Let us cut to the chase: with its ever-increasing gross domestic product (GDP), ever-intensifying internal trade, ever-developing infrastructures, and its 17-billion dollar foreign direct investment (FDI) last year alone (despite the Covid 19 pandemic!), it is no surprise that its promising economic upsurge has already attracted, and keeps enticing foreigners into investing in Vietnam’s education, health, transportation, aeronautics, and agribusiness sectors, to name only a few. Small and large investors alike are turning towards it, as a result, with motivating factors such as:
With an estimated population of 9 million, it is crystal clear that Saigon is the best embodiment of the rapid economic and infrastructural development the country has seen in recent years. And the years to come are promised to stimulate an even greater influx of foreign investors, who rejoice at the investor-friendly policies the country has been implementing.
Numerous are the statistics that are truly auspicious for foreign investments, of which most notably that in 2020 alone, amidst the Covid 19 crisis, Vietnam scored a 2.91 % increase of its GDP, forecasting that, by the year 2050, Vietnam is to be the 20th largest world economy. That being said, and with about 38 % or so of its total population being younger than 25 presently, a remarkably large upcoming portion of consumers is to further boost the economy in the years to come!
As of today, and by signing deferred tax assets (DTA) with 80 countries, Vietnam has progressively been implementing alleviating measures to help facilitate international business relations. These agreements are meant to prevent double taxation on revenue and property, dampen tax evasion, and promote trade.
We are now going to be focusing on yet another booming sector of the country’s economy: the real estate market.
While some have their sight set on earning big, others simply wish to have a property of their own. Whatever the reason, ever since the approval of the 2014 legislation regarding land acquisition, foreigners have now gained access to this explosive market, too. Lo and behold, half of all recorded real estate transactions since then are to be attributed to foreign investors!
Although much stricter and more shackling laws used to restrict and limit the purchase of real estate to one only piece of property, it has since then positively changed, making it easier to not only acquire land but similarly enjoy the adjoined advantages of ownership.
Although one is even permitted to buy property on a tourist visa, all is not a bed of roses, however, as a foreigner can only possess 30 percent of the total units he buys, purchase no more than 250 properties in the same district, and considered the rightful owner for solely 50 years, extended under certain circumstances.
In that regard, Vietnam is collectivist, and as such, the land ultimately belongs to the state. Being married to a Vietnamese national and conjointly acquiring property not only tremendously helps with the process but is one among other oftentimes limiting prerequisites. It is best, but not mandatory, that you hire a lawyer to help you settle it.
Once you have set your mind on the property to acquire, a 100-million non-refundable deposit is to be paid following the signing of the downpayment contract, in which all the information regarding payment and deadlines is detailed. You have then two weeks at your disposal to fulfill the contract and proceed with your first remittance.
Following management and transaction fees, expect yet an additional 2 % of the purchase price for maintenance as well. When everything goes as planned and your eligibility is ascertained, you will be handed the sales contract, after which the pink-colored certificate of ownership housing and land use rights is to be issued.
The national currency being the Vietnamese đồng, one is normally not allowed to purchase property using American dollars. As such, it is necessary to get it converted beforehand, that is if one wishes to pay it all at once or bit by bit in cash.
As there is nothing as tempting as acting hotheadedly, avoiding mistakes is undeniably life-saving in South-East Asia. Scams not being uncommon, one can quickly become disenchanted, with large amounts of money down the drain after being promised wonders by an unscrupulous agent. You want to buy property, not buy into delusions. Therefore, before diving headlong and risking losing it all, one had better understand the inner workings of the market, moreover the codes that lead it.
We could not possibly stress enough how important entrusting the search for property to a proper agent is. The Internet is a great resource when it comes to looking for one. And as much as there are con artists, there are reputable, trustworthy agents too, who have your interests at heart and set out to make sure the negotiations leading to the bill of sale go smoothly.
At Realty Quest, we have got you covered, from start to finish, ensuring that you get precisely what you pay for. We sure do hope to have given you sufficiently insightful information in this article on why investing in real estate in Saigon conscientiously bears fruit in the end.