It's not advisable to borrow money from the bank to invest in real estate yet.

The real estate market has not yet recovered steadily and is very unpredictable. Taking a gamble by borrowing billions of dong from the bank to buy property and then accumulating hundreds of millions of dong in debt each month would be very risky.

Real estate investment is currently only suitable for those with substantial capital; borrowing money would be very risky. (Illustrative image)

Financial expert Dinh The Hien assesses that interest rates of 8-10% per year for real estate loans of 5-10 years are relatively reasonable and it is difficult to expect a further reduction in the next one or two years. Some projects that receive interest rate support below 6% in the initial period are also considered very attractive.

However, according to him, investors must consider their financial capacity and income sources for repaying loans because real estate investments currently offer very few opportunities to use debt leverage to make short-term profits. "Not to mention that some projects set high selling prices and then offer interest rate subsidies to attract buyers," he said.

Independent economist Huy Nam also commented that borrowing from banks to invest in real estate at this time is extremely risky. While inflation has improved and the rate of price depreciation has decreased, difficulties still lie ahead. Therefore, investors cannot yet be optimistic about the recovery of the real estate market and the stability of lending interest rates.

According to Mr. Nam, borrowing would be advantageous if the market stabilized in the next 3-4 or 5-6 months, but the difficulty is that no one can predict when the real estate market will stabilize. Assuming a prolonged downturn lasting several years, borrowing from banks would be a failure. "Most loan packages for buying houses have relatively high interest rates and are prone to significant fluctuations over the long term," he said.

Dr. Dinh The Hien also analyzed that the real estate market has shown a clear positive change compared to the past period, but this is not a recovery to return to the boom period of 2006-2009 as many speculative investors had hoped.

"It will be difficult for any real estate to appreciate significantly this year, making it difficult for short-term investors to profit. The current market only has decent liquidity in certain areas and projects that are highly rated for location, product, developer brand, and reasonable pricing," he observed.

However, for those with real money, experts believe that this is an opportunity because real estate prices have essentially returned to their true value. Compared to capital preservation channels like gold, USD, or earning interest from bank deposits and stock investments, real estate investment can be considered quite attractive because there are many good options at reasonable prices to choose from.

"Those who have real money, substantial capital, and don't need to borrow from banks at interest will be able to buy real estate at its true value. Later, when the macroeconomic situation is more stable and the real estate market becomes vibrant again, prices will be higher and selling will certainly yield a profit," commented an economic expert in Ho Chi Minh City.

Furthermore, experts also assess that for those with a genuine need for housing, who already have over 30% of the intended home value, a stable income, and the ability to repay the loan, this is also an opportune time to buy.

According to VnExpress