What are condotel buyers?

06/06/2018   Viewed: 740
With a commitment to attractive returns of 10% even up to 15% per year, condotel has been chosen by many investors down the money. But condotel legal troubles also cause many apartment owners can not sell condotel if need liquidity.
Commitment is attractive but difficult to transfer
An attractive project in Cam Ranh, with the price of 1.4 billion VND / unit, supported by banks with 70% loans, interest rate support loans: 0% (from disbursement to handover - about 2 years), the loan period lasts 15 years, dividends up to 95%, lifetime resort with 15 days per year ...

A number of condotel projects in famous tourist destinations such as Phu Quoc, Sam Son, Khanh Hoa ... are offered for sale with attractive commitments. Investing in condotel has become a business trend in real estate.
condotel 2

Do not want to spend money "dead" in the bank, Hoang (Ba Dinh, Hanoi) decided to invest money to buy condotel beach pretty well known in hopes of "money spawn", just invest money to buy , there is a unit operating the project, he sat to collect money and also enjoy many incentives such as free 15-day resort for the whole family.

Unlike the cheerful mood when buying, after a period of ownership, he decided to sell the condotel to invest elsewhere ... but the apartment has no pink book so difficult to transfer or mortgage assets and difficult to sell.

Nguyen Van Dinh, general secretary of the Vietnam Real Estate Association, warned that 2018 will show strong competition between condotel projects. In the condotel market of Nha Trang, Khanh Hoa, condotel luxury products accounted for 35% of the total apartment transactions so buyers F1 (the first buyer) hard to transfer because of poor liquidity.

Not only difficult to transfer, the condotel is now operating depending on many factors and not as expected as the condotel nature is the hotel, so the profit depends greatly on operating conditions, there may be five good but not good year and also affected by objective factors such as environment, state policy, new or canceled flights, international relations ... In fact, one The condotel project, which is well-qualified, is difficult to avoid because in this model the risk is at the operational stage rather than in the sales stage.

Protect yourself by purchasing contracts with the investor
According to Le Hoang Chau, Chairman of HoREA, the secondary investor (buying and selling for profit) is willing to share the risk with the investor when buying condotel. However, not every owner is committed to sharing profits with them. In case of a contract of sale of condotel apartment with profit commitment, the investor has not mentioned the measures to ensure the commitment to pay profits to secondary investors; There is no clear solution to support condotel investors after the expiration of the commitment period (after 8-12 years) for secondary investors to rest assured.

In addition, some investors have committed to the secondary investors will be issued a certificate of land use rights stable long term, not forming units in the condotel apartment but so far has not see the actual red book apartment condotel. This commitment is inconsistent with the Land Law, because in accordance with the current law, condotel land use rights in resort projects are limited to 50 years project term), and may be renewed.

Chairman of the Board of Directors of FLC Trinh Van Quyet said that investors should hire lawyers carefully study the terms in the contract sale condotel. When a dispute arises, the civil court will resolve. If the owner committed a 10-year profit to the customer, but the second year did not pay the profit, the customer has the right to sue the investor to reclaim the claim.

According to the statistics of 16 provinces and centrally-run cities, only large-scale resorts (50 ha or more) have 77 projects, totaling 18,000ha; 16,537 hotel rooms, 12,056 condotel apartments, 11,174 resort villas.

In 2016, the total supply of condotel apartments has reached 16,000 units. In 2018, 2019, it is estimated that there will be 20,000 condotel apartments on average, with an area of ​​approximately 45m2. Condotel mainly focuses on developing coastal areas such as Van Don, Ha Long, Sam Son, Cua Lo, Da Nang, Quy Nhon, Nha Trang, ... In which, Nha Trang, Da Nang, Phu Quoc is a hot developing area.

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