Merits of real estate investment in Vietnam

sialim wrote:

Hello,
I'm trying to assess the merits of real estate investment in Vietnam.

As a single foreigner with tourist visa only,
What are the best options?
Is it even worth it?
I read can only buy apartments in certain places and 59 year lease? Can only sell to another foreigner?

What other investments would you suggest for medium-long term?

Thanks

This is a serious reply.

I'm not meaning to insult you.

But I don't think anyone who doesn't know how to use Google to find the plethora of information on this subject that's already been posted should ever trust himself to invest money in Vietnam.

You are way in over your head before you've even started.

But hey, seriously, good luck with that.

OceanBeach92107 wrote:

sialim wrote:

Hello,
I'm trying to assess the merits of real estate investment in Vietnam.

As a single foreigner with tourist visa only,
What are the best options?
Is it even worth it?
I read can only buy apartments in certain places and 59 year lease? Can only sell to another foreigner?

What other investments would you suggest for medium-long term?

Thanks

This is a serious reply.

I'm not meaning to insult you.

But I don't think anyone who doesn't know how to use Google to find the plethora of information on this subject that's already been posted should ever trust himself to invest money in Vietnam.

You are way in over your head before you've even started.

But hey, seriously, good luck with that.

This sentence pithily sums up the problem with most forums on the internet: 
  “But I don't think anyone who doesn't know how to use Google to find the plethora of information on this subject that's already been posted should ever trust himself to …..”

I would only tweak this by adding “accurate [as well as a constant barrage of wildly inaccurate]“ before “information”

sialim wrote:

Hello,
I'm trying to assess the merits of real estate investment in Vietnam.

As a single foreigner with tourist visa only,
What are the best options?

With a tourist visa, I don't think you have any options.

Apparently being married to a local helps a lot.

sialim wrote:

Is it even worth it?

Not sure, but I think there's a glut of properties in this country. I suppose there may be some demand in certain areas.

sialim wrote:

I read can only buy apartments in certain places and 59 year lease? Can only sell to another foreigner?

There are restrictions. If not these, then something quite similar.

sialim wrote:

What other investments would you suggest for medium-long term?

Thanks

Well, most everything is suspended as HCMC, and the surrounding industrial areas remain under hard lockdown, as well as various other cities. If the country is eventually able to open along with the rest of the AEC, there may be some golden opportunities.

I was just reading this morning about "Thailand hoteliers forced to sell as COVID hits cashflow".  I imagine the situation will be similar throughout most of the ASEAN region. So, perhaps, a small hotel, assuming that tourists are allowed to enter the country?

Or, how about a coffee plantation?

Hi.
I bought apartment  from novaland in Phu Nhuan district Saigon. It's simple find apartment in new development and buy it . And live the way you want to live . What happened after fifty years. Who knows. If you worry what going to happen after fifty years... then up to you. On tourist visa of three months. You can buy it. I did. But after three months you have to renew your visa. That's is another issue. Looking for good return in short term forget it.

Yeah, developers are hungry for funds. But after you buy, what then? If you think of renting it out, who will collect rentals for you? And where will you stay meanwhile.  You can continue to renew your visas after 3 monthly intervals. For foreigners, lease is for 50 years and 'renewable'. Just only for apartments, no landed properties. Hope this helps..

Swee Loke wrote:

Yeah, developers are hungry for funds. But after you buy, what then? If you think of renting it out, who will collect rentals for you? And where will you stay meanwhile.  You can continue to renew your visas after 3 monthly intervals. For foreigners, lease is for 50 years and 'renewable'. Just only for apartments, no landed properties. Hope this helps..

Best to shop around, even in the same development prices vary hugely between those that have higher opinions of the development than others.

Also worth pointing out, foreigners can only buy from either the developer who has "foreigner" allotment available or another foreigner looking to sell

sialim wrote:

Hello,
I'm trying to assess the merits of real estate investment in Vietnam.

As a single foreigner with tourist visa only,
What are the best options?
Is it even worth it?
I read can only buy apartments in certain places and 59 year lease? Can only sell to another foreigner?

What other investments would you suggest for medium-long term?

Thanks

How can you possibly have a tourist visa? They were all cancelled about 18 months ago.
Bank accounts opened on tourist visa also had to be closed in 2018, as far as I remember, unless it had been upgraded to a business visa or a TRC. The laws have changed, and are forever changing. I don't think you can even buy property on a tourist visa now. Mate, you need to do some serious homework.

I simply had the money and I bought it. I did not wanted to rent my apartment out. I had to return twice. I kept my apartment empty. I did open the account in o c b. Back. Which was open on visiting visa. If people so concern about so many issues then it not safe for you. Me I just bought it because I wanted to. What will happen after 50 years. I could not care . I enjoy the present as it is. I am not investor. I don't care if property goes up or down. If you are looking for quick and easy return then Vietnam is the wrong country for you.  I hope this cleared up. If caused any confusion.

What is your name

Ashiqzarina wrote:

I simply had the money and I bought it. I did not wanted to rent my apartment out. I had to return twice. I kept my apartment empty. I did open the account in o c b. Back. Which was open on visiting visa. If people so concern about so many issues then it not safe for you. Me I just bought it because I wanted to. What will happen after 50 years. I could not care . I enjoy the present as it is. I am not investor. I don't care if property goes up or down. If you are looking for quick and easy return then Vietnam is the wrong country for you.  I hope this cleared up. If caused any confusion.

Noted.

Keep in mind that the original poster (OP) didn't seem to be asking about living in Vietnam.

He was asking about investing in property on a tourist visa.

That indicates that he is probably wanting to purchase property and rent it out, either through Airbnb or long-term lease.

Anyone who enters the country on a tourist visa might in fact be able to purchase a piece of property, but unless they have some sort of residence status their ability to collect rents is going to be zero.

That's why many expats who are investing in property are also married to a Vietnamese citizen who actually has the right to collect rents on the property in Vietnam.

I know good old boy has a lot of experience with property here and he can probably enlighten you much better than me.

Hi. Vietnam is not for investment country for us...go look for many other countries u a e. Malaysia. Or so on. Not Vietnam..

sgarry2255 wrote:

Did you ask me?

Please use the "Quote function" so we know who you are replying to

Looks like someone figured out Sgarry was a troll.

OceanBeach92107 wrote:

Ashiqzarina wrote:

I simply had the money and I bought it. I did not wanted to rent my apartment out. I had to return twice. I kept my apartment empty. I did open the account in o c b. Back. Which was open on visiting visa. If people so concern about so many issues then it not safe for you. Me I just bought it because I wanted to. What will happen after 50 years. I could not care . I enjoy the present as it is. I am not investor. I don't care if property goes up or down. If you are looking for quick and easy return then Vietnam is the wrong country for you.  I hope this cleared up. If caused any confusion.

Noted.

Keep in mind that the original poster (OP) didn't seem to be asking about living in Vietnam.

He was asking about investing in property on a tourist visa.

That indicates that he is probably wanting to purchase property and rent it out, either through Airbnb or long-term lease.

Anyone who enters the country on a tourist visa might in fact be able to purchase a piece of property, but unless they have some sort of residence status their ability to collect rents is going to be zero.

That's why many expats who are investing in property are also married to a Vietnamese citizen who actually has the right to collect rents on the property in Vietnam.

I know good old boy has a lot of experience with property here and he can probably enlighten you much better than me.

This Goodolboy has just ended his tentative venture into the Vietnam rental market renting to a local young couple & never ever again & have terminated the contract by mutual agreement thank god. I have just spent 2 days cleaning, painting & re plastering a previously beautiful apartment that I handed over to them 6 months ago back to an acceptable level after looks like 6 people lived in it & I can honestly say in the 6 months they lived there it never once got cleaned. It took me 2 hours scrubbing & cleaning just the cooker & extractor fan which were absolutely yirded in fat & grime & don't even ask about the toilets. There were 8 like plaques they had stuck by strong sticky tape to one wall & they had just been ripped off taking large areas of the plaster with them when they moved out.
To conclude....................never ever again!

On the positive side my selling agent has advised me that the selling prices for a flat like mine 73m2
2wc/shower 2 bed room have certainly not gone down post lockdown & she will market the place at 2.2 billion & is confident to get 2.1 billion & has a client viewing arranged on the apartment for Sunday.

For anyone thats interested as I have stated here before, my experience in property market (6 properties, 5 financed by me not owned & 1 owned) as an investment in Vietnam has always been good & some very good when sold.

The property I own & now will sell I bought for 1.75 billion, sell for lets say 2.1 billion = 350,000,000 less tax & selling fee's 65million =  295,000,000 @ 23,300 fx VND to USD  = +12,600 USD.

I know there is a lot more than just this simple calculation to take into account  but as far as I am concerned taking into account the situation here in HCMC I am very happy to take any profit. I owned the flat for approximately 2.5 years.

Good info for any potential landlords getting into buying and renting here.

I'm amazed there was no inspections when we rented as is normal with places in Australia, is that not in a standard rental contract here GOB?

How much did you withhold from the bond?

Andybris2020 wrote:

Good info for any pertential landlords getting into buying and renting here.

I'm amazed there was no inspections when we rented as is normal with places in Australia, is that not in a standard rental contract here GOB?

Yes same for my properties in UK,  in to the contract the letting agent has access after the first month & thereafter 3 monthly visits. Here not really sure as the contract was in Vietnamese but on the positive side there was a 2 months deposit given, they tried for 1 but I refused & stipulated 2 months rent as deposit.

As a matter of interest here in Vietnam the standard is the the agents finders fee is 1 months rental so taking into account the term ended up as 6 months & out of that they only paid the full rate of 8 million per month for 3 months & then with Covid I reduced it to 5million  then 4 million financially it was pretty much a waste of time. I refused to return the full deposit of 16 million because of agents fee & damage & eventually they accepted 7 million.
LESSON LEARNED!! & I am sure there will be those that have good experiences on the rental market here & if the apartment had been a tip when I rented it out & I got it back as a tip then no complaints, but this apartment was done up to a high Western Standard!!