Buying a condo in Ho Chi Minh – 5 things to consider
Ho Chi Minh has been predicted to join the list of megacities of the world, by 2030, with its population increasing at a rapid pace. The increase in the community has increased the population density at a great deal, and the result has been a steep growth in the demand for compact accommodation. The year 2018 alone saw a 17% rise in prices of luxury condos which is slowly becoming one of the most sought after types of properties. This is one of the fuelling factors for the growth of the condo market in the city. So for all the home buyers looking for a condo for sale in Ho Chi Minh, here are a few things to consider.
- Choose the best neighborhood based on various factors
District 7, District 10 and PhuNhuan are popular among the home buyers, who choose condos as an investment. These are some of the most densely populated neighborhoods in the city. These localities are popular among backpackers as well as students and tourists visiting the country. So, to earn an excellent rental income even with a small condo, these are the best locations. For those looking for a condo to settle down with the family District 3 is a trendy choice. This is among the less crowded parts of the city. Proximity to the business hubs and obtaining long term tenants or even to conveniently settle for a long term Tan Binh District is a great choice.
- Investment vs. settlement
The rental yields might be slightly low in some neighborhoods like the District 10 which is known predominantly for affordable housing. Based on the purpose of investment, one can decide on to buy a condo, determine the location and the type of rental income to expect. The investor can choose a less popular tourist location to settle down, for personal use.
- Consider the taxes
During the purchase of a property, there is a 0.05% registration fee and 6% VAT which would be paid by the buyer. In Ho Chi Minh, homeowners would have to bear a small tax percentage for the rental income. These taxable amounts should all be taken into consideration while calculating the budget and the spending power.
- Look at the details of the pricing
Most of the developers would be ready to give a detailed breakup of the property price. Make sure that the amenities that the community offers would be worth the added fees that are to be paid along with the condo price.
- Choose the buyer wisely
Foreigners buying a condo in Ho Chi Minh are only allowed to buy from the developers directly and not the local sellers. To make things simpler and to cut down the budget there are plenty of off-plan condos available for sale in Ho Chi Minh from several of the city’s reputed developers.