'Red book' or no 'red book'?

In the cities, people from other provinces flock to look for job opportunities. They need a stable place to live but their financial resources are limited, not enough to buy a townhouse. Therefore, the best choice for them is to buy an apartment with a suitable amount of money, ensuring a place to live near their workplace.

To own an apartment, not everyone can immediately spend 100% of the money to buy it. Therefore, the bank has accompanied the people, providing financial support up to 70% of the apartment value with the condition that when the customer has a "red book", they must mortgage it to the bank to secure the loan.

From then on, all sales contracts or agreements with secondary investors must have the investor's signature as a guarantee. The new investor, when granted the "red book", must return it to the bank to secure the above loan. When wanting to receive the "red book", the buyer must pay 100% of the principal and interest as agreed.

Few people know that if the buyer chooses the bank loan option, the necessary and sufficient conditions are:

- If previously in the banking system, the buyer had bad debt, regardless of where, how much or how little, it would certainly be difficult to own the dream apartment. Or the income does not guarantee the ability to repay the debt according to plan and must have confirmation from the workplace.

- Loan processing time takes at least 2 weeks.

- The lifespan of an apartment building is currently 50 years. So, after 50 years, the building must be demolished to ensure the safety of residents. So, even if people currently have a "red book" for the apartment, at that time they will have to move to another place to live.

If they want to continue owning the apartment there, they must pay 100% of the money to the investor. Thus, whether there is a "red book" or not, the ownership value of an apartment is only limited to the life of the building. The concept of long-term ownership value is only used for townhouses.

Mr. Nguyen Van A's family in the western urban area of ​​Hai Duong City has a 5-storey house. His children have started their own families and moved out. The current house, the couple does not need to use all of it, but still have to clean it every day. After calculating, they decided to rent out that house and move to Hoa Xa 5* Building to rent an 88 m2 apartment.²to stay for 50 years. Mr. A explained: “When you move in here, someone will look after your house, 24/7 security cameras, you don't have to watch your car, there will be guards wherever you park it. If the house needs cleaning, notify the receptionist to hire housekeeping staff to clean it. When you are sick, call the receptionist for help. On days when you can't cook, call the restaurant to order food on demand. If you forget to close the door, there is a surveillance camera. There is a 4-season swimming pool, a sports area for exercise and relaxation. Everywhere is clean, it's on high ground, cool and airy... it's truly a miniature society, with all kinds of amenities.”.

Ms. Hoang Thi B.'s family rented a house for 50 years and rented 2 other houses at the 5-star Hoa Xa Building to foreign experts, paying for 5 years. Ms. B. shared: "I only need to pay 30% of the apartment value to receive a house to live in, to do business, I immediately mortgaged 70% of this contract to the investor. I do business in other fields, the profit earned and the income from renting 2 apartments are enough to pay off in 5 years. In about 10 years I can recover the capital. I still have more than 30 years to receive interest, why do I need a "red book", because 50 years later, "red book" or not "red book", the life of this house will end, the government requires demolition. At that time, my children and grandchildren will start a new cycle. With renting an apartment atHoa Xa 5* building, if I don't like it, I just need to negotiate with the investor to liquidate it and make a new contract for me, move to another apartment...”.

On June 12, 2023, Hai Duong Newspaper had an article:“HOAXA TOWER - Live a life worthy of your status”, including a comparison table of the indexes of different types of contracts for buying and renting apartments in the building.