Little money but not afraid of being a debtor, plus a little blood and risk and a different move so I was able to buy a house. If I keep calculating it safe, I probably still hook my wallet to pay the monthly rent.
Both a debtor and an investment plan
Sharing about his Saigon home buying story, Mr. Duong said, it does not matter how much you borrow from the bank in the total value of the house, but the income level, calculating the debt repayment plan after the loan.
Mr. Duong recounted that, after getting married in early 2017, the couple stayed in a rented house in Ho Chi Minh City for 5 million / month. By the end of the year, all of their savings, Tet bonuses, wedding ceremony money and gold rings are in their hands, and they have 600 million dong in their hands. Without using all this money, he calculated to keep 100 million VND to find ways to make a profitable investment, then borrowed 800 million VND from the bank to buy an apartment for 1.3 billion VND. The preferential loan interest rate for the first year is 7.5%, the second year is floating according to the mobilizing interest rate plus a fluctuation band of 3.5%. The couple’s total monthly income is not high, only about 35 million, so after getting a loan, he is always in pain with the question “How can, in a few months, 100 million dong will bring me 500 million dong?” . In 2018, seeing land in many areas around Ho Chi Minh City increased in price, Duong decided to risk a deposit to buy a piece of land in Binh Phuoc, his hometown, and then hand over to earn a profit of 300 million VND. So by the end of 2018, after collecting the money, Mr. Duong has paid a considerable amount of both principal and interest. At that time, he calculated to the second year, although the interest rate increased to 10-11%, the monthly debt was not too heavy for the couple.
“There are still many people who stop me from borrowing more than half of the value of the house, but seeing someone recklessly buying a house, even with 200 million in hand, my wife and I also boldly borrowed from the bank and risked to bring investment money to pay off. debt as fast as possible. Finally, the couple’s wishes also come true ”, Mr. Duong said.
Anh Duong is a typical case of young families from small provinces to big cities working, then buying a house and settling here.
Family of 4 members sitting on sofa in living room apartment
The couple, Mr. Duong, borrowed 800 million VND from the bank to buy an apartment for 1.3 billion VND. Illustration
Borrowing money to buy a house and then rent out to pay debt
Luckier than Mr. Duong, Mr. Minh (Hanoi) received support from his parents to buy a house. Mr. Minh’s method, like many other people, has been applying for a loan from the bank to buy a house, but has not moved in immediately, but leased it again to pay debt repayment. For those who can stay in their parents’ house temporarily or buy a large house to rent an empty room, the chance of buying a house will be many times easier.
Just moved home not long ago, Mr. Minh said, he works as a construction auditor. He often has to go to work in the provinces, sometimes just stay at home for about a week for a month. Three years ago, he borrowed 1.1 billion dong from the bank to buy an apartment in Nam Tu Liem district. Borrowing more than half of the value of the apartment, he calculated the plan to rent this main apartment for 3 years with a rent of 12 million VND / month. He and his wife, along with a son, stay at his parents’ house during that time until the beginning of this year to move to a new home.
“Living with my parents for another 3 years, my wife has both been helped by my grandparents to take my children to school, to help with housework, and to save some money to pay the bank debt. The couple also set up automatic savings in their account, the money is off the top minus immediately. Up to now, although the debt has not been fully paid, the amount of interest to be paid is not much due to the fact that the loan is calculated according to the actual outstanding balance, ”Mr. Minh said.
Accepting much debt to quickly run out of debt
Also successful thanks to the origin of land investment with only 130 million, after a successful deal and using money to buy trucks to trade in bottles, Mr. Phan Loc has so far owned 2 apartments of nearly 2 billion. VND / unit. Mr. Loc expressed that buying a house clearly shows his thinking about profitable money. I realize that it can be divided into 3 psychological groups when buying a house. The first group is afraid of the debt hanging from the head, so they do not dare to borrow right away, but both work to accumulate and learn products, ready to accept at rent. The second group is confident in their income and debt repayment ability, so they borrow from the bank as much as possible to have the motivation to “plow” to pay debts, along with that they will use a part of the capital to invest. The third group is to use all the money for short-term investments first, collect money and then buy a house.
Mr. Loc said: “Everyone has their own way of thinking, but for me, when I buy large-value assets such as a house, a car, I will borrow from the bank as much as I can, risk eating a lot. The risk will go with high profits, on the contrary, if it is safe, the profit will be low or zero. For example, if I buy a house with 1 billion VND, I will borrow 80% of the value of the house, pay 20% in advance because instead of losing 1 billion VND immediately, I will spend only 200 million VND, the remaining 800 million can bring more profits. “.