First-Time Apartment Buying Guide: 8 Practical Things Buyers Should Know To Avoid Costly Mistakes

Buying your first apartment is one of the biggest financial decisions in life. Many first-time buyers lose hundreds of millions, or even billions of VND, because of mistakes that could have been avoided with proper guidance. This article summarizes 8 practical lessons from Axen Property Vietnam’s experience advising hundreds of homebuyers.

1. Calculate The Real Amount You Can Afford

The listed apartment price is only the starting point. The actual cost of buying an apartment usually includes:

• Apartment price, usually paid by progress, with the first payment often ranging from 10–30%
• Registration tax: 0.5% of the apartment value when receiving the ownership certificate
• Notarization fee for the purchase agreement: around 0.1–0.5% of the contract value
• Ownership certificate issuance fee: around VND 1–3 million, depending on the project
• Management fee collected in advance for the first 2–6 months
• Interior fit-out cost if the apartment is handed over in bare-shell condition, usually around VND 150–400 million for a 2-bedroom apartment

In reality, additional costs often account for around 3–8% of the apartment value. Buyers should prepare this amount in cash and should not include it in bank leverage calculations.

2. Bank Leverage: How Much Should You Borrow Safely?

A safe financial rule is that your total monthly debt repayment should not exceed 40% of your net income.

For example, if your household income is VND 30 million per month, your maximum safe monthly repayment should be around VND 12 million. With an interest rate of 8% per year over 20 years, the safe loan amount would be approximately VND 1.2–1.3 billion.

Be careful with first-year preferential interest rates, which are often around 5–6%. After 1–2 years, the rate usually changes to a floating rate, currently around 8–10% per year. Always calculate your repayment capacity based on the floating rate, not the promotional rate.

3. Check The Legal Documents Before Paying A Deposit

This is the most important step and also the one many buyers overlook. Before paying any deposit, buyers should request the developer to provide:

• A valid construction permit
• The project land use right certificate
• Confirmation that the project land is not mortgaged, or that it has been properly released from mortgage
• Written approval from the Department of Construction confirming that the project is eligible for sale
• Bank guarantee agreement, which has been required by law for future-formed housing projects since 2015

If the developer or sales agency refuses to provide any of these documents, it should be treated as a serious warning sign.

4. Read The Apartment Purchase Agreement Carefully

Apartment purchase agreements are often 30–60 pages long. Many buyers sign without reading carefully, only to discover unfavorable terms later.

Key clauses to review include:

Late handover penalty: If the developer delays handover, how much compensation will buyers receive? In many contracts, the penalty is only around 0.02–0.05% per day, which may be much lower than the actual damage suffered by the buyer.

Apartment area clause: The actual apartment area is often 1–3% smaller than the sales drawing. Does the contract adjust the price based on the final measured area, or does it state that differences within 2% will not be compensated?

Design change clause: Does the developer have the right to change materials, equipment, or interior specifications without buyer approval?

Management fee clause: Who decides the building management company and the management fee? If the developer appoints its own subsidiary as the management company, residents may have limited ability to change the operator during the first 3–5 years.

Contract termination or transfer clause: If you want to exit or transfer the apartment before handover, what are the conditions? Are there any transfer fees or restrictions?

5. Do Not Only Visit The Show Unit — Visit The Actual Construction Site

Show units are always designed to look more spacious and attractive than the actual apartment. Before making a purchase decision, buyers should:

• Visit the actual construction site to check real progress
• Ask residents from the developer’s previously handed-over projects about construction quality and after-sales service
• Check the surrounding area on Google Maps to understand the actual environment, road access, flooding risk, nearby vacant land, and infrastructure conditions

6. Understand The Apartment Management Fee

The management fee is a recurring cost that residents must pay throughout their ownership period. Management fees vary widely depending on the project segment:

• Affordable apartments: around VND 3,000–6,000/m²/month
• Mid-range apartments: around VND 6,000–12,000/m²/month
• High-end apartments: around VND 12,000–25,000/m²/month

For example, a 70m² apartment in a high-end project may cost around VND 1.4–1.75 million per month in management fees alone, excluding electricity, water, parking, and other expenses.

7. The Unit Position Inside The Building Matters More Than You Think

Not all apartments in the same building have the same value or living quality. Important factors include:

Orientation: Southeast-facing units are usually preferred because they are cooler and receive less harsh afternoon sun. West-facing units may be hotter due to strong afternoon sunlight.

Floor level: Floors 10–20 usually offer a good balance between view, noise, and resale value. Lower floors, especially below the 5th floor, may be darker and noisier. Very high floors may have a narrower resale buyer pool.

Position on the floor: Avoid units located too close to elevators due to noise. Also consider wall-sharing, privacy, airflow, and natural light before choosing a specific unit.

8. Choose A Trusted Property Advisor, Not Just The Cheapest Offer

In most primary apartment transactions, buyers do not directly pay brokerage fees because the commission is paid by the developer. Therefore, there is no reason to choose an unreliable broker simply because they promise gifts, informal discounts, or unclear incentives.

A good property advisor provides complete information, including both the strengths and weaknesses of a project. Their role is to help buyers make the right decision, not only to push them to sign quickly.

Axen Property Vietnam is committed to providing honest consultation and supporting clients throughout the entire buying journey, from project selection and legal review to handover and ownership certificate follow-up. Contact Axen Property Vietnam for professional apartment buying support in Ho Chi Minh City and surrounding areas.