For young families who want to move out or buy a house in the city, it is never easy because the financial capacity is “short before and after”. How can I have a house, pay my debts, and be able to spend my daily living expenses? They come to the decision to borrow money from relatives to buy a house, but do not know that besides the “interest-free” benefit, “long time” are unexpected risks.
Listen to Hong Mo’s story of borrowing money from relatives to buy a house (Dong Nai)
Two years ago my wife and I moved to Saigon. According to the plan, we did not buy a house that year because the money was not enough. But it is impossible to know in advance, where we live is an apartment in District 7, they sell quickly because of debt, of course cheap.
The couple discussed with each other and then returned to their hometown to borrow money from relatives and friends around each other a little and set a date to repay the debt. Borrowing and repaying is not too difficult because the couple has a stable income and the loan is interest-free.
It wasn’t long before Ms. Hai needed money urgently to buy a plot of land to build a house for her son, the amount we borrowed was VND 100 million. Dilemma, at this time the couple ran out of money, had to borrow more friends and other people to cover.
Not to mention, when the time came to pay the debt for this person, the other person demanded money urgently. My wife and I were completely passive. Of course, friction has begun to occur.
After the rain, the sun was shining again, the loan amount has been paid for almost half, our life has gradually become more stable. But if I had to choose again, I would be more prepared. Whether borrowing money from relatives with little or no interest, you should still have clear documents to avoid falling into such an awkward situation.
Expert Boi Le (Ho Chi Minh City) was once suddenly asked for debt when borrowing money from relatives to buy houses and apartments
Because he wanted to reduce interest rates, he invited two of his relatives to invest in buying apartments for rent. But ironically, when the apartment was in the process of being repaired, a person demanded money urgently. Forced him and the other person to sell the apartment to return the money.
He himself also said that: borrowing money or contributing capital with relatives is as difficult to commit as borrowing from a bank. If borrowing USD or gold, it is even more risky for the borrower. Therefore, it is necessary to have documents such as a bank loan, to avoid emotional friction later.
And you, will you choose to borrow money from relatives to buy a house or borrow money from a bank to buy a house? Share with us!
>>> See more: Home ownership solutions for middle-income people
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