With a monthly income of 15-20 million VND, how much should I pay for a house?

The apartment market is currently in the hands of buyers, but with an income of 15-20 million VND per month, those in need still need to carefully consider loan options to ensure financial security.

Apartments are becoming a popular housing choice for many young people due to their numerous structural advantages, significant amenities, and diverse price range. However, many still wonder what price point for an apartment would be affordable for those with an average income of 15-20 million VND per month.

How much is a suitable loan amount?

According to the latest research by Savills Vietnam, 2017 is expected to be the year for the residential apartment market, with 18 new projects and the next phases of 4 existing projects launching, providing the market with more than 8,300 units.

According to a report by Savills Vietnam in the first quarter of the year, approximately 5,200 new apartments were launched, bringing the total primary supply across all segments to around 42,500 units.

Balancing finances is crucial for young people when buying a house.

For the apartment segment in general, most customers are young and have moderate to high incomes. The two main goals of buying apartments are investment or rental, and currently, the percentage of buyers purchasing for personal use is also increasing rapidly.

However, to realize the dream of buying a home quickly, anyone needs a reasonable and feasible plan. Whether paying in full or borrowing, a financial plan for a home is a long-term endeavor and changes depending on each person's financial situation and needs.

According to Mr. Nguyen Khanh Duy, Director of the Residential Sales Department at Savills Ho Chi Minh City, for customers earning 15-20 million VND per month who want to borrow to buy a house, buyers must deduct 10 million VND for living expenses, leaving only 5-10 million VND to repay the loan.

Therefore, assuming a loan term of 15 years, customers can only borrow a maximum of 400-700 million VND. In addition, buyers must also ensure they have sufficient equity, or an initial down payment of at least 30% of the value of the chosen apartment.

At real estate exchanges, numerous flyers and advertisements are filled with information about preferential interest rate loans for homebuyers. Customers are being hyped up by a series of support packages from developers and banks... However, without careful planning, buyers risk defaulting on their loans.

Unable to borrow from relatives, Nguyen Thi Hai Yen, a 32-year-old office worker in District 2, decided to take out a bank loan of 700 million VND, plus her 400 million VND in savings, to buy a 64 m2 apartment. She started paying the bank approximately 10-11 million VND per month, with 4 million VND of that being the principal debt.

Ms. Yen said: "Every month we're constantly worried about preparing such a large sum of money as a 'dead' payment. We're very anxious. Life in Ho Chi Minh City doesn't always go according to plan, so there are months when we're terrified because we don't have enough money by the due date. Therefore, we're very afraid if interest rates go up."

A financial expert commented: "It's best not to borrow more than 50% of the value of the house you want to buy, or the total monthly interest and principal payments should not exceed 50% of your total income, to minimize debt repayment pressure. If a borrower falls ill, experiences unforeseen circumstances, or has unstable income, repaying the loan will be very difficult, even impossible."

How to use borrowed money safely?

With the aforementioned income, Savills experts also advise that customers should only consider projects priced under 1 billion VND to ensure that the loan does not become a burden or exceed their financial capacity and budget.

"Currently, at this price point, buyers can focus on projects such as Pega Suite, Chanh Hung Apartment Complex, City Gate (District 8); Him Lam Phu An (District 9); Sky 9, Sun Tower, VinCity, 9View (District 9); Lavita (District 9); and 4S Linh Dong (Thu Duc)."

"In addition, when choosing a project, buyers should also consider factors such as location and accessibility, like 'proximity to markets, rivers, and roads,' as well as the number of floors and the view," Mr. Duy emphasized.

Currently, projects along the Metro line are accelerating their progress to meet the completion deadline for this urban railway next year. Developers in this area are reinforcing customer confidence through various means of ensuring timely completion.

According to some developers, building a project first and then selling it significantly increases capital costs. A single apartment project can already cost thousands of billions of dong. However, this approach clearly contributes greatly to building trust in the market, as customers are the ones who benefit the most.

"When buying a completed project, all details related to planning, quality, design, etc., are gradually revealed. Buyers can 'see and touch' the product before making a decision, reducing the anxiety of fearing the developer might break the agreement," said an investor with a project in District 2.

Thorough research into the investment firm and legal contract issues, loan procedures, etc., will help buyers minimize many unfortunate risks. If you are truly unsure or do not have enough time to research on your own, seek assistance from a consultant from a reputable and professional firm.

Once all the necessary factors are in place, owning a dream home is entirely within reach for those earning 15-20 million VND per month.

According to Zing