Lecture on Real Estate Valuation - MSc. Vuong Thi Anh Ngoc mixed-use properties with residential purposes must meet the conditions prescribed by the law on housing.
2. Real estate management service business contents include:
a) Selling, transferring, leasing, sub-leasing, and leasing-purchasing real estate under the authorization of the owner of the house, construction work, or person with land use rights;
b) Organize the provision of services to ensure the normal operation of real estate;
Maybe you are interested!
-
Attracting foreign direct investment in real estate sector in Hanoi - 13 -
Assessment of the Situation of Attracting Korean Direct Investment in Vietnam's Real Estate Sector. -
FDI Into Hai Phong Real Estate Sector By Investment Sector As Of December 2008 -
Vietnam Real Estate Investment Situation in Recent Years -
I. Solutions to Increase Attraction and Improve the Efficiency of Using Korean Direct Investment Capital in the Real Estate Sector of Vietnam
c) Organize the implementation of real estate maintenance and repair;
d) Manage and supervise the exploitation and use of customers' real estate in accordance with the contract;
d) Exercise rights and obligations towards customers and the State under the authorization of the owner of the house, construction works, or land user.
3. The content, time, scope of real estate management, rights and obligations of the parties and price of real estate management services are agreed upon by the parties in the contract.
4. Real estate management service businesses are responsible for fulfilling their commitments in the contract and compensating for damages caused by their own faults.
Real Estate Valuation Lecture – MSc. Vuong Thi Anh Ngoc
CHAPTER 3: REAL ESTATE INVESTMENT IN VIETNAM
3.1. Basic issues of real estate investment
There are many different entities involved in real estate transactions, including: individuals, businesses and career organizations, investors (domestic and foreign), the State, financial institutions and brokers. Each entity plays a certain role in the real estate market.
3.1.1. General concept of real estate investment and business
Individuals who own real estate (own houses, have land use rights...) participate in the real estate market as sellers, lessors, people who use real estate as collateral to borrow capital, use real estate to contribute capital to joint ventures... On the contrary, there are some individuals who need to use real estate for personal life or for production and business purposes and will participate in transactions on the market as buyers or renters of real estate... This is the most dynamic force, they always seek the highest profitability based on the lowest cost of time and money.
3.1.2. The role of real estate investment
These businesses are organized into many different types: housing development and trading businesses, infrastructure development businesses, land development businesses... these are businesses that create real estate products for the market.
Lecture on Real Estate Valuation – Master. Vuong Thi Anh Ngoc The State's participation in the real estate market is mainly reflected in two aspects: Creating a legal environment for the operation of the real estate market.
real estate and participate in managing activities in the real estate market.
The State is responsible for building the legal system and creating a legal framework for the operation of the real estate market.
The State participates in the real estate market as a macro manager of real estate market activities. The State manages and supervises through measures (mainly economic and financial measures) to promote the development of the real estate market. At the same time, it uses other economic levers to regulate the relationship between supply, demand and real estate prices.
In addition, the State can provide some services for transactions in the real estate market such as providing a real estate information system. In addition, the State also participates in transactions in the real estate market like other entities to meet the demand for real estate in performing State management functions.
Construction contractors are the entities that directly create construction works: houses, industrial, commercial, service works... to create real estate products for the market. They are the ones who convert designs on paper into real works. Real estate business people need construction contractors to construct works.
The general contractor may subdivide the contract package to subcontractors to carry out construction work in specific specialties. The selection of contractors is usually done through bidding or appointment of contractors.
3.1.3. Classification of real estate investment and business activities
The price of real estate goods is affected by many complex factors. In the real estate market, information is often imperfect. In addition, real estate management is relatively complicated. Therefore, when buying and selling real estate transactions, both the seller and the buyer need the services of consulting experts such as architects, construction engineers to advise on design, construction, etc.
Lecture on Real Estate Valuation – MSc. Vuong Thi Anh Ngoc, installation; accounting expert consulting on financial accounting, tax consulting; valuation expert to determine real estate prices during transactions, determine purchase and sale prices, rental; brokerage expert to help two parties buy and sell meet to make transactions, help make purchase or lease contracts, forecast prices; legal expert (lawyer) consulting on legal issues...
Although the prices estimated by experts are still somewhat subjective, these people have been trained, have experience and professional knowledge, grasp market information, understand real estate laws... so they can help those who have real estate transaction needs to satisfy their goals.
Real estate consultants and brokers often work in organizations specializing in real estate brokerage and consulting. Brokerage and consulting organizations play a very important role in the real estate market. These organizations contribute significantly to stimulating the development of the real estate market. Experience shows that poorly developed brokerage organizations lead to inefficient operation of the real estate market and high real estate transaction costs. The more developed the real estate market is, the more specialized the system of real estate consulting and brokerage organizations becomes.
To improve the operational capacity of the above organizations, it is necessary to remove barriers to the practice of experts, encourage the formation of professional associations. Create legal conditions and organizational regulations for real estate centers, brokerage centers, etc. to be formed and developed. Encourage the formation of brokerage organizations with legal status and issue specific operating regulations for these organizations. Organize training for experts in real estate market activities. Especially experts in surveying, cadastral mapping, preparing detailed urban development planning documents, consulting, brokerage, arbitration, credit, information, etc. on real estate transactions.
Real estate valuation lecture - MSc. Vuong Thi Anh Ngoc Real estate business requires large capital. Therefore, it is necessary to mobilize capital from financial institutions operating in the capital market.
mainly banks.
Due to the immovable, durable and valuable nature of real estate, real estate is often used as collateral. Therefore, banks often rely on the real estate market to determine the price of real estate as collateral. When the loan is unable to be repaid, the bank will auction the real estate as collateral. In this case, the bank participates directly in the real estate market. On the other hand, banks themselves also directly participate in investing and trading in the real estate market, even organizing a separate department (a company under the bank) to specialize in real estate.
In addition to banks, other financial institutions such as insurance companies, finance companies, investment funds... can participate in investing and doing business in the real estate market.
One of the banks that shareholders are most concerned about is Eximbank, which has poured more than VND300 billion into its subsidiary Eximland, causing bad debt to increase in recent years.
Eximbank's bad debt figure as of June 2015 was VND2,400 billion (equivalent to 2.82% of total outstanding debt). Due to the increase in bad debt and having to sell a large amount of bad debt to the Vietnam Asset Management Company (VAMC), Eximbank's leaders admitted that they had to set aside high provisions, which affected profits.
Meanwhile, in addition to the bad debt of 686 billion VND that DongA Bank lent to Phat Dat Real Estate Company to implement the project before, which has not yet been recovered, this bank is also "distorted" with the debt of its affiliated company, DongA Land. Mr. Tran Phuong Binh, General Director of DongA Bank, said,
Lecture on Real Estate Valuation - MSc. Vuong Thi Anh Ngoc with the debt of Phat Dat, DongA Bank is currently in the process of debt collection, but due to real estate difficulties, the foreclosure procedure is slow.
3.2. Procedures, implementation procedures and contents of real estate business investment projects
Why is state management necessary?
- Implement the country's socio-economic development orientations and goals.
- Prevent and limit negative aspects, ensuring the balanced and sustainable development of the real estate market.
+ An imperfectly competitive market;
+ Incomplete information;
+ Inflation, unemployment, economic crisis;
+ Instability, many other socio-economic problems...
- Protect the ecological environment
- Requirements of the businesses themselves.
Building real estate market policy
- The State promulgates, amends, supplements and perfects macroeconomic financial policies.
- The State establishes real estate business enterprises, has policies to encourage economic sectors to do real estate business. Investment policies must truly encourage all economic sectors to participate. The State can implement land allocation without collecting money (selling on credit), only collecting when the enterprise completes the construction of real estate and puts it into business; Support initial financial resources for enterprises; invest capital in cash, use land funds to create initial capital for enterprises... provide low-interest or no-interest construction loans... The State can also set out a reasonable tax policy to ensure encouragement for enterprises. Capital support policies; technology, creating conditions to improve enterprise capacity; measures
Lecture on real estate valuation – MSc. Vuong Thi Anh Ngoc: Land and credit law, providing market information; training and fostering a workforce of highly skilled managers and workers.
- The State completes the system of legal policies on land, construction, traffic... and other legal policies related to the formation and development of real estate market.
Building laws on real estate market
- The State creates a legal environment for healthy development, overcoming inherent defects of the market.
- The legal system stipulates: conditions for implementation, scope, content... of sales, transfer, lease transactions... and instructions for implementing such transactions.
- Through land use planning and construction planning, the State implements orientations for socio-economic development, regulates the use of construction land... to prevent negativity.
- The State plans specifically for each region, each rural area, each urban area... to create conditions for real estate distribution in accordance with the socio-economic development and population distribution of each locality and nationwide.
Carry out public administration related to real estate market activities
- Registering ownership and usage rights is a condition for real estate to participate in the market in an organized manner; ensuring that transactions are not duplicated and ensuring the safety of real estate transactions.
Public service organizations related to real estate market activities
- The State organizes the provision of information on real estate: establishing land use rights, land area, cadastral maps, cadastral records, ownership registration, planning information... this activity is a service and the State can collect fees.
- The State establishes organizations or permits the establishment of legal consulting organizations to serve real estate transactions.
Real Estate Valuation Lecture – MSc. Vuong Thi Anh Ngoc
- The State establishes a valuation organization. This organization conducts real estate valuation to provide consultancy for real estate transactions; to resolve disputes; to serve the State's land management and real estate market management.
3.3. Contracts in real estate business activities
3.3.1. Types of contracts in real estate business
Price category:
- Prices tend to be fixed: Purchase price
Insurance price Mortgage price Compensation price
Auction starting price Taxable price
- Price tends to change: Price for investment purposes Current usage price
Development price Rental price
Market price price by owner
=> Real estate prices are still given for the purpose of exchange, buying and selling,
transfer...is called real estate cost.
- Real estate costs include: Land costs: land use rights purchase, infrastructure usage fees, site clearance compensation... Construction preparation costs: planning project, feasibility study, measurement, geological survey, design... Construction costs: construction materials, labor... Tax costs, expenses
consumption ....
Real estate prices often fluctuate due to the influence of administrative-political, economic, social, natural factors and a number of other factors (design quality, construction, equipment, feng shui, etc.)
3.3.2. Main content of contracts in real estate business
Regional factors:
- Location, location