澳洲Australia property Anybody experienced at purchasing in Viet


在澳大利亚 I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo


Some very close Vietnamese friends are planning to buy an IP near Hanoi. They obviously speak Vietnamese and they have family who've bought property in Vietnam before, but I'm a little nervous about the whole process. My interest is two-fold: 1) We're lending money to help them, and even more importantly 2) they're putting everything that they've worked very hard for into the investment, and have asked for my advice :eek: But naturally I feel totally out of my comfort zone advising them on property investment in Vietnam.

They are being told that prices are escalating so quickly that price quotes are revised daily (prices have gone up hundreds of percent in the past few months) and are only good for settlement on the following day. :eek: Now in Australia I'd be highly suspicious, but apparently this is how things are done in Vietnam (at least in the current climate).

Anybody have any tips/advice/resources? I really have no idea what to advise them.
 

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Hi there Tracey
I haven't invested in Vietnam but am concerned about what sort of security you are taking for your loan.
If you were in Australia you would have a caveat or mortgage over the property to secure your loan.
I would recommend you contact one of the legal firms who also has an office in Vietnam to see what sort of security you could take.
If you can't get security - either don't lend the money or be prepared to lose it all.
It really does sound like a very risky venture
thanks  

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I know in Thailand next door if you where not born there you can not own property.
And if you have a thailand wife and brake up there is no 50 50 split even if you have paid for it she gets the lot.

Mat.  

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Ozperp,

Yes Vietnam has and is doing well. Did your friends go through with the purchase? I'm interested to know what happened?

I bought in Vietnam (Da Nang) around the same time also.

There is a new oil refinery being built near by Da Nang and expected to be completed by 2009. Prices have just started to move there now. We were deciding between Danang and Ho Chi Minh but the price of the latter is approx double per square. Da Nang is the 3rd largest city oafter HCM and Hanoi. We have bought from an international developer so the building quality is first class. It's in the high end of the quality scale, and there is no other residential apartment block like it in the city. On the first 4 floors there is going to be a large shopping complex. It is due to be completed by May 08. The view is over the river. Beaches are very close by. Note 70% of the population is under 35 years of age so they young, mobile, making money and ambitious. A lot of them are buying property as investments. The government there is considered very stable, ranked 2nd to Singapore in Asia. The other good thing about Vietnam is there is no financing for foreigners just yet, so we have to pay the lot in cash. Imagine what will happen when financing is allowed. Investment is going to increase exponentially. All in all, makes much more sense than buying and hoping in Australian property which I had been doing for 10 years. But that's my opinion and why I bought in there, so do your own research.

As I work in Singapore and have been here for a few years, I have friends and colleagues in most countries in Asia so can help with info if you need it.  

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Good morning, Chief!

Our friends got gazumped on the purchase. We couldn't get the money there in time. We need it there by 4pm on a Thursday, and it didn't get there until Friday morning, by which time somebody else had bought, at a higher price :eek: It's certainly a different system of property transfer...

They've recently heard that prices have fallen and are continuing to fall, so they consider that they had a lucky break. Apparently there are a few factors making property investment in Vietnam less attractive than it was just a few months ago:

1) Property transfers are more frequently having to be performed "officially" via solicitors and agents rather than between two individuals, meaning that investors are having to pay tax where before they didn't. :eek: Apparently Vietnamese consider paying any tax abhorrent and this puts many people off. Interestingly, this same factor will probably make investing in Vietnam more attractive to foreigners, so in the longer term it will probably push prices up.

2) High inflation (6% for Jan/Feb 08) is causing the Govt to implement policies restricting the amount of Vietnamese currency circulating, meaning there are less funds available from banks etc.

3) Some change in taxation laws that I don't quite understand - something to do with a progressive taxation where those who own multiple properties pay a higher rate of tax. (Similar to our Land Tax perhaps?)  

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A Newspaper article I spotted this morning

http://www.thanhniennews.com/society/?catid=3&newsid=36890

Dave  

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i don't know much about the property market there but i do know that the city allotments are worth Millions!!

The land prices in the City (Ho Chi Minh) are more expensive than Japan. Last time we were there (3yrs ago) the land was worth between $2K-$5K/m2. So your average courtyard allotment of 300m2 could be worth up to $1.5M!! I was gobsmacked :eek:

not sure about the regional areas however.  

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Update: our friends ended up buying land in Hanoi in mid 09 for about VND 450M / $A 30K. It's now increased in value to approximately VND 1.5bn, ie more than trebled. The increase in the $A makes it a little less attractive, but the increase to $A 75K is still a result that I'd be delighted to have achieved. And they're not planning to sell anytime soon, anyway.  

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Thanks Perp for the Hanoi purchase update

Sounds like they picked the bottom of the stock markets and perhaps the Vietnamese property market followed the stock market too so it was good timing, except for the fact the AUD was lower then.

We are still hanging on to our Da Nang unit.

By the way, where did your friends get a valuation from? I would like to get mine valued.  

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Prices are cheaper in the countryside.

Apparently in the last year I have bought a 1000sqm block of land north of Nga Trang with waterviews for $3,500 and a cow for $100 to keep the grass down.

In the next couple of years I will build a nice 3 bed 3 bath house out of granite blocks for about $5,000 to have as a holiday home.

I do not view this as an investment, I view it more as a few weeks income spent on housing the mother in law and providing me with a nice place to have a BBQ (after the cow has eaten all the grass), mind you the cow could well triple in value in the next couple of years, so the BBQ might be off.

cheers,

RightValue  

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chief wigam said: ↑
Sounds like they picked the bottom of the stock markets and perhaps the Vietnamese property market followed the stock market too so it was good timing, except for the fact the AUD was lower then.Click to expand...
They don't credit the stock market as having anything to do with it, but they may be mistaken.
chief wigam said:
By the way, where did your friends get a valuation from? I would like to get mine valued.Click to expand...
They just keep their eye on the market by consultation with online newspapers and friends/family who live in the area, ie it's their estimate using the same techniques most of us would use to monitor the value of our own homes.
RightValue said: ↑
Apparently in the last year I have bought a 1000sqm block of land north of Nga Trang with waterviews for $3,500 and a cow for $100 to keep the grass down.

In the next couple of years I will build a nice 3 bed 3 bath house out of granite blocks for about $5,000 to have as a holiday home.

I do not view this as an investment, I view it more as a few weeks income spent on housing the mother in law and providing me with a nice place to have a BBQ (after the cow has eaten all the grass), mind you the cow could well triple in value in the next couple of years, so the BBQ might be off.Click to expand...
Sounds good to me! :cool: I wouldn't be surprised if the Vietnamese holiday home becomes to the teens what the Balinese holiday home was to the nineties.  

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