"We bought a house, but our family hasn't had a single day of peace. Both my husband and I are constantly worried about paying off our debt," said Phuong, 28, a lecturer at a university in Hanoi.

In 2022, the couple got married and decided to settle down in Hanoi. They decided to buy a 90 m2 apartment in Thanh Xuan district for 3 billion VND. "We can't rent forever. We'll pay off a 20-year loan eventually. We need a stable place to live to build our careers," the young wife told her husband.

Their combined savings were about 100 million VND, and they received nearly 300 million VND in wedding gifts. Phuong had to borrow 2 billion VND from the bank over 20 years, and the rest from relatives. For the first six months, with a preferential interest rate of 6-7%, Minh Phuong had to pay about 14 million VND each month. She calculated that their total income was about 30 million VND. Her salary went to the bank, her husband's salary covered some expenses for both their parents. The remaining 10 million VND was enough for living expenses.

But when the bank interest rate rose to 9%, and even 12%, Phuong was shocked to find their income insufficient to cover the debt, forcing them to borrow more. In 2024, Phuong gave birth, and her husband changed jobs due to company downsizing. With a maternity allowance of 6 million VND per month and her husband's salary of 12 million VND, they relied entirely on their parents for support.

"I had to take my child back to my hometown during maternity leave to save money. My husband stayed in Hanoi and had to borrow more from friends to pay the interest. Every time the bank called to collect the debt, I was so scared I felt depressed," Phuong recounted.

The couple considered selling their house and buying a smaller one to "escape the shackles," but they were reluctant to lose the money they had already paid and feared they wouldn't be able to buy back in the city center due to high prices.

Minh Phuong and her husband, 8/2024. Photo: Provided by the interviewee

Minh Phuong's story is not unique. Recently, social media forums have been filled with similar stories of homebuyers finding themselves trapped.

"Before owning a house, you're eager to buy, but after buying, you're burdened with debt, worse than renting. I don't know how much longer we can hold on. Our combined salary is 24 million VND, and we pay the bank 12 million VND each month. We took a 20-year loan and have paid for one year," one person wrote. The post sparked heated debate with conflicting opinions. Some advised persevering, finding extra work to increase income to pay off the debt because "at least you have a house." Others suggested selling to relieve pressure and ensure a decent quality of life.

"The mentality of 'settling down and building a career' is deeply ingrained in Vietnamese people, leading many couples to strive to buy a house at any cost and then find themselves in a tragicomic situation," said Associate Professor Doctor Pham Ngoc Trung from the Academy of Journalism and Communication.

According to Trung, for over 20 years, many banks have created policies allowing people to buy houses and cars through installments. "I support the installment plan for buying houses, but you should only borrow 20-30% because the market is constantly changing. You need a backup plan and the ability to repay the debt and withstand pressure from the bank," he said.

Nguyen Minh Thanh, 26, from Tan Phu district, Ho Chi Minh City, has a completely different perspective from Minh Phuong and her husband. Working in the media industry with an income of about 30 million VND per month and savings of 600 million VND, Thanh chooses to rent a high-end apartment for over 15 million VND a month and bought a car for over 300 million VND, rather than buying a house.

"My parents always scold me for 'losing' nearly 200 million VND on rent each year. But I want to live a peaceful life without debt, so I choose to rent a nice apartment and have a car," Thanh said.

Thanh realizes that borrowing billions of VND to own an apartment means tying himself to decades of financial pressure. He identifies as a Gen Z - the "snowflake" generation, lacking the mental fortitude to endure the pressure of monthly debt reminders from the bank. He calculated that buying a two billion VND apartment with a 500 million VND down payment would require monthly installments of 18 million VND. Even with reduced spending and extra work, it would be a struggle.

"Just one illness would be enough to derail the plan, not to mention market fluctuations and job instability. Then, I'd spend my whole life just paying off debt," Thanh said.

High-end apartment building in West Hanoi, 11/2024. Photo: Giang Huy

Financial expert Phan Dung Khanh, Investment Consulting Director at Maybank Securities, believes there's no right or wrong answer to whether one should buy or rent a house.

Buying a house provides an asset that can be used as collateral, enhances personal status, and addresses social prestige. However, a house is "immovable," impacting decisions about jobs, children's schools, or career locations. The financial burden can be significant if borrowing is involved, leading to cuts in other needs. "In the financial world, there's a saying: A house is a huge debt disguised as a safe asset," he said.

Khanh recommends buying a house only when finances are abundant, income is stable, borrowing is possible at low interest rates (like from relatives), and there's a contingency plan for risks. He advises against succumbing to social pressure, emphasizing decisions based on needs and affordability. If renting with stable finances and a comfortable mindset while generating multiple income streams, buying a house later is not too late.

For young people with average incomes, the investment expert suggests renting if there's no family support, only a single income source, an unstable job, or frequent relocation is required.

"Don't fear missing out on price increases and borrow beyond your means. If you can't follow through, you'll lose money, be without a house, and even face bankruptcy, family conflicts, and a life that could have been more comfortable," Khanh said.

Seeing their daughter's postpartum depression and struggles with debt repayment, Minh Phuong's parents had to sell their house in the countryside for over one billion VND to help her. They moved in temporarily with their eldest daughter's family. Minh Phuong regretted borrowing recklessly without careful planning, leaving the entire family burdened with debt.

"Haunted by living in debt, and because both our jobs are here, I plan to sell the apartment and rent a small house, pay off all debts, and think about buying again when our finances are better," Phuong said.

Nga Thanh - Ngoc Ngan