Transferring money in/out of VN when buying/selling a property

xparte wrote:

Hi,

If I were to transfer, let's say AUD$100k in, buy a property, rent it out, sell it in the future.

1. How hard is it to transfer a large sum like that in & is it a one off wire fee?
2. If I am earning rental money on the property (which assuming gets deposited into the bank), is that a simple case of just transferring the money back to Australia whenever I want & just paying a wire fee (can it be done online from AU?).
3. If I eventually sell the house down the track will it be hard to get that money transferred back (assuming I fulfil all tax/capital gains reqs)? My reading in the previous topics seem to indicate yes as there will be a proper trail for the sale of property, is that correct?

If anyone has any experience/knowledge in this area it would be greatly appreciated. 

Thanks,

1. Wiring in the money to use in Vietnam is not a problem - provided you do not take the money over the counter.
2. As for renting apartments, you can receive rentals in cash to avoid hassles.
3. Wire money out of Vietnam different people has different experiences, some had banks wiring funds constantly with no problem, some always had problem and in my case, is always of different procedures with different banks or bank officers. In any case, wiring out is always a problem to most. Not sure is the amount of money the factor or the legal procedures are not clear to the banks. In most cases, they would need you to prove that the money to be wired is "legal" and the party accepting is "legal" and you possessed the money "legally" and importantly you are in Vietnam "legal".
4. Almost everything can be done in Vietnam, the only obstacle is "procedures", there are many fine prints in almost everything we do here.

Is who you know that works in Vietnam, not what you know.

You may need to research the new requirements for a foreigner buying property in VN, I'm 99% sure , you are not allowed to sublet or rent out the property, ( legally, although there will no doubt be different rules for Condo's? )
  Also tax treaties between VN and Aus??, you may get hit with double tax????
I was going to build a new house where I'm living now, but decided my money was working harder at 8% interest , and no worries about shoddy VN building workmanship, ( is there any other? ), I can rent a reasonable 3 b/r house where I am, and still live comfortably on the interest from the capital I would have spent acquiring the land and building,  not to mention the 3- 4 months,(  if I had a VN builder ), I would have had to be on site watching out for their cock ups, but on hindsight ( after a previous VN building " project  " ),  I had decided I was going to build it Western style, doing 95% of the work myself, and of course who know's what you get for neighbours??? ).
  Also remember a house built in VN has practically no building warranty, ( and a much shorter life span than a Western house ), and you will need to know someone you can trust to do the ongoing repairs. ( also you only " own " it for a certain amount of years, can't remember off hand, something like 77 yrs?? ).
   Probably create a lot of headaches you could well do without.

Thanks Athanasius & Bluenz for going into such detail.

I hadn't actually reached the stage of buying/building just yet as I wanted to try and clarify the money side first. As much as it sounds like it is possible, it just seem like it will be quite complicated down the track unless you know the right people. I was hoping the transaction could go a lot smoother since there was a legitimate buy & sell.

I'm not sure about the foreign requirements but I've read that the laws were changing in July/Aug to make it easier for foreigners to invest. Very interesting scenario you've got there bluenz re rent > ownership taking into account the interest you're earning. I don't think I'd be building something on my own though as you're right, I would have no idea about the quality of work. I'd hope to have more faith in the established buildings & ones built by corporations (although may be a foolish belief).

Definitely gives me things to think about while I try & research some more. Thanks again guys!

" I'd hope to have more faith in the established buildings & ones built by corporations (although may be a foolish belief). "
Yes ,I think you realise what that could be all about, I looked at a couple of  development estate houses,  they reminded me of Coronation St, ( are you that old? ), rows of townhouse type houses, I was fortunate enough to see them in various states of " unfinishedness ", they were made fast and cheap, ( a large land development ), only 100  --125 sqm, 2 or 2 1/2 levels and asking between 680 mil and  1.2 bil VND, personally I didn't consider them worth even 1/2  that, the " finished ' ones reminded me of an older car with nice shiny paint, you have no idea what's under that paint.

Hi Xparte,

Good day

PM me so I will assist you to figure out the barrier at the moment

Regards,

JimmyL

JimmyL wrote:

Hi Xparte,

Good day

PM me so I will assist you to figure out the barrier at the moment

Regards,

JimmyL

Very intriguing how Singaporeans know SO much about Foreigners and living in VN????? $$$$$$????

Hi

I have a background from CBRE

Hi Xparte

Don't buy - far too many pitfalls and you will regret it. No safeguards whatsoever for a foreign investor (unless you are a corporate body), and nothing will change for many years.

JimmyL wrote:

Hi Xparte,

Good day

PM me so I will assist you to figure out the barrier at the moment

Regards,

JimmyL

The idea of this forum is the free exchange of information and advice between members.
If you have information that may assist members then please post it here on the open forum.
Thank you.

bluenz wrote:

Yes ,I think you realise what that could be all about, I looked at a couple of  development estate houses,  they reminded me of Coronation St, ( are you that old? ), rows of townhouse type houses, I was fortunate enough to see them in various states of " unfinishedness ", they were made fast and cheap,

Not Coronation St old but I do know what you mean I've seen those type of townhouses quite often in my travels there & they do seem nice and simple but then again I guess I'm only looking at the finished product so can be very misleading.

pilotadamp wrote:

Don't buy - far too many pitfalls and you will regret it. No safeguards whatsoever for a foreign investor (unless you are a corporate body), and nothing will change for many years.

Thanks for the advice pilotadamp. I'm not a corporation, just a personal buyer & that's why I have concerns about how risky putting money in like this is. I guess the news that Vietnam was opening up to allow foreign ownership of property got me interested in the prospect again as I've wanted to buy for a while now, just was not willing to buy under anyone else's name.

The problem in Vietnam is that many legal procedure are not adhered to by the officials on the ground.

Due to bureaucracy, depending on the area in Vietnam, the procedures are not watered down to the ground.

Furthermore, the legal procedures are not enforced.

That is why, many things depend on who you know that make things work.

Hi Atha,

Good day

How is doing?

Day is good. 

Not to be  I PMed you.

I have built 4 properties here and my advice to you would be don’t do it unless you really know what you are doing, thing is if you plan on coming here picking out a plot of land and then getting in builders you will be ripped-off every which way you turn, if you have family here to help chances are you will just get get ripped off more.

Not sure where you plan to build or buy but $100k invested in a house in say Nha Trang will bring you in about 6 to 700 a month if you are lucky and its not that easy to rent at that end of the market, problem is the vast majority of renters are single occupants and the market is flooded with single apartments.

Where you can make money is buy land build house and sell but like I say it really is a minefield and you have to be so clued up, its certainly not easy but there is money to be made doing it.
Getting large money out of Vietnam is not easy, the best I find is to change it back into $ at the gold shop then take the $ yourself over a land crossing into Phnom Phen where you can transfer it very easily, it is illegal but the safest way.

The law has been changed and you as a foreigner can now own a house here [for 100 years], it was 50 years but changed just this week but you really need to think about it, its not like buying at home and you will face many problems.

Good advice! All true.

I've left the country a number of times and have NEVER been asked if I was carrying cash or gold or anything of value and never seen it on any of the zero forms I have to fill out to exit.

Does that happen at Immigration or at Security Theatre?

I was going to bring more cash in on my next trip to avoid the ATM fees; maybe I'll just pay the fees.

You can bring in as much cash as you like no limit whatsoever, but you must declare it, it costs you nothing and is easy to do, the only reason for doing it is in theory when you later want to take cash out you can show you have brought it in and not earned it here.

But do declare it, if you have not declared it and they catch you they will take it off you and as happened many times.

Years ago you filled out the amounts on your landing card but now I am not sure how you do it and you declare any amount over $7k and are allowed to take back out  $7k max.

Thanks!

I wish I'd known that last year when I brought $15K in...

They've not ever asked me to fill in a landing card--it's the only place that doesn't. When I asked, I was told there is no paperwork except passport and visa.

Guess I'll have to spend it all--unless they'll accept bank statements showing VN ATM withdrawals.