Tightening loan limits for second home buyers and more: Reducing speculation but also worrying about 'wrong tightening'

The proposal to tighten the limit on loans for second home purchases is creating much debate. Although it is expected to curb housing prices, experts are also concerned that this policy could negatively impact liquidity and even 'wrongly squeeze' those with real housing needs.

People look for information on land and townhouse products in an urban area in Long An (old) - Photo: NGOC HIEN

The Ministry of Construction is seeking comments on a draft resolution on controlling and curbing the epidemic. increase in real estate prices, including recommendations to tighten loan limits for second home buyers and beyond, to limit speculation and contribute to market stability.

According to the draft, credit institutions are only allowed to lend up to 50% of the purchase contract value for buyers of second homes and no more than 30% for third homes or more, except in the case of buying social housing.

"Capital regulator" for the real estate market

Talk to PV , Mr. Vo Huynh Tuan Kiet - housing director of CBRE Vietnam - commented that limiting loans for real estate purchases is considered a credit "regulator" because many investors and speculators have used financial leverage to buy many real estates, unintentionally pushing up real estate prices.

Therefore, this solution aims to limit the number of people with strong financial capacity to buy and hold many properties, while those with real housing needs have difficulty accessing them.

"If implemented, this move will have a positive impact in helping to reduce credit to some extent. real estate, especially related to investment. They will consider very carefully in their investment strategy to optimize profits when using financial leverage," Mr. Kiet said.

However, Mr. Kiet commented that this solution mainly only restrains the investment level of those using financial leverage, while those with strong financial potential will not be affected. In addition, the side effects of this solution will create strong fluctuations, reduce the flow of supply and demand and trading rhythm in the market.

Similarly, Ms. Giang Huynh - representative of Savills HCMC - said that the measure to limit loans for second homes and beyond could contribute to reducing speculative activities, but at the same time it would also reduce capital flows from long-term investors and affect the overall liquidity of the market.

According to her, in the context of the real estate market in Ho Chi Minh City and the whole country facing a prolonged shortage of supply, tightening credit could make the market more sluggish.

Fear of "wrongly squeezing" real buyers

Talk to Tuoi Tre Online , an investor in large real estate projects in the South, said that the credit tightening policy has not clearly distinguished between buyers for real residence (buying for parents, children, relatives, etc.) and buyers for long-term rental, sustainable investment.

For example, parents have 2 children and want to borrow money to buy and build 2 more houses in addition to the house they are living in so that the 2 children will have the conditions when they start their own families, but the children themselves do not have enough income to borrow to buy a house.

Therefore, this regulation may cause more difficulties for parents or also make it difficult for local officials who want to rent more apartments at work, making it impossible for those with real needs to buy a house, leading to the risk of "wrongly squeezing" even legal consumers.

According to this person, Vietnam does not have a strong enough national housing data management system, making it difficult to determine which house a borrower owns.

In addition, this regulation has not clearly defined whether the housing is formed in the future or available. With housing formed in the future, there may be a risk that the house will encounter unforeseen problems that lead to the inability to complete, home buyers lost all capital on the first home but were limited in borrowing to buy a second home, leading to increased financial pressure for buyers with real needs.

"This measure may not solve the problem of rising housing prices, but will also have a negative impact on the real estate market, increasing inventory, directly affecting real estate businesses and related supporting industries," he said.

Source: https://baoquangninh.vn/siet-han-muc-vay-cho-nguoi-mua-nha-thu-2-tro-len-giam-dau-co-nhung-cung-lo-siet-nham-3380310.html