Are you buying a too expensive house or too many houses?


I love real estate.


It’s a key part of you owing asset and building wealth.


But you have to know how much you own this property or that asset will going to own you.


In general rule, you should NOT pay housing loan more than 30% of your gross income.


The balance 70% should be allocated to;

  • car expenses ie loan, petrol, toll, maintenance.
  • monthly needs – ie. food, clothing, utilities, bills etc
  • savings – emergency, retirement, kids college
  • want’s stuff, personal growth & giving


Below is a guideline of housing commitment against your monthly gross income;


50% +         : Oh dear .. You are in the rat race struggles

40%            : You are not making enough effort

30%            : Not bad. You are like the rest of the masses

20%            : Great work. Financial momentum starts picking up

10%            : Congrats ! Financial freedom is on your way!     


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