ej_italia,

So what?? Can you afford the monthly payment?? By breaking the 33% rule, you are NOT likely to survive financially if anything went wrong.

Dreamer

ej_italia,

<<Well, for long term view, it's definately for investment purpose. >>

The HOUSE that you stay in is NOT AN INVESTMENT. You will LOSE MONEY for 90+% of time. Your selling price will not cover the renovation and furnishing cost that you will be doing for the house.

Dreamer

ej_italia,

1) My statement applies to non-landed property too.

2) If you only have 10% down payment,

A) That means you have NO savings/emergency fund. If you lose your job for a while, you lose your apartment.

B) You have NO MONEY for furnishing or any other related cost to move into an apartment.

3) You could buy the apartment but you may not have the money to keep it.

Dreamer

ej_italia,

It should be DIFFICULT.

Buying house/condo, car, and college education are the 3 largest purchases in a normal person's life. Do it WRONG and you will live to regret it for the REST of your life.

Is the REST of your life not something that you should spend some time thinking about??

<<I think i'll just have at least 2/3 months of loan payment put aside just for emergency, whatever it is.>>

It is OBVIOUS to everyone that you CANNOT AFFORD a house/condo now. And, if you buy the condo, you can LOSE IT easily since you do not have the SAVINGS to cover for ANY kind of emergency.

Dreamer

This post has been edited by dreamer101: Feb 25 2008, 10:15 PM

F1meteor,

1) You need to have 3 to 6 months of savings after paying down payment and so on. So, that is about 12K to 24K.

2) Your monthly payment for ALL LOANS need to be less than 28% of your gross monthly income.

3) Others can tell you about S&P and so on.. I think that is another 3% to 6%

4) Renovation plus furnishing can run you another 10K to 30K.

5) Down payment?

Add all of them up.

I do not think anyone should buy 100K apartment. Landed property is much much better and it does nto cost that much.

Dreamer

Pai,

TS is buy the apartment to live. It is NOT an investment.

Dreamer

Pai,

<<The problem is for 100k budget, its very hard for one to get good landed properties.>>

If someone CANNOT AFFORD to buy something, just tell the person the truth. That is my philosophy since most people refuse to do that.

TS trying to tell him/her self that it is OKAY to overspend since it is an "INVESTMENT". This is a COMMON LIES in USA where many people find out TOO LATE. In USA, banks do not enforce the 33% rule in giving out housing loan. That is even worse.

Dreamer

This post has been edited by dreamer101: Mar 8 2008, 01:06 AM