Buying a house with installment payments for low-income people is a solution chosen by many people. It helps people with an income of 5 million, 7 million or 10 million a month still be able to own their dream house. So what should be kept in mind when choosing this option?
What is home purchase?
Buying a house on installment payments is a form of buyers who only need to pay a part of the house purchase amount. The remaining amount will be paid in installments according to the term agreed between the parties.
This form of buying a home is being chosen by many families. Especially young families, people with low income. When they still have not accumulated a large amount of money, they can still own the house according to their desires, needs and financial capabilities.
Home purchase solution for low-income people
Should people with an income of 4-5 million/month buy a house on installment?
If you are a person with an income of 4-5 million/month, it is best not to buy a house. This is the advice that every real estate professional gives.
Because this is not a high enough income. If you still try to buy a house in HCM , it will be beyond your ability to pay. At that time, the house was not sure to be kept but also fell into debt. Therefore, instead of trying to buy a house, you should plan and strive for a higher income.
Income from 6-7 million/month: rent or buy a house with cheap installments
For low-income people, the option of renting a house is still much better. There are many apartments for long-term rental, 5 years, 10 years, 12 years, etc. The rental price is very affordable.
In addition, with this salary, you can choose the solution to buy a cheap installment apartment . Like buying a mini-apartment in the suburbs or bordering big cities. They have a selling price of only about 350-400 million VND. Thus, the monthly installment payment is completely within your means.
Salary 8-10 million/month: if you know how to accumulate, you can buy a good house
Currently, most banks have flexible home loan policies. Therefore, with an income of 8-10 million, the ability to get a bank loan is not difficult.
However, to reduce the debt repayment burden, you should have a plan to accumulate in advance. Buyers must have at least 30% of the desired home value. The monthly installment amount will be less.
Buy social housing
Another housing solution for low-income people is to buy social housing. This is a useful program of the State for low-income people, poor households, near-poor households, people with meritorious services to the revolution or people with special occupations serving the community.
Not only cheap, but buyers are also supported with loans with extremely attractive interest rates. If you are participating in a social housing savings fund, do not miss this opportunity to buy this low-cost installment house.
Things to keep in mind when buying a house with installment payments for low-income people
To avoid unnecessary troubles when buying a cheap installment house, you should pay attention to some of the following issues:
Choosing the right housing project
Currently, there are many housing projects for low-income people on the market. Therefore, you should research and consider carefully to choose the right project.
Ideally, you should choose to buy an installment apartment with a moderate area, enough to meet the living needs of family members. You should not buy a house that is too large because then you will have to pay more for unnecessary interest.
Moreover, according to experts, you should buy an installment apartment under construction. Because when the project is under construction, the selling price will usually be cheaper. Along with that, the payment method is also more flexible than buying a finished apartment.
In addition, you must also pay attention to the legality of the project. To be sure, you should ask the distributor to provide documents related to the project.
Do not borrow more than 50% of the value of the house
If you intend to buy a house on installment payments in Ho Chi Minh City , you should prepare to accumulate money for several years. Absolutely, you do not take out a 100% loan to buy a house.
You should accumulate at least 30% of the house value for yourself. Ideally, you should borrow up to 50% of the value of the house. This will help you not to be too pressured in repaying the debt while still ensuring daily expenses in the family.
Balance financial ability when buying a house with installment payments for low-income people
This is a special note to pay attention to when low-income people want to buy a house with installments. You should make a plan of income and expenditure, saving the most reasonable balance. This way, you will avoid overspending. If you can’t save money, buying a house will become even more difficult for people with low income.
You should consider how much your family can save. From there, you will choose the appropriate financial package. As well as the 20-year installment loan period, long or short because the interest rate will be different for each loan term.
Pay attention to interest rates
Buying a house with installment payments, everyone wants to buy it with low interest rates. However, the lower the interest rate, the more conditions there are. Moreover, they are not yet safe.
Some banks offer preferential interest rates, even 0%. But you need to be very alert. Because they usually only apply to customers who buy within the first 6-12 months. And then, in the 13th month, the new interest rate surprised many people.
Therefore, in order to have a home loan package with an appropriate interest rate, you should find out and clarify everything with the credit officer. In this way, you will be proactive in everything, minimizing possible risks.
Choose a reputable bank to borrow
The number of banks in our country is increasing day by day. There are not only state banks, domestic commercial banks but also branches of world banks. Therefore, you have many destinations when you want to borrow money to buy a home .
However, you should choose to borrow at large and reputable units. Especially banks are guaranteeing the project you want to buy. This will help you feel more secure in borrowing interest rates.
Read the contract carefully before buying a house for low-income people
Our ancestors had a saying “Pen sa chicken died”. Once you sign the contract, you understand and agree to all the terms contained in that contract. Any future situations arise, the contract will be the basis for settlement.
A lot of people often leave contract matters to consultants. They don’t care, read the contract carefully. This is a serious mistake of many people, causing them to suffer a lot of damage.
Therefore, instead of placing your trust in a consultant, do it yourself. You need to read carefully, understand all terms. Anything you don’t understand, you need to ask for clarification. Even if there is a slight problem, you should not sign.
Furthermore, any attractive deals that employees promise you should also be included in the contract. Because if it is just a word, then there will be no evidence to do it.
Thus, above, AequitasAudit.com has helped you better understand the solution to buy a home with installments for low-income people. Along with that, there are some issues to keep in mind when choosing this method. Hope these information will help you get the best home buying plan for yourself and your family members.
-Thuy An – Real Estate Information Analyst-
>>> See more: Buying an apartment on installments: Should or should not?