While it’s a common misconception that foreigners cannot own property in Vietnam, it’s the opposite that’s actually true. In fact, it’s really easy for a foreign investor to start getting into buying real estate in the country.
However, there are some conditions that you need to keep in mind when looking into good property for sale.
Here’s what you need to know about buying property in Vietnam as a foreign investor:
Buying Property as an Individual
When you’re looking to invest in a Vietnam property as a private individual, there’s definitely no shortage of good home purchase for foreigners here. In fact, Saigon property prices are currently low and good property for sale is easy to find.
Some of the ideal districts in Ho Chi Minh City you should look out for include the following:
• District 1 – When you’re looking for a place that’s in the middle of everything happening, then District 1 is the district to be with plenty of high-class condominium choices, as well as apartments that will definitely suit you tastes.
• District 2 – District 2 is a quieter district compared to the previous one, but it still has many bars, villas, and malls, which makes it a great place for a condominium purchase for those looking for a balance between quiet and fun.
• District 4 – Being the smallest district in HCMC, District 4 is also a residential district that’s great for food lovers, and the best place to look for an apartment for sale or rent if you want to truly immerse in the local culture.
When you do decide to look into buying a property, keep in mind that there are also many other places where you can find good apartments to invest in. If you want high-standard facilities and strategic location that can easily get you around Vietnam, try to find resale flats at vin central. If you’re considering to invest in HCMC, whether for residential or commercial purposes, Vinhomes Central Park is definitely worth looking into.
Foreign Ownership of Land
While you can’t buy the land itself – foreign property ownership only extends to the property itself, similar to citizens or local organizations, and not the land – the state will certainly lease it that’s similar to having ownership rights in a lot of ways.
The good news is that the maximum length of any lease agreement in the country is 50 years, and it’s possible to renew the agreement for another fifty, which is plenty of time enough for you to get a sizable return from your initial investment.
Buying Property as a Company
One of the options you have when you want to buy property is to do so as a foreign-owned company based in Saigon, which is easy since state laws allow for full foreign ownership of companies in the country.
Foreign investment companies usually take about four to six weeks to register, and usually don’t need additional licenses except for certain cases.
You can get started on this by applying for two things: first, the Investment Registration License, which allows you to start doing business in the country, and a Business Registration Certificate, which certified that you are indeed a registered business.
Buying Property via Joint Venture
Another option when it comes to property investment is by forming a joint venture with a shareholder, given that this shareholder is Vietnamese and is currently residing in the country.
With a locally-owned company, you can purchase properties such as households, buildings, and prime pieces of real estate as well as new project launches for sale, lease, or even for a lease purchase. Local companies can essentially own the property until the company itself is terminated.
What You Need for Your Real Estate Business
There are a number of advantages you can get when starting up a business specializing in property, such as the following:
• Lease property for subleasing, such as apartment units or entire buildings
• Build or sell property on the land that the state has leased to you
• Build, rent, or sell property belonging to a commercial project
When you’re in Ho Chi Minh City and would like to get into buying and selling property, keep in mind that you can only buy the property for company use.
You will also need a registered company if you plan on sub-leasing the property, so be sure to check if the company you’re dealing with is registered before doing business with them.
So what are you waiting for? Invest in property in Saigon today!