Hello experts. I am 40 years old, and my spouse and I have a combined monthly income of 25 million VND. After living expenses, we can save a maximum of 10 million VND per month (sometimes less). Currently, I have 800 million VND in cash and a plot of land that could sell for around 800 million VND at market value.
Should I borrow an additional 700 million VND to purchase another plot of land priced at 1.5 billion VND?
Dao Hung Thinh
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Experts believe that using bank loans for investment can be a beneficial strategy in the current market, especially for land acquisition. A long-term loan can ease the burden of monthly repayments. However, careful consideration of your financial situation is crucial. Dao Hung Thinh, with 800 million VND in cash and land of similar value, is contemplating a 700 million VND loan to purchase a 1.5 billion VND plot. This scenario requires a thorough assessment of potential risks and rewards.
With a combined monthly income of 25 million VND and savings of up to 10 million VND, Thinh's ability to manage additional debt is a key factor. While a long-term loan reduces monthly payments, it also increases the total interest paid over the loan's lifespan. Experts advise potential borrowers to analyze market trends, property values, and personal financial capacity before committing to such an investment.
