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 Formula to calculate property affordability?, For own stay, not investment

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TSKingArthurVI
post Jan 30 2020, 12:07 AM, updated 6y ago

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Joined: Feb 2011
From: Penang



Potential first time home buyer here. I'm wondering what most people here would say is a reasonable formula to calculate what property price range one can afford based on monthly disposable income (after taxes, insurance and other commitments).

I'm currently at about RM4k disposable income a month, what price range should I be looking for? And does this scale linearly? i.e. if I have 8k does the affordability also double?

Thanks all notworthy.gif
Pr1ma Buyer
post Jan 30 2020, 01:47 AM

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Joined: Jul 2019
QUOTE(KingArthurVI @ Jan 30 2020, 12:07 AM)
Potential first time home buyer here. I'm wondering what most people here would say is a reasonable formula to calculate what property price range one can afford based on monthly disposable income (after taxes, insurance and other commitments).

I'm currently at about RM4k disposable income a month, what price range should I be looking for? And does this scale linearly? i.e. if I have 8k does the affordability also double?

Thanks all notworthy.gif
*
Home loan around RM 500k

Monthly Installment RM 2,800

consider u hv no other commitment like you walking to office, no buy insurance, no credit card debt and personal loan and ptptn

if you wan comfort zone look for 300 to 400k

if u wan tight can go for 500k property

 

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