3 essential factors to avoid risks when buying a house on installments
Buying on installments is one of the best options that most young people and families with moderate financial resources use to own a house, instead of having to wait until they save enough money, which sometimes takes up to 20 – 30 years. This is also considered a “bright door” for buyers in the context of continuously increasing house prices due to scarce supply and high input costs.
According to many experts, there are 3 essential factors that customers need to consider before deciding to buy a house on installments. First, it is necessary to accurately determine the personal financial plan, including existing assets, sources of income, and monthly installment costs. Buyers will be safe when they have at least 30% of the house value.
Next, buyers need to fully evaluate the possible financial risks, especially the risk from floating interest rates. Experience has shown that a steep increase in floating interest rates can disrupt the initial financial plans of customers. On the contrary, the risk to buyers will be minimized when they enjoy a fixed interest rate for the entire loan term. At that time, buyers will know exactly the amount they have to pay each month for the loan, so they will never fall into a passive situation.
The third factor is the reputation of the developer. Standing beside reputable and leading developers, buyers will avoid risks regarding progress and legal matters of the project. Moreover, only developers with strong financial resources are able to provide long-term support, maintain commitments, and avoid putting customers in a “difficult” situation.
These factors are the reasons why the “Buy a Luxury House – Financial Peace of Mind” program by Vinhomes has been well received by the market.
Safe and attractive installment policies from the leading, reputable developers
The “Buy a Luxury House – Financial Peace of Mind” program is applied to the Vinhomes Ocean Park 2 townhouses, The Zenpark – Vinhomes Ocean Park 1 apartments (Hanoi), and The Beverly – Vinhomes Grand Park apartments (Ho Chi Minh City). Accordingly, customers only need 30% of the initial capital to immediately possess houses in the most sought-after projects and areas of Vinhomes. The remaining 70% can be borrowed from banks with flexible installment terms, up to 15 years.
The “Buy a Luxury House – Financial Peace of Mind” policy is considered a perfect solution for many people to own a house with optimized initial costs, while avoiding long-term financial risks.
Especially, in the first 2 years, customers are guaranteed a fixed interest rate of only 6% per year for low-rise areas and 7% per year for high-rise areas by Vinhomes. After 2 years, the interest rate will be applied according to the market, but in the most beneficial way for customers, with a maximum of only 8% for low-rise products and 9.5% for high-rise products. This means that if the actual interest rate of the bank increases, customers will still only have to pay interest at the maximum rate. Vinhomes will cover the entire interest rate difference for customers. Conversely, if the actual interest rate of the bank is lower, customers will enjoy the exact interest rate applied by the bank.
According to experts, Vinhomes’ policy is a perfect solution for many people to own a house by reducing the initial cost pressure and avoiding long-term financial risks.
Specifically, a 30% down payment is considered within reach of the majority of customers today. According to calculations, for a 1-bedroom apartment, suitable for new employees or young families with low demand, the 30% down payment is only from nearly 800 million VND (The Zenpark apartment) or nearly 900 million VND (The Beverly apartment). Even families who want to improve their living standard will not have difficulty with their own capital of only nearly 1.8 billion VND to own a low-rise house in Vinhomes Ocean Park 2. Thanks to the diversity of products, suitable for the financial capacity of many target customers, Vinhomes projects easily catch the eyes of customers.
In addition, with the experience gained from hundreds of thousands of sold homes, Vinhomes has become the leading developer that buyers “choose with confidence” because it always offers clear, transparent, and flexible payment plans. If customers buy a 1-bedroom apartment, thanks to not having to repay the principal in the first 2 years and enjoying an interest rate of only 7%, they only have to pay less than 10 million VND per month, equivalent to the cost of renting an apartment with equivalent utilities. In the long run, customers are completely proactive in the financial plan when they know exactly the amount they need to pay each month, including both interest and principal.
Especially, Vinhomes’ policy helps customers avoid the “shock” called floating interest rates by ensuring a maximum cap. During the loan term starting from the third year, if the floating interest rate reaches 11 – 12% per year or even higher, the interest rate actually enjoyed by customers will not change. The financial plan is guaranteed thanks to this. In this case, the amount Vinhomes spends to offset the interest rate difference for customers is very large and only developers with strong financial resources like Vinhomes can do this.
In addition, another important advantage of Vinhomes projects is the complete legal framework, immediate or early handover, premium living utilities, civilized living environment… Vinhomes’ affirmed reputation in the market is a guarantee to help customers avoid all risks, such as projects with delayed progress leading to both having to repay the installments and having to rent a house…
