As you buy property, you may find yourself comparing the difference between vietnamese property and other types of property in the UK. In this article, we go over the differences so you can make the best decision.
Economic factors
One of the first things you may notice about property in Vietnam is that the market is completely different. You may first of all expect to see property prices rising rather than falling in contradiction to a lot of the places in the world at the moment. But in Vietnam, property prices continue to increase in 2023.
Ultimately, the choice between these two markets will depend on individual goals and risk tolerance. To make the right decision, thorough research and consultation with experts are essential.
Legal framework
In Vietnam, the rules for owning property are a bit different compared to the UK. When you buy a house or an apartment in Vietnam, you don’t really own it forever like you might in the UK. Instead, you get something called a “leasehold.”
What happens when the leasehold expires is the property might go back to the government unless you renew the lease.
In the UK, owning property works a bit differently. When you buy a house or an apartment there, you usually get something called “freehold” or “leasehold,” depending on the type of property.
The type and style of property
In Vietnam, the type and style of property are often influenced by the local culture and the way people live. You’ll find a variety of homes like colorful apartment buildings and houses with unique designs in Vietnam.
Many people in Vietnam prefer living in apartments or condos in bustling city centers because it’s convenient and closer to work and family. In contrast, in the UK, you’ll see a mix of old and new houses and apartments.
This is because the UK has a rich history, and some houses are hundreds of years old with traditional features, while others are modern and sleek.
People in the UK often choose where they live based on their lifestyle, like living in the city for work or in the countryside for a quieter life. So, the type and style of property in Vietnam and the UK can be quite different, reflecting the local way of life and history.”
Capital growth
Capital growth of property in the UK and Vietnam varies due to different economic conditions and factors. In the UK, property prices tend to grow steadily over time, offering a reliable and relatively lower-risk investment.
The market is more mature, and properties often appreciate in value at a moderate rate. On the other hand, Vietnam has experienced rapid economic growth in recent years, contributing to the property market’s dynamic nature.
This has led to significant capital growth potential in Vietnamese real estate, with property values appreciating quickly. However, it’s essential to note that with higher potential rewards come higher risks, as the Vietnamese property market can be more volatile compared to the stable and predictable growth seen in the UK.
Therefore, when considering property investments, individuals need to weigh the potential for high growth in Vietnam against the stability and reliability offered by the UK market, aligning their investment goals with their risk tolerance.
It is also with noting that the property in vietnam is considerably cheaper so you will be able to benefit from higher rates of capital appreciation without needing to invest as much in the proeprrt. This can be good for people with not a lot of money but may be cumbersome for those with a larger amount of money looking to invest in vietnam as they will have to find multiple property deals.
Rental yield
While capital appreciation represents the increase in the value of a property over time, rental yields offer a different perspective on property investment in the UK.
Rental yields measure the return on investment generated by renting out a property. In the UK, rental yields often vary depending on the location and type of property but you can expect to find yields anywhere from 1% all the way to 10% in some places.
Properties in high-demand urban areas tend to have lower yields but may benefit from steady capital appreciation over time. In contrast, properties in areas with lower demand may offer higher rental yields but potentially slower capital growth.
Ultimately, it comes down to how the demand varies. Some places tend to have a high demand for rent whereas some have a high demand for the sale of property. You may also be able to benefit form a mix of both. So, regardless of where you buy, Vietnam or the UK, pay attention to the local market.