The birth of social housing helps make dreams of low income people a reality. When buying social housing in 2019, it is worth noting some important information below.
1 – Not everyone can buy social housing
- Other than commercial houses, social housing is only for certain subjects. According to Article 51 of the Housing Law 2014, subjects who are allowed to buy social housing are those who have no houses or houses that are too cramped;Having a household registration book in the locality where the house is located, if not yet having a household registration book, it must register for temporary residence for 1 year or more.
- In addition, the above-mentioned subjects must be low-income people, not subject to personal income tax or must be in the category of poor and near-poor households as prescribed.
2 – Apartment has floor area from 25m2 to 70m2
- The most popular type of social housing is an apartment. The standard of social housing area is an apartment building as stipulated in Article 7 of Decree 100/2015 / ND-CP. Accordingly, the apartment will be designed, built in a closed style, the minimum area is 25m2 of floor, maximum of 70m2 of floor.
- However, based on the specific situation of each locality, the provincial People’s Committee is adjusted to increase the maximum area of the apartment but not exceeding 10% of the maximum
3 – Not to transfer social housing for 5 years
- This is a requirement of the Government in Article 19 of Decree 100/2015 / ND-CP. Accordingly, buyers of social housing are not allowed to mortgage (except in case of mortgage with the bank to buy the apartment itself) and not to transfer houses in any form for at least 05 years, since pay off the purchase amount under the signed contract.
- Homebuyers are only allowed to resell, mortgage or sublease after being granted a land use right certificate, ownership of houses and other assets attached to the land. If it is not enough for 5 years, after paying off the purchase money, the buyer who needs to resell social housing is only allowed to sell it to the State, to the investor or to subjects entitled to buy a communal house. Assembly as above.
4 – Borrow up to 80% of the house value with preferential interest rates
- According to Article 16 of Decree 100/2015 / ND-CP, purchasers of social social housing that meet the conditions will be entitled to borrow up to 80% of the value of social housing purchase contracts at the Social Policy Bank. Vietnam and other banks with preferential interest rates. There is no information on the interest rate for social housing loans in 2019.
- In 2018, the preferential interest rate at VBSP is 4.8% / year and at other banks is 5 % / year (according to Decision 370 / QD-TTg and Decision 117 / QD-TTg).
Above are some important information for social housing buyers in 2019. Besides, interested customers can refer to loan conditions, loan procedures, please kindly contact to us for more details.
For more information, please contact:
- Dong Du International Consulting Group HCM, Southeast Asia Business Consulting Network.
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