Confessions of a couple who borrowed 1.5 billion VND to buy a house and a bright signal from the market

Recently, the State Bank issued Circular 06 extending the implementation period of the policy in Circular 02 on debt restructuring, keeping the debt group unchanged until December 31 this year. Customers, businesses, and experts are expressing many opinions, both hopeful and realistic.

Ms. Nguyen Tu Quynh (Nam Tu Liem, Hanoi ) said that in early 2022, the total income of the couple was about 50 million VND/month. At that time, she and her husband bought a 68m2 apartment in the West of Hanoi for 3 billion VND. Not having enough money, she borrowed half from the bank.

However, after that, the work was affected, causing the couple's income to be about 35 million VND/month. Each month, the principal and bank interest are 18 million VND. Therefore, according to her, debt restructuring or keeping the debt group the same will be very good for home loan borrowers.

The extension of Circular 02 will help home buyers and real estate businesses reduce financial pressure in the short term (Photo: Ha Phong).

"The amount of money to pay the bank takes up more than half of my income, so sometimes I still have to take money from my savings or borrow money from my family to pay in advance. If I could restructure my debt now and keep the debt group the same, it would help my family reduce financial pressure. In fact, the economy is currently difficult, so my family's finances are not as abundant as before," she said.

From a business perspective, Mr. Pham Duc Toan - General Director of EZ Vietnam Real Estate Investment and Development Joint Stock Company (EZ Property) - said that debt extension and restructuring for eligible customers is a practical action to help businesses overcome difficulties in the current period, especially real estate.

Currently, many projects have been invested but are still not eligible for transactions because businesses are stuck in cash flow due to procedural problems. Furthermore, real estate liquidity is currently very poor, with only transactions in some central areas but not significantly.

"In reality, real estate businesses use large leverage, so they have already mortgaged all the assets that can be used for loans. If they do not extend the debt, restructure the debt and keep the debt group the same, it may be very difficult to continue borrowing and develop the business in the future," Mr. Toan shared.

Along with the Land Law, Housing Law and Real Estate Business Law that may come into effect as early as August 1, Mr. Toan said that in the short term, it will only have a psychological impact and will not help the market to become active again. The core issue when the laws come into effect will be to resolve the legal problems that are currently entangled. Besides, for the market to recover quickly, it will depend on the general economy.

Sharing about the direction of businesses in the coming time, Mr. Toan said that businesses can be similar in prioritizing safe financial solutions, reducing debt to a minimum level, and rolling over debt with high interest rates to enjoy lower interest rates.

From an expert perspective, Associate Professor Dr. Dinh Trong Thinh said that the extension of Circular 02 allowing debt restructuring and maintaining the same group is very good for home buyers and real estate businesses using financial leverage. However, borrowers and businesses also need to have a clear and specific plan in the restructuring and debt repayment roadmap to the bank.

"Thus, businesses and borrowers have more time to arrange financial resources. This helps reduce the burden and create more potential for recovery and development during a period when the market still faces difficulties. In addition, three real estate-related laws that may take effect soon will help the market promote recovery in 2024," said Mr. Thinh.

According to Mr. Thinh, the structure of real estate supply is very limited, especially the lack of affordable apartments. If the laws take effect sooner, it will help many projects to have legal clearance, thereby increasing the supply of goods on the market. From there, investors and people will be willing to spend money to help businesses have financial resources to pay off debts.

Source: https://dantri.com.vn/bat-dong-san/tam-su-cua-cap-doi-vay-15-ty-dong-mua-nha-va-tin-hieu-sang-cua-thi-truong-20240623100036012.htm