“Safe Lock” for Home Buyers with Installment Payments

At the age of 32, while some of his colleagues were still living with their parents and hesitating to start a family, Mr. Nguyen Duc Thai (Gia Lam, Hanoi) already owned a luxurious apartment in a modern urban area, creating a happy home. Drawing from his parents’ experience, who struggled to save enough money to buy a house even after 20-30 years due to rapidly rising prices, Mr. Thai learned that the earliest investment in a house is the most cost-effective.

To avoid following in the footsteps of the previous generation and living in cramped conditions for 2-3 generations, Mr. Thai decided to use his accumulated capital after 5 years of working to buy a house with installment payments. He moved into his own place at the age of 28. With his current progress and income, Mr. Thai plans to pay off the bank loan in 3 years, which is 3 years earlier than his initial plan.

“When you don’t have a house, it becomes your only goal. But once you have a house, life becomes more stable and you have the opportunity and motivation to pursue bigger plans for yourself,” shared Mr. Thai.

People like Mr. Thai are increasingly common. According to a survey by the real estate technology group PropertyGuru, the younger age group, from 22 to under 39 years old, is becoming the main customer group for home purchases, replacing the middle-aged group over 40 years old as before.

Specifically, the age group of 22-34 looking to buy a house has significantly increased from 39% in 2021 to over 42% in 2023. This trend indicates an improvement in the financial health of the younger generation. When they have accumulated a certain amount, they leverage their financial capabilities by borrowing with installment payments to own a secure home, as a solid foundation for their career development.

Although installment payments are an excellent option, experts recommend that homebuyers consider multiple factors. Firstly, they need to evaluate their income and monthly installment costs to ensure a good quality of life for themselves and their families. In addition, a comprehensive assessment of potential risks during the payment process helps buyers anticipate the possibility of becoming passive, especially when variable interest rates are applied. Furthermore, buyers should research and choose reputable developers to avoid legal and handover delays.

“We should only put our trust in large developers who have the capacity to implement projects on schedule and comply with legal requirements, as well as provide long-term support for customers. We should avoid situations where we continue paying the bank while still having to rent due to project delays,” assessed Lawyer Nguyen Thanh Tuan from the Ho Chi Minh City Bar Association.

Safe and Attractive Installment Policies from Leading Reputable Developers

Understanding customers’ concerns, Vinhomes, the most reputable real estate brand in the market, launched the “Buy a Luxury Home – Financial Peace of Mind” installment program for up to 15 years at the beginning of 2024. This program applies to products such as Vinhomes Ocean Park 2 townhouses, The Zenpark – Vinhomes Ocean Park 1 apartments (Hanoi), and The Beverly – Vinhomes Grand Park apartments (Ho Chi Minh City).

The highlight of this policy that garnered much attention in the market is Vinhomes’ commitment to ensure a fixed interest rate of only 6-7% per year for the initial period. After 2 years, the interest rate will be adjusted according to the market but in the most favorable direction for customers, with a maximum of 8% per year for low-rise products and 9.5% per year for high-rise products.

If the actual interest rate from banks is lower, buyers will enjoy the bank’s applicable interest rate. If the actual interest rate from banks is higher, buyers will still be guaranteed to only pay interest at a maximum of 8% or 9.5% per year. Vinhomes will cover the entire interest rate difference (if any) for the bank.

Mr. Minh Tuan (30 years old, Hanoi) shared that thanks to starting work early, he was able to save a sum of money and planned to consider buying a home for his small family. Based on calculations, if he were to use the entire budget to pay upfront 100%, he would only be able to afford affordable apartments or small projects located far from the city center, unable to buy quality products.

After careful consideration, Mr. Tuan and his wife chose the option of borrowing 70% over a period of 10 years to own a 1-bedroom apartment in Vinhomes Ocean Park 1, a large urban area.

“According to the developer’s policy, with an upfront payment of about 760 million VND, we can receive the house and move in immediately. I reserve the remaining saved money for my family’s emergency fund and for expanding our business. The profit generated from that, along with not having to pay monthly rent, allows us to comfortably make installment payments to the bank, even after the principal deferment period,” shared Mr. Tuan.

According to experts, Vinhomes’ breakthrough policy is the perfect solution that allows many people to own a home by reducing the initial cost burden while avoiding long-term financial risks. Moreover, this policy is considered a helping hand for homebuyers to have the opportunity to own a quality living space, rather than settling for mediocre options.

In reality, it is very rare for developers to dare to commit to applying a maximum interest rate cap throughout the loan period for buyers like Vinhomes, as it depends on the financial capacity and business strategy of the enterprise. Moreover, Vinhomes’ product portfolio has many “valuable” advantages such as full legal compliance, immediate occupancy or early handover, premium living amenities, civilized living environment, and outstanding potential for price increases. As a result, even if plans change, homebuyers can still have complete peace of mind regarding the liquidity of the property and the return on investment.

With vast experience from hundreds of thousands of sold housing products and outstanding advantageous policies, it is understandable why the Vinhomes brand is viewed by many customers as a “safe lock” and a “golden choice” for settling down and establishing their careers in the most desirable urban areas.

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