Foreigners can buy apartment in Vietnam - Is that true?

tdang1017 wrote:

CoderX10 wrote:

That has always been my main concern but I'm working with Savills International Team and they are the real deal. They have a strong market presence and would never do a bait and switch as it will hurt their overall brand. I'm working with Tony who speaks fluent English and is an expat himself. He's very knowledgeable about the market and I currently have an offer on a resale at the Nassim.

@CoderX10 can you direct message me the contact information to your agent? I would like to speak with him. Thank you in advance.

Just sent, check your inbox. Tell him Ryan referred you and he will know.

CoderX10 wrote:

DELAFON wrote:

CoderX10
The only 2 solutions I have is go to court or buy the flat and sell it later.

My agent thinks it's a bad deal and the project is not selling well. He tells me they are paying double the commission compared to other projects which is why local agents have been pushing their buyer to the project. Its near completion, yet they still have foreign quota and plenty of units left for Vietnamese. It will be difficult to sell on the secondary market when the primary market still has units available. I say walk away now before you dig a bigger hole.

I'm curious what the deposit agreement says regarding the unit you thought you picked out vs. whats stated on the agreement?  Was it the same unit? It will be hard to go to court if you signed on the dotted line...

After discussing with my lawyer, I will just buy the unit and selling later. A court case too long...

CoderX10 wrote:

No cooling off period since all the projects are new construction. Once you make your final decision and sign the deposit agreement, you are locked into an installment payment plan spread out over time until you the unit is handed over. You can walk away any time during the installment payment period but you will lose the money paid. Sounds like that's what Delafon is currently debating.

Wow! No cooling of period and deposit is kept. Not my idea of a good transaction.

Hi everyone.  I'm looking to buy an apartment in Saigon.  I live in the UK and I might want to stay living in the UK for a while after I've bought the apartment.  What sort of visa do I need to buy a property?  Is a tourist visa OK or does it need to be something else? 

If I went to an agent like Savills will they be able to assist me with buying all apartments in Saigon or do they just sell their own apartments?

I don't want to spend too much money.  Ideally something around the $75,000 price.  Can anyone recommend anything around this price, or maybe something a bit more expensive. 

How easy is it for foreigners to get mortgages in Vietnam? 

Thanks in advance for any help you can give.

Banks here wont give you a home loan.

70 years old wrote:

A Viet Kieu with a Viet Kieu #1 paper can buy a 50 year "ownership" on a piece of property or full ownership in a condo.

Interesting. This #1 paper, I was told to get a document from embassy in my country. Is this the same document? The embassy asked me why i need it as foreigners could buy property now. I said, why would I want a 50 year lease when the law say's Viet Kieu can get same rights as local Vietnamese. They also said that she hasn't had to issue it for a long time as it was something people used to have to get to conduct business in Vietnam. Do you happen to know the name of it?

Does your wife have a vietnamese passport?

70 years old wrote:

A Viet Kieu with a Viet Kieu #1 paper can buy a 50 year "ownership" on a piece of property or full ownership in a condo.

Can you clarify this. Whats your definition of property and condo?

What is a #1 paper?

Kingsheathern wrote:

Hi everyone.  I'm looking to buy an apartment in Saigon.  I live in the UK and I might want to stay living in the UK for a while after I've bought the apartment.  What sort of visa do I need to buy a property?  Is a tourist visa OK or does it need to be something else? 

If I went to an agent like Savills will they be able to assist me with buying all apartments in Saigon or do they just sell their own apartments?

I don't want to spend too much money.  Ideally something around the $75,000 price.  Can anyone recommend anything around this price, or maybe something a bit more expensive. 

How easy is it for foreigners to get mortgages in Vietnam? 

Thanks in advance for any help you can give.

You should contact my agent over at Savills. If you want his contact if, DM me. Savills sells apartments for the developers and don't have their own apartments. Foreigners currently cannot obtain a mortgage.

Thanks CoderX10. I will contact you by DM.

With the current market as it is, it will be tough to find something around the US$75k price point available for foreigners. It depends on your intent -- investment or for residence.

I believe there may be still some apartments in District 9 (such as Nam Long's "Flora" apartments or Gia Hoa's "The Art") or edge of District 2 around that price, ranging from US$1,200 - US$1,400 per sqm. Price goes up each month, due to demand. Nha Be District, near District 7 (Phu My Hung), will also have projects around that price.

However, it's a worthwhile long-term investment, as the city "moves east" and District 2 and District 9 are undergoing major urban development, particularly if you plan to stay in UK for a while after buying.

Prices have risen rapidly in those districts, making it a market for people to flip or hold.

For Savills, I don't think they deal with apartments in Saigon around that price. You may need to deal with smaller local agents or buy from the developer directly.

For visa, tourist visa is ok. Just to come in, see the property, sign the contracts and done.

For mortgage, it's possible. Each project/developer usually has a tie-up with a bank to assists in financing. However, with interest rates of around 10% p.a., it's not attractive. Most buyers do not take loans when buying Vietnam property for this reason.

In relation to non-residents getting a mortgage.

https://tranio.com/vietnam/mortgage/

Hi guys, I am helping foreign buyers to purchase a property in Vietnam and here are some answers for commonly asked questions by foreigners considering buying property in Vietnam.

Who is eligible to own properties in Vietnam?

The amended Housing Law granting greater property rights to oversea nationals has been effective since 1 July 2015, with an implementation guide recently issued under Decree No. 99/2015/ND-CP. There are two groups of oversea nationals that are allowed to own properties: legal entities such as foreign investment funds and banks, Vietnamese branches and representative offices of overseas companies that are established in Vietnam; and overseas nationals who have an appropriate visa entry.

What are some types of property ownership?

Viet Nam's Land Law was updated in 2013 and effective since 1 July 2014. The land owner, in effect, manages the land on behalf of the state; land cannot be privately owned. Organizations and individuals can acquire land-use rights (LURs) via a land lease or a land allocation that may require a land-use fee (LUF). The land allocation is also known as a land grant. The differences between a land lease and a land allocation under the LUF are:

1/ For the land allocation, the land user pays a one-off fee, while for the land lease, the land user has a choice to pay the land rental on an annual basis or a one-off sum for the entire term of the lease;

2/ a land allocation term of agreement can be either for a definite or indefinite timeframe, whereas the land lease is for a fixed term. The land-use plan is approved annually by the local authorities, allowing land users to know which LURs are available.

According to the revised law, foreign enterprises are now eligible to allocate land requiring land-use fees for the development of residential projects for sale, or for sale and lease, promoting fairness between local and foreign investors in the property market. In addition, foreign investors may also acquire LURs through a land lease under which they can pay the land rental on an annual or lump-sum basis for residential projects for lease.

The new law also states that foreign entities eligible for land allocation and land lease with a one-off lease payment are entitled to transfer, sublease, give, mortgage and contribute the LURs during the term.

How long is the land lease term?

The term of a land lease and a land allocation for foreign enterprises must not exceed 50 years, although for certain major projects under difficult circumstances, there is the possibility to increase the term to 70 years. However, eligible buyers will obtain freehold LURs. For sites used for diplomatic purposes, the lease term can be up to 99 years and extended.

What are some ownership restrictions?

The Ministry of Construction issued Circular No. 19/2016/TT-BXD guiding the implementation of the Housing Law, and Decree No. 99/2015/ND-CP stipulating the number of apartments that foreigners can own, aiming to tighten resale procedures that will increase real estate transparency as well as streamline paperwork and administrative procedures. The new law limits overseas ownership to 30% of the total units within an apartment complex, and a maximum of 250 houses in a ward.

Overseas nationals are allowed to own properties as stated in the commercial contracts, but are limited to a 50-year tenure and optional renewal three months before the expiry date. An overseas national who is married to a Vietnamese citizen or a Vietnamese expat is entitled to freehold tenure.

The decree also allows foreigners to pay for the property via a financial organization operating in Vietnam. The retail banking sector is highly competitive, and this could promote property mortgage access for overseas nationals.

What are the procedures for buyers living abroad transfering money to own properties in Vietnam?

Vietnamese who are residing abroad, or foreigners that are eligible to own properties in Vietnam can transfer money to purchase properties through the following forms:

-      Open account in a Vietnamese bank to purchase property via bank transfer to sellers;

-      Transfer money directly from overseas to the seller's account, the seller will contact the bank to convert foreign currency into Vietnam dong. In this case there must be a swift code provided by the bank from the seller's account when making payments.

-      Pay by Cash via bank transfer to the seller.

The payments above applied only for common situations. For purchasing property in particularly, the Decree No. 99/2015/ND-CP of the Government dated 10/20/2015, under the Government's instructions will further inform on the guidance of implementing the Residential Law by the State Bank, with specific instructions for payment of purchase, land lease or land allocation via financial organizations, foreign individuals, and Vietnamese residing overseas when buy/lease properties in Vietnam.

Therefore, while there's no official guidance from the State Bank. Foreigners can contact commercial banks to learn about the procedures to own purchase properties via the payments mentioned above.

http://www.luxuryproperty.sg/vietnam-fo … hip-guide/

CoderX10 wrote:

Kingsheathern wrote:

Hi everyone.  I'm looking to buy an apartment in Saigon.  I live in the UK and I might want to stay living in the UK for a while after I've bought the apartment.  What sort of visa do I need to buy a property?  Is a tourist visa OK or does it need to be something else? 

If I went to an agent like Savills will they be able to assist me with buying all apartments in Saigon or do they just sell their own apartments?

I don't want to spend too much money.  Ideally something around the $75,000 price.  Can anyone recommend anything around this price, or maybe something a bit more expensive. 

How easy is it for foreigners to get mortgages in Vietnam? 

Thanks in advance for any help you can give.

You should contact my agent over at Savills. If you want his contact if, DM me. Savills sells apartments for the developers and don't have their own apartments. Foreigners currently cannot obtain a mortgage.

Savills, no, no...
Contact me via pm to obtain the right the right info...

Essentially, you and the other party meet either in the property in question with the 'escrow' company person or the Office, with either the paperwork or the money. The 'escrow' person makes sure that everything is correct as agreed to, then takes the money and the paperwork and hands them to the proper person.

This actually seems to work well and is a lot cheaper than escrow.

While the face to face escrow method described by 70 years old seems efficient, what seems to be lacking that one expects in a western escrow situation is a title search and maybe more critical, a title guarantee.  Does this process ensure that the person who receives the money is actually entitled to sell the property?  I am sure even most foreigners have heard of people in Vietnam selling property without proper title.  This could get nasty when the real owner shows up.      If one is buying directly from the developer then this process is probably fine but if your spouse is buying from another Vietnamese that could be a problem.  Maybe the government is actually doing expats a favor by only allowing first sales of new units for foreigners.

First sales of new units to foreigners...
I recently met two foreigners who are waiting to buy in Masteri D2, as none are for sale to qualify for the 30% ownership rule?
Mike

THIGV wrote:

While the face to face escrow method described by 70 years old seems efficient, what seems to be lacking that one expects in a western escrow situation is a title search and maybe more critical, a title guarantee.  Does this process ensure that the person who receives the money is actually entitled to sell the property?  I am sure even most foreigners have heard of people in Vietnam selling property without proper title.  This could get nasty when the real owner shows up.      If one is buying directly from the developer then this process is probably fine but if your spouse is buying from another Vietnamese that could be a problem.  Maybe the government is actually doing expats a favor by only allowing first sales of new units for foreigners.

The first thing you do is go to the UBDN and check the ownership papers(pink or red book) , you also take the national ID card of the seller to check against the title held at the government office to make sure they match.

colinoscapee wrote:

The first thing you do is go to the UBDN and check the ownership papers(pink or red book) , you also take the national ID card of the seller to check against the title held at the government office to make sure they match.

So it sounds ike a title search is possible, with a Vietnamese helper or spouse, but that you have to do the legwork yourself.

THIGV wrote:

colinoscapee wrote:

The first thing you do is go to the UBDN and check the ownership papers(pink or red book) , you also take the national ID card of the seller to check against the title held at the government office to make sure they match.

So it sounds ike a title search is possible, with a Vietnamese helper or spouse, but that you have to do the legwork yourself.

Yes or you can hire a lawyer you can trust. We do it ourselves, my wife's parents go to the UBDN for us as they live closer.

Hi there,

We are in the process of buying an apartment right now from a foreigner.  Do we need a lawyer to look through the contract? Or can we do without?  Also, once it is finalise and we will have to renovate from the shell stage of the apartment, any recommendation of good and reliable contractors?

Thank you in advance

Kiwiming wrote:

Hi there,

We are in the process of buying an apartment right now from a foreigner.  Do we need a lawyer to look through the contract? Or can we do without?  Also, once it is finalise and we will have to renovate from the shell stage of the apartment, any recommendation of good and reliable contractors?

Thank you in advance

YES!! Get a lawyer!

Note, I have been more or less involved in buying real estate both here and going back almost 70 years when I was deeded a quarter acre in Texas as a child. Normally, I only use a lawyer for the actual sale contract. I also have substantial  experience in American Real Estate in California and Texas.

Hi,

Would you know any good lawyer that you can recommend?

Thank you.

Hi 70 years old,

I am new to this. Would you be able to recommend a lawyer to me please.

Regards.

I recommend that you translate the contract for 2-3 million dong before you spend money on a lawyer.
Everything is regulated in a serious contract.
When what has to be paid and when what has to be delivered.
Usually you will pay a reservation fee of maybe 50 million dong.
Afterwards foreigner usually pay the rest together up to 95% of the purchase price.
The last 5% after receiving the pink book.

However, please note the following when buying a condominium:
- In the big cities, prices are way too high right now. Better wait until the real estate bubble bursts.
- You will never be able to rent the apartment to someone at the price indicated by the seller.
- In 5 years the building usually looks as if it is 10 years old.
- You pay ancillary costs for maintenance. Maybe nonrecurring 1% of the purchase price. If you are unlucky, however, the maintenance is neglected.
- You pay monthly service fees. Maybe 7k Dong per m2.
- If you buy the apartment as a shell, you have to take into account 100 - 800 million Dong depending on the standard and size of the condominium.
- AND: There will certainly be many noise nuisances. And there's nothing they can do about it.

Kiwiming wrote:

Hi there,

We are in the process of buying an apartment right now from a foreigner.  Do we need a lawyer to look through the contract? Or can we do without?  Also, once it is finalise and we will have to renovate from the shell stage of the apartment, any recommendation of good and reliable contractors?

Thank you in advance

My wife of 46 years is Vietnamese and I speak Vietnamese. We have extensive experience in construction and buying and selling real estate both in Vietnam and America. We have found that a Lawyer's advice and involvement is generally well worth the relatively small cost involved.

As to repair and/or renovation contractors, we typically take over that responsibility and are very 'hands on.' Note, I am now elderly and caring for a gravely ill wife. I am in no position to get involved in any new projects.

Andy Passenger wrote:

I recommend that you translate the contract for 2-3 million dong before you spend money on a lawyer.
Everything is regulated in a serious contract.
When what has to be paid and when what has to be delivered.
Usually you will pay a reservation fee of maybe 50 million dong.
Afterwards foreigner usually pay the rest together up to 95% of the purchase price.
The last 5% after receiving the pink book.

However, please note the following when buying a condominium:
- In the big cities, prices are way too high right now. Better wait until the real estate bubble bursts.
- You will never be able to rent the apartment to someone at the price indicated by the seller.
- In 5 years the building usually looks as if it is 10 years old.
- You pay ancillary costs for maintenance. Maybe nonrecurring 1% of the purchase price. If you are unlucky, however, the maintenance is neglected.
- You pay monthly service fees. Maybe 7k Dong per m2.
- If you buy the apartment as a shell, you have to take into account 100 - 800 million Dong depending on the standard and size of the condominium.
- AND: There will certainly be many noise nuisances. And there's nothing they can do about it.

All very good points. I do quibble a bit with, "- In the big cities, prices are way too high right now. Better wait until the real estate bubble bursts."

As the Vietnamese economy is improving and by American and Japanese standards, in many locations Vietnamese real estate is still fairly reasonably priced. Depending on the specific property, the danger of a real estate bubble bursting varies substantially.

"Maybe nonrecurring 1% of the purchase price. If you are unlucky, however, the maintenance is neglected." You are a part owner of the Condo and should attend, be involved in and vote at the Condo meetings."

To 70 years old,

I am so sorry to hear about your wife is not well, I'm sure you have alot of great memories together.

Thank you very much for your advice, I will look for a lawyer when I come back to HCMC early September. If you know of any good contractors that speaks English please pm me. Thank you.

Regards,
Kiwiming

70 years old wrote:

As the Vietnamese economy is improving and by American and Japanese standards, in many locations Vietnamese real estate is still fairly reasonably priced. Depending on the specific property, the danger of a real estate bubble bursting varies substantially.

Probably you are right. I am not a real estate expert.
I only see that you have to pay up to 3 billion Dong for 100m2 of building land at the outer edge of HCMC (in Binh Chanh) and in the neighboring Long An (after all about 20-25km from the city center around District 1).
Even in Ben Luc (Long An), about 35km from the city centre, you already have to pay 12 billion Dong for 100m2.
Personally, I find this exaggerated, although I do not know the exact land prices for suburbs of other large cities.

My 70m condo was 1 billion 2 one year ago. Currently, I believe it is around a billion 5. The price  six years ago was 0.750 billion.

Note, this is a Vietnamese only building. We qualified as my wife's brother is a Vietnamese citizen

Andy Passenger wrote:

70 years old wrote:

As the Vietnamese economy is improving and by American and Japanese standards, in many locations Vietnamese real estate is still fairly reasonably priced. Depending on the specific property, the danger of a real estate bubble bursting varies substantially.

Probably you are right. I am not a real estate expert.
I only see that you have to pay up to 3 billion Dong for 100m2 of building land at the outer edge of HCMC (in Binh Chanh) and in the neighboring Long An (after all about 20-25km from the city center around District 1).
Even in Ben Luc (Long An), about 35km from the city centre, you already have to pay 12 billion Dong for 100m2.
Personally, I find this exaggerated, although I do not know the exact land prices for suburbs of other large cities.

Where did you see land in Ben Luc for 12 ty. We bought land on the main river in My Tho and paid 4.5 ty for 3000 sqmts. Id like to see the advert for the 100m2, most probably the best piece of land in the whole town. I think you mean 1.2 billion.

https://m.batdongsan.com.vn/ban-dat-ben-luc-la

colinoscapee wrote:

Andy Passenger wrote:

70 years old wrote:

As the Vietnamese economy is improving and by American and Japanese standards, in many locations Vietnamese real estate is still fairly reasonably priced. Depending on the specific property, the danger of a real estate bubble bursting varies substantially.

Probably you are right. I am not a real estate expert.
I only see that you have to pay up to 3 billion Dong for 100m2 of building land at the outer edge of HCMC (in Binh Chanh) and in the neighboring Long An (after all about 20-25km from the city center around District 1).
Even in Ben Luc (Long An), about 35km from the city centre, you already have to pay 12 billion Dong for 100m2.
Personally, I find this exaggerated, although I do not know the exact land prices for suburbs of other large cities.

Where did you see land in Ben Luc for 12 ty. We bought land on the main river in My Tho and paid 4.5 ty for 3000 sqmts. Id like to see the advert for the 100m2, most probably the best piece of land in the whole town. I think you mean 1.2 billion.

https://m.batdongsan.com.vn/ban-dat-ben-luc-la

Uuups, you are right. 
I mean 12 million / m2 or 1.2 billion for 100m2.

Hi,

I bought 2 apprtments in Q2.

colinoscapee wrote:

We bought land on the main river in My Tho and paid 4.5 ty for 3000 sqmts.

But for that price, it's gotta be farmland, right?

We're in the process of converting farmland into building land.
Even my wife's family wouldn't have thought it was so complicated.
Long An is currently very restrictive with the granting of building land rights.
They only allow about 150m2 per person and they want to make sure that you are really building a house and not just reselling it to make money.

No its not farmland, we have a pink book for construction approval.

Hi there,

Looking for a lawyer to look into our contract.  Any recommendation?

Thanks in advance.
Kiwiming

"Dear all, I have some quick questions..." asked the OP in 2016.

I wonder whether his estate sale has closed   



best,
Aidan

Hi everyone, I read a lot in this forum about buy apartment in Vietnam,all the risk and everything.

I just found what I'm looking for, I means the city and the price, I'm interested in buy apartment in Bien Hoa and in internet I found in Paradise Riverside ,they sell apartment from 7.5 millions /metres
This means will cost around 600 millions , exactly around what I'm intend to spend, and I like it Bien Hoa ,because close to Hcmc but not crowded like hcmc.

Anyone know about this apartments? They already finish some? Or is just all off the plan? Anyone know if the builder have some trouble with payment and bank?

I don't have scare to buy there, I have scare of buy something what risk to don't get...after read few stories about some off the plan building