How difficult is the buying property process in Vietnam?

Foreigners are not allowed to own the land. In fact, even citizens are not allowed to own the land. In Vietnam, land is jointly owned by the people, but regulated by the State.

Foreigners who are residents of Vietnam are permitted to buy dwelling houses. They may own a house but not the land on which it was built. They have the right to choose to rent land from the State.

However, the leading foreign real estate agent in Vietnam, Chesterton, is marketing a 50-year lease program, almost as a sale. Under this plan, the buyer has a right to the apartment for 50 years and the right to extend the lease at the end of the use term without having to pay extra rent. If the foreigner’s ownership of the property becomes legal during that time, the complex owner will transfer the ownership of the apartment to the buyer. If the building has to be sold for some reason, the buyer will receive a portion of the interest. And because the contract is just a lease, the buyer can sublease his apartment. In other words, the contract gives the buyer plenty of ownership. For example, Chesterton sold a 38-year lease in the Parkland building, which has existed for 12 years (the maximum lease period under Vietnamese law is 50 years).

Foreign investors can also invest in Vietnamese real estate by establishing joint ventures with local partners or companies with 100% foreign capital or establishing Construction, Operating and Transferring Companies. (BOT) or one of the company variants.

Foreigners who are residents of Vietnam may own houses but cannot lease these houses. Foreign residents can also sell, donate, inherit or donate houses as gifts. But where they end their residence in Vietnam without disposing of their houses, 90 days after they leave Vietnam, their housing certificates will automatically expire and the Vietnamese Government will manage and use them. use their home.

One thing that separates real estate transactions in Vietnam from the rest of the world is that it is made of pure gold. In June, according to Thanhnien News, the amount of gold (1.25 ounces) was equivalent to 11.45 million dong (US $ 510). It is very important to keep this in mind when looking for a property. Buyers must be aware of prices and conversions at all times.

Property registration in Vietnam is not particularly difficult, taking about 43 to 71 days to complete the four required procedures and costs significantly lower than elsewhere in the region.