Property Investment Case Study: Viet Nam (TPI-VM-001)
Introduction:
The capital city of Vietnam has a lot to offer to its visitors and residents alike. This big city is quieter than Ho Chi Minh City and has an acceptable level of pollution. You will also discover more green spaces and 18 beautiful lakes such as Hoan Kiem Lake, West Lake, and Truc Bach Lake...
The cultural life in Hanoi is very interesting. Many of the well-known Vietnamese painters, musicians and writers have been trained in the best schools of Hanoi.
The Hanoi economy is improving rapidly. In addition to the flourishing tourism, the city is confident that its other industries will continue to develop. Factories are sprouting like mushrooms around the city along with many local arts and crafts businesses. Commerce is expanding and new shops are opening everyday, such as bar and restaurants, decoration and souvenir stores and phone shops...
The most attractive place of Hanoi is its centre, around Hoan Kiem Lake and the Old Quarter. But you may also be interested in the residential area near Ho Tay Lake.
Location:
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Economy:
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Property Market:
Real estate agencies in Hanoi are the safest way if you want to rent or buy a property in Hanoi. Please make sure they are a licensed agent in Hanoi and very familiar with the Hanoi property market.
Local newspapers in Hanoi also advertise apartments and houses for rent, but word of mouth is the best way in Hanoi. If you are currently an academic in Hanoi, you could check local at local universities in Hanoi, where apartments or rooms for rent are commonly posted.
In general rental rates in Hanoi, increase by a small percentage each year in accordance with the government’s annual cost of living reports in Hanoi. You can find yearly leases in Hanoi, and more short-term housing is available near academic institutes or around tourism areas within Hanoi.
Short-term tourist housing in Hanoi is fully furnished and most of the time fully equipped. If you have the budget, you could rent a serviced apartment in Hanoi.
If you want to buy a property in Hanoi, I would highly suggest you to have the property checked out by yourself and hire a lawyer in Hanoi to check how much debts the property has currently registered and if those numbers matched with the seller of the property in Hanoi.
If you are buying a brand new property, you’ll need to pay property tax in Hanoi. If your purchase is a luxury property, you may have to pay local taxes in Hanoi and possible stamp duty.
Even as a non-resident homeowner in Hanoi, you may become liable for all kind of taxes in Hanoi, including income tax.
Examples:
Attractions:
No data available
Transport Infrastructure:
Airports
Noi Bai International Airport
Hanoi
Tan Son Nhat Airport
Ho Chi Minh City
Fares are significantly lower for those flying to Ho Chi Minh City. Although flights are available from the capitals of most Southeast Asian countries as well as from Sydney and Melbourne, the best place is from Bangkok as visas are easiest to obtain there.
Trains
There are currently no train lines running between Vietnam and its neighboring countries.
Buses
Traveling by road from Cambodia is a slow and expensive alternative to flying. It is highly advisable that travelers fly in instead.
Ships and Ferries
There are no official passenger services. Travelers may be able to ride on a cargo ship to Ho Chi Minh City, Danang or Haiphong from Hong Kong, Japan, Thailand, Singapore and France. Check with the local shipping and travel agencies for rates and availability.
A ferry service runs from Cambodia to Chau Doc in the Mekong Delta.
Local Mortgage:
As of the 1st Quarter of 2006 the mortgage interest rate was 7%
If you plan to take a mortgage in Hanoi you need at least a 20% downpayment of the purchase price of the property in Hanoi. Even if you generate rental-income from renting your Hanoi property out, it is not considered by most lenders as you may decide to move in, at a later time.
The Hanoi Real Estate calculator will help you to compare the costs of renting a house or condo in Hanoi to the costs of buying a house or condo in Hanoi. Since there are all kinds of forces at work behind the scenes such as the current interest in Hanoi, Hanoi property taxes, tax savings, appreciation in general to investments in Hanoi, comparing the cost of renting to the cost of buying in Hanoi is a lot more complicated than just comparing the monthly mortgage payment to the monthly rent payment.
The Hanoi Calculator attempts to forecast the net effects of all the hidden forces so you can make an informed decision before buying or renting a property in Hanoi.
Inflation:
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Economic Growth:
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Sunshine Days:
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Annual Rainfall:
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Temperatures:
Winter: No data available
Summer: No data available
Property Price Inflation:
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Local Currency:
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Cost of Living Index:
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Income Tax:
28% on Rental Income
Property Tax:
No data available
Capital Gains Tax:
No data available
Buying and Selling Costs:
When selling a property in Hanoi, real-estate agents in Hanoi usually charge between 2.5% and 3% of the final sales price.
Rental Yields:
No data available
Report Compiled By:
To download this case study in a handy pdf format use the link below:
Download Case Study TPI-VM-001
Report ref: TPI-VM-001
Date created: 12-01-2006