Foreigners buying property in Vietnam is possible in some ways, according to the Vietnamese Law on Residential Housing. However there are some rules and regulations that foreign citizens must know before purchasing any kind of real estate properties in Vietnam. This article is helpful guidance for those who are looking forward to investing in land or house to make a profit or for long-term residence in this beautiful country.
The new Vietnam Housing Law became effective from July 1, 2015 making it easier for foreign citizens or investors to buy real properties in Vietnam. Below are the main key points of which you should take notice in this new housing law of 2015:
The new Vietnam Housing Law of 2015 comes with major changes, especially for foreigners buying property in Vietnam
Before buying any real estate, it’s mandatory to obtain a certificate of proprietorship issued by the Vietnamese government. The certificate is usually known as the “Pink Book” and it expresses ownership of houses, land use rights and other assets that come with the land.
Here are some of the uses that the pink book has:
Ask yourself what are the goals you want to achieve when buying real estate in Vietnam. If it’s work related, you might want to buy a house near your workplace. If you want a place to relax and enjoy your time in Vietnam during vacations, then we suggest some famous coastal cities in Vietnam such as Da Nang, Nha Trang or Quang Ninh.
If you’re looking to gain some profit by leasing or selling the real properties, consider the central areas in Ho Chi Minh City or Ha Noi.
The process of buying real estate in Vietnam might be discouraging sometimes. That’s why it’s best that you find a real estate agency who can give you updated information about the property or areas which you’re about to invest in. The real estate agents will also play an important role in helping you complete the legal procedures of buying a house in Vietnam.
Moreover, foreigners should also consult a good lawyer in the field before making any significant transactions.
Vietnamese real estate agencies will give foreigners buying property in Vietnam useful information
After you have selected the appropriate real estate, it’s time to sign a deposit contract and make a booking for the house. The amount of money for deposit mainly depends on the consensus between the seller and purchaser.
After agreeing on all of the terms in the contract, the relevant parties will sign a housing purchase contract. The contract will determine the rights and obligations that the purchaser and the project investor need to follow.
The purchaser can pay for the real estate by choosing one of the following methods:
After being handed over the real estate, now you can prepare the documents to apply for the certificate of real property ownership.
Final payment should be executed within 14 days once you’re notified about getting the pink book
Before being handed over the property, the buyer needs to pay the maintenance fee, which is equal to 2% of the total price of the house. Moreover, you also have to pay the registration cost, operation and management fees along with an extra installment.
Real estate prices in Vietnam are usually considered low. In the central areas of the cities, you can get a property with an average price of $2.300. The real estate in the suburban areas only cost around $1.100.
Similar to most of the countries in the Southeast Asian countries, Vietnam doesn’t allow citizens with foreign nationality to buy and possess land. This also applies to the local Vietnamese people. The country’s constitution stated very clearly that the land is under the control of the government and is jointly possessed by all of the Vietnamese people.
Nevertheless, foreigners are permitted to lease the land for a period of 50 years or up to 99 years, depending on different cases.
If no problem occurs, after 50 days since the handover of the real property, the purchaser will receive the pink book.
Above are some of the rules regarding foreigners buying property in Vietnam. Buying real estate in Vietnam might be challenging, even for local people. It’s a quite complicated process that requires you to have a certain understanding about the Vietnam Housing Law. Alpha Housing hopes that this topic will simplify the idea of purchasing a house in Vietnam for foreign citizens.