form in the Vietnamese market, with a unique combination of accommodation and work, Officetel brings apartment owners some outstanding utilities as follows:
- Cost savings: The apartment has a fairly small area, so the selling price will be lower than normal apartments, which is an effective savings secret for new businesses. This makes Officetel an attractive option for startups and entrepreneurs looking to minimize initial investment costs while still securing a professional workspace.
- Flexible: If the normal apartment’s main purpose is only accommodation, officetel allows the owner to register a business license to legally use it as a company office.
- “Dual” utilities: When owning this apartment model, you can still enjoy the utilities in the project such as swimming pool, gym, common playground, park, shopping mall, convenience store, … to have a comfortable working and living space.
- Profitability: Officetel is often located in projects with prime locations, you can use or re-lease to create a sustainable cash flow over time and receive attractive profits. This strategic advantage allows investors to maximize returns while benefiting from the property’s prime location and growing market demand.
- Smart design: Normally, Officetel will have its own elevator lobby and space to hang the company nameplate. This helps your company image become more professional and increases prestige, making it convenient for customers to come to work and creating good conditions to promote relationships.
2.2 Limitations to consider about Officetel
No matter what type of real estate you invest in, you need to learn and carefully consider its disadvantages, Officetel is no exception:
- Small area: As mentioned, this apartment is only suitable for startups, individual businesses or small-scale businesses. If your company is larger, you should not look for Officetel because this apartment cannot meet the need for spacious space.
- High management costs: Because it is both a residence and an office, you have to pay a higher monthly management fee than a traditional apartment, which can affect your monthly cash flow.
- Difficulty registering a household registration: You have the right to live here as a resident but you cannot register for permanent residence, this is a disadvantage worth noting if you intend to live long-term.
In addition to the above factors, there is a major limitation which is the ownership period. So, how long can you own an officetel? Continue to follow the article with Tuong Phat Land!
See more: Is condotel eligible for a land use right certificate?
3. [Answer] How long can you own an officetel?
Compared to long-term apartments, investors are still concerned about how many years Officetels are owned and what benefits they have after the term expires. First, let’s find out about the ownership period of this type. According to current Vietnamese law, this apartment has a total ownership period of 50 years from the time the investor is licensed to lease land to develop the project (not when the buyer receives the house).
Why is it 50 years and not forever? Because the land to build projects with Officetel apartments is commercial – service land, not residential land as usual. The 2013 Land Law stipulates that any real estate on commercial – service land only has ownership rights within 50 years, which can be extended depending on local regulations.
In addition to how many years Officetels are owned, whether it can be extended or not and what are the conditions for extension are also issues that many people are interested in. Specifically, after 50 years, you can apply to extend the land use rights if you have fulfilled your obligations and met all legal requirements. However, you should note that there is no guarantee that Officetel will be 100% extended after the expiration date.
Specifically, after 50 years, the Officetel owner can apply for a 20-year extension if he/she still meets the legal requirements for planning and land use. However, the extension decision will depend on the local government and there are no specific regulations to ensure that Officetel will continue to be used for a long time. In general, Officetel will not be owned permanently like a normal apartment but will have a similar ownership period to commercial centers.
Whether buying for living or investment, understanding how long can you own an officetel will definitely help you make the right decision and optimize profits. If you have any questions about this type, you can contact Tuong Phat Land via the contact information below for more detailed advice!
Contact info:
Hotline: 0909.61.45.69
Website: https://tpapartment.com/
Fanpage: https://www.facebook.com/tpapartmentvn
Youtube: https://www.youtube.com/@Tpapartment
