If you are looking to buy a house now, what should you consider?

Take advantage of "putting money down" before interest rates increase

Recently, banks have increased their deposit interest rates. Since the beginning of June, statistics show that more than 20 commercial banks have increased their deposit interest rates. Interest rates of 5%/year or more are increasing, with some banks even reaching over 6%/year for 18-month terms. The market is concerned that lending interest rates will increase along with deposit interest rates in the near future.

Mr. Pham Anh Khoi, Director of the Dat Xanh Services Finance - Real Estate Research Institute (DXS - FERI), said that although interest rates have shown signs of a slight increase since May, it does not seem to have reduced the attractiveness of the real estate market. Many investors are taking advantage of the opportunity to "put money down" before interest rates increase further. Confidence in the real estate market is gradually recovering, promising a new growth phase in the coming time.

Many investors are taking advantage of the situation to "put money down" before interest rates increase (Illustration: Trinh Nguyen).

According to the above survey, the real estate market is attracting great attention from investors, with 33% choosing this as a priority investment channel, surpassing gold (30%). This trend is driven by low home loan interest rates throughout 2023 and the first half of this year.

The real estate industry in the second half of this year is also considered to have many positive signals. Macroeconomic growth is good, FDI capital is strongly attracted; public investment disbursement is positive, many transport infrastructure projects are accelerated, exceeding the set schedule.

Three laws related to real estate will soon take effect from August 1, in which the revised Land Law has many new points, notably expanding the conditions for land use rights for overseas Vietnamese... helping to promote a more vibrant market.

Investors are returning to the market amid the launch of many projects. In the first half of the year, the country had 19 projects started, 23 projects introduced and 27 sales events, marking a warmer period for the real estate market.

Legal factors have been paid more attention by investors than ever before, becoming an important competitive factor to ensure legality and promote market trust.

Buying a house, pay attention to financial matters

Mr. Vo Hong Thang - Director of Consulting Services and Project Development, DKRA Group - said that in the first 5 months of the year, apartment products focused on the affordable and mid-range segments (VND 35-60 million/m2), accounting for about 62% of the consumption market in Ho Chi Minh City and neighboring provinces.

According to Mr. Thang's observation, the transaction volume in the market is mainly in the housing segment serving real housing needs, always at a high level in big cities, with convenient locations connecting to the center, with full legal documents as well as clear construction progress.

Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), also expects the real estate market to reach a balance when real estate-related laws are passed and put into practice. Real housing products and social housing will increase in supply, after being facilitated with more open and transparent legal regulations.

Investors need to consider financial issues before buying a house (Illustration: Trinh Nguyen).

Affordable real estate is also being prioritized by many investors after a period of scarce supply in the market. Many investors also apply loan support with interest rate support of 70-80% or pay 50% to receive the house, the remaining 50% is paid in 18 months, helping customers make decisions more easily when the initial capital is not too large...

However, when buying a house at this time, investors also need to consider the financial issue reasonably. Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn in the Southern region, recommends that people who have a real need to buy a house should only consider buying a house in Hanoi and Ho Chi Minh City when they have an income of 30 million VND or more.

Experts explain that a private house or apartment in the two major cities currently costs at least 2-2.5 billion VND. If the buyer borrows 50-70% of the property value, equivalent to about 1.4-1.5 billion VND, the homeowner must pay 12 million VND in interest and about 5 million VND in principal each month.

If the income is 30 million VND or more, when the buyer subtracts 17 million VND in interest and principal, there is at least 13 million VND left to cover basic living needs. If the income is less than 30 million VND, it will be very difficult," said Mr. Tuan.

According to Mr. Tuan, if you take out a loan to buy a house for investment now, you can consider it because in about 2-3 years, when buyers have to pay the floating interest rate, the market will recover. At this time, buyers can start to sell or invest to make a profit from the above investment.

Source: https://dantri.com.vn/bat-dong-san/neu-tranh-thu-mua-nha-luc-nay-nen-tinh-toan-dieu-gi-20240705121012569.htm