It is no secret how Vietnam has become a hot topic among real estate investors around the globe. With the amendment of its Housing Law in 2015, Vietnam has opened its doors and is welcoming everyone—from tourist, expat and foreign investor—to grab a piece of their booming market. Let this article enlighten you if you are one of those considering to invest and purchase a property for sale in Ho Chi Minh City.
Types of Properties Foreigners Can Purchase
Vietnam, like other countries, has limitations on the types of residential properties available for foreign investors. Foreigners and expats are permitted to buy landed housing and apartments that are part of a residential project development, which is today’s new project launches here in Saigon.
When You Can Sell Your Property
A foreign investor always has the choice to sell his residential property to anyone—may it be to the locals or another foreigner from nearby countries like Singapore. However, owners can only sell high rental yield condominiums only after the Sale and Purchase Agreement of their property in Vietnam has been granted. You, as the foreign owner, can take advantage of the opportunity and sell your property to Singaporean businessmen or individuals seeking to capitalize in Vietnamese real estate as long as your buyer agrees to take responsibility of the remaining leasehold term. With the country’s rising economy and real estate industry, many investors from Singapore are eyeing to grab the opportunity in the developing country, thus making it easy to sell any type of property wherever it may be in Saigon.
Your Rights as Property Owner
Legally, a foreign homeowner has the same privilege over a purchased property as a local Vietnamese owner. This means that during the tenure, the foreign property owner can either reside in the property or lease it out to other people. However, before the 50 years of tenure expires, you are required to transfer—whether to give or to sell—the property to other entity who is legally allowed to own a property in Vietnam. If the property is not transferred on time, the state will confiscate the property.
The Necessary Fees to Purchasing a Property
Other than the property’s value, you should also take into consideration the following fees you will be required to pay.
• Administration Fee – you will be charged with a minimal fee paid upon the grant of the certificate of ownership as per Vietnam’s current regulations
• Maintenance Fee – this amounts to 2% of the property’s purchase price, not including the value added tax
• Property Management Fee – this is calculated no more than US$1 per square meter.
The Taxes Included in the Purchase of Property
One of the high-valued properties in Ho Chi Minh city is the vin apartments at binh thanh for foreign investors. This place offers the best amenities and neighborhood suitable for expats and foreigners.
As an investor who seeks to acquire a property in HCMC, take note of the following taxes and factor these into your financial calculations.
Value Added Tax (VAT) – 10% VAT is charged if you wish to put a property for sale, whether you are a local or a foreigner.
Registration Tax for the Ownership of Property – this amounts to .5% of the property’s value
Personal Income Tax (PIT)– When you lease or resale the property, of course you earned an income. By then, you will be charged 2% PIT based on the property’s sold price. This is the equivalent of Capital Gains Tax in some countries like Singapore.
Best Places to Invest In
While there’s a total of 24 districts in Ho Chi Minh City, you want to invest on the best spots to maximize your return of investment. Here are some of the districts we suggest are worth investing in:
• District 1. This is the commercial and financial hub of Saigon. If you want a prime location, where there’s high traffic and target to lease your property to first class residents, invest in District 1.
• District 2. Another spot here in Vietnam where the rich, famous and politically connected in Saigon congregates. This is also where gem studio launch at river side is located. This place is a great spot to buy a property in, especially if you’re planning to purchase upscale condominium units, penthouses and suites.
• District 3. For those who love to shop, dine out and have fun, district 3 makes an ideal place to reside in.
• District 4. This may be the smallest district, but it serves as a connection to the busy environs of District 1 to the suburbs of District 7, making it another ideal residential area for people who wants a balance of modern and simple living.
• District 5. Known as Vietnam’s own Chinatown, this place appeals to Chinese expats. You’ll find several temples and pagodas scattered across the district.