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Why Do Foreigners Hesitate To Buy A House In Vietnam?

Foreigners are hesitant to buy houses in Vietnam

In the period of economic integration, our country is increasingly attracting foreign investment. Accordingly, the number of foreigners and overseas Vietnamese poured into the country to buy houses to stabilize life and work a lot.

However, in reality, they still have many difficulties when the legal corridors on buying and selling houses and land in our country have many ambiguous points and many procedures. So what to buy a house in Vietnam to face foreigners problems?

The status of foreigners buying houses in Vietnam

According to statistics, nearly 100,000 foreigners are living and working long-term in Vietnam and about 4 million overseas Vietnamese have close ties with their homeland. Therefore, many foreigners who want to buy houses in Vietnam for the living are easy to understand.

In addition, demand for buying houses of overseas Vietnamese also increased significantly after the Housing Law passed. According to a survey by Vietnamnet, there are more than 500,000 / 4 million overseas Koreans who wish to buy houses in Vietnam to relax and return.

Foreigners are hesitant to buy houses in Vietnam
Demand for housing in Vietnam is growing

Specifically: Since the Housing Act of 2014 was passed, in early 2015, HCMC sold more than 1,000 apartments to foreigners, five times higher than in the 2000s and is expected to grow even stronger.

According to a survey of sales of some large construction corporations such as Vingroup or Novaland in Ho Chi Minh City show that by the end of 2015, about 7-10% of total apartments from projects sold to foreigners. We have weak American and Korean nationality.

From the beginning of 2016, the Chinese also landed on a large-scale land acquisition in our country. The areas where Chinese people buy land are concentrated in tourist cities such as Nha Trang, Da Nang, Da Lat in large numbers.

Foreigners are hesitant to buy houses in Vietnam
Luxury property is preferred by foreigners

According to statistics of credit institutions on remittances of overseas Vietnamese to HCM City in the fourth quarter of 2016 reached about $5 billion. In particular, the number of remittances poured into the real estate market estimated at $1 billion, accounting for about 20% of total remittances, up about 1% over the same period last year.

The majority of expatriates and expatriates targeting real estate items are luxury apartments or condominium apartments complex with high-end modern facilities. This promises to be the brightest investors in the high-end real estate segment to operate and grow stronger.

You can read more information at Vietnam Real Estate News

Housing Law issues when foreigners want to buy a house in Vietnam

Although there is the Housing Act of 2014 on the issue of housing and land for foreigners, in fact, many real estate experts still think that many obstacles need to be solved to promote foreigners to buy houses in Vietnam.

Foreigners are hesitant to buy houses in Vietnam
To buy a home foreigner must prove financial

The first condition for foreigners to buy and sell houses and land in Vietnam is to “legally enter” and stay legally. In addition, they must prove themselves financially and financially to buy a home clearly to qualify for home ownership.

Before buying a home, foreigners need to know about the projects carefully to avoid future risks. According to the Housing Act of 2014, foreigners who rent or purchase legal housing include apartments, commercial houses, private houses, etc., except for areas for security and national defense as prescribed by the Government… In the case of foreigners who do not thoroughly research and purchase houses in the restricted area, they will be subject to house recovery with very low fees.

Foreigners are hesitant to buy houses in Vietnam
Many administrative problems arise when foreigners buy a home

Administrative procedures are also a major issue in the purchase and sale of foreigners’ houses. Due to language disagreements, these papers have to be bilingual and take a lot of time. The difficulties and inadequacies when carrying out administrative procedures when buying and selling houses make many foreigners afraid to buy property in Vietnam.

Foreigners buying houses in Vietnam are no longer new. However, to attract investment, the law of our country needs to create a more liberal legal framework as well as more specific to attract foreigners buying and selling land.

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