I risked myself to borrow money from the bank to buy a house and invest
“Borrowing money from a bank to buy a house, but suddenly losing my job, how will I have to pay interest”, “Bank debt is too much because I can’t spend it comfortably”… those are two of the many reasons why the use of financial leverage is a big barrier for young people with little capital but aspire to own a house, or a plot of land.
The worry of paying debt every month makes young people falter, not daring to overcome the obsession. Therefore, many people accept to rent houses, do not need to increase their income, settle down with a monthly salary, enough to pay for living expenses, travel, etc. And finally, because they are afraid of getting a bank loan, 3-5 next year, without any “surge” in income or support from parents and relatives, young people’s lives still revolve around rental apartments.
8 years ago, when I was only 23 years old, graduated from college with a salary of 7 million VND/month, I was also afraid of getting a bank loan. 24 years old, married with a total income of 11 million dong, I want to buy a house, but I’m even more afraid of getting a bank loan. Because I am afraid that the bank interest will “overwhelm” my daily life. Because I am afraid of having children, I have to spend money to raise children, in case of illness. But if I stay in a cramped motel, when my first child is born, I realize that: If I don’t risk buying a house, I don’t know when I will be able to buy a house.”
In 2016, I found a house in Yen Nghia (Ha Dong) for 800 billion VND. I have 100 million dong in my hand, which is the total amount of dowry when getting married, insurance money after giving birth and the amount of money that both sides celebrate the baby.
Wanting to have a house to live in, I decided to take out a loan even though I felt very scared. Fear of unemployment, no money to pay bank interest. Fear of not having money to raise children. Fear of not having money when sick or ill. But the desire to have a home makes me try harder and more determined.
In 2016, I borrowed 450 million VND from a bank. The two families loaned 250 million VND, no interest. We moved into our new house without buying furniture, just because we didn’t have the money. Paying interest and principal each month is 5.5 million dong. I had to go through a year of “mental crisis” because of the pressure of paying interest every month. Not to mention, after buying a house for half a year, I was in the category of “reduction of staff” and had to resign and find another job. Income from 10 million dong reduced to 7 million dong.
However, it is true that “everything will pass” feeling. All difficulties are surmountable in the end. In addition to my main job, I also sell enough products online to earn extra money and pay for my life. In 2019, my family started going through tough times. At the end of 2019, I decided to take a risk again, “changing houses” because I wanted to let my children study near the center.
The old house sold 1.6 billion VND. Deducting the loan, my wife and I have 1.3 billion VND in hand. But to buy a better house, the financial amount must be 2-2.5 billion. Thinking about billions of dollars in debt, I fell into the same fear as when I first bought a house.
But at the last minute, because the house was for sale, there was a lock and a deposit and if we didn’t buy the house, we had to rent it. In the end, my wife and I decided to buy a house of 2.4 billion VND and continue to borrow 1.1 billion VND from the bank.
Just like the first time taking a risk, the feeling of fear is always present when “debt billions”. But after 1 year, I feel more used to billions of debt. It is true that with debt, the more motivated to work.
By the end of 2021, I again decided to buy an apartment near the center worth more than 2 billion VND by taking a 35-year bank loan. The amount of deposit I paid in advance was 700 million VND. The remaining amount is disbursed by the bank. The old house I rented for 5 million VND, partially supported the interest on the mortgage pink book. Thus, each month, my family has to pay about 17 million dong both interest and principal for a loan of more than 2 billion dong.
Really, borrow a lot, owe a lot, you will gradually get used to it. The fear then disappears. Now I understand why my friends have billions of dong but they also owe several billion dong. For those with thin capital, only a bank loan is the way to break out, own a home and invest. The richer they are, the more they borrow from the bank.”
*Shared from readers from Hanoi.
Business and Marketing
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
