Mortgage Loan Overseas Mortgage

Financing Your Investment at the Global City

The property market in Vietnam is pretty hot at the moment, especially considering the biggest of all infrastructural projects, the Global City, Masterise Homes, located in An Phu Ward, Thu Duc City in Ho Chi Minh City. This massive infrastructural project was designed by Foster + Partners, and developed by Masterise Homes, and has actually been the talk of the town for a couple of weeks now. And to be honest, this project has even attracted the attention of foreign investors as well. However, there is one thing that’s on the mind of many investors, particularly foreign investors; how can one finance a property purchase in Vietnam? Or better yet, can I receive local financing in the country? The answer is yes, you can receive financing, but unfortunately, the options are very limited, and the ones you get will have a number of restrictions. In this article, we will tell you how you can finance any property at the luxurious Global City project, basically telling you what you will need to do to own one efficiently. But first:

The Global City’s selling price

The prices of property in the Global City in Ho Chi Minh City start from 350 million Vietnamese dongs, which is equivalent to 15,240 USD. The price of condos in the region can go up to 40 billion Vietnamese dongs, equivalent to 1.7 million USD. There are discounts, of course, but they will be based on your specific situation

Also, anybody buying property at the Global City is set to receive several incentives based on their preferential payment schedule. For instance, quick payments will receive a discount of up to 9%, while banks may cover up to 70% of the total price of the property. Lastly, loan interests support may go up to 24 months. All of this is aimed at helping investors acquire property efficiently.

Can foreign investors get bank mortgages in Vietnam?

Even with the boom experienced in the Vietnamese property market, it’s a little complicated for foreign investors to get a local mortgage unless you fulfill any of the following criteria:

  • You are married to a Vietnamese national, which makes you a Vietnamese citizen
  • You are a Vietnamese national who lives abroad
  • You have a residence card. However, since the card lasts for about 3 years, the loan needs to be paid before the card expires.
  • You must be under 65 years of age at the end of the loan period.
  • Must have a stable source of income

So, if you meet any of these criteria, here will be your next step:

  • You can now approach a local bank and take out a mortgage. Make sure that you go through the terms of the mortgage, and be sure to fulfill the requirements without fail.
  • If you come with cash, the better. After all, it is the most common method of transaction in Vietnam.
  • You can also apply for a mortgage through a local real estate Vietnamese company. This process is, however, lengthy as it may take a couple of months. But if you decide to do this, it is recommended that you contact a legal firm to guide you through the entire process. Now, you will need to have 900,000 USD for the investment, and around 10,000 USD to pay for the legal service.

Is there any other alternative method of payment?

Absolutely yes! And that plan is referred to as Homebase. You see, when it comes to investing at the Global City, a mortgage from a local bank doesn’t always go through, and that’s when you start looking for more flexible options, and that’s where Homebase comes in. Essentially, Homebase is a proptech company – based in Ho Chi Minh City – able to make the process of owning a home in Vietnam more flexible and seamless. They are backed by prestigious and multi-billion dollar funds from Vietnam – known as VinaCapital – A 3-billion dollar capital venture, and it’s one of the largest in the country – and around the world. Now, recently, Homebase was able to raise over 30 million USD, aimed at making homeownership in the region possible. Now, the process is straightforward and it actually takes way less time compared to the traditional bank mortgages. So, how does one apply for the Homebase payment option? Well, here is how:

  • For starters, you will need to select the property you want in the Global City residential area. And if you like, Homebase agents can recommend one for you.
  • Then, you can inspect the property you are about to buy, and if you are satisfied with your choice, Homebase will buy it for you.
  • However, you will need to put in a 20% deposit for them to buy the property for you. So, basically, you will be entering into a contract with Homebase.
  • After that, you will need to pay a fixed amount to the company until the end of your contract
  • Lastly, you will have the option of buying back the entire property, and can also cash out your savings if you probably change your mind.

Why should you consider the Homebase option against the traditional mortgage options?

One of the major reasons why you should consider the Homebase option is its inclusivity, whereby almost everyone is eligible for their plans, regardless of nationality and income level. Other benefits include the following:

  • The plan will cover 80% of the property value, compared to the 70% to be covered by a bank mortgage. This means that you will only have to pay 20% as the deposit to acquire a luxurious property at the Global City.
  • You can buy out the property as soon as you are ready.
  • The Homebase option is purely based on appreciation.

Final thought

As the Global City masterpiece projects continue to attract massive foreign investment, there are many foreign investors who are under pressure when it comes to financing the property, given that the mortgage and ownership regulations aren’t as favourable, especially to foreign investors. If you have the cash to finance the property, the better, but if not, Homebase would be the best option, especially if you are a foreigner looking for multiple financing options. And if you are able to get a mortgage – having met all the required criteria, of course – you can go for it as well. 

Leave a Reply

Your email address will not be published.