Purchasing house for individuals under 30 is improbable without loans

January 25, 2024 | 06:41 pm PT
Purchasing house for individuals under 30 is improbable without loans
The rate of Vietnamese people aged 22 to 29 choosing to borrow money to buy houses has reached 75%.. Illustration photo by Freepik
For people from poor backgrounds, buying a house in the city is nearly impossible without taking a loan.

According to a report on the sentiment and trends of real estate consumers in Vietnam at the beginning of 2024, the rate of people aged 22 to 29 choosing to borrow money to buy houses has reached 75%.

With the desire to own real estate early, more young people tend to take out loans than previous generations.

The demand for real estate purchases in the age group of 27-30 increased from 39% in 2023 to over 42% this January.

They are not afraid to use financial leverage to buy apartments in the suburbs.

I believe that this is the method that most people use to realize their dream of buying a house or land in urban areas, including me, who come from a poor rural area.

I also think that most people in countries with the highest incomes in the world also do it this way.

For me, borrowing to buy a house is the best way for salaried workers to quickly have their dream home.

This method is both economical and can also be considered a form of investment, depending on the ups and downs of the real estate market and the future income of each individual.

I am confident that, with a loan worth 65% of the house's value, a monthly income of about VND40 million is more than enough to cover debt repayment and monthly spending, as long as the monthly payments account for less than half of your income.

Even if your income decreases slightly in the future, it is still not too worrying.

Not to mention in the future, when your job and income improve, or when you get married and have an additional income source from your spouse, then you can pay off your home loan in less than 10 years.

In case the house price increases significantly on the market, you can even sell it to buy a better one.

The most important thing to consider when buying a house using borrowed money is that once you have decided to buy a house, you have fixed the value of the loan, meaning it will not increase over time.

Meanwhile, real estate prices can sometimes increase much faster than your income.

Therefore, this investment method is completely feasible.

In my opinion, saving until you have enough money to buy a house, especially one in urban areas or places with high levels of urbanization and industrialization, is almost impossible for the majority of salaried workers in Vietnam.

Of course, the final choice is still up to each individual, but I am trying to point out that young people who are willing to borrow money to buy a house before the age of 30 are not completely unreasonable and risky.

When good planning, owning a house at a young age is completely within reach.

Would you take a loan or save up to buy a house?

Reader Nui

*This opinion was translated into English by AI. Readers’ views are personal and do not necessarily match VnExpress’ viewpoints.

go to top