Student Question: I’m based in Chengdu. Are apartment units in the southern part of the city worth investing in? Currently, apartment prices are fairly affordable — a unit with renovation comes to around 450,000 yuan total, with rental income of 2,000–2,400 yuan per month. To achieve the same rental return from a residential property, the total cost including renovation and various fees would be roughly three times that of an apartment. The money I have on hand is only enough for a down payment on residential housing. I also have concerns about residential properties being difficult to sell in the future. Apartment prices have dropped quite a bit compared to before, yet rents for well-located apartments have been rising year over year. I’d like to hear your thoughts, Master.
Master Chi’s Response: As things currently stand, renting out the unit is still a solid option. That said, you’ll need to factor in your own financial situation — as long as the risk stays within a range you can comfortably handle, the investment is worth pursuing.