Tips to buy a second home

28 April 2017

1. Start your search early

If you are looking for a home in Vietnam, for example, it is a good idea to start your search early in the year, and if possible make your first viewing trip during your holidays. You can arrange viewings while enjoying your vacation in your favorite destinations. If the properties are developed within a resort, you could check in to first hand experience the community. In spring and summer, you will find it good occasion to study real occupancy of the resort since suitable properties may well have high occupancy rates at these peak times.

2. Research the area 

It sounds obvious but maps on website listings are not always 100 per cent accurate and could well show you to the nearest village or town rather than the property itself. However, after you register your details, the agent can give you the coordinates for a satellite view of the property and surrounding area. Study it closely.
Also be aware of idiosyncrasies of certain areas: in many parts of the coastline, for example, it may take an hour or longer to drive to the city center, so properties within a complex offering a wide range of indoor and outdoor facilities will be a good choice.

3. Fitting Out 

Most of the second home projects in Vietnam will be completed to the resort standards and some will be furnished and ready for you to move in. Second home developers in Vietnam will choose to cooperate with well-known architectural, landscaping and interior design companies to meticulously take care of each corner of the property. Idyllic sea views or golf views, natural materials, sophisticated and luxurious design and high privacy are basic criteria that vacation home developments in Vietnam are aimed towards. The level of fitting out will be a critical factor to define the rental value in the future.

4. Travel Time 

A beach home in an exotic location might sound wonderful, but if your job or personal circumstances mean that you have to be contactable at all times, or able to return at short notice, your choice will be restricted somewhat.
For this reason Nha Trang and Ho Tram work well for those in HCMC and Danang for those in Hanoi. Good access, with a choice of two airports is always desirable. However, the transport infrastructure to the coastal areas has been improved rapidly in recent years to push their tourism growth. Distances to these popular destinations is now not a big deal.

5. Development Team

The development team will be a decisive factor that can reflect the future potential of a second home projects. Second home is a special segment of the market that requires both innovation and strong finance to ensure sustainability & ultimately capital appreciation of a project. Discerning buyers will invest in those projects by experienced and prestigious developers and operators.

6. Rental Potential 

Each development team will give you an attractive ROI calculation on your second home. A holiday property can be expected to yield a minimum of 6% per annum in Vietnam. Second home owners should determine that buying this kind of product is a long-term investment. If thinking of bank mortgage, check early on whether financing is available and at what interest rate. Alternatively, you could let the agent assist you on the financial options.

 
 

Key Contacts

Dinh Huong Linh

Dinh Huong Linh

National Head of MarCom, Savills Vietnam

Savills Hanoi

+84 24 3946 1300 Ext 112