Why Vietnam?
Vietnam is an extremely picturesque country with an interesting culture, good infrastructure and an extremely diverse landscape. Quiet bays, green hills, paddy speed fields, mountains, endless beaches with a total length of 3250 km, spacious parks and even desert dunes are present on the map. Here and there remote from civilization places, where you can relax surrounded by nature, and developed megacities, in which there is everything for the life of the modern man accustomed to urban comfort.
The country has a rich history, and the route from the North with the mountain villages of Sapa to the South, to the Mekong Delta, will be a real immersion in local color. Hill tribes, Buddhist and Confucian temples, emperors ' tombs on the territory of the colossal temple complexes, monuments to the terrible Vietnam war, little shops of traditional crafts and the ubiquitous production of fish sauce "Nuoc mam" – all this will give to experience the true essence of Vietnam. But perhaps the main role in this will play the sunsets and sunrises, quiet lifestyle, friendly local people and very special mood, inherent only to that state.
Vietnam – a dynamic country whose government currently pays special attention to attracting foreign investors. Today, tourism and real estate market are in the development stage and experts point out at high investment attractiveness of investing in under construction projects, mainly resort. And for those who, once coming to Vietnam, fell in love with him forever, there are interesting options for permanent residence in cities and in resort areas.
Geography plus
Socialist Republic of Vietnam is situated in Southeast Asia on the Indochina Peninsula. In the West it borders with Laos and Cambodia, on the North by China, East and South bordering the South China sea. Outline of Vietnam on a map resemble the letter S. And the locals say it's curved yoke with two baskets of rice: one in the North in the Red river Delta, the second in the South, in the Mekong Delta.
The climate of the North differs from its southern part. In the North prevails moderate, changeable, tropical weather, there is the cool season from November to April and hot from may to October. In South Vietnam the climate is tropical: temperatures vary from warm to very hot throughout the year and decreases from November to January. The hottest time of the year when the thermometer shows 35°C and above, and February – may. The rainy season lasts from may to October.
Distributed in Vietnam along with Buddhism and Confucianism, however, the main religion of the local population is the system of folk beliefs, which is based on the rituals of ancestor worship "tho the the Tien kung", performed by most people in the country.
Special attention is given cuisine of Vietnam abounding with the freshest seafood, vegetables, herbs, spices and fruit. Almost every restaurant contains experience and traditions throughout the Asian region, and adapting to this "exotic" food among Russians, as a rule, does not cause problems.
How to get
Aeroflot flies to Hanoi on Mondays, Tuesdays, Thursdays and Saturdays, the ticket price one way is about 18 000 rubles., Three times a week, Vietnam Airlines flies to Ho Chi Minh city (ˆ330 value one way) and Hanoi (ˆ330). Further, "the Vietnamese airlines" it is possible to get a transfer to da Nang, Nha Trang and Fukoka. Today, the airline offers discount fares Super Deal: ˆ150 round trip from Ho Chi Minh city or Hanoi (without additional tariffs and fees) and to Nha Trang – ˆ270. One or two times a week on the route Moscow-Ho Chi Minh city in the winter flies "Transaero". In addition, Asian and some European airlines offer flights from Moscow and St. Petersburg with transfer in other countries.
The situation on the real estate market
As in other countries, the real estate market of Vietnam suffered from the global financial crisis, housing prices in some regions fell by almost half, the volume of investment declined, including in connection with restrictions on ownership by foreigners.
So today in the country you can still buy a very budget accommodations, and prices for Prime space remain much lower in developed real estate markets of South-East Asia, for example Thailand and Indonesia (Bali).
In the first quarter of 2014 the real estate market of Vietnam has shown signs of recovery for the first time since 2007. Reducing the cost of housing significantly slowed down, while construction activity began to revive. Gradually began to increase the demand, which was attributable to an increase in the number of affordable housing in the market. However, full recovery is still far, experts say.
Thanks to the loyal Vietnamese legislation with respect to foreign investment in priority economic sectors (including tourism), the country's property market there are new participants: international construction company, and a global network of hotels which are built up homes here, which is attractive for investments, – villas and apartments in serviced complexes.
Currently in Vietnam there are significant restrictions on the purchase of real estate by citizens of other countries. Until July of this year, foreigners can only buy apartments in high – rise buildings and with the visible restrictions (owner needs to make direct investments in the economy of the country or married to a citizen of Vietnam, to have a degree and work in a dedicated facility in the country). Buying a home in private households at the moment are prohibited. Ownership of land belongs to the state. Purchased housing foreigners can use solely for your personal use, without the right to rent.
In Vietnam there are two main forms of ownership: private and public. Private property can possess both legal and natural persons. State property is all the land – it cannot be sold or transferred by inheritance. The state transfers the land in long term lease of 50 years with subsequent prolongation of the lease. Object, standing on land owned by the owner, legal or private person, on the basis of government-issued ownership certificate, the so-called red Book.
But change is not far off. The main news of the end of 2014 was the information on the adoption of the new Housing law the government of Vietnam, which will enter into force on 1 July 2015 and will allow foreigners to buy housing in the country.
Big change
July 1, 2015 shall enter into force the new Housing law, according to which foreigners who entered the country on a visa will receive the right to acquire private property any type of real estate Vietnam (houses, villas, apartments, etc.), including private home ownership, with all rights for the sale, donation, lease, etc. Introduced quotas: in multi-storey buildings to foreigners can belong no more than 30% of the area of the object and not more than 250 buildings of private households within the same administrative district.
"The new law will play a key role in changing the situation on the real estate market of Vietnam will create a more balanced, transparent and stable housing market in the country. The removal of restrictions on ownership for foreigners will stimulate demand and will help to improve the liquidity of projects, especially for mid-price segment, as well as "vacation" of property and "second homes". The market will become more attractive for citizens of other countries and expats residing in the country and willing to invest in their own housing in Vietnam", – said the consulting company CBRE.
What about residence permit?
Programs of granting a residence permit when buying property the new law does not provide. The decision to obtain citizenship or residence permit for foreigners shall be reviewed by the leadership of the country and on the basis of a specific list of merit candidates to the state, and marriage with a citizen of Vietnam. Today Vietnam is a country with a loyal visa policy, allowing foreigners to stay here for quite a long period. Foreign citizens may obtain a tourist visa at the Consulate of Viet Nam for a period of stay up to 90 days. At the end, already in Vietnam, this visa can be extend twice for the same period that allow you to stay in the country for 270 days a year. For acquaintance with the country, the Russians can come to Vietnam for 15 days, on the Russian visa for citizens of our country is not required.
The most attractive regions for investments.
Experts recommend to pay attention to investing in resort property in Vietnam. Such an investment becomes particularly relevant from 1 July 2015, when will come into effect the new Housing law, allowing foreigners to own property, to freely sell it, etc. If an investor intends to do business and to live in the city – choice of accommodation here is also great, from large serviced condo developments to eco-friendly modern Villa complexes. Investing in the projects of renowned builders will help to enlist the support of the company to maintain and manage the building, the apartment service, as well as possible lease during the absence of the owner.
Nha Trang
One of the most popular resorts in the country is Nha Trang in Khanh Hoa province. In the early 2000s it was a small settlement with a warm sea, year-round season of fruit, friendly locals – and even the tiny airport at the former military airfield. The roads were countless mopeds and bicycles, a couple of taxis within the nearest visibility and pedicabs – the main urban transport for pedestrians. At that time, it was a pretty good picture of relaxing in Paradise: palm trees, rickshaws, tropics... Although just tourists-the Russians at that time there was not quite.
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With the launch of the Vinpearl resort complex on the island of Hong Che the city's appearance began to change dramatically. Intensively developed urban infrastructure, there was hotels, has created new jobs and opened an international airport receiving regular flights, including from Moscow. Rickshaws are still present, but today it is a rarity that is enjoyed by foreign tourists for visiting the city's attractions. Today, Nha Trang is very popular among national tourists and foreigners: here rest citizens of Russia, South Korea, Japan, China, Australia, Western Europe and North America.
The average cost per square meter in the center of Nha Trang is $2400, in the suburbs half. Small Villa in the exclusive project first line to the sea will cost $700 000. The price of renting one-bedroom apartments ranges from $320 (in the center) and $160 (in the suburbs) a month.
The mountainous
A Mountainous island located in the Gulf of Thailand in southwest Vietnam. Here is the purest sea, white beaches and all the possibilities for a real "tropical vacation". The place is valued by divers, on the South of the island is the picturesque archipelago of An Thoi. The state is a mountainous area of priority development, so the authorities provide its visitors and investors a number of advantages, including visa-free entry for 30 days. The best time to travel here is from November to March. The mountainous – an attractive destination for investment in tourism real estate. Here built luxury complexes leading hotel chains. And the choice of "profitable" leisure activities and the subsequent delivery on the island is quite large.
Price per Villa in existing projects and developments under construction on the seafront can be from $700,000 to $3 million.
Da Nang
Da Nang – a city in the Central part of the country, recognized for best accommodation in Vietnam. It is about 100 km from most important historical destinations in the country – the ancient cities of Hoi an and hue, protected by UNESCO, as well as shrines Mi Shawn and an amazing reserve of Marble mountain. Da Nang is a major port of the country and the third largest metropolis of Vietnam. There is a private airport. In da Nang is one of the 10 best beaches in the world according to Forbes – Spa Beach, famous resort in the world scenic coastline and perfect sand. That's why this place was chosen by the prestigious hotel chain who built five-star resorts and Villa complexes and apartments.
According to the Wall Street Journal, prices for Prime real estate in da Nang is 20%-30% lower than the leading tropical resorts in Southeast Asia, including Thailand and Bali. The average cost per square meter in the center of da Nang is $1500, in the suburbs is $450. Monthly rent of an apartment in the city center one bedroom is $550, and in the suburbs is $450 (according to the appraiser Numbeo 2014).
The cost of a one bedroom apartment can range from $200,000 to $1 million for a penthouse. So, luxury furnished two bedroom two bathroom condo, panoramic Windows, prestigious materials with a total area of 400 square meters in the project of the famous hotel chain is here about $475 000. The price of villas in da Nang (in the exclusive village, commissioned) starts at $1.8 million.
Halong
The famous ha long Bay is the Gulf of Tonkin of the South China sea in Northern Vietnam. It is recognized as a UNESCO world heritage site. This is growing trend and very popular point on the tourist map of the country. Experts recommend to pay attention to it when you select an object for investment.
Hanoi
Hanoi – the administrative, political and cultural capital of Vietnam. Located on the North of the country and has a traditional spirit, but, like many settlements in Vietnam, has a very eclectic nature. Within one small quarter you can find traces of French colonization, European cafes and shops, Catholic churches, and ancient traditional Vietnamese buildings, statues of Buddhas and lively markets with open shelves and an amazing variety of exotic goods.
Hanoi today there is an active construction like office buildings, hotels and shopping centers, and residential sector. There are more and more high-end serviced condominiums.
The average cost per square meter in Hanoi in 2014 was $1170. However, prices vary for property in the center (about $2200 per sq m) and the suburbs ($1,000 per sq km). The maximum prices for premium villas and townhouses were noted in the area of Cau Giay and achieved in 2014 $6373 per sq m, according to the company Savills.
Ho Chi Minh city
Ho Chi Minh city (formerly Saigon) is a modern city in the South of the country, a surprising blend of modern chic and typical Asian spirit. The population of Ho Chi Minh twice that of Hanoi and is the economic center of the country. The city is actively built. First, it sought to purchase the house and land of Vietnamese immigrants living in other countries and wishing to establish business in their historical homeland. Gradually developing suburb of Ho Chi Minh city, Binh Duong province, Long An – excellent public transport accessibility.
The average cost per square meter in Ho Chi Minh city – $1700. If the centre square meter of the apartment could be around $1900, then in the suburbs the price drops to $700. Thus, two-storey Villa with swimming pool and six bedrooms with an area of about 600 square meters near the center of the city can be purchased for $1.3 million five bedroom Villa in a suburb similar to the area will cost $550 000. Rent apartment with two bedrooms and living room will be about $400 a month.
Investment to rent
Investment for subsequent lease experts recommend to do in resort complexes developed tourist regions and built by companies with a good reputation, proven in the market. Not only does it help to have a steady flow of tenants and guaranteed income, but will charge owner care of all the maintenance and property management. Consider the example of such investment on the example of a company Vingroup that owns resorts and villas throughout the country. They are built from the most advanced materials with concern for the environment, are located only on the first line of the sea – and certainly far from international airports, have an extensive entertainment and service infrastructure.
Acquiring the item from the company and by signing the rental contract, the owner receives a guaranteed income of 8% before tax within 10 years from the date of purchase. If the rental income exceeds this rate, then, in accordance with the terms of the contract, the owner receives his part, proportional to the amount of income received. During the absence of the owner the company provides a full range of apartment services and manages the housing. Plus, both in this and in other large companies that operate loyalty programs, allowing you to enjoy the benefits and discounts from a membership in the Golf club to teach the children in school and obtain medical services. Plus, your vacation the owner may hold in a variety of resorts of the brand across the country, such as villas or in the hotel rooms, and the number of hotel rooms will match the number of bedrooms in his Villa.
5 tips to potential investors
1. Be sure to visit Vietnam before the purchase. Thus, as a rule, large builders compensate its customers the cost of the study tour.
2. For permanent residence you should find out about real estate the four main cities from North to South: ha long, Hanoi, da Nang and Ho Chi Minh city. Potential property owners in Vietnam will have the opportunity not only to see the country, but to feel the climatic differences of the regions. It is better to make such a trip in winter.
3. If the purpose of the investment is the preservation and growth of capital, you should invest in construction of resorts. Their popularity and the cost is growing, and in connection with change of the legislation on eligible purchases by foreigners, will only get higher. Tourist traffic in Vietnam is very ethnically diverse, allowing the resorts to ensure a steady flow of tourists even during the recession.
4. When purchasing a property from the developer with unknown name immediately after reviewing the facilities is imperative to examine all documentation, licenses ranging from construction companies to government bodies approved the project in which the property is located.
5. Not to rush to buy, but to investigate the maximum number of opportunities for the acquisition of the perfect "second home".
Portal HomesOverseas.EN thanks Elena Sakirko (VinGroup) for help in preparing the article.
photocredits: fotolia / fliñkr
Olga Potaeva
HomesOverseas.ru
