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These days with the increase of cost of living due to inflation and the upcoming GST but wage still remain the same, how much does a normal middle class wage earner needs to be able to afford a decent house?

Check out this article written by Loanstreet

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My First Home Scheme is like a phantom/legend. Everyone heard about it, but no one actually seen any on if.

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I'm more of the conservative side. I would have to disagree on the affordability illustrated by the author in LoadStreet. Making RM2k/month, buy a RM200k property and pay close to RM1k for installment? Seriously? Hmmmm....

An affordable guideline for me is to buy a property that you can pay with 5 times of your annual income. For example, when I bought my first investment property for RM240k, my income was RM4.2k. It fits the criteria as RM4.2k x 12 x 5 = RM252k which means I could afford it base on my 5 times annual income benchmark. Although the purpose of this unit is to become a rental unit and I was not expecting to pay for bank installment (which it is now), it is still a good benchmark to check against to ensure the purchaser really can afford it during financial difficult period.

Frankly there is no rush in property investment game. I would rather reach my destination safely and surely - rather than quickly but not knowing whether I will really get there.

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The so called affordable home is not really affordable. 300K and above...