Mr. family Chu Thanh currently lives in the Hoai Duc apartment building, Hanoi. For almost a year, Thanh and his wife have been actively looking for a home. Mr Thanh’s view is that the value of apartment houses will not increase in 3-5 years. Meanwhile, real estate is a good channel for storing money and has the ability to grow sharply.
After buying an apartment for 4 years, Mr Thanh realized that: The quality of this type of apartment will gradually decline over time while the price will not increase significantly, even at a loss. Especially in the context of rising inflation, Mr. Thanh wants to accelerate the progress of apartment sales and home purchases.
However, according to Mr Thanh’s part, it is not easy to find a home that fits the needs of a family on a tight budget. The average house price in Hanoi suburbs such as Hoai Duc, Duong Noi, Phuong Canh, Cau Dien… ranges from 2.2-2.8 billion VND, area 30-33m2.
“There are apartments that I think are suitable for my own needs and finances, but not because of the slow deposit. There are houses where the land is degraded, if it costs several hundred million to repair and make furniture, it costs quite a lot. expensive. Owning a house and land is not beautiful from a feng shui point of view,” said Mr Thanh.
In February 2022, Thanh and his wife found a house on Ho Tung Mau street, Nam Tu Liem district, right in the center of Hanoi. Thanh and his wife both love this house. “This house has an area of 32m2, 4 floors. The house is still new, so the quality of the walls, electricity and water system is good. The house is located in an alley, civilized residential area, near campus and university. The price for this house is 2.3 billion dong”.
However, what Mr Thanh was most worried about was that the house did not have a red book. The owner of this house said that because they needed money, they wanted to be sold quickly to move to Saigon for business. Currently, all the houses and their surroundings do not have a red book. “The owner said everyone in the area was waiting for the red book. If a red book is made, this house will not cost more than 2 billion VND, it should be doubled. Just the owner, I need money urgently to go there. Saigon to start a business, so I can’t wait to get the red book.”
Thanh said he and his wife both liked the house and wondered if they should pay for it. Thanh and his wife also hope to make a red book at double the price.
Regarding this case, Mr NM, a real estate business leader in Hanoi, said that spending more than 2 billion VND to buy a house without a red book should be considered carefully. “I personally tend not to buy a house without a red book for the most important reasons. That is the legality of the house without the red book.
So, if it is a sale and purchase, the transfer can only be handwritten or written with a certificate from the notary’s office… These documents have no legal value if the lawsuit is filed in court. When a homeowner promises to do a red book, it is necessary to clearly analyze that: If a home can do a book, why can’t the owner do it and sell it at a double profit. No one can easily give up profits and pass them on to someone else.
According to Mr M. stressed, “It is very, very difficult to turn a house without a red book for decades into a red book in Hanoi. The success rate is only 1% and the cost is not cheap. So, young couples when choosing to buy a house should not risk entering money into a plot of land without a red book even if the seller is quite promising.”