You are in the hands of VND500 million and you intend to buy a house in Ho Chi Minh City, is this feasible? Together, Realestatevietnam analyzes this problem through the article below.
Before going into the analysis, Realestatevietnam assumes you fall into the following circumstances: Your total monthly income is about VND20 million. After subtracting the cost of the whole family, you save less than VND10 million per month. Your spouse is living with your grandparents and you want to buy a house. However, now both your husband and wife contributed VND500 million. With the money above, you and your husband are certainly wondering how to buy a home city, if you should buy a bank loan to buy it?
Here are the solutions for your spouse:
Buy the apartment is in the construction phase instead of the house was completed, handed over
Currently, if you intend to buy a townhouse or apartment in the handover phase, you usually have to pay a large amount of money. Therefore, with a budget of VND500 million dong, the choice of an apartment of less than VND1 billion is in the process of construction is something that you should consider. It may take longer to own home but the pressure on your cash flow will not be high.
In addition, to compete in the market, investors often have many financial incentive programs as well as flexible payment methods for home buyers who are in the construction stage. You can choose a project with the most appropriate location and support policy.
Do not forget to get help from a relative or a bank
Borrowing money to buy a home from a family member is always a safe bet, as you can mobilize your idle capital from a nearby relationship at a “cheap” cost.
If you are unable to get a loan from a relative, you should use financial leverage and ask for assistance from banks. Typically, for apartment projects, developers often cooperate with a number of banks right from the beginning of the project.
With a loan of VND500 million in about 10 years, based on current interest rates fluctuate around 10.5%, you only need about 8 million monthly payments (for interest and principal). Depending on the circumstances, the bank can also apply incentive packages or interest rate support.
At the same time, you should also take time to thoroughly understand the terms of interest (as may be changed year by year), as well as regulations for a reasonable calculation.
Normally, when dealing with customers, banks always pay attention to the following three questions: Can you pay back? Do you pay? What if you can not pay your debts? We analyze these three questions as follows:
Can you repay the loan? “: This is the most concerned bank issue, they will calculate according to the formula” Cash ratio = Income / Loan repayment> 1.5 “. So, if you have to pay 10 million per month bank loan, the income must be at least VND15 million per month. If you guarantee that number, tell the bank.
“Do you pay it?”: Your credit score will have a big impact on this question if you used to borrow and pay well before, which is good news for your next home loan. In addition, the formula “Net Debt to Equity = Total Bank Loans / Amount You Have” is also important. If this rate is less than three times will convince the bank over. So if your capital is 500 million, you should not borrow more than VND1 billion.
“What if you can not pay your debt?” In the worst case, the bank wants to know if you have a tangible asset (house, cash, savings book …) that can liquidate your debt. . You can ask the parents to support the guarantee by the house they are.
Choose a project with good transport infrastructure, rather than a project near the city center
Currently, the price of land in the downtown area as District 1, District 2, District 4 … quite high, if you choose high value apartments and have to borrow much, then the pressure on interest and Your monthly principal will be huge. Therefore, do not borrow too much, the value of the apartment you buy should not exceed 2.5 times the amount you have. If you have financing in the range of VND500 million then the apartment revolving around VND1 billion to 1.2 billion is the optimal choice.
However, with the price of VND500 million, you usually only buy houses / apartments outside the radius about 8-10km far from District 1, the further projects are as far away as possible. So if you start to buy a home, do not be afraid to stay away a little, but you should choose the project with good traffic because if not shorten the gap, you can still save time, when you have a better income, you can sell and move.
Don’t wait until you have enough money to buy a home
In fact, the real estate market has experienced a period of ups and downs, some time up and down, but the current house prices are constantly rising and higher than in the past. Therefore, if you wait until you have enough money to buy, it is very difficult to catch up “speed” of the price increase. Because of this, even if it is a bit risky, planning your home now will help keep the price.
Do not skip building areas
In general, where the infrastructure is good, people will complete the housing price will be very high, fluctuate according to the progress of infrastructure, so you do not have to buy houses in the process of building infrastructure Although there is a bit of noise and annoyance at first, it will help you to buy a home in good condition at a cheap price. When the infrastructure is complete, you will have “to save” because the housing prices in the area will also increase.
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