Over the past years, many foreigners want to buy houses in Vietnam in order to reside work or even invest in the country but some of them have no idea about purchasing process and procedures.
Therefore, today I provide you with an insight into the occurrence a situation in Vietnam so that you can get a better understanding about the procedures to buy houses in the country.
Buying property in Vitenam for foreigners
As a foreign individual you first need to:
+ Prove the legal status in Vietnam
+ Notarize your passport in 2 copies for verification. It make sure that you always have them prepare for future process
Please note that:
+ Foreigners are only allowed to buy houses in commercial projects foreigners can own up to 30% of total units in an apartment building
+ And 10% of total individual houses in one project
+ But particularly social housing and houses situated in the National Defense and security area shall not be entitled to foreign ownership.
=> Foreigners are only allowed to buy houses the projects available for sales from real estate developers. It is purchased directly from foreigners.
When learning about your future property, you should take time to visit the model homes, its surroundings consider:
- The location
- Facilities and so on…
- For the terrain investor, you don’t forget to calculate the expected rental in come from the property.
Now let me show you the specific steps in the process to buy a house in Vietnam:
+ To ensure benefits and good prices when buying a home, you need to choose a professional agent and let them represent you intersections with the seller or developer
+ Once you have selected your desired property, you can make the security deposit agreement. Maybe directly with the developer or through the real estate agent or consultant. They will deliver your registration and deposit to the developer. The deposit amount from $5000 to $10000. It’s depending on each project. The time allows for deposit payment is usually from 7 to 15 days.
+ You need to translate it into English and then bring it to the notarized office. And not all the developers will provide you with the agreement against the payment and they may schedule an appointment.
If you are not available in Vietnam this time, you can authorize your agent to take it. and you’re waiting for reading the agreement is from 10 to 15 days.
Under construction projects have different payment schedule with most of them being divided into 6 to 10 periods. Normally, the customers only have to:
+ Pay 20% of the contract value at the signing moment and pay the remaining in instruments within 4 to 24 months
For the completed projects, the developer can ask you to pay all at once. You should be the person who signs the sale and purchase contract to avoid any risks from ownership problems. Before signing the contract, you should better check carefully all the details including:
+ Personal formation
+ Area of the apartments
+ Materials furniture accompanied with the apartment of the handover
When the project is ready to be handed over, the notice letter will be sent to the customer at least 30 days in advance. Upon the customer’s completion of payment, the project will be handed over to them.
And finally, the developer will apply for a certificate of ownership and hand it over to the customer.
When acquiring a property in Vietnam, You will be charged several extra taxes and fees
+ VAT: 10% of property value
+ Registration fees: around 0.5% of the property value
+ Notary’s fees: If the value of the property or contract is between $44.000 – $132.000, notary fee is $44 + 0.66% of the amount exceeding $44.000
+ Maintenance fee: 2% of property purchase value (before VAT)
If you decide to sell a property you will be charged 10% of the total amount earned with a sell.
I hope that the information provided by me will being useful in helping to choose your future property.
Modoho – [email protected]