After graduating from university with an excellent degree, Mr. Nguyen Van Dung (31 years old, from Vinh City, Nghe An) was introduced to return to his hometown to have a stable job. However, giving up the introduction, Mr. Dung decided to stay in Hanoi to start his own business.
After nearly 10 years of working, Mr. Dung is still having to accept renting because he does not have enough money and courage to borrow more money to buy a house.
Mr. Dung shared that the two families did not have any support, so buying a house only relied on savings and bank loans. Meanwhile, the house price was too high, so the couple still could not afford it.
"The amount of savings cannot be absorbed compared to the rate of house price increase. If there were no policies for young people, we might have to rent houses for the rest of our lives, Mr. Dung confided.
In another similar case, Mr. Nguyen Trong Vu (residing in Thanh Xuan, Hanoi) and his wife are also struggling with the problem of buying a house.
According to Mr. Vu, with a total income of about 30 million VND/month, the burden of living expenses, especially the cost of raising young children, makes saving to buy a house more difficult than ever.
Mr. Vu shared that with high interest rates, there were periods when the floating price exceeded 10%, going to a bank to borrow to buy a house was something he did not dare to think about.
In fact, there have been many policies to support young people and low-income people to buy houses in big cities.
Typically, a credit package of VND 30,000 billion, a credit package of VND 120,000 billion for home buyers with low interest rates or the Project to invest in the construction of at least 1 million social housing apartments (NOXH) in the period of 2021-2030.
Recently, at the Government conference with localities on economic growth, the Prime Minister requested to strive to reduce lending interest rates; establish a credit package to support young people (under 35 years old) to buy a house.
With the new policy recently requested by the Prime Minister, Mr. Nguyen Trong Vu confided that if the bank supports interest rates with high and fixed incentives for a long time, he and his wife will find a way to buy an apartment in the suburbs, borrow more from relatives to buy a house and save up to pay monthly interest.
Talking to Lao Dong reporter, Mr. Nguyen Anh Tuan - Director of Phuong Dong Real Estate Investment and Trading Joint Stock Company - said that the demand for buying houses among young people in general and people who want to settle down is currently very high.
However, according to Mr. Tuan, with the usual interest rate of 7-10%/year, repayment becomes a huge burden for home buyers.
Therefore, the Prime Minister's direction of banks to study preferential loan packages for young home buyers will open up opportunities for young people to access loans with preferential interest rates to own a house, opening up opportunities to settle down and make a living.
Sharing this view, Mr. Nguyen Quoc Hung - Vice President and General Secretary of the Vietnam Banking Association - said that the policy of having an additional preferential loan package for people under 35 years old to buy a house is very suitable.
People under 35 years old are people with working capacity, have worked, and have regular income, so there needs to be a mechanism to support them to settle down and start a business in urban areas. These are also the ones who create wealth for the future, so we need to support them to have a house.
However, when implementing this loan package, there needs to be a mechanism for banks to reserve capital with a long lending term, with reasonable interest rates.
