New Housing Law in Vietnam - All you need to know.

Buying a house here as in "investment" would be a risk.
It's too politically and economically volatile.    The "laws" here are written but poorly interpreted and in a lot of cases not observed at all.

You've got local "hill billy" police making up bullshit laws for their own benefit. 

You can have all the laws, decrees etc you like, but If it's not uniform, consistent and observed it's a waste of time.

Any astute investor will first look at the HONESTY, INTEGRITY, TRUST & REPUTATION of the people your dealing with.   This place has a long way to go in that area , hasn't it.

And by the way,....your idea of "freehold " is a bit deceiving.

In most safe investment havens, Freehold means you OWN OUTRIGHT the land and house on it, and own it forever.  None of this lease nonsense.

Besides, who knows what could happen in 50 years around here. You've got some interesting neighbours up there north of the border. 😄😄😄

Obviously if someone's living here married with a family, they'd buy a house, it's a lifestyle choice.
But as an investment, ...there are better options in areas where law & order is upheld.

Thailand and Indonesia are currently revoking the titles on foreign owned properties. It could happen again here, as it did in 1981. 

I'd love to build a nice place here, I've looked at blocks of land near Nha Trang. But, my Vietnamese friend said as a foriegner I'd have problems living in a nice big house with a garden in the country side.  Since I travel a lot, I'd need a security guard to watch the place while I'm way.
I don't want to live that way.  It wouldn't feel like home.

I see your point.

The law is expected to take effects from 1st July. However, till now, the decree which spefically instruct how the law could be applied is still under discussion. As of May 2015, some proposals have been drafted out but we do not know if they are approved or when they are approved.

I post it here for your reference, the information is taken from Baker & McKenzie (Vietnam) legal updates.

1. Caveats – For Residential Properties
‒    Foreigners leasing out their houses must notify the competent state agencies and must pay taxes in accordance with the prevailing laws;
‒    Foreign organizations can only use the houses for their own staffs' residential purpose and must not use their houses for other purposes (such as office, leasing out, etc…);
‒    Foreigners and organizations must make payment of purchases or hire-purchases through a licensed credit institution in Vietnam;
‒    Applicable for maximum 30% of the total condominiums in a single condominium building (or other cap provided by the Prime Minister in areas having a large number of condominium buildings); and
‒    Maximum 250 villas, townhouses in an area having the population equivalent to an admin level of a ward.
For Non-Residential Properties
‒    Foreign non-real estate companies in Vietnam are allowed to buy the non-residential premises for their own use (i.e., purchase parts of the premise (e.g., floor in an office building)); and to obtain the title certificate for such premises or partial premises.

2.    Draft Decree on the implementation of new Law on Residential Housing
a) Valid passport and visa:
‒    Overseas Vietnamese bearing Vietnamese nationality must possess a valid Vietnamese passport; those holding a foreign passport must produce documents evidencing their Vietnamese nationality under the Nationality Law.
‒    In the case of those with Vietnamese origin, they must possess a foreign passport together with written certification of their Vietnamese origin issued by competent Vietnamese authorities.
‒    For foreign individuals, passports must have entry and exit immigration stamps.
b) Separate "Red Books" for mini condos:
‒    Individual houses built with two or more floors with designs on each floor, built in the closed style, with floor space from 30m2 upwards, and meet the conditions prescribed by law shall be issued certificates for each apartment in that house; and land use rights associated with this housing as common ownership.
c) Extension of ownership term:
‒    Before the expiry of 03 months home ownership, foreign individuals can carry out the procedures for ownership extension of time to one, but not more than 50 years.
‒    Also, before expiry, the owner can sell or donate the house as prescribed by law. The purchasing or receiving party will be allowed for indefinite term of residence if they are Vietnamese citizens, or are Vietnamese residing abroad. If not, the house ownership term will be only for the remaining term. When the term expires, house ownership and rights of land use shall be transferred back to the initial owners, then their heir or legal successor of the initial owners or individuals, or the organizations as prescribed by law.
d) Which project is not allowed for foreign ownership?
‒    The Ministry of Defence and the Ministry of Public Security have the responsibilities of specifying prohibited areas or areas restricting foreign citizens. And these two Ministries will provide written notice to the provincial People's Committee to direct Department of Construction to specify each investment project built commercial housing in the province to be sold to foreign individuals and organizations.
e) The rule of 30% cap for Condos, and 10% cap for Villas/Townhouses
‒    Foreign organization and individual ownership of units in an apartment building may not exceed 30% of total units in one apartment building. In the event of an area with geographical boundary equivalent to ward level with many apartment buildings for sale or lease purchase, then foreign organizations and individuals may own no more than 30% of the total units of each apartment building, and not more than 30% of the total units of all the apartment buildings.
‒    For housing projects which have separate houses for sale or lease purchase, the foreign organizations and individuals' ownership must not exceed 10% of the total number of separate houses for each project. In the event of an area with geographical boundary equivalent to ward level with several projects where the number of individual houses are more than 2,500 units, then the foreign organizations and individuals' ownership must not exceed 250 units.
f) Authority's control over the capped amounts of foreign ownership:
‒    The information on the list of residential project allowed for foreign individuals and organizations to sell, lease and purchase as well as the number of houses owned by foreign individual and organization that have been granted certificates will be posted on the website of the Department of Construction.

all to scary for me, South East Asia is full of uncertainty and caphee money to be giving them my hard earned loot, would really love to live there till I die but even when that happen VN will send what remains back to Aus, it tells me ALL they want is  $$$ I don't expect laws of any country to be written in concrete, but just some long term stability would be a start. In 2013 you could renew you visa for $10../ time now it's around $200..but from what I read the official price is $50. in Aus we get to change our government every few years,( not sure if thats a good idea as each party has to do a ush job and we get the damage left behind ) in VN you have 1 party and laws that vary almost from Phuong to Phuong. ??? when a individual invests in 1 accomodation  , how does this effect their visa renewal eg: number of renewals, length of each renewal and cost of each renewal ??   Do you have a link to this information ?

As I've read previously, there's no absentee ownership.
What happens if for some reason they decide not to renew your visa or residency card.
Your gone, ....the ownership depends on your visa status.

As the Op stated, the fine print hasn't been signed off on . At the moment it's ok to hand over your money and that's it.    They can make any laws they like then.

Look, you can lease places here for peanuts.  Why buy a cow when the milks so cheap.
Foreigners have been able to buy condos here since 2009.  There's no rush is there.

And don't believe any of the bullshit "spin" in the media here.  They're saying the property markets going to boom. The sales they talk about are just shonky developers switching property's between one another to create sales figures.

Don't go near it.

Besides, the house designs here look terrible, basically 4 pokey levels stacked in a pile.

Lease an apartment with ocean views and a balcony is the way to go IMO. You have the flexibility to move on when you like. They are building new places all the time.

If you buy a 50  year leasehold on a house , you could be stuck with it.  Also at the moment houses containing a foreign spouse are in a Vietnamese woman's name. 

What will the mood be like among the neighbours when a foreigner solely owns it.  They're jealous of anything a foreigner has at the best of times.  That could be interesting .

A guy here built a really nice house bigger and better than the neighbours, and even though his VN wife owned it , they still hate his guts. 😄😄😄😄😄

Happy home hunting

It's like those mongrels from Africa, get some poor lonely heart hooked then milk them, I love Vietnam but the laws are tooooo unstable and so are the new visa 1's $10/night gets you a reasonable hotel room with fresh sheets every day, it may not be home but it is agood place to rest your bones....no slur on the OP I hear a genuine desire to help here but wer'e all hamstrung by the gov

Believe it or not, they are still opening exclusive sales event for foreigners on 1st of July. The event is scheduled from 6 pm to 8 pm in the either side of the country: Hanoi and Ho Chi Minh city. May you be interested, take a look here: goo.gl/gsX7Q7. Of course you can not buy a house in 2 hour discussion, but it does not cost you anything just to join and test the "momentum"

Hi Mark,
I guy here yesterday took a long term room at a hotel near the beach in Nha Trang.
He's paying $150 a MONTH.  It's got a balcony, AC, cable TV , and electricity , and room service included.   
Got a view, food and cafes at his doorstep.
That's common here.   You'll pay more in the town centre, but that's a construction site now anyway and full of dust and noise.

The tourists are leaving, and the place is overstocked with empty hotels and new apartments are springing up,everywhere.   

Just take a long term rental, kick back and no worries with red tape.

I'm leasing a nice 2 bedroom apartment, furnished, ocean views , good security for less than my electricity bill on my house in Australia.     No more to be said.

just a sym ride to Da lat too, I had a price for a 2 brd serviced apt/ villa with parking for $3600../ year in Hoi an

I was going to buy some land and build a new house in my little city, but after renting in the city, in a quiet street I thought, to my surprise/shock, I found it even noisier than my house in the country, same noisy dogs  and roosters, but even more of them??? I did my sums, by the time I bought an average section, ( very small ), and even with me building the house, ( steel frame, none of this shitty brick stuff ), I worked out, if I left that same money in the bank at 7 - 8%, the interest paid for my current rental and my lifestyle, and i don't have to worry about annoying neighbours, ( as I have with my country house, and the wife's house ). Don't like them, I move, not so easy when you have to try and sell your house.

Hi Chris, another point is what you want in a house is very likely not what Vnese would appreciate, could be very hard to sell

MarkinNam wrote:

Hi Chris, another point is what you want in a house is very likely not what Vnese would appreciate, could be very hard to sell

Yes Mark, you're dead right there, as we know there is only one way of doing anything in VN, ( the VN way ), it's causing a few problems with the wife, and my latest idea of adding a 2nd floor above my workshop. Although I see these imitation alloy windows and doors are catching on quite fast.
  I told the wife at least I can disassemble the house and still sell the steel many years later, another argument, VN's won't buy 2nd hand stuff, ( yet I see scrap dealers buying up every tiny bit of rusty steel they can get their hands on ???? ).

A very interesting topic and as someone living outside of Vn (Thailand) it is amazing how similar the two countries
are.  I base this on the post ts and my personal experience.
I have my own property in Thailand but if I had my time again, I would not buy, but just rent.  Now I hI have to deal with a property in a place oversupplied.   Seems like the same is happening in Vn.  I am sure there is a story of the same
happening throughout Asia as the Multi Nationals get on the gravy train and leave the damage behind them.

The housing market is also a bit slow in Pert at least in my price bracket, the apartment market is even worse, bad time to sell the house but at least it gives me time for the laws in Vn settle down re visas . Dont think too much damage will occur in Vn as investors will be extremely wary of loosing all

No hurry Mark, rents here in Nha Trang are going down, not up.   The Russians have mostly gone and their still building places.

Suckers that may buy, don't understand their legal status.  They will only be buying a LEASE on the house., they will never own it. At the lease expiry the house returns to the original LUR / Red book holder or estate beneficiaries.     

Your legal status is that of a LESSEE, your a Tenant only.   

Also, if you wanted to renovate under the lease arrangement , you would need permission from the true owner, who legally is your landlord. What a joke.

And selling the remainder of the Lease is possible, BUT the property will lose value by the day.   So capital gain goes out the window.  And the capital gains tax here for foreigners would wipe out any possible profit on a future sale.   

Which raises questions about the market value of a property "sold" that way. 
Mark, if you sold your property in AUS on the condition that the buyer in 50 years has to give it back to your family or estate , .....the value would be A LOT less than a true freehold sale. 

I can see BIG problems when a VN sells the 50yr lease, then dies and his family has to wait up to 50 years to get the house back to sell it and get the cash to play with.    That will be interesting.. 😄😄😄😄😄

They'll create situations to get you out.   They're doing that in Thailand and Bali already.   
A contract here is worth nothing.   They have back flipped on major contracts with big corporations already and that's got them a bad reputation in the international business community.

Just sit back and wait for the crash test dummies to buy in.




These

I find my self trying to figure the thinking in many situations. I understand the gov need to monitor those living in VN , the trouble is a VEC type system would work even on a bi- annual basis after an initial " parole period' of 6 months. Surely the benefeits to the economy would make it worth while! There are very few countries where visitors can stay for adinfinitum  by just renewing a visa Vn is still feeling its way and unfortunately taking bad examples from her neighbours. Just glad I have stopped work and can find joy in most situations, just takes some looking sometimes....HOW DID Linh Lien get banned,,,,,just checked her profile.....sneakkkkyyyyy

We shouldn't buy anything here unless necessity 
Investment? That's just in paper. You will taste the real sour of mango when you near the endocarp 
Like a PP said, yes you can buy for your kids if you married with a Vietnamese. In that case you don't need to worry about quick sale. Only need it when you want move with family.

I checked to see why OP was banned the profile is a bit SUS I get the feeling she led us up the garden path, but comment have been accurate

MarkinNam wrote:

I checked to see why OP was banned the profile is a bit SUS I get the feeling she led us up the garden path, but comment have been accurate

That's two real estate salespeople that have been punted now.
There will be more, you can bet on it.

Yogi007 wrote:

Hi Mark,
I guy here yesterday took a long term room at a hotel near the beach in Nha Trang.
He's paying $150 a MONTH.  It's got a balcony, AC, cable TV , and electricity , and room service included.   
Got a view, food and cafes at his doorstep.
That's common here.   You'll pay more in the town centre, but that's a construction site now anyway and full of dust and noise.

The tourists are leaving, and the place is overstocked with empty hotels and new apartments are springing up,everywhere.   

Just take a long term rental, kick back and no worries with red tape.

I'm leasing a nice 2 bedroom apartment, furnished, ocean views , good security for less than my electricity bill on my house in Australia.     No more to be said.

Smarter than the average bear.
A single bloke would be mad to turn that down, and a married guy would be fine.
Maybe different if kids are on the scene.

Hello!

A journalist of Saigon Times magazine would like to ask for opinions of expats who are planning or having idea to buy property in Vietnam. Is there anyone here or anyone know someone? It doesn't matter you're staying in VN or not. Please pm me so that we could make some interview for our article. Sure we will hide your personal information if you want.

Thanks in advance!

Why hiding identity? There is no secret