Real Estate

“No House in the Alley: Young Couple with 6 Billion VND Makes a Surprising Decision”

With 6 billion VND in hand, Mr. Hung and his wife made a bold decision: they chose to forgo cramped, dimly lit alleyway houses. Instead, they opted for a surprising alternative—renting a centrally located apartment. This choice not only offered them a comfortable living space but also provided the financial flexibility they desired.

Administrator

5 October, 2025

Mr. and Mrs. Le Dinh Hung, residing in Dinh Cong Ward, Hanoi, possess a budget of 6 billion VND and are seeking a home in Hanoi.

With this budget, they quickly realized that options for properties in the city center or suburban areas are increasingly limited. Homes within their price range typically range from 30-40 square meters, tucked away in narrow alleys with limited natural light.

“We visited numerous locations, but most were houses in winding alleys, inaccessible by car, and even maneuvering motorcycles was challenging. The lack of natural light, communal spaces, and playgrounds for children… Spending 6 billion VND to confine ourselves in such a cramped space doesn’t feel worthwhile,” shared Mr. Hung.

Amidst these challenges, Mr. Hung considered depositing the entire 6 billion VND in a bank with an interest rate of approximately 6% per annum. A simple calculation reveals that this would generate 360 million VND annually, equivalent to 30 million VND per month. This amount is sufficient to rent a luxury apartment in central Hanoi, with prices ranging from 20 to 40 million VND per month, depending on location and amenities.

Many 6-7 billion VND homes in narrow alleys often face flooding. Photo: Thach Thao

Instead of being confined in a dead-end alley, Mr. Hung’s family can enjoy a spacious, modern living space with comprehensive amenities: swimming pool, gym, car parking, and convenient travel between districts.

According to Mr. Hung, renting offers high flexibility. Without being tied to a fixed property, the family can easily relocate if work circumstances change, while avoiding risks associated with property price fluctuations.

Superior quality of life: Luxury apartments in the city center provide a clean, green environment, 24/7 security, proximity to international schools and shopping centers, enabling a work-life balance without worrying about maintenance or repairs.

Additionally, the principal amount remains secure in the bank, allowing withdrawal for investment in stocks, mutual funds, or real estate in provincial areas when the market stabilizes, rather than being locked into an illiquid asset.

Mr. Hung notes that purchasing small alleyway properties for 6 billion VND currently carries risks: limited growth potential and even difficulty in liquidation without clear planning.

Renting a luxury apartment with the 30 million VND monthly interest not only provides a comfortable lifestyle but also allows the couple more time to research, await market adjustments, or seek other real estate investment opportunities with better profit potential.

Financial consultant Nguyen Huong Giang believes there is no one-size-fits-all answer between buying and renting. It depends on each family’s long-term goals.

However, Mr. and Mrs. Hung’s story is a prime example of the shift in housing mindset among modern young people. They no longer default to the notion that settling down must mean owning a small plot of land at all costs.

In the context of Hanoi’s rising real estate prices, choosing to rent a luxury home using interest from available capital is a smart and practical approach.

Financially, this decision is well-founded. Instead of “freezing” a large sum of capital into a property with numerous limitations, they transform it into a profit-generating tool. The monthly interest not only covers a better living space but also maintains financial flexibility.

The psychological fear of renting due to the lack of asset ownership remains prevalent. However, from a purely economic perspective, when the opportunity cost of owning a low-quality home is excessively high, renting becomes an optimal solution.

Duy Anh

– 05:45 05/10/2025