Even 2 generations of savings can't buy a home on Hanoi’s outskirts

When I first started working in 2013, my salary was only around VND6 million (US$228). Back then, I was content to earn just enough to pay rent and cover food. Each month I tried my best to save VND1-2 million but could not do so consistently due to occasional illnesses and the need to support my family. My salary increased to VND12-14 million by my sixth year of working and VND25 million in recent years.

I, now at 36, am not in the high income bracket but also not doing too bad compared to the average office worker. But as my income went up, so did the cost of living. I live in Hanoi and each month rent and living expenses, not including transportation, already take up half my salary. Hence, I can only save around VND5-8 million a month on average. Ten years went by and, with a few year-end and project bonuses, I managed to save about VND800 million.

It sounds like a decent amount but sadly does not hold a candle to Hanoi’s current housing prices. In 2018, I found a 60-square-meter unit priced at around VND1.6 billion (US$60,700) that was part of an unfinished project in the former Hoang Mai District, around 6 kilometers from the city center. At the time, I thought that if I saved for just a few more years, I could finally buy my first home. But the next year, the unit had jumped way beyond my reach to VND2.3-2.5 billion. So I put my dream of home ownership aside because I did not want to fall into debt.

My parents are retired government employees who managed to buy a small plot of land in our hometown. When I was 34, they decided to sell the property and split the money between me and my sibling, with each receiving VND1.5 billion as a form of inheritance.

That amount brought my total savings to around VND2.3 billion and briefly revived my hopes of buying a home. But when I began searching again last year, I found that 60- to 70-square-meter pre-owned units on the city’s outskirts had climbed to VND2.8-3.2 billion, with newly launched units priced even higher.

At interest rates of 9-11% a year, borrowing to cover the gap would require monthly payments of VND12-15 million, sending more than half of my income to the bank and leaving me with barely enough for living expenses.

I once believed that owning a home would bring stability, but the more I run the numbers, the shakier that dream becomes. Any illnesses or periods of unemployment could derail my entire life. I do not have a wealthy family or anyone to borrow from or rely on during emergencies. Taking on a mortgage now would mean committing myself to years of financial strain.

People often urge me to be bold and borrow because most homebuyers rely on loans, but I understand my own limits. Everyone has their own circumstances and tolerance for risk. My savings is simply not enough for me to step into debt.

I am just being realistic. When incomes rise much slower than housing prices, people like me end up on the fence about the decision to buy a small apartment even after a decade of saving. Even though I now have more money than I ever imagined having, I still do not dare to buy a home.

*This opinion was submitted by a reader. Readers’ views are personal and do not necessarily match VnExpress’ viewpoints.