thinking is good ....... call me when you come round to it ...
a good tool for assessment, which I personally like to use
rather than the % of monthly income model, is the annual earnings
ratio.
you'd be very comfortable paying for it if the value of your
property is around 12 to 15 times the combined annual income of
your house hold ...... in singapore, the figure is more likely
around 18 to 20 times nowadays.
this ratio can be higher in Singapore because the income and
property taxes in Singapore are a lot lower than in the west.
anything beyond that, and you'd be stretching your finances
quite a bit.
If a couple earns 80,000 for an entire year, even
if you take a low of 12x, it means they can afford a property close
to 960,000.
Seriously,
I think that is a HUGE stretch. And that is excluding commitments
like food, hobbies, cars, bills etc leh
