Income 15-20 million VND a month, how much house can I buy?

The apartment market is in the hands of buyers, but with an income of 15 - 20 million VND per month, those in need still have to carefully calculate loans to ensure safety.

Apartments are becoming the residential choice of many young people, due to many advantages in structure, significant amenities and diverse prices. However, many people still wonder, with an average income of 15 - 20 million VND/month, owning an apartment at what price will ensure affordability.

How much is appropriate to borrow?

According to the latest research by Savills Vietnam, 2017 is expected to be the year of the apartment market, when 18 new projects and the next phase of 4 existing projects will be opened for sale, providing the market with more than 8,300 apartments.

According to a report by Savills Vietnam in the first quarter of the year, there were about 5,200 new apartments opened for sale and the total primary supply in all segments reached about 42,500 units.

The problem of financial balance when buying a house is very important for young people.

For the apartment segment in general, most customers are young, with incomes ranging from moderate to high. The two goals of buying and selling apartments are also focused on investment or rental, and currently, the proportion of people buying to live is also increasing rapidly.

However, to realize the dream of buying a house quickly, everyone needs a reasonable and feasible plan. Whether paying off or borrowing, the financial plan for a home is still a long-term project, and varies depending on each person's financial situation and needs.

According to Mr. Nguyen Khanh Duy, Director of Savills Ho Chi Minh City Housing Sales Department, for customers with an income of 15 - 20 million VND/month who want to borrow to buy a house, the buyer must determine to deduct 10 million VND for living expenses, leaving only 5-10 million VND to pay off the debt.

Thus, assuming the loan term is 15 years, the customer can only borrow a maximum of 400 - 700 million. In addition, the buyer must also ensure their own capital, or an initial amount of 30% of the value of the apartment in the option.

At real estate trading floors, there are a series of leaflets and billboards with dense information about preferential interest rate loans for home buyers. Customers are being "pumped up" by a series of support packages from investors, banks... However, if they do not calculate carefully, buyers may be at risk of bankruptcy.

Unable to borrow from relatives, Ms. Nguyen Thi Hai Yen, a 32-year-old office worker in District 2, decided to borrow 700 million VND from the bank, plus 400 million VND in savings to buy a 64 m2 apartment. She started paying the bank about 10-11 million VND each month, of which the principal was 4 million VND.

Ms. Yen said: “Every month, we are worried about preparing such a ‘dead’ amount of money, very worried. Life in Ho Chi Minh City does not always go according to plan, so there are months when we feel pale because we do not have enough money when the deadline comes. Therefore, we are very afraid if the interest rate increases.”

A financial expert commented: “It is 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 the pressure of debt repayment. In the event that the person borrowing from the bank to buy a house falls ill, encounters an accident, has an unstable income, etc., debt repayment will be very difficult, even leading to a deadlock.”

How to use loan capital safely?

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

“Currently, with this price, buyers can focus on projects such as Pega Suite, CH Chanh Hung, City Gate (District 8); Him Lam Phu An (District 9) Sky 9, Sun Tower, VinCity, 9View (District 9); Lavita (District 9), 4S Linh Dong (Thu Duc)

“In addition, when choosing a project, buyers should also consider factors such as location and convenient transportation such as ‘first near the market, second near the river, third near the road’, number of floors, and view,” Mr. Duy emphasized.

Currently, projects along the Metro are speeding up to catch the completion point of this urban railway line next year. Investors in this area are "reinforcing" customers' trust by many different ways of ensuring progress.

According to some investors, the fact that the project is built and then sold causes the capital cost to increase significantly. Because an apartment project has an investment capital of up to thousands of billions of VND. But in return, this method clearly contributes a lot to building trust in the market when customers are the ones who benefit the most.

"When buying a product that has already taken shape, all details related to planning, quality, design, etc. are gradually revealed. Buyers will be able to "see and touch" the product before making a decision, reducing the fear of the investor "breaking the deal", said an investor with a project in District 2.

Thoroughly researching the investment unit and issues related to legal contracts, loan procedures, etc. will also help buyers minimize many unfortunate risks. If you are really confused or do not have enough time to research yourself, seek advice from a reliable, professional unit for timely support.

Once all the necessary factors are ensured, owning a dream house for those with an income of 15-20 million/month is completely within reach.

According to Zing