10 things you must consider before buying a property in Vietnam
Vietnam real estate is booming, and anyone who doesn’t want to miss the bus can consult with fazwaz.vn on how to become a part of this growing community of house owners in this former communist country.
The Socialist Republic of Vietnam is a growing economy and individuals and businesses are looking for opportunities to invest in the country. Several factories have shifted base from Southern China boosting the GDP to 7%. In sharp contrast to a few decades ago when foreigners could not even dream of owning property here, today buyers from all parts of South East Asia and even other parts of the globe are vying with each other to own property here; Vietnam is the new haven for investors in real estate. What has also contributed to this interest in Vietnam real estate is the urbanization and investment in infrastructure projects. Even though today foreigners can purchase the property they cannot buy the land on which the property exists; they can only lease it from the State.
- Any foreigner with a valid visa and one who has entered the country legally can purchase any property in Vietnam. He or she can even rent, sub-lease the house or also receive it as a donation, gift or inheritance.
- In Vietnam, a foreigner can hold the lease of a home for 50 years only unlike in Thailand where it is freehold, but this lease can be extended. In case, the owner sells the house to another foreigner the contract will continue for the remaining period; it will become a freehold only if the property is sold to a Vietnamese citizen.
- Any foreigner married to a Vietnamese will have the same rights as a Vietnamese citizen concerning the ownership of the property.
- Foreigners can lease or rent their property for all purposes except those banned by law. They must ensure though that the provincial house management authority is informed about the lease.
- Even though one is a foreigner one has to pay the property tax which covers several other subheads.
- A new house owner must consider the location and area of the house and be able to decide if he will get value for his money with his investment. Here one must know that the law does not permit a foreigner to have more than 30% of the houses in a building.
- One must have full knowledge of the developer before purchasing the property. One must ensure that the developer has all the required permits and licenses. One must do comprehensive research on the property developer’s financial status, previous projects, etc. It is also crucial at this juncture to gather more information on who will bear the maintenance costs once the project is completed and what is the rental their other properties are getting.
- Payments for contract and security deposit for a property must be made in Vietnam Dong.
- Before buying a property in Ho Chi Minh or Hanoi, you must have a fair idea of the property law which encompasses several other laws like the law of real estate business, the act of construction, etc.
- Enquire a consultant on the various taxation laws applicable to foreigners because there are quite a few.