HoREA proposes allowing people over 18 years old to borrow from banks with 'preferential' interest rates to buy houses

(CLO) Recently, the Ho Chi Minh City Real Estate Association (HoREA) sent a document to the Prime Minister and the Ministry of Construction regarding a number of proposals related to the healthy and sustainable development of the real estate market.

In this document, HoREA proposed that the State Bank consider building a mechanism for young people, from 18 to 45 years old, to be able to buy their first home with a credit loan at a reasonable commercial interest rate.

The reasonable interest rate proposed by HoREA is about 6-7%/year, with the loan secured by the house itself, for a period of 10-15 years. HoREA believes that this proposal will create a “push” to encourage businesses to restructure existing real estate projects, shifting investment to the affordable commercial housing segment and social housing.

HoREA proposes allowing people over 18 years old to borrow from banks at 'preferential' interest rates to buy houses. (Photo: ST)

"HoREA realizes that most young people are ambitious and have a long life to do business and pay off debts. Normally, after about 10-15 years, their income will double or more than double, so there is almost no risk for commercial banks to lend," HoREA stated.

In addition, the Association also requested the Ministry of Natural Resources and Environment to urgently submit to the Government for consideration and approval of the Draft Decree detailing the implementation of the National Assembly 's Resolution on piloting the implementation of commercial housing projects through agreements on receiving land use rights or having land use rights.

In which, the Association proposed that the Ministry of Natural Resources and Environment consider adding regulations: In case of using the area of ​​national defense land and security land that has been planned to be removed from national defense land and security land to implement pilot projects, the Ministry of National Defense and the Ministry of Public Security are allowed to designate military and police enterprises (if any) or enterprises of economic sectors that are qualified to do real estate business as investors to implement housing projects for the people's armed forces.

"The addition of this regulation will be suitable for the specific conditions of the people's armed forces. Because the Ministry of National Defense has a real estate business, but the Ministry of Public Security does not have a real estate business under its authority, a typical case is the Phu Cuong Investment Joint Stock Company selected by the Ministry of Public Security as the investor of the Ministry of Public Security's apartment project and the Ho Chi Minh City Police Officer Apartment Project," HoREA stated.

Source: https://www.congluan.vn/horea-de-nghi-cho-phep-nguoi-tren-18-tuoi-vay-ngan-hang-voi-lai-suat-uu-dai-de-mua-nha-post333963.html