If you own an apartment for a limited time, the investor is forced to reduce the house price, people will benefit
The draft revised Housing Law being submitted by the Ministry of Construction for appraisal and consultation with ministries, branches and provinces related to apartment ownership continues to cause a stir in public opinion. Accordingly, the Ministry of Construction submitted to the Government two options: Option 1 will issue a “pink book” for apartment buildings according to the land use regime specified in the Land Law (including long-term residential land, commercial land, and commercial land). service life from 50 to 70 years).
Option 2 is how long the life expectancy of the apartment building is, the right to use the apartment will be granted according to the life of the project. With this option, depending on the level of the project, the buyer will be owned with the corresponding term.
Before that, in 2010, the Ministry of Construction also raised the issue of home ownership. The Ministry of Construction thinks that it is necessary to study the mechanism of owning houses with a term, especially apartment buildings. The regulation of house ownership for a limited time will create favorable conditions for upgrading and renovating old houses.
By 2013, in the draft revised Housing Law, the Ministry of Construction had proposed two options for the term of apartment ownership. Option 1 is not to specify the ownership period. Option 2 has a fixed term of ownership, with a given period equal to the land lease period or 70 years. When the ownership term expires, the apartment house owners no longer own the apartment building and must hand over the land use right to build the apartment building to the State.
The life of the apartment helps people buy cheap houses
According to Mr. Phan Cong Chanh, a real estate expert, owning an apartment with a term of 20 – 30 or 50 years is popular in many countries for the purpose of securing land fund and diversifying types of housing. housing, while ensuring the safety and development of residential life. That will be an option to solve the problem of renovating or rebuilding apartments at the end of their useful life without having to deal with ground clearance.
Also according to Dr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, if the proposal of a limited-term apartment building is applied, the first thing that is most noticeable is that the psychology of buyers will slow down. At that time, the apartment becomes a consumer asset, not a savings asset, and apartment buyers will be hesitant because using the house is a liability.
Mr. Dinh posed the problem that the current selling price of apartments is too high because home buyers are having to bear a large cost for the land value due to permanent purchase. Therefore, if the apartment projects are all leased land with a term, the price will also be pulled down and the selling price will decrease accordingly. Because, at that time, the buyer does not have to pay the land fee immediately, but can pay annually.
Mr. Dinh added, this proposal, if applied, will affect prices in the apartment market in a downward direction because investors are no longer interested, speculators will also run out of opportunities to “hug” apartments because the more The longer you hold it, the more it depreciates. At this time, the market will only have those who have real needs and there will be no more price blowing.
“On the positive side, cheaper apartments are an opportunity for low-income people to buy an apartment that is suitable for their family’s finances. That’s not to mention, with the right to use 50 years, if people If people have used it for 20 years and want to sell it, the selling price will only correspond to the remaining term of 30 years.In addition, the proposal is not only one of the “medicines” to contribute to cooling down housing prices in urban areas. In big cities, but also direct capital flow into manufacturing industries, instead of hoarding in real estate like now,” Dinh said.
Support for a limited-term ownership apartment
Lawyer Nguyen Thanh Ha, Chairman of SBLaw Law Firm, said that in fact, in the world, many countries have regulations on apartment ownership for a limited time, but in Vietnam so far, it has not been applied. In particular, the ownership story directly touches the interests of the owner, so if you give opinions, the rate of disagreement will be higher than consensus.
This lawyer recommends that, in the long term, it is also necessary to take into account the ownership of a limited term when currently, many countries such as the UK, the US, China, Singapore… all define apartment ownership from 50 – 70 years, which is high. 99 years at most.
Mr. Ha gave an example in Singapore, the first phase, this country stipulates ownership of apartments for only 30 – 50 years. After that, when the quality of the works gradually improved, the state extended the apartment ownership period to 70 years and with new construction zones like today, the “life expectancy” was also raised to 99 years. In addition, 15% of commercial apartments invested by private enterprises are permanently owned by a term of up to 999 years, but commercial housing up to a certain “age” must also be demolished according to regulations. .
In China, the Constitution of this country also regulates the purpose and duration of land use with a regulation of 40-70 years, and a 70-year lease for apartments.
The life of the project has a limited time, it is also right to issue a pink book for an apartment with a term. When the useful life of the building expires, it must be demolished and rebuilt. Mr. Ha stated that, in fact, many old collectives who want to build dams now face many difficulties when they have to negotiate with each household for site clearance.
Sharing the same view, lawyer Nguyen Doan Hung stated that the 50-year term of the apartment building is completely reasonable to ensure the safety of residents living there. We cannot own an asset forever while its existence is only finite.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here