Mr. Nguyen Van An, an office worker in District 1, Ho Chi Minh City, shared that he has savings of VND 600 million, a monthly income of VND 20 million, and is left with about VND 6 million after living expenses.
With his current savings and monthly surplus, Mr. An is considering whether to borrow an additional VND 1.5 billion to purchase a house in Di An, Binh Duong Province, or other suburban areas to have a stable residence, or to invest in stocks and continue renting?
Speaking to the NLD reporters, Ms. Vu Thi Huong, a Personal Financial Planning Expert from FIDT Investment and Asset Management Consulting Company, shared that with his current income, it would be challenging for banks to lend Mr. An VND 1.5 billion for a house purchase.
Investing all his money in the stock market would be risky as he lacks knowledge and experience in this field. Therefore, Mr. An could consider the following options.
Firstly, Option 1 suggests that Mr. An still borrows from the bank to take advantage of the low-interest rate but reduces the loan amount to match his current cash flow. He should consider keeping the monthly interest and principal payments below VND 9 million, equivalent to a loan amount of VND 700-900 million.
With this budget, Mr. An can look for smaller land areas or apartments in Di An, Binh Duong, or some suburban districts of Ho Chi Minh City. Alternatively, he can explore real estate in Long An or Dong Nai, although commuting from these areas to District 1 may be less convenient compared to Di An.
Low-rise houses in the suburbs of Ho Chi Minh City. Photo: Illustration
Secondly, Option 2 suggests that Mr. An could choose to borrow from the bank to purchase land for investment while continuing to rent. With the new economic cycle in the 2025-2027 period, land in the suburbs is forecasted to be a rapidly growing segment.
To mitigate risks, he should seek reputable brokers or entrust trustworthy organizations to find potential suburban real estate investments.
Additionally, he should maintain a moderate savings balance with terms of one month, six months, or one year. With the monthly surplus of VND 6 million, he can explore investment mechanisms that involve experts’ advice and allocation of funds into stocks and fund certificates.
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Astonishingly high price for old and dilapidated apartment buildings reaching nearly 200 million VND/m2, rivaling the most luxurious condominiums in Hanoi
Old collective apartments with prices starting from 100 million VND/m2 are usually the first-floor units that can be used for commercial purposes, while the upper-floor units are priced at 60-80 million VND/m2 for residential purposes.
