Decoding the “curse” of not being able to afford a house when old
The first thing Thu Hang (28 years old, Hanoi) and her husband did after receiving their Tet bonus was to sign a contract and receive the handover of a 2 bedroom apartment in a Vinhomes project. This is something that they never dared to dream of before.
“We used to be very afraid when calculations showed that young Vietnamese people had to accumulate for 30 years to be able to afford a house. But the reality is that there is a solution to not living in temporary accommodations all your life and not having a house when you’re old,” Hang shared.
The solution that Hang mentioned is the “blockbuster” policy recently announced by Vinhomes. According to this policy, customers can own and move into The Zenpark – Vinhomes Ocean Park 1 apartment (Hanoi) or The Beverly – Vinhomes Grand Park (HCMC) immediately, or even a townhouse in Vinhomes Ocean Park 2 (Hanoi) with only 30% of the apartment value. The remaining amount will be supported by Vinhomes through a 15-year instalment plan.
Interestingly, customers can enjoy great financial benefits with a fixed interest rate of only 6% per annum for low-rise apartments and 7% per annum for high-rise apartments during the first 2 years. During the following years, the maximum interest rates are 8% per annum for low-rise apartments and 9.5% per annum for high-rise apartments. If the bank interest rates are lower, the buyers only have to pay the actual rates. If the bank interest rates are higher, the buyers still only have to pay a maximum of 8% or 9.5% per annum, and Vinhomes will cover the difference.
According to Hang, buying a house on instalment is not a new method. However, having a fixed interest rate as low as possible for a period of up to 15 years is unprecedented. With this “protective shield,” buyers are ensured safety against market fluctuations.
“The biggest fear of buyers who purchase houses on instalments is the floating interest rate. But with Vinhomes’ policy, all interest rate risks are gone. I even know the exact amount I have to pay each month so that I can plan my expenses,” Hang said.
Taking advantage of the golden opportunity from Vinhomes’ super policy to own a house before Tet, Duy Phong (35 years old, Hanoi) confessed that he missed out because he hesitated, thinking that house prices would decrease. At the beginning of last year, Phong looked into a 70m2 apartment in a project on To Huu street, priced at around 2 billion VND. With the expectation of buying at the bottom, he did not make the payment right away. However, that project, in early 2024, had its price increased to 2.4 billion VND.
After considering some other projects in Nam Tu Liem district, Phong was even more shocked when he saw that many apartments increased in price by 400 – 500 million VND after just 1 year. In fact, compared to the original selling prices from the developers, some towers even nearly doubled their prices after 5 years.
“Buying a house now means being 100s of millions behind”, Phong concluded.
The best opportunity to buy a house in 5 years: Now or never
Assessing the investment decision of customers like Thu Hang and Duy Phong at this time, personal finance expert Nguyen Thanh Minh believes that this is a very wise choice. According to Minh, those who make early decisions will escape from the escalating prices in the real estate market. Besides, outstanding instalment programs like Vinhomes’ provide opportunities for more and more people to realize their dream of owning a house instead of waiting until they accumulate enough money. This form also helps customers optimize their financial leverage and personal income.
Great utilities, real experience that pleases even the most demanding buyers of The Zenpark.
“Considering instalment payments as debts is a misconceived mentality that harms many Vietnamese people, causing them to miss out on truly enjoying life. When the amount paid is equivalent to rent, why would you choose to rent? The more you hesitate, the further away the opportunity to own a house gets,” Minh analyzed.
According to CBRE’s data, the price increase trend still dominates the real estate market. Specifically, since the end of the COVID-19 pandemic until now, the price of apartments in Hanoi has maintained a stable growth of 14%. In 2023 alone, the primary average selling price in Hanoi increased by nearly 15% annually, reaching 53 million VND/m2.
Meanwhile, in Ho Chi Minh City, apartment prices have tripled in the past 10 years. Specifically, the prices started to increase significantly from 45 million VND/m2 in 2017 and accelerated from 2020 – 2021 until now, reaching 76 million VND/m2.
According to experts, even when the market is believed to be stagnant, house prices are still increasing. At present, there are many improvements in policies and bank interest rates have decreased significantly, leading to a sharp increase in transactions. While demand is increasing rapidly and supply is still limited, house prices are expected to continue to rise.