By Mr. Propwise
In a recent blog post, guest contributor Property Soul shared her rules on buying a property you can afford, what she called the “3-3-5 rule”. In a nutshell, the “3-3-5 rule” states that:
- You should have at least 30% of the property’s price in initial capital to cover the downpayment and other costs.
- Your monthly mortgage payment should not exceed one-third of your monthly salary.
- The purchase price of the property should not exceed five times your annual income
Propwise.sg reader JC wrote in to comment that Rule #3 was unrealistic and overly conservative. Here’s what he had to say:
The five times of income to property price ratio is quite ridiculous. I feel that this ratio is only applicable during the “mata wear khaki shorts” days. How can one ever find such a low ratio of five times in today’s context? No way, even ...