Ultimate guide to invest in Ho Chi Minh City, Vietnam
Why investing in Ho Chi Minh City?
Step by step guide to invest in Vietnam property:
- The foreign investors can able to buy the Vietnam properties by only possessing your tourist visa.
- There is not necessary to give the cap to the amount of the properties you are going to buy.
- The foreign investors can’t able to own a land. Instead, it can be owned by the Vietnamese people but governed by their living state.
- They are highly restricted to purchase a maximum of 30 % of the condominium units and can’t own more than 10 % of the existing properties in the landed project.
- They can only purchase 250 of the houses in the given division or ward.
The landed property in the Vietnam country can be terraced houses, semi detached houses, detached houses or strata landed houses. All these restrictions are not applicable for the foreigners to own a land and you should have to set up the leasehold agreement.
Reasons to invest in Ho Chi Minh City:
An economic hub – Ho Chi Minh City is called as the economic hub and it only makes more than 50 % of the national economic capacity. This city alone contributes 20 % of the GDP of Vietnam country. With all these reasons, most of the foreigners would often like to invest on the Vietnam properties. The biggest international investors in this city usually come from the Singapore, Hong Kong, Japan, China and B.V.I. Those who are all investing in such properties can able to earn extensive amounts of return on investment.
Thriving local market – Ho Chi Minh City has over 8 million people population and it is more than 10 % of the total Vietnamese population. Thus, it has the huge local market which is absolutely potential to make any type of business investment or real estate property investment a profitable one. This city is as well as the main entry point of the several numbers of the international brands. Most of the Vietnam based international brands are only from the foreign investors and they got huge success due to its thriving local market. If you are starting a new business or making investment in the Vietnam properties, you can surely be successful to earn huge profits.
Friendly investment environment in Ho Chi Minh:
The government as well as holds the regular dialogues with the foreign and domestic investors in order to answer the inquiry and help all of them to solve these problems. There is an Investment and Trade Promotion Center (ITPC) and also the Department of Planning and Investment which are the contact points for all the foreign investors from Singapore or anywhere to setup your business in Ho Chi Minh City. Modern infrastructure is another main reason why most of the people consider investing on the Ho Chi Minh Vietnam properties. All the foreign investors can able to gain more benefits from this highly modern and comprehensive infrastructure system in Vietnam including the telecommunication and transportation systems.
Important things to consider while investing in the Ho Chi Minh City:
Property taxes in Vietnam:
If you want to perfectly calculate the property tax in Vietnam, you can make use of the following formula such as 10% + (10% of 10%) [VAT] = 11% every 6 months until 50% reached. The remaining 50% tax for the property will be calculated by the 50% + (10% of 50%) [VAT] = 55% to get its real value. For the six months, the following will be the tax amount for your Vietnam property such as,
1st Month 6 – 11%
2nd Month 12 – 11%
3rd Month 18 – 11%
4th Month 24 – 11%
5th Month 30 – 11%
6th Month 36 – 11%
The amount of tax will be 55% for 6 months and total – 100% + 10% Tax for your property.
When it comes to the sinking fund, it will be one time payment of 2 % for the buyers. Instead of buying the property, you can also rent it but you have to pay tax even for the renting Vietnam property. The rental tax will be about 10 % for the property owners.
If any profit or income is made by the Vietnamese, there is also the smaller amount of capital gains tax of about 0.15 % on that specific amount or profit. When it comes to the rental income which is paid at the normal flat income tax rate of the Vietnam is about 20 %. If you own a land, there will also be the land tax to be paid about 0.03 % to 0.15 % of the actual value of your property. But all these kinds of taxes are also rarely paid by any person in practice.
Is buying a property in Ho Chi Minh, Vietnam safe?
Vietnam country usually has the well documented land registry and also its government keeps a very good track record of the plots in all the fast growing and major cities like Ho Chi Minh. Whether you are willing to buy a property or land in the rural area or the main city area, there are no problems and everything will be safe for you. The issues coming from the sellers or government are only lesser than some other countries.
Before making a right decision on the purchase of your Vietnam property, first of all everyone should have to check out the originality and reputation of the seller. At the same time, it is your responsibility to find the previous history of your land or property through the registration check before buying it. There are so many numbers of the well established companies available to offer you a list of projects which are lands or the properties under construction to buy in the Vietnam. If you are looking at the online platform now, you can able to find a variety of the properties in the Ho Chi Minh City region at the various prices.
Process of property purchase in the current Vietnam market:
Before you have made a decision to invest in the Vietnam country, first of all you should have to understand the essential process of the property purchase and also the current market value in the Vietnam. Any buyer doesn’t need to give any unknown fees during the Vietnam property purchases. First of all, it is better looking at the list of properties in the initial process and gives payment for your property. In the Ho Chi Minh City, Vietnam, the local buyers are giving the payment with the real gold because of the volatility in VND (Vietnamese Dong).
But the foreign investors are not allowed to use the gold for your property payments and you should only give the real Vietnamese money when you are going to purchase any land or other residential property there. You can buy any property and there are some of the special properties available for the foreigners. Everyone can look at the different types of properties which are especially available for the properties and choose the best one among them. At the same time, you can buy one or more properties as per your requirements without risk.
Rules for the foreigners to buy a property in Vietnam:
- For the beginners, the land property can only be leased in Ho Chi Minh city, Vietnam. It is not for this city only but this rule is applicable for the entire country. There is a 50 years long term lease basis for both the houses and other commercial structure too.
- If you require, there is also an option to extend your lease after it gets expired.
- There are two restrictions for the foreign buyers and based on them you can only purchase up to 30 % of the units in the single condo or condominium building. The next one is that only up to 250 houses in a specific administrative ward might be owned by the foreigners. But these limits are not applicable for the foreign Vietnamese.
Before buying a property in Ho Chi Minh City, you should be very careful in noticing the current property laws, rules and restrictions for picking a right one for you.
- Location – 01, Ton That Thuyet Road in District 4, Ho Chi Minh City in Vietnam.
- Tenure – It is the freehold property for the local Vietnamese and the foreigners can get the 50 years long term lease whether you are from anywhere of the world.
- Developer – Viet Hung Phu real estate commercial investment joint stock Company that owned 100 % subsidiary of this CapitaLand limited.
- Number of units – In this apartment, totally there are 482 units available to purchase.
- Land area – It is totally estimated about 1.4 ha or 14,470 sqm.
- Number of towers –
- Number of floors – 23
Everyone who wants to buy a property in this apartment can surely able to get the young and vibrant lifestyle. De La Sol is known for the summer residences and it introduces the dual key apartments for the very first time in the Ho Chi Minh City. It is really great to have the vibrant and young rental market especially in the District 4 and also impress so many numbers of the potential investors from the different parts of the world. It is considered to be the first luxury condominium developed by the leading Singapore developer known as CapitaLand in HCMC. This De La Sol is also the 11th residential development apartment of the CapitaLand in Vietnam. It is providing the extraordinary service by the most efficient network of the public transport including bus interchange and the Metro Ben Thanh Suoi Tien is the upcoming feature for the greater convenient lifestyle of the future residents.