Buying Diplomatic Real Estate Quotas? Benefits & Risks
You’ve likely come across the term ‘diplomatic quota’ while exploring the real estate market, haven’t you? It sounds complicated, but it’s actually simple. Diplomatic quota sounds appealing, but what is it really? Should you buy it? Ngoc Thanh Vinhomes will help you pocket the necessary information to make the right decision!
What is a diplomatic quota?
Diplomatic quotas are apartment purchase quotas for organizations or individuals who have special relationships with investors, real estate company leaders, or state organizations. These quotas are often sold at a preferential price compared to the market price or with more favorable purchasing conditions than the market price.
These quotas are reserved for acquaintances of the investor, such as company employees, business partners, etc. But the quantity is limited, so not everyone has the opportunity to hunt for them! Therefore, hunting for a diplomatic quota at a good price is always something that many people are interested in.
However, the diplomatic villa has a preferential price, but the legal status is not clear. Many people are afraid that the unclear legal status of the diplomatic villa can lead to risks. Therefore, you need to thoroughly research the information and proceed with caution during the buying and selling process. Buying and selling requires a clear contract to ensure your rights!
Benefits of buying a diplomatic quota: Saving a lot of money is real!
A diplomatic quota helps save money, that’s for sure! The substantial cost savings make diplomatic quotas highly attractive. But besides the lower price, are there any other benefits to buying a diplomatic quota?
- Potential for price increase: Many projects with diplomatic quotas are located in the most prime locations of the project with high quality, so the possibility of real estate prices increasing in the future is very high. The potential benefit of price increase is a big plus for investors.
- Opportunity to own hot real estate: Diplomatic quotas give you the opportunity to own popular apartments in high-demand projects or potential development areas. These apartments often show off your style and prove your finances to society.
- Amenities galore: Apartments with many diplomatic quotas are often invested in and built with good quality, full amenities, meeting the large investment needs of customers.
Risks when buying diplomatic quotas: Be careful not to lose money!
In addition to attractive benefits, diplomatic quotas have risks that you need to pay attention to. Benefits come with risks that are inevitable when investing in real estate.
- Unclear legality: Lack of legal protection is the biggest risk when buying diplomatic quotas. Currently, the law does not have specific regulations on diplomatic quotas, so buyers need to be more careful than ever. The risk of complex disputes can occur if you are not well prepared.
- Risk of fraud: The risk of fraud is high when buying diplomatic quotas. There are many cases where buyers are deceived by important reputable investors or fake brokers, and after receiving the deposit, the broker is nowhere to be found.
- Difficulty in transfer: Difficulty in transfer is also a risk. Buyers bear the risk when they encounter difficulties in transferring or leasing real estate. Normally, these diplomatic quotas will also take 1-3 years to transfer to others.
Buying a diplomatic quota: What should you pay attention to?
To buy a diplomatic quota safely and avoid losing money, Ngoc Thanh will provide you with more information, and you need to remember the following:
- Research carefully about the project and the investor: Is the investor implementing the project reputable? The project needs to be transparent about legality, construction progress, etc., so choosing the top investors in Vietnam honored by the Ministry of Construction every year will be safer.
- Check the legality: Remember to ask the investor to provide complete legal documents of the project and diplomatic quota. Don’t listen to people’s empty words or use handwritten papers, as they have no legal meaning at all!
- Compare prices: The selling price is obviously lower than the market price, but you should compare it with similar projects to make sure you don’t overpay. Furthermore, some sellers with diplomatic quotas are very greedy, selling at the investor’s price while keeping the discount for themselves. This results in a low-price sales contract, which could limit your profits or borrowing potential from the bank later.
- Negotiation and signing of the contract: The transfer procedures can be complicated, so it’s crucial to have a clear and detailed contract to ensure your rights.
- Consult an expert: If necessary, consult a lawyer or real estate expert, or you can contact Ngoc Thanh for support.
Experience in buying safe diplomatic quotas from Ngoc Thanh Vinhomes
Ngoc Thanh Vinhomes shares some key experiences to help you buy a safe diplomatic quota:
- Choose a reputable investor: The investor provides diplomatic quotas, so you need to carefully research their background and see what projects they have done. Are their previous projects still okay?
- Prioritize completed projects: You should prioritize buying diplomatic quotas in projects that have been completed or are about to be handed over for more peace of mind. When buying a product with a diplomatic quota, you should also sign directly from the investor to ensure your safety.
- Check the legal documents carefully: Make sure the land has a clear red book and the villa has the correct area as committed. If you have documents from the handover and the book, bring those documents to the investor’s office to change the name and check to avoid fake documents.
- Do not deposit or pay before signing the contract: Do not deposit in advance with people you do not know. If you deposit, you must have a third party confirm the deposit and that third party should confirm that the diplomatic product is legitimate before you proceed.
- Be cautious of exaggerated advertising claims: Don’t let fancy advertising mislead you. Location affects the price, so carefully researching the project can help you avoid overpaying. After buying at a high price, it will be very difficult to resell, so be cautious.
Compare diplomatic quotas with other forms of real estate trading
Ngoc Thanh will create a detailed comparison table for you to see the similarities and differences between diplomatic and regular purchases so you can have the most objective view before you choose to buy one.
| Criteria | Diplomatic quota | Buy from the investor | Buy through the exchange | Buy back from previous buyer |
|---|---|---|---|---|
| Price | Usually 10-30% lower than market price | Publicly listed price, negotiable | Market price, may be higher depending on the exchange | Agreement between the two parties, may be higher or lower than market price |
| Legal | Unclear, potential risks ro | Safe, protected by law | Safe if choosing a reputable exchange, clear contract | Need to carefully check legal documents |
| Risk | High risk of fraud, dispute | Low risk if choosing a reputable investor | Low risk if choosing a reputable exchange | Legal risk if not carefully checked |
| Advantages | Cheap price, high profit potential | Safe, transparent, many incentives | Convenient, continuous support | Can buy unique real estate, good price |
| Disadvantages | Unclear legality, high risk | Higher price than diplomatic quota | Service fee, may encounter unreliable brokers | Time-consuming search, complicated legal check |
Trends of real estate diplomatic quota market
The market fluctuates constantly, affecting the price of diplomatic quotas. Currently, diplomatic quotas are still of interest to many people because the selling price is lower than the market price. However, buyers need to be more careful because of legal risks.
In the future, diplomatic quotas will continue to develop but there will be fiercer competition. Projects with clear legal status and reputable investors will be trusted and chosen by buyers.
Shared by Ngoc Thanh
Diplomatic quotas are an attractive option for those who want to invest in real estate. However, buyers need to be thoroughly informed and vigilant to avoid risks. Hopefully, Ngoc Thanh Vinhomes’ article has helped you better understand real estate diplomatic quotas.
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