Settlement or burden?

The ever-increasing real estate prices have turned a house, instead of becoming a place of shelter, into an invisible worry and burden for many people.

Poor people have difficulty accessing land resources

We often hear the saying “Settling down and having a career”, and owning a house is always considered a symbol of success and stability. However, in the current context, that dream of settling down is becoming a very difficult problem, especially for young people and middle-income workers.

If 10 years ago, having 1 billion VND in hand, you could completely think of owning a spacious 2-bedroom apartment, meeting the needs of family life in the city. But now, that number is only enough for you to buy half a studio apartment.

'Gritting teeth' for the dream of housing: Settling down or enjoying life? (Illustration)

Real estate prices have skyrocketed while the income of the majority of people has increased slowly, unable to keep up. Some statistics show that 60% is the average increase in real estate prices over the past 5 years, far exceeding the mere 6% increase in income during the same period.

The complexity grows as real estate speculation becomes more unpredictable, coupled with limited housing support policies, making the dream of owning a home for ordinary workers or young families more distant. To make that dream come true, many people are forced to accept sacrificing other essential needs, putting themselves in a spiral of long-term debt.

Should you trade quality of life for an expensive home?

Some people shared on real estate forums about accepting to pay for a very frugal breakfast of only a few tens of thousands of dong, raising a question that is not easy to answer: Should we trade quality of life for an expensive house in today's era?

Having a home means no more worries about the unstable life of renting a house, and is a proof of success in the eyes of others. However, many other worries arise from there, such as market fluctuations, interest rates, jobs... The years of saving to reach the dream of owning a house, which seemed to be the end of a series of uncertain days, opened a new chapter full of pressure.

Many people who have bought a house have been left in a state of “restlessness” due to economic instability. A real estate crisis or a spike in bank interest rates can turn a house – a symbol of stability – into a source of personal financial crisis.

In short, there is no satisfactory answer to this concern. Some people are willing to accept the risk, but others choose the safer option in the current volatile context, which is to continue renting. In fact, buying or renting a house both have their own advantages and disadvantages, and neither choice is perfect.

Most importantly, it is suitable for the conditions and goals of yourself and your family. For example, with an amount of about 1-2 billion VND, instead of saving all and choosing to borrow to buy a satisfactory apartment, many people choose to rent a house and achieve other goals in life, such as educating children, taking care of health, investing in profitable channels or simply enjoying peaceful moments. That is an option worth considering.

Unreasonably high housing and land prices cause many consequences, making it difficult for people to access housing and increasing production investment costs, and importantly, making it difficult for genuine investors to access land resources.

On the other hand, rising real estate prices will certainly increase the value of collateral assets at banks. And, when real estate prices increase too quickly, far beyond their real value, banks need to be careful of the risk of facing some big risks. When property prices are pushed to virtual levels, loans based on this value will not be sustainable.

If the market reverses, these credits can easily become bad debts, risking a credit bubble bursting. When most of the bank capital is "frozen" into real estate, other economic sectors will have difficulty accessing credit, causing cash flow imbalances and increasing liquidity pressure.

Source: https://congthuong.vn/can-rang-vi-giac-mo-nha-o-an-cu-hay-ganh-nang-369285.html