How much to spend on housing?

A maximum 20% to 30% of your monthly income should be used for your house. Some people just can't find the balance on how much to spend on housing. If you spend too little on housing, you would probably take a higher loan amount or longer loan period. If you spend too much on housing, you could potentially get yourself into heavy debts.

Before a buying you first house, consider:

How old are you and what is the comfortable time period to service your housing loan?
Some people would go for 10 or 15 years loan, depending on their affordability.

Do you intend to stay in the house for a long period?
Some people just want a home. A sweet place to stay in. Others may look at it as an investment opportunity, hoping that future developments will boost the price of the property. For personal use, it is okay to stretch the loan a little bit longer. For investment, bear in mind that the interest rate will take up most of the profits before you could realize.

Do you have enough cash for your renovation?
We often see beautiful houses along the street and we wonder how does it look inside. Sometimes, the interior could be totally out of the world atrocious. Don't spend too much on the property itself that you do not have enough budget for the renovation. It is always better to live good than to look good.

Land lease period?
Always, and forever, get a property that is more than 30 years in lease. Always.

Down payment?
At least 20% of the initial payment, including any property tax or stamp duties.

Good luck and happy hunting!