5 mistakes to avoid when buying a property in Vietnam

Vietnam is a land of lavish properties available a decent budget, for those home enthusiast investors. This country is slowly emerging as the center for affordable luxury real estate. The locals and the foreigners have been displaying deep interest in purchasing properties for high rental yields. Vietnam’s real estate scenario with its potential for growth can bring good returns on the investment. As a home buyer here is a few mistakes to avoid while narrowing down on Vietnam property for sale.

  1. Zero in on the potential locations

From a broader perspective, the properties around the country might all look somewhat similar. But the price changes are different in different parts of the country. Take the price trends of the year 2018 for example. In Ho Chi Minh City the property prices saw a 3.2% surge. Whereas in Hanoi there was a 1% drop in the property prices. Home buyers should understand the new developments in the area, critical political decisions and infrastructure changes in the chosen area. This makes it easy to gauge the value of the property better.

  1. Beware of the scams

There are several types of scams including fake hotels, fake taxis, and counterfeit properties.  The biggest of them all is the unlicensed property agents functioning under the radar. These are agents that the homeowners should avoid while choosing their property. The homeowner should ensure that he doesn’t lose his property on a fake property deal; it is imperative to choose reliable property finding sources.

  1. Lack of planning about the finance arrangements

Utmost care should be taken a while, moving funds from the native account to Vietnam. Buying a property as a foreign investor one should carefully draft the financial payments and hand over the cash in installments. This is a transparent process, but it does take a lot of paperwork. Make sure that everything takes place in a legally sound way; home buyers should plan about finances in advance.

 

  1. Educate oneself about the terms and conditions for foreign investors

The first and foremost thing to understand about Vietnam properties as a foreign investor is that foreigners cannot own freehold land. The property can be owned, and the land can be leased for a maximum of 50 years. The homeowner can then extend the leasehold period if required. Also, there are different types of restrictions on the number of properties in a community that can be sold to foreigners. Getting to know about these limits makes sure that the home buyer doesn’t violate any of the laws.

  1. Leaving out the tax and other costs in the home budget calculation

While the property prices in Vietnam are relatively lower than in most other cities, there are other transaction costs involved. One should be aware of the fee charged for the registration of the property. Along with this fee, there is the VAT and notary fee to be paid as well. In case the deal involves a real estate agent there is a specific commission charged by the agent as well. These are expenses that are not included in the mortgage. So, it is critical to plan them.