A Homebuyer’s Nightmare: From Waiting in Vain to Falling Prey to Scammers

The Challenging Journey of Applying for Home Purchase Documents

Ms. Nguyen Kim from Thanh Xuan, Hanoi shared: “Two years ago, I tried to apply for social housing at the Trung Van project in Nam Tu Liem, Hanoi, but couldn’t due to a requirement to have a Hanoi household registration. Now, I’ve learned about an upcoming project in Long Bien that doesn’t require local residency, so I’m determined to try again.”

Ms. Kim added that after two visits to the Long Bien Land Registration Office, spaced 20 days apart, she was able to submit her application for confirmation of not owning a house in Hanoi. “Each time, hundreds of people were waiting in line. According to my turn, I was nearly 2,000th in line, and I had to wait until the end of June to receive my confirmation,” she said.

This confirmation is one of the required documents for purchasing social housing. In addition, Ms. Kim also had to prepare other documents, such as confirmation of eligibility and income.

“I thought the housing confirmation would be the most challenging, but verifying my income as a freelancer proved even more difficult because no one was willing to provide confirmation,” Ms. Kim shared.

According to Decree No. 100/2024/ND-CP, individuals applying for social housing must meet the requirements of not owning a house in the project area and having a household income of no more than VND 30 million/month. However, income verification has become a significant obstacle, especially for freelancers.

In reality, not only do applicants face challenges, but local authorities responsible for evaluating and confirming applications also encounter numerous difficulties.

A leader of Thuong Thanh Ward in Long Bien District, Hanoi, shared that there are several social housing projects in the ward accepting applications. Many residents have come to the People’s Committee to request confirmation of low income, but so far, the ward has been unable to process these requests due to a lack of basis for confirmation.

Particularly for freelancers, the verification process is even more challenging because they do not declare personal income tax and do not participate in insurance, leaving the ward without a basis for confirmation.

Many applicants feel lost in a maze of paperwork and turn to “middlemen” offering services online.

Ms. Nguyen Thu from Hoang Mai, Hanoi, spent VND 18 million on a “middleman” to “facilitate” her application. “I had no prior experience with social housing applications, so I turned to social media for help. I found individuals who seemed knowledgeable and agreed to pay them,” she said.

When contacted via phone numbers listed on social media, these intermediaries inquired thoroughly about income and employment status. Even if applicants lacked certain documents, the brokers offered to create a “complete and beautiful” application for a fee ranging from VND 10 to 20 million.

Despite the Hanoi Construction Department not yet announcing the receipt of applications from project investors, these intermediaries set their own deadlines. They also demanded immediate payment for their services.

A representative of BIC Vietnam, the investor of the Long Bien social housing project, shared that the company had publicly announced application instructions on its website. However, many individuals still chose to use “middlemen,” resulting in unnecessary expenses.

The representative of UDIC, the investor of the Ha Dinh social housing project, also warned potential buyers to be cautious of unofficial information.

Buyers are advised to seek information directly from investors or state management agencies instead of relying solely on a single source or real estate floor.

Income Regulation Inconsistencies

Mr. Nguyen Long from Cau Giay, Hanoi, and his wife have a combined income of VND 31 million/month. This exceeds the income requirement for purchasing social housing. However, Mr. Long shared: “My wife and I still rent a house, and our family expenses, including those for our child, consume most of our income. With this salary, I am subject to personal income tax, although it is minimal. As a result, I no longer qualify to purchase social housing under the current regulations. Yet, with this income, I cannot afford to buy commercial housing at higher prices. Consequently, our chances of owning a home will diminish as we age or face unforeseen circumstances like illness.”

For many workers, owning a social housing unit in Hanoi is currently out of reach. The selling price of social housing in Hanoi has nearly doubled in five years, while the purchasing conditions have become outdated. The price has increased from VND 10-15 million/m2 to VND 21-25 million/m2, while the price of pre-owned houses has soared to VND 60-65 million/m2.

Meanwhile, the definition of “low-income individuals” in major cities, with a threshold of VND 30 million for a family, is outdated and unrealistic.

Additionally, the complex paperwork makes it nearly impossible for workers to access social housing. In contrast, individuals with higher incomes, who are financially capable, do not meet the eligibility criteria.

Currently, Hanoi has four social housing projects under construction, including the Thuong Thanh project in Long Bien, the Nguyen Xien project in Thanh Tri, and two projects in Dong Anh. These projects are planned to be launched this year. However, the upcoming social housing supply will only meet 20% of Hanoi’s demand.