Top 9 Key Considerations When Buying a Condominium

Once the financial resources, infrastructure, and developer reliability have been assessed, the next crucial step before considering a condominium purchase is reviewing the project's legal foundation. Failing to verify the legality of a property may lead to significant risks, such as having the project seized or encountering legal complications.

What legal documents should you check?

• Land use rights certificate from the developer
• Land allocation letter from the local government
• Project investment license
• Building permit: Including design approval, building height, and density
• Approval decision from the local authorities for project implementation

A well-known real estate investor once revealed: "The three most important factors in real estate are 'location, location, and location.' Therefore, when choosing an apartment, the location should not only consider spiritual feng shui but also economic factors (such as the potential resale value).

Depending on your needs and goals, you may prioritize location differently. Some may prioritize the distance and travel time to the city center. However, distance is not everything—if the project is in a suburban area but has excellent infrastructure, good transportation, and an attractive design, it may still be worth considering.

Many people give great importance to feng shui. For this reason, prominent developers like Vingroup and Phú Mỹ Hưng have heavily invested in artificial lakes, mountains, and other landscape features in their urban areas. This investment has significantly increased the value of the projects. If your budget doesn't allow for extravagant choices, with some real estate knowledge, you can still find a project with a good location at a reasonable price.

Additionally, choosing an apartment location also means considering the environment, infrastructure, parking, fire safety systems, security, public amenities, the orientation of the apartment, and whether there is adequate natural light. It's also important to assess the apartment's internal design, technical systems, and whether all necessary utilities and connection points are available. Are the hallways spacious? Are the stairs and elevators convenient for use?

The purchase agreement is crucial as it is the binding contract, and if you're not careful, you may face disadvantages due to subtle clauses you might not have anticipated.

It is evident that the purchase agreement is usually drafted by the seller, which often makes it more favorable to them, and the buyer seldom has the opportunity to amend or adjust it. However, as a buyer, you need to be aware of this fact and pay close attention before signing the contract.

Although it may be challenging to make changes to the contract, here are a few key points you should consider:

1. Price and payment terms: This is especially important if you're signing a contract when the project is still under construction. You should request the developer to guarantee the quality of the construction, the handover date, and ensure that annexes include detailed descriptions of the apartment’s completion level and accompanying amenities.
2. Rights and obligations: In addition to basic terms, you should consider factors related to your living experience, such as access to parking spaces, public amenities, the ability to choose service providers for phone, television, and internet at agreed rates, warranty and maintenance services, the right to make changes or improvements to the apartment, and any other relevant rights.

Why am I emphasizing this fee separately? Because this is a monthly expense that comes with purchasing a condo. It's money you'll pay each month, and when you look at it in the long term, it adds up to a significant amount.

So, how should you evaluate it? What criteria should you consider?

The answer lies in the "law", government regulations, and the status of neighboring projects, among other things. Consider the following factors:

1. Terms for managing and using the condominium
2. Management fee level
3. Managing agency

There are many factors that influence the management fee, such as the number of staff, service standards, and the qualifications and quality of staff. For example, if the building requires a receptionist who speaks English, the fee will likely be higher than for a receptionist performing only basic duties. Of course, this also depends on whether the condo you’re looking at is high-end or mid-range. Make sure to research this thoroughly before making your decision.

A very important point to note when buying a condo is the conditions for property handover and the details regarding the technical specifications, materials, and finishes used in your unit.

Many people tend to overlook the materials list, as it is often an attached appendix that can be quite long. Most are more concerned with the handover timeline and the documents to be provided at that time, but they forget to carefully review the important details regarding the unit’s interior.

Thoroughly studying these details is essential for making an informed decision when purchasing a home.

Buying a condominium is similar to buying land or a house, and you must pay attention to the security of the building, as this directly impacts the safety of you and your family.

The security of the building depends on three factors: its location, the security personnel, and the technical systems, including fire safety. As for the building's location, ensure it is in an area with good security. Regarding security personnel, check if there are enough guards on duty or if the building is equipped with internal security cameras.

Lastly, ensure that the building has passed the fire safety inspection or, at the very least, has adequate emergency exits. Many buildings that haven’t been approved for fire safety are still sold to buyers, and in some cases, developers block emergency exits to add more commercial space. Be thorough in your investigation to ensure your future home is safe in all situations.

Regardless of the amount, financial resources are always a key factor when considering purchasing a home, whether it's a condo or a house.

Very few people can buy a home without borrowing money (whether from a bank, friends, or family). Most of us rely on loans to prepare for this major purchase, and the majority opt for loan packages offered by banks.

Typically, the loan packages provided by banks or developers in partnership with banks are very attractive. However, if you're not careful, you may easily fall into the 'shopping trap' because of the tempting words and offers that aren't fully calculated.

It’s crucial to check the interest rate, fluctuations in the interest rate during the loan period, and whether your family's financial situation can handle it. Don't just focus on the first year or the first few years — you need to map out a long-term plan, whether for 10, 15, or 20 years, to ensure you can repay it.

Many people naively think of the short-term and buy impulsively, saying they'll figure it out later. This is a huge mistake. Many people end up borrowing more than they can afford, and after the first couple of years of struggling to repay both principal and interest, they find themselves stretched thin, sacrificing their daily living to make ends meet.

The most important thing is to evaluate your borrowing capacity, purchasing power, and create a reasonable repayment plan. Ideally, you should save up 50-70% of the price of the property you're considering and only borrow the remaining amount, which will significantly reduce the financial pressure.

Many people believe that the quality of the condo itself is the most important factor, but the truth is, it’s not just about the apartment you’re living in.

There are many cases where residents encounter problems after moving in, mainly because the surrounding infrastructure is incomplete or poorly developed. So, never overlook this crucial factor when choosing your property.

The convenience of surrounding infrastructure such as well-maintained roads, minimal traffic congestion, absence of flooding during rainy seasons, and stable water and electricity supply are things you should carefully consider.

In addition, regarding the building's technical systems, you should also check whether the management team has qualified technicians to maintain these systems. Initially, everything may function well, but over time, without proper maintenance, malfunctions will arise. For instance, at the Hyundai Hillstate building in Ha Dong District (Hanoi), poor technical management and lack of maintenance resulted in hundreds of residents living without clean water.

It’s clear that a trustworthy developer and a fraudulent one can have a huge impact on the quality of the apartment you purchase and your family’s future living conditions.

Many projects are nothing but paper projects, where the developer takes the money, pretends to move the project along for a while, but in reality, it never gets started. Some projects even change their design after the original plans were sold, leaving buyers in a difficult position.

For example, the Tokyo Tower project (Vạn Phúc, Hà Đông) required buyers to submit a request if they wanted the construction to adhere to the original design. This is a bizarre situation since the law requires the contractor to follow the approved design — why would buyers need to submit a request for something that should be a given?

Another case involves hundreds of residents from the Happy Star Tower project (Giang Biên Ward, Long Biên District, Hanoi) who accused the developer, Vintep Hanoi, of committing fraud — advertising one thing, but delivering another, a clear case of misleading customers.

There’s also the case of the Tan Binh Apartment project in Tan Binh District (Ho Chi Minh City), where after repeated delays, buyers were shocked to discover the developer had rebranded the project as Tan Binh Tower.

There are countless examples of dishonest developers. So, the character and track record of the developer should definitely be a consideration when purchasing a property.