“You have to know how to measure yourself”
Le Huong, 29 years old, is currently a communications officer for an information technology company. Nearly 10 years of graduate experience, with the position of team leader, Huong’s current salary is 18 million VND. Even though she graduated from school a long time ago, her salary is not low, but Huong’s savings are only equal to 8 figures.
In recent years, Huong became impatient when her peers bought houses and cars. Their secret is to pour money into stocks or real estate. Huong said, some of her friends quit their good positions in the bank just to invest in land. Exactly 1 year later, when she met again, Huong was surprised because that friend showed off her total assets of up to 3 billion VND. Huong asked herself the question: “Assuming the salary is constant, when can I own billions in hand?”. A friend bought a car for a few hundred million, thanks to the profit in the stock market in just half a year.
Even her colleagues, during breaks, they just talk about what code to code today, green or purple market and the story around where land prices go up, how to take profits.
“Must get rich! If you want to be rich, you can only invest! Not rich in business”Those are the things that Huong drew from the stories of friends and colleagues that she witnessed. After a period of researching, listening to sharing and consulting from many people, Huong chose real estate. She also “plowed” the shares from the example of getting rich from the land.
Huong outlines a problem to invest in land. She determined to put money into a plot of land on the outskirts of Hanoi. With a salary of 18 million dong, Huong believes that she can afford to borrow money from a bank and pay interest every month. By using financial leverage, Huong believes, she will be motivated to work hard and save. After 1-2 years, if the plot of land for sale increases by 50-100% in value, Huong can earn several hundred million.
In August 2020, Huong strongly bought a land plot of 60m2 in Thach That, Hanoi for 850 million. Own capital is 90 million dong, Huong borrowed 210 million dong from relatives and the rest comes from the bank. 550 million dong from a bank loan can only be borrowed within 5 years. Huong has to pay about 11 million dong of principal and interest each month at an interest rate of 6.3%.
“I estimate that all my salary will be used to pay off debt to buy land, including bank loans and relatives. The extra money will be used to pay for daily living.”Huong said.
Huong thinks, within 1 year, the price of this land lot will definitely increase by 50%. Minus the bank interest, she was completely profitable.
However, all of Huong’s plans deviated from the trajectory. More than a year has passed, Huong still cannot liquidate the land lot. It is worth mentioning that the value of Huong’s land plot also decreased compared to the amount of money that Huong spent.
“My life is turned upside down. The pressure of debt every day makes me angry, can’t focus on work. I live so frugally that I feel like I’ve lost my confidence. That’s why my job I couldn’t do well.I lost weight and shrunk due to thinking too much.I realized a lesson for myself: You have to measure yourself.If your capital is thin like me, the feeling will always be impatient to sell and push. went away due to the pressure of debt interest. Therefore, I was forced to sell at a loss because I thought I could not continue to withstand the pressure.”Huong said.
Huong’s story is not uncommon. According to experts, the use of financial leverage is very careful. Because you can’t always surf successfully. So you must have a backup. If you can’t get out of the goods, you need a stable financial source to pay off debt and bank interest. Normally, the psychology of borrowing money to invest in real estate is easy to be impatient, difficult to wait, so it is easy to fall into a situation of hastily selling, selling at a young age, not getting the desired profit or having to accept to cut losses.
at Blogtuan.info – Source: Kenh14.Vn – Read the original article here
