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“Never spend more than 30 billion in cash to buy, better borrow from the bank”

Mr NN (Long Bien, Hanoi) currently owns a villa worth over 150 billion VND with an area of ​​almost 400m2. This villa was bought by Mr. N. 7 years ago at a price of more than 30 billion VND. In 2018, Mr. N. worth up to VND 70 billion.

“Right now I’m sitting on a huge pile of assets. But honestly I have no intention of selling because I don’t need the money to sell it,” said Mr N.

    Rich people only need to buy villas with tens of billions of dollars to live in and invest in: Never spend more than 30 billion in cash, so take a bank loan - Photo 1.

Instead of spending more than 30 billion in cash to buy villas, many people choose to borrow from banks.

According to Mr. N., in 2015, his decision to buy this villa was opposed by relatives because the price was too high, and it was located in an area far from downtown Hanoi. However, for him, choosing a good villa located in a civilized residential area is a priority for his family.

On sharing the finances for buying a villa, Mr N revealed: “Seven years ago, even though I could raise money, I didn’t choose to pay more than 30 billion VND to buy a villa. Even many rich people in my house. area, when they buy a villa, they rarely offer a plan to pay enough money to become a villa owner.”

“I used banking leverage to borrow the remaining 10 billion. If I say the amount is more than 10 billion, it is really very large. But the investment value is good,” said Mr. N.

Explaining the decision to borrow a bank loan to buy a villa, Mr. N. analyzed, first, from the point of view of an investor like him, using bank financial leverage is an effective way to “use” capital. The remaining capital, Mr. N. use to invest in work, creating other profitable values.

Mr N. admits that borrowing more than 10 billion VND to buy a villa is risky and risky, but is a motivation and springboard for people to overcome thresholds, safety limits and financial freedom.

“Think about it, everyone’s psychology is afraid of debt. First, they are afraid, do not know if they can pay the debt? Then, they worry that the economy will be difficult, their income will not pay off. Like it used to be. , the risk of default on easy debt?

But without motivation, it is impossible to put in the effort. Because as a rule, savings = income – expenses. But in reality, expenses always increase along with income. People tend, the higher the income, the more expenses. Family expenses tend to increase over time but rarely decrease. So if there is no incentive to pay off debt, the higher your income, the more you spend, but in fact end up saving a little.

So how? Or consider savings as an investment. If you take a bank loan, the amount you have to pay each month is money to pay for investments (buying a villa, waiting for prices to rise, investing for family life) or in other words saving. This amount is fixed. So to pay for this, you have to increase your income and reduce your expenses. If you want to increase your income, you have to work hard to do many different things, think of many ways to make money. If you want to save costs, limit spending on unnecessary items”, analysis Mr. N.

According to Mr. N, usually the stages of paying off debt are very difficult, not easy. It was a stressful time, because the mind was only thinking about debt. But if you pass that time, everyone’s mindset about finances will change.

“I overcame that difficult time. Even though I live in a villa, I am also dizzy from debt. In the end, the couple agreed to try to cope. Everything gradually goes into orbit. That’s how I invest, increase the accumulation. of total assets,” said Mr. N.

https://cafef.vn/nguoi-giau-chi-cach-mua-biet-thu-hang-chuc-ty-de-o-va-dau-tu-khong-bao-gio-bo-hon-30- ty-tien-mat-ra-mua-nen-vay-ngan-hang-20220314112423322.chn


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