How to buy a house in the city with 500 million VND in hand
Your husband and wife’s total monthly income is about 20 million VND. After deducting the expenses of the whole family, you can save about 10 million VND per month. You and your wife are living in the same house with your grandparents, so you want to buy a house separately. However, at present, the couple has just accumulated 500 million VND. With the above money, your husband and wife are definitely wondering how to buy a city house, if buying, should they borrow from the bank to buy a house?
Here are the solutions for your husband and wife:
Buy an apartment in the construction phase instead of a house completed or handed over
Currently, if you intend to buy a townhouse or an apartment in the handover stage, you usually have to pay a lump sum with a sizable amount. Therefore, with a financial level in hand of 500 million VND, the selection of an apartment with over 1 billion VND under construction is something that you should consider. It may take longer to own a home, but on the contrary, the pressure on your cash flow will not be high.
In addition, to compete in the market, developers often have many programs, financial incentives as well as flexible payment methods for home buyers in the construction phase, can choose for themselves a project with the most suitable location and support policy.
Don’t forget to ask a relative or bank for assistance
Borrowing money to buy a house from a family member is always a safe solution, because you can mobilize idle capital from the relationship around at a “cheap” cost.
If you are in a situation where you cannot borrow money from a relative, you should use financial leverage and seek assistance from the banks. Usually for apartment projects, developers often cooperate with a number of banks from the very beginning of the project.
You should ask for support from the bank if the money in hand is not enough to buy a house
With a loan of 500 million in about 10 years, based on the current interest rate fluctuating around 10.5%, you only need about 8 million VND monthly installments (for interest and principal). Depending on each case, the bank may also apply additional preferential packages or interest rate support.
At the same time, you should also take the time to carefully study the terms of the interest rate (as it may change from year to year), as well as the regulations for a reasonable calculation.
Normally, when first contacting customers, banks always pay attention to the following three questions: Can you pay the debt? Do you pay off your debt? What if you can’t pay the debt? We would like to analyze these three questions as follows:
Can you repay the debt? ”: This is the issue that the bank is most concerned about, they will calculate the formula” Cash Payment Ratio = Income / Loan Payment> 1.5 “. Thus, if you have to pay 10 million dong / month for a bank loan, your income must be at least over 15 million dong / month. If you can guarantee the above numbers, let your bank know.
“Do you pay off your debt?”: Your credit score will greatly affect this question, if you used to take out a loan and pay off well, it will be a good signal for the upcoming home loan. Besides, the formula “Debt to net assets = Total Bank Loan / Amount you have” is also very important. If this ratio is less than three times will convince banks more. So if your capital has 500 million dong, you should not borrow more than 1 billion.
“What if you cannot pay the debt?”: In the worst case scenario, the bank wants to know if you have tangible assets (house, cash, savings book …) that can liquidate the debt or not. . You can ask parents from both sides to sponsor them with the house they are in.
Should choose projects with good transport infrastructure, instead of projects near the city center
Currently, real estate prices in downtown areas such as District 1, District 2, District 4 … are quite high, if you choose a high-value apartment and have to borrow a lot, there will definitely be interest pressure and Your principal payable every month will be very large. Therefore, do not borrow too much, the value of the apartment you buy should not exceed 2.5 times the amount you have. If you have finance in the range of 500 million, the apartment around 1 billion to 1.2 billion is the optimal choice.
However, with this price range of 500 million VND, usually you can only buy houses / apartments outside a radius of more than 8-10km from District 1, the farther the projects are from the center, the better. Therefore, if you are just starting to buy a house, do not hesitate to stay a little distance but you should choose projects with good traffic because if you do not shorten the distance, you can still save time, when you If you have a better income, you can sell and change places.
Projects further from the center often have good prices
Don’t wait until you have enough money to buy a house
In fact, the real estate market, although experiencing many ups and downs, sometimes up and down, but the current housing prices are constantly increasing and higher than in the past. Therefore, if you wait until you have enough money to buy, it is also very difficult to keep up with the “speed” of the increase in house prices. Because of this, while it is a bit risky, planning to buy a home from now on will help you keep the price good.
Do not ignore construction areas
Should choose to buy houses in areas with good infrastructure instead of near the center
Usually, places with good infrastructure, complete housing, real estate prices will also be very high, fluctuating with the progress of infrastructure, so you do not worry about buying a house in places where infrastructure is being built. Although there is some initial noise and annoyance, it will make it possible to buy a home in a good location for a cheap price. When the infrastructure is complete, you will have “savings” because at this time housing prices in the area will also increase.
If you know how to apply skillfully or apply all of the above, then maybe with a moderate financial level, in a short time, you can build yourself a residence as you like.