Very simple question but yet, has stir up quite some contrasting views and opinions. For me, yes, technically on paper, I’ve more than 70% of my nett employment income for home loan. But at the same time, from this 60% that goes to home loan, I do get back a fair amount of money from the rental generated. The 60% is also spread out among few home loans (few properties).

If I were to consider rental income as part of my total income, then the figure drops to about 50%.
Why am I leveraging so much? Isn’t 70% dangerous one might ask? Well, I would still consider myself young (early 30’s) and about to start a family. Rather take the risk (meticulously calculated risk), and hopefully make it big through properties than regretting later in life. So far, things are good. My only worry moving forward is not about having insufficient properties, but rather not being able to further increase this DSR figure of mine which is currently at the 70% level. I have not done the detailed calculations yet, but with a 20% pay rise, I am hoping that I can further push this 70%++ figure to 80%.

Noticed that another forummer commented on this thread and told you to close the thread as the topic is irrelevant. The DSR can also be googled up easily. Not sure what is his/her level of involvement or experience in property investment but it pretty much shows that he doesn’t have it both. For seasoned investor who have an impressive portfolio (and also very deep pockets), DSR can go easily cross 60% and way more than that. I’ve known of individuals who have breached the 100% mark. Imagine an individual having a nett worth of RM20mil (properties, securities, cash), borrowing a RM3mil home loan but with a monthly repayment that will clock his/her DSR at 100%. With the right and relevant supporting documents, chances of the home loan getting approved is very high. Of course, this policy differs from bank to bank. Each financial institution have their own risk appetite and evaluate opportunities differently.

Anyway, good luck in your investment journey!

How one looks at it depends very much on the situation that they are in. If part of the money goes to supporting the family, a small chunk to insurance, a fair bit goes to charity bodies and some to servicing education loans, then the actual scenario isn't so bad after all.

Rather decent I would say.

Sure, welcome. Feel free to ask if you need any other info. Wealth of knowledge in these forums, but at the same time, lots of empty, rusted tin cans that are rattling quite loud. I'm sure you will be wise enough to filter those out and not let them deter you.

All the best!