The continuous sharp decline in savings interest rates has caused many people to shift their cash flow to real estate when the market begins to improve and many policy incentives are launched by major investors.
Record low interest rates, savings channels are no longer attractive
Savings interest rates are witnessing the sharpest and most comprehensive decline in the past 10 years. Statistics show that after decreasing by 20-50 points in December 2023, deposit interest rates at banks continued to lose another 5-20 points in January 2024. This low level is forecast to continue for most of 2024.
The highest rate for a 1-month term as of February 2024 is 4.65%/year, while most banks only apply from 2.5% to 3.2%/year, even at Agribank and Vietcombank only 1.7%/year. For a 12-month term, more than 30 banks apply interest rates below 5%, equivalent to or lower than the expected inflation rate of about 4 - 4.5% in 2024.
 |
| Deposit interest rates are forecast to continue to move sideways in the low range for most of 2024. |
In the context that many people are no longer interested in the savings channel when old loans mature, other investment options are gradually being considered. The gold investment channel, although it has increased sharply in recent times compared to the beginning of 2023, is currently at a very high price and is expected to decrease or remain stable when the economy recovers. Stock and bond channels require a lot of professional knowledge when investing. Therefore, real estate has become the safest and most popular investment channel today.
Cooling interest rates and large credit space that commercial banks have received since the beginning of the year have also created favorable conditions for customers to borrow to buy houses, boosting demand and increasing liquidity. At the same time, the return of investors has made the real estate market more vibrant, especially after a series of policies by the Government to remove bottlenecks in law, supply, credit, etc. have begun to take effect.
In particular, anticipating the market recovery, many large investors have launched attractive policies to attract investors. A typical example is the program "Buy a luxury home - Financial peace of mind" with the best home loan policy on the market today by Vinhomes.
Cash flow optimization problem, sure win investment
Launched from early February 2024, the program "Buy a luxury home - Financial peace of mind" is applied to Vinhomes Ocean Park 2 townhouses, The Zenpark - Vinhomes Ocean Park 1 apartments (Hanoi) and The Beverly - Vinhomes Grand Park apartments (HCMC). Accordingly, with only 30% of initial capital, buyers can immediately receive a house to live in or do business, rent out in Vinhomes' most popular projects and subdivisions today. For the remaining 70%, customers can borrow from the bank with flexible installment periods of up to 15 years.
Notably, in the first 2 years, customers are guaranteed a fixed interest rate of only 6%/year for low-rise areas and 7%/year for high-rise areas by Vinhomes. After 2 years, the interest rate will be applied according to the market but the maximum is only 8% for low-rise products and 9.5% for high-rise products. Thus, if the actual interest rate of the bank increases, the buyer still only has to pay interest at the maximum ceiling. The entire interest rate difference will be paid by Vinhomes to the bank. Conversely, if the actual interest rate of the bank is lower, the buyer will enjoy the exact interest rate applied by the bank.
 |
| Continuously rising house prices due to scarce supply are one of the guarantees of sure-win investments. |
With nearly ten years of experience in real estate investment, Ms. Luong Thu Minh (Hanoi) assessed that this was a great opportunity to get in. Ms. Minh calculated that with an initial amount of just over 760 million VND, she could immediately own a luxury apartment of over 40 square meters in The Zenpark subdivision (Vinhomes Ocean Park) ready to be handed over for rental business. In the first 24 months, thanks to not having to pay the principal and enjoying an interest rate of only 7%/year, Ms. Minh only had to pay over 8 million VND per month. Meanwhile, with this apartment, Ms. Minh could immediately rent it out when the demand in this area is very high.
“When the current mobilization interest rate is only equivalent to, or even lower than, the inflation rate, saving money is almost interest-free. On the contrary, taking advantage of good policies to invest in apartments for rent will both bring profit and own a house. Not to mention the value of the property will increase when apartment prices are forecast to increase by an average of 3-8% in 2024. Particularly for Vinhomes houses, the increase is often higher than the general level,” Ms. Minh calculated.
Using financial leverage to invest in real estate is also a favorite of many investors. After many successes with the "fry it with fat" trick, Mr. Tran Cong Danh (Hanoi) advised that investors with enough potential should still take advantage of this installment purchase program. Accordingly, instead of paying 100%, investors only pay 30%, then use the real estate for business. The remaining 70% can continue to be deposited in the bank to earn interest. This is a smart way to optimize cash flow when you can earn profit from both real estate and savings channels, instead of putting all your eggs in one basket.
“The advantage of Vinhomes’ policy is that the interest rate ceiling is fixed, so investors do not have to worry about the risk of floating interest rates increasing. Up to now, there has probably never been a policy that is so beneficial to investors,” Mr. Danh concluded.
According to experts, the program "Buy a luxury home - Financial peace of mind" once again helps Vinhomes affirm its position as a "big guy" with a key role in leading and promoting the sustainable and healthy development of the real estate market, bringing benefits to customers and investors.
Source
Comment (0)