- What is the Primary Market in Real Estate?
- How to Navigate Your Way in the Primary Market?
- What is the Best Approach to Getting a Good Apartment in Vietnam?
- Buying a House as a Foreigner in Vietnam
- Secure Your Real Estate Deal
- Sign the Purchase and Sale Agreement (SPA)
- Your payment schedule
- Property transfer process
Real estate in Vietnam has traditionally been a lucrative industry with investors clocking substantial profits. As a result, more foreign investors are investigating available housing choices to reap the maximum from the market conditions.
In Vietnam, people can acquire properties on the primary or secondary market. In this article, let’s look at how to acquire an apartment on the primary market: What are the prerequisites for projects, and how can you qualify for them?
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What is the Primary Market in Real Estate?
The Primary Market in Real Estate is the market in which real properties such as lands or buildings are traded and issued for the first time.
As the Vietnamese real estate market grows, more individuals opt to live in flats. Apartment complexes are often less expensive than townhouses. They also include various facilities, services, and a residential community.
There will be a myriad of types of property available for purchase in 2022. To effectively examine all of your purchasing possibilities, you need to understand clearly what your requirements are and be aware of the resources available.
You should be able to answer the following questions to have a better understanding of your preferences:
- Who do you want to share your home with? How many people are going to live with you?
- What is the distance from your current workplace? Is it easy for your kids to go to school? Do you have any difficulties traveling to your office?
- How much can you spend on your real estate property?
- How is the environment around the place you choose? Is it too quiet/noisy for your liking?
- Do you intend to sell it in the near future?
It will be easier for you to limit your alternatives if you answer these questions. A project with an acceptable price but a long distance from schools or stores, for example, may not be suitable for a growing family. An elderly couple seeking convenience and peace may not want to reside in the city core.
RELATED: How to Buy Property in Vietnam: Guide for Foreigners
What is the Best Approach to Getting a Good Apartment in Vietnam?
While you are hunting for your ideal apartment, make sure you obtain as much information as possible on the construction manager, particularly the leading real estate developers in Vietnam. Vinhomes, Khang Dien, Masteries Homes, Keppel Land, Son Kim Land, Nam Long, and Dat Xanh are just a few of the well-known developers. Other renowned real estate companies like Homebase take care of the entire process for you, especially as a foreign property buyer.
Remember to look into the project’s legal status, as detailed below:
- Building permission
- Planning 1/500
- Investment plan approval
- Land allocation decision
- Notice of capital monetization eligibility
- Bank guarantee
Buying a House as a Foreigner in Vietnam
Keep the following in mind if you’re a non-Vietnamese citizen trying to buy an apartment in Vietnam:
Foreigners are only allowed to buy up to 30% of units in any one project. A long-term lease or a Sales and Purchase Agreement will be signed between the developer and the overseas customer in this situation.
Foreigners in Vietnam have the right to live in the country for 50 years. You can apply for a new ownership extension after 50 years. You may or may not be accepted for this extension, depending on the restrictions in effect at the time.
Secure Your Real Estate Deal
The difference between a Down Payment and a Deposit
A Down Payment is the amount of money that a buyer pays in the initial stage of the purchase. It is a portion of the total price, and it is refunded to the buyer if the agreement is not completed.
A deposit is a payment that a buyer must make to the seller to ensure that the buyer will complete the agreement of purchase. This deposit is returned to the buyer when the deal is completed.
After the deposit has been made, the buyer will lose the deposit if they refuse to complete the purchase. If the seller refuses to finish the agreement, they have to give back double the amount of the deposit unless both parties have different terms in their contract.
What documents are needed when making a deposit for a real estate property?
As you make the deposit, bring your ID or passport together with the booking receipt. You and the developer will sign a formal confirmation once you have paid the money. A deposit agreement, consultation contract, or capital commitment, depending on the project, might be used.
Sign the Purchase and Sale Agreement (SPA)
After the deposit has been paid, you will continue to pay the developer in installments. In most cases, you will sign the SPA after paying 30% of the entire purchase price.
The SPA is an important document that establishes your right to live in the country. You should spell out all of the terms and circumstances of the transaction.
By the time you both sign the SPA, the developer should have built the foundation of the building; thus we propose that you double-check the project’s progress. Certain legal conditions must be met for a SPA to take effect.
Before signing the SPA, you should read all of the developer’s documentation:
- A representative of the project should provide you with the legal documents.
- Observe the construction site to see how the project is progressing.
- Whenever there is an announcement or information about a project, stay tuned.
The following information will be included in a thorough SPA:
- There is information for both the buyer and the developer in the first section.
- Every agreement is reached reached between the two parties.
- The selling price and the method of payment.
- Construction quality in housing.
- Rights and duties of both the seller and the buyer
- Taxes and fees payment
- Late payment solutions/penalties
- Apartment and housing warranty
- Information on the apartment transfer.
- An agreement between the parties that is legally enforceable.
Your payment schedule
The buyer of an apartment on the primary real estate market is not required to make a one-time payment for the total value of the apartment. According to the developer’s payment plan, customers will have a range of installment payment alternatives. Once you pay a deposit, it usually takes 2 to 3 years to transfer the apartment to you.
The developer will email you a payment reminder a week before the payments are due, and you can pay in cash or via bank transfer. If you cannot make the payment on time, you may be eligible to seek a late payment extension without incurring a penalty.
Property transfer process
The developer must construct the building and transfer it over to you once you have paid 70% of the apartment’s worth. Keep a watch on the list of items that the developer has promised to provide during the handover time, and contact them immediately if anything is missing or if you see any failures to deliver what has been promised in the contract
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