Vietnam’s property market in 2021 continues to grow fast and attract foreign investment. The country has gradually recovered from COVID-19 outbreaks with increasing vaccination rates. Since 2015, through open policies, the government has been encouraging overseas investment.

How can a foreigner buy a house in Vietnam? Let’s look at a step-by-step guide to homeownership in Vietnam and the alternatives to traditional banking options a foreign buyer might have. By the end of this article, we hope you'll be able to navigate your path to foreign ownership in Vietnam.

Be a homeowner from today by filling a form at https://www.homebase.com.vn/bwi-form.

Can a foreigner own property in Vietnam?

Unfortunately, foreigners cannot own land in Vietnam. However, you can still purchase other landed properties.

There are mainly three ways to own a house in the country:

1. Buy it in cash (Since most Vietnamese transactions are done in cash)

2. Seek financial assistance from a company overseas

3. Get help from an alternative to traditional bank mortgages with Homebase

It’s possible to seek financing outside the country, but the process will take a longer time compared to local services. Not every company provides foreign financial support, either.

What criteria apply to foreigners who want to buy a house in Vietnam?

It’s more difficult to buy apartments or houses as a foreigner: Land ownership is prohibited as it's considered a collective asset for the Vietnamese people. You can still own or hire other landed property, but note that the leasing rates are often higher than for locals, plus there are quotas for foreign property ownership to keep in mind.

The criteria for bank mortgages are also strict for non-locals:

1. Clients must be Vietnamese, Viet Kieu, or a foreigner married to a Vietnamese spouse.

2. Clients must be younger than 65 years old at the end of the loan term.

3. Clients must have a stable minimum income of 5 million VND per month.

4. Clients shall have stable employment.

Not to mention, the qualifying process for the mortgage can be complex and lengthy. It may take weeks or months before you can finally move into your dream home.

This is why we encourage you to look for innovative solutions for property ownership in Vietnam. Homebase can help you get there in the shortest possible time, with our deep understanding of the real estate market, and a team of experts to facilitate your journey.

Important documents for ownership in Vietnam

If you're looking to make the first investment in Vietnam or browsing your options, these are the legal documents to have before you apply for bank mortgages:

Pink book: This is issued by the Ministry of Construction to certify legal property ownership or development/construction rights.

Sales and Purchase Agreement (SPA): This will be issued temporarily until a pink book is available. The SPA is signed after the seller has received a deposit from the buyer. The buyer then becomes the property’s new owner.

Deposit Agreement: This is signed between the buyer and seller to guarantee that the transaction will proceed smoothly. Usually, a deposit agreement is worth 10% of the property’s value.

Necessary documents to apply for a bank loan

Here are the documents you need to provide when applying:

Personal

National ID Card/Passport

Work Permit (if applicable)

Marriage Certificate (if applicable)

Income and Assets

Proof of Income

Proof of Employment (if applicable)

Proof of other Asset Ownership (if applicable)

Property Information

Property Title Document

Other Financial Information

Existing Debt Obligations

How to own property in Vietnam with Homebase’s Buy with Installment

An alternative to traditional bank loans, our "Buy with Installment" plan makes homeownership more accessible for everyone, especially those who don’t qualify for mortgages' criteria.

We simplify foreign ownership in Vietnam with these easy steps to join:

Step 1: You can choose a property or we can recommend an agent to help you with it.

Step 2: Homebase will buy it in cash.

Step 3: You’ll put in a 10% deposit at the beginning.

Step 4: Every month, you’ll pay a fixed amount until the end of your contract.

At any moment, you have the option to buy back the entire property. If you don’t want to, you can still walk away at the end of the period and cash out your savings.

Why you should choose Homebase’s Buy with Installment

Take a look at our competitive advantages:

As you can see, Homebase’s Buy with Installment is a traditional mortgage alternative that's better in terms of:

Inclusivity

Almost everyone can qualify for our plans. We “serve the underserved” that includes non-natives, foreigners, and those without a regular and provable income to own their property.

Affordability

You can pay the same amount each month to build up your savings. You don’t have to pay a large sum in the beginning like traditional banks, and have to collect interest plus principal every month in the contract.

Flexibility

Once you move in, it’s entirely up to you to rent out or renovate your property.

You’re free to choose how much you want to pay besides the monthly deposit to buy back your home portion. This allows you to control your finances and how quickly you want to own your property.

Also, you have the option, not the obligation, to buy out your property at any moment.

At the end of the contract, you can walk away without buying and cash out your savings.

Thorough support during the buyer's journey

Homebase shortens your waiting time so you can move in almost immediately (1-2 weeks) after your property is bought in cash.

We have a team of experts in real estate, law, finance, and tax to consult legal matters. These are all the major components of homeownership in Vietnam and we will help you to the best of our ability.

Speed

We offer instant cash payment for you when you move out. We also buy out instantly at the beginning.

Transparency

Whether you’re working with Homebase as co-investors or partners, we guarantee a transparent process with no hidden fees apart from the costs we announce.

Homebase truly takes care of your property ownership to allow you to focus on things that matter, from working in Vietnam or spending quality time with your family.

Who should work with Homebase?

Don’t know what option is best for how to own property in Vietnam? Homebase is your best bet if you:

Do not qualify for traditional mortgage options

Homebase can help make homeownership a reality regardless of your nationality, age, income, or type of employment. You’ll only need to provide us basic information in this form and leave it to our team to verify and take it from there.

Want to lower your monthly payments or initial deposit

Where else can you start buying a home with just a 10% deposit? Most banks require at least 30% down payment, on top of potentially floating interest rates every month. In fact, the market is expected to fluctuate in the next 6 months into 2022, making floating rates another important factor for house purchases.

With Homebase, your future purchase will be a more secured one. There’s no need to worry about market prices’ volatilities since we pre-agree on a payment amount for every month in the contract.

Plus, Homebase wants to serve more homebuyers and we understand the financial strains that come with property ownership in Vietnam. By choosing our plan, you can save up to 50% in your monthly payment compared to traditional options.

Want the best of owning with the flexibility of renting

By subscribing to our plans, you can enjoy your home's appreciation in the coming years. Buy the home from us when you’re ready, or walk away and cash out your savings.

You’ll also have full freedom to rent out, live in, and renovate it to your style.

Why should you trust Homebase?

As a close partner in the homeownership process, Homebase helps clients conduct intensive legal and valuation due diligence on the property that we’ll be buying for you.

Prior to purchasing the property our internal real estate and valuation teams will look into the property’s title (pink book, SPA) to make sure there are no legal issues, the project is on track for completion (if it’s a primary market project under development), among other factors and pitfalls first-time buyers may often face. We’ll also engage an independent valuation service to make sure that we’re purchasing the property at a fair market value, and help give suggestions for you/your agent if any are helpful for you.

Ultimately, Homebase's role is almost similar to a “co-investor” in the property, and thus our aligned incentives make sure that we deeply care about the home that we’re buying.

Homebase is also backed by multi billion dollar funds coming from around the world including VinaCapital and Y Combinator. Our model is also a proven business model that companies like Divvy Homes and ZeroDown have successfully applied in the US’ real estate market. We’ve also recently announced a 30-million USD round of fundraising to make homeownership more accessible to more customers across Southeast Asia.

With this in mind, we’re confident that Homebase is a trustworthy partner to assist your property ownership in Vietnam.

Ready to buy a house in Vietnam as a foreigner?

We hope you’ve gained valuable knowledge about how to own property in Vietnam as a foreigner. If you want to start owning a home but are either underqualified for mortgages or simply want more flexible alternatives, Homebase can help you with it.

Reach out to us if you need more assistance or fill in a quick form to start. Our team will guide you through a seamless process to help you own property in Vietnam in the shortest amount of time possible.

You can also contact us by phone/Zalo/WA at (+84) 964 245 404 or email at contact@gethomebase.com.

We’re looking forward to making your dream come true!

Frequently Asked Questions

How long is the sales process?

The sales process starts with the qualification process which typically lasts between 1 and 3 days. Once qualified, we just need to sign the Sales and Purchase Agreement, and you can get paid immediately.

Step 1: Tell us about your property: Fill in this quick 1-min contact form at https://www.homebase.com.vn/bwi-form and a member of our team will contact you to get more information about your property.

Step 2: Get a cash offer: We’ll use market data, information you provided, and comparable properties to calculate the fair market value and provide you an all-cash offer.

Step 3: Sell to us and get instant cash: Get paid in cash instantly as soon as you accept our offer.

Which properties qualify for "Buy with Installment"?

Properties qualified for "Buy with Installment" should satisfy the following criteria:

Types of residential property: Apartment, officetel, condotel, land, landed property

Types of title: Title (pink book), SPA, long-term lease

Market: Primary or secondary

Location: Ho Chi Minh City

How is the property price determined?

The property price is preliminarily determined based on the supporting documents submitted, home inspection, market data, and evaluation from our real estate valuation team. We may also involve a third party to evaluate the property in some instances.

Who holds the title to the property when I work with Homebase?

Homebase will temporarily hold the title and guarantee that your home is secured.

If I rent my house while working with Homebase, do I have to split my revenue?

You do not need to split any revenue, and you can keep all of the income derived from your property. However, Homebase does need you to disclose that the property is being rented out.

Can I terminate the contract early?

Yes. You can have the option to exit early. Before the contract expires, you can either:

1. Buy us out ahead of time

2. Sell the property to a third party

3. Walk-away and cash out

For the first two cases, you simply have to pay us:

The outstanding remaining balance of the property price, and

A 2.5% tax reimbursement fee (4.5% if it is for secondary market apartments because of additional taxes incurred)

For the case of walk-away and cash out, there will be an additional 7% Relisting Fee to reimburse for the selling and holding cost. View more commonly asked questions about Homebase at https://homebase.com.vn/faq.