The document to establish real estate assets (real estate) of organizations and individuals in Vietnam is: a "Certificate of land use rights, ownership of houses and other land-attached assets", but at present, real estate investors often do not pay attention to "ownership of houses and other assets attached to land" and are less able to value real estate. Assoc.Prof. Dr. Nguyen Minh Ngoc, Head of the Faculty of Valuation - Real Estate Business (Ho Chi Minh City University of Finance and Marketing) talked to reporters.
Real estate valuation is currently on the market, but many investors are still vague, ignoring properties attached to land. In your opinion, what should investors pay attention to when valuing?
Real estate investors need to divide into two areas: ownership of houses and ownership of assets attached to land. The valuation of houses and works on land can be achieved with the help of architects and construction engineers, combined with the valuation experience gained during the operation of real estate investors. However, housing should not be equated as an asset that is always attached to the land. In other words, the housing includes 2 types: attached to the land and mobile housing. Therefore, home ownership includes both types above.
Houses attached to land are automatically considered real estate, while mobile homes are only considered assets not attached to land. In the context of rapid urbanization, there is a need for legal regulations to recognize and manage this type of mobile housing. However, the values that are tangible and intangible assets attached to land are complex issues that need attention and need to be properly valued.
So, what is the basis for valuing tangible and intangible assets attached to land, sir?
Article 107 of the 2015 Civil Code defines real estate as Land, houses, construction works attached to the land, and other properties attached to land, houses, and construction works. The biggest representative of tangible assets is trees with great value attached to the land. Although they are tangible assets, perennial trees are often associated with intangible values such as memories, stories, legends, and history ... associated with the multifaceted life of society.
Currently, many real estate investors are only interested in the land, unintentionally ignoring the properties on the land. In your opinion, how to properly value property on land?
For example, the value of assets on land can be perennial trees, landscape forests, environmental protection effects... Therefore, investors need to pay attention to the assets attached to the land when valuing. From the perspective of approaching the intangible value of trees, landscape forests, etc., the appraiser needs to consider factors of local, national, and international trends in the values of planting trees and causing forests; If you determine that you own perennial trees and landscape forests, you are owning real estate, because it brings a strong trend of green finance going on in the world.
From the perspective of real estate developers, combined with the ability to create a system of landscape trees and perennial forestry trees, real estate investors can be proactive in protecting and preserving land, literally and figuratively. The position of the owner of the land may be threatened, but the position as the owner of the property on the land, attached to the land is always protected. Moreover, if they belong to the precious wood group, perennial trees will be a shield, a great tool to preserve the land, because it is a real estate project, creating real estate on the land.
Possessing the ability to value assets attached to the land and knowing how to value - market value - the price of trees in the overall landscape on land will help investors stay proactive, and stimulate the ability to create, develop, create, and improve market risk management capacity.
Sincerely thank you!
According to Son Van
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