Investment Property in Yangon

Investment Real Estate in Yangon

Investment Property in Yangon
Investment Property in Yangon

Yangon property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Yangon.

Search Map of Yangon Investment Real Estate

Yangon (Burmese: ရန်ကုန်; pronounced [jàɰ̃ɡòʊɰ̃ mjo̰]; lit.‘End of Strife’), formerly spelled as Rangoon, is the capital of the Yangon Region and the largest city of Myanmar (also known as Burma). Yangon served as the capital of Myanmar until 2006, when the military government relocated the administrative functions to the purpose-built capital city of Naypyidaw in north central Myanmar. With over 7 million people, Yangon is Myanmar’s most populous city and its most important commercial centre.

Yangon boasts the largest number of colonial-era buildings in Southeast Asia, and has a unique colonial-era urban core that is remarkably intact. The colonial-era commercial core is centered around the Sule Pagoda, which is reputed to be over 2,000 years old. The city is also home to the gilded Shwedagon Pagoda – Myanmar’s most sacred and famous Buddhist pagoda.

Yangon suffers from deeply inadequate infrastructure, especially compared to other major cities in Southeast Asia, such as Jakarta, Bangkok or Hanoi. Though many historic residential and commercial buildings have been renovated throughout central Yangon, most satellite towns that ring the city continue to be profoundly impoverished and lack basic infrastructure.

Get Our Latest List of Investment Property in Yangon

The financial stability of Yangon has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

 

Buy to Rent in Yangon

 

Renting out your Yangon buy-to-rent investment property can grow wealth and income.

 

Whatever your goals with investment property in Yangonare – preparation is key:

 

  • Set goals based on how much rental yield will be required and the local rental yield rates in Yangon and be prepared to change your initial outlook.
  • Thoroughly research the Yangon location with a special emphasis on fringe areas outside the main Yangon metropolis that may be valued lower than their better-known neighbours. Rental yields of around 5% are still attainable in certain areas of Yangon.
  • Ensure that your target investment property in Yangon appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent with local knowledge and experience of property legislation will give you the best chance of success.

Flipping Investment Property in Yangon

Flipping property in Yangon

 

Flipping property is when we advise clients to buy a Yangon property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Yangon market has a time to react to the renovation.

 

The Flipping Strategy in Yangon

 

Investment property flipping in Yangon is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Yangon real estate investments are sometimes referred to by professionals as ‘distressed’ Yangon real estate.

 

What is distressed Yangon property:

 

  • Yangon property in need of renovation
  • Yangon real estate with a change of puropose and use
  • Oversold Yangon property
  • Bank repossessions in Yangon

 

Put simply, long term investors in Yangon purchase the property, renovate it and make it a lot more attractive to potential buyers.

 

Calculate profit that you make from Yangon investment property flipping:

 

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Yangon property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

 

Experienced property developers in Yangon use a minimum profit value of 22% when looking at potential Yangon projects. The reason for this is because there are lots that can go wrong in Yangon property flipping and working on a potential margin of 22% should still leave a good margin of error.

 

Property Secured Investments is a Private Equity fund that invests in Yangon and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website

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