Should You Risk To Borrow Money To Buy House Or Continue To Rent?

With so many families in Vietnam nowadays, especially young couples, choosing to rent a house or borrowing money to buy a house with a monthly rental income is a problem that makes them think headaches. 

Below, Vietnam Real Estate lists the pros and cons of renting and buying houses for your reference, and then make the decisions that best suit your circumstances and circumstances.

When you are a renter

Currently, most people rent a house in one of the following ways: rent an apartment, collective apartment, rent a house or other options.

>>> Please refer to more apartments for rent here: Apartment for rent in Vietnam

We all know that when renting an apartment, the initial costs will be the monthly rent, security enhancement cost or home appliance cost to be used. Under the terms of the contract, the following years rent will increase depending on the agreement between you and the landlord.

You may not be interested in fixed infrastructure such as room structure, water supply lines. But in case you want to repair the apartment structure yourself, usually the landlord will not allow and then your family may not be able to use the room infrastructure as you want or use it in unsafe conditions.

rent - buy house

Renting helps to relieve you from financial pressure

In addition, the landlord can increase the market rent if desired and then the cost of rent increases, which is always the renter’s annual worry.

Homeowners have the power to set limits on your family, such as not keeping dogs and cats, not playing music or decorating the room. Your family can not change the purpose of the room (sublet, office) because you are a renter.

So where is the benefit of renting?

Of course, that is the financial issue, you do not need a lot of money to have a living space. The money to buy an apartment can be enough for the entire family to rent for 20-30 years. You can also move freely to other living areas more conveniently (if you wish).

On the cost of furniture, you can also reduce the cost of shopping when the homeowner agrees to use household appliances, or repair old appliances and keep using them. In the case of falling housing market prices, you will not have to worry about losing large sums of money because of high prices.

When you are a buyer

Vietnamese always have the sentence ” To live and work in peace and contentment “, so everyone hopes to get their own home soon. Possessing a home, that is, you have lived quietly, can be completely focused on career and children.

However, to be the sole owner of a home, only if you pay all your debts (including bank loans and mortgages from the house you purchased). However, immediately, you must also prepare for the value of the house reduced by 10-20% if your family decides to immediately sell the apartment which you just bought.

>>> Please refer to more apartments for sale here: Apartment for sale in Vietnam

rent - buy house

Buying a home puts you under financial pressure but in return you will be happy to own the house you bought

If the buyer just wants to buy your land, it means that the value of the house will be reduced as the new owner can decide to dismantle the house and rebuild it from the beginning. Your family also faces annual costs such as taxes, bank loans, repairs and maintenance, and even property insurance including fire and explosion.

Summarizing the disadvantages of buying a home as follows:

  • The cost of buying a large house
  • Prepare the spirit for real estate discount
  • Responsible for the payment of related taxes, certainly always increase, not decrease
  • Prepare money for repair both inside and outside the house, repair costs can be very high and often unidentified.
  • It is difficult to move to other areas to suit the work of all family members

So what is the benefit of buying a house?

  • You get capital from owning your own apartment. Equity includes the ability to borrow a mortgage on the current home.
  • You can earn extra income from renting a house
  • You can completely design the apartment according to your taste, desires, and beliefs.
  • You build lasting relationships with your neighbors and neighborhoods
  • Also, when you have a permanent household address, banks will trust you in other loans.

See the comparison table to help you know whether to borrow money to buy a house or continue to rent:

MotivationBuy if you want stabilityIf the only reason to buy a home is to get rich, you should rent a house
Amount neededA certain amount, at least 20-30% of the value of the house to buySmall amount to pay monthly rent
Bill/monthBuying a mortgage, you pay a monthly interest and principal. If having much money, you can pay off the original before maturityYou have to pay monthly rent. Price may increase over time
Time you stayIf you identify there for at least 5 years, you should consider buying a houseIf you are under 5 years old, it is best to rent a house
Moving house


Not easy. The sale of a house can not take place in a day and there are many papers and documents.You can go as soon as the contract is over or at any time
RiskThere may be financial difficulties due to a change in the economy or the houseThe owner wants to get back home and you have to move


You will own a great fortune, get the financial stability in the futureHelp you get motivated, have money to invest in other things


Many taxes and contributions to the locality where the house was builtYou only have to pay the monthly rent to the landlord
ResponsibilityResponsible for all maintenance, home repairsThe landlord will take care of the repair. If you break the fault, you will also have to pay repair costs

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