Formula for budget calculation to purchase your first house

Woman Balancing Her Checkbook

The most important thing need to keep in mind when buying your first house is your affordable budget. This is because most important thing when come to buying a property is “Money”, rather “with house with cash” and “no house with cash”, are not “with house but no cash” or worst to worst is “no house no cash”. Everyone need to avoid buy a house and turn your status into a “with house but no cash”, that’s the reason why you need to understand how much you are able to afford.
Here is a simple formula to find out your property purchase budget:


property purchase budget = annual household income * (3-6 times) + rich dad rich mum financial support

Example: a young couple’s total household average annual income is 100,000, financial support from rich dad and rich mum is 200,000. So the maximum budget to buy a house for the couple capped calculate as per following:
100,000 * 6 + 200,000 = 800,000


With house with cash = Good

No house with cash = Good

With house but no cash = Bad

No house no cash = Bad








买房预算 = 家庭年收入 * (3-6倍) + 富爸爸富妈妈补助


例子: 年轻上班族夫妻的家庭总年收入平均 100,000, 富爸爸富妈妈又愿意补助 200,000,这一对夫妻的买房预算顶限是:

100,000 * 6 + 200,000 = 800,000


有钱有房 = Good

没钱有房 = Good

有房没钱 = Bad

没钱没房 = Bad

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