Real estate in HCMC’s Nha Be district, October 2023. Photo by Read/ Quynh Tran
My wife wants to sell our land for VND2.1 billion (US$83,400) to build a house and settle our debt, but I prefer to hold onto the plot until prices rise.
We have two children, aged 9 and 6, and our combined monthly income is around VND50 million. We are currently renting a house in the city. We have four plots of land but owe VND1.2 billion to my wife’s family, with interest at the bank’s deposit rate.
Since we want a stable place to stay, my wife and I are considering building a house on one of the plots. However, we do not have enough funds to cover construction costs, so we are debating how best to move forward.
My wife suggests selling one plot for VND2.1 billion, using part of the proceeds for construction and the rest to pay off the debt to her family, eliminating the interest burden.
However, I am reluctant to sell because the current offers feel too low. Instead, I propose taking out a bank loan of about VND700 million to fund the house while waiting for prices to rise before selling the land to repay the debt. I believe that land price increases will always outpace bank interest rates, making this a more profitable option in the long run.
The challenge is that borrowing more will require us to tighten our budget. Our lifestyle will undoubtedly become less comfortable as we manage two significant debts simultaneously. My wife and I have not yet reached an agreement.
Should I sell the land plot now?
*This opinion was translated into English with the assistance of AI. Readers’ views are personal and do not necessarily match Read’ viewpoints.
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