NOTES WHEN BUYING INSTALLMENT APARTMENTS TO AVOID RISK

Is a popular form, but many people wonder if they should buy an apartment in installments?

Should buying an apartment with installment payments be a concern for families who do not have much money? According to real estate experts, buying a house with monthly salary installments is a reasonable and safe investment option.

Advantages of buying an apartment in installments

One of the biggest advantages of buying an apartment in installments is that there is no need to pay 100% of the homes value at the time of purchase. Banks or credit institutions will lend buyers about 70% of the value of the house by mortgaging the house itself or using collateral to secure the loan. Accordingly, customers can own their apartments and pay monthly installments.

Customers can choose to pay in installments within 15-20 years or longer. The longer the installment period, the lower the monthly payment.

In addition, the bank supporting the loan package will disburse in installments to the investor based on the projects progress. Buyers have no difficulty in managing cash flow and financial pressures.

During the installment process, customers can still use their house instead of having to pay an extra amount to rent a house.

Therefore, the form of buying a house in installments is suitable for people with average incomes. For young couples who do not have their own house, do not have enough money to pay to buy a house but have a stable monthly income, participating in a bank loan to buy an apartment in installments is a viable financial option. test and fit.

Note to remember

According to real estate experts, customers who want to buy an installment apartment need to consider carefully, based on their income ability, and current and future stability to make the best decision. Here are some issues buyers need to pay special attention to avoid risks:

Legal risk

Legal risks occur when the investor or the seller lacks necessary documents such as the certificate of land use rights, pink book or construction drawings, and drawings by the planning. At that time, the buyer may fall into the situation of losing their property because the apartment project is not legal. To avoid risks, customers need to ask the seller to show the documents related to the apartment. Check carefully for traces of erasure, patchwork or not, along with some other documents such as mortgage, and loan (if any). Conduct a cross-check by going to the homeownership certification agency to check the original information, and determine whether the house belongs to the cleared land or has public construction planning.

Financial risk

In transactions, the buyer pays a deposit to the seller of the apartment not exceeding 10% of the property value and pays in installments according to the construction schedule. Many people buy houses on "theoretical" because the investor does not build the house or runs away with money, causing great damage to customers.

In addition, to buy an apartment with installment payments, the first thing is to have some money as a foundation and proof of monthly income. However, the risk is that many people want to buy a large house but have limited financial resources or lack understanding and pay installments in a short time. This is very dangerous because the principal and the interest become a monthly burden. To limit risk, one should not borrow more than 50% of the value of the house or apartment. This helps to ensure two things at the same time, having enough money to sustain life and enough money to repay the loan on time.

Interest rate risk

Interest rate is also an issue that homebuyers need to pay special attention to. Buyers need to be alert when looking at attractive numbers like 7%/year or 8.5%/year. This attractive interest rate has a "use period" of only 1 year or a few months, after which the interest rate can be increased to 3.4%. Therefore, customers must be alert to find out how specific interest rates apply.

In addition, apartment buyers with installment payments also need to learn and survey the market more; Find out about the loan policies of banks, and compare the advantages and disadvantages of each party, and the accompanying benefits to have the most suitable choice.

According to VTC News

WHY NEED A BANK LIVING NEED A ASSESSMENT?

A property appraisal is one of the important steps of secured mortgage lending activities. This is also the first activity the bank considers your ability to accept a loan. So what is the process of property appraisal for lending by credit institutions in Vietnam?

Bank appraisal process.

Step 1: Receive information about collateral, and classify assets according to the regulations of the appraisal industry
Step 2: Make a valuation plan
Step 3: Field survey, collect information about the property
Step 4: Build appraisal report
Step 5: Control the report
Step 6: Issue deed and appraisal report

Why is it necessary to appraise the price when applying for a bank loan?

When reviewing a customers loan application, one of the first things the Bank needs to evaluate is to determine the value of the collateral for that loan - also known as collateral. Currently, most banks stipulate that the loan disbursement rate for customers is from 70 to 85% of the value of the collateral.

So how do you know how much is the value of your collateral in Vietnamese dong? That property must be appraised, this is an important first step for the bank to consider setting your credit limit. Each bank has a different appraisal method to determine the final value of the collateral.

Therefore, the appraisal of collateral prices is not only a mandatory requirement of the law but also a legal basis for banks to consider a reasonable and safe loan level for their loans.

In other words, the appraisal of collateral assets at the Bank aims to ensure that loans are safe and able to recover loans when they are due. Therefore, such collateral must be appraised according to the standards and regulations of the Law on Valuation of Vietnam.

Currently, banks often associate with independent, specialized appraisal units to value the collateral assets of customers to ensure the most objectivity and accuracy.

SunValue – Vietnams Leading Valuation Unit, Vietnams Leading Brand 2023, and Strong Asian 2021 Brand, with a system of nearly 50 Branches and Transaction Offices across the country.

SunValue is currently a strategic partner in association with Financial Institutions with more than 20 prestigious domestic and foreign banks and is also a service provider partner for Agencies (State Treasury, Courts, etc.), Judgment Enforcement Agencies; Compensation and Site Clearance Committees, ...) create the best conditions when customers need to appraise collateral for bank loans.

With a fast implementation process, quality, free consulting services, appropriate appraisal costs, confidential information, along with a reliable source of price data will bring the best experience to Customers.

SunValue – National brand that has actively contributed to the development of the appraisal industry in Vietnam.