Individual affordability and whether the property is reasonably priced usually serve the major considerations for the purchase. It will be even better if the property has capital growth potential.
¡@How much is the property you are affordable to buy? The first step is to estimate the purchase power include the downpayment amount and monthly mortgage payment, so you can analysis the size and the location of property.
¡@There are some expenditures are more important than property purchase plan, e.g. emergency money for unexpected matter (normally 3 to 6 months income) or educational fee. So it is intelligent to reserve the mortgage installment after deducting the above mentioned expenditures.

The property purchasing power is closely related to 1) the installment method you take 2)the loan amount you apply for 3) tax involved during the transaction and 4) individual daily expenses. There are two kinds of property in the market, which are finished property and unfinished property. In general, more limitations on mortgage loan is required for finished property, the downpayment usually is 30% of the property price. Hence, there is a great pressure on downpayment preparation and mortgage loan payment for the property owner.
¡@For unfinished property the downpayment is the same as the finished one (30% of the property price). However, the owner can divide the downpayment into a few payments (usually within 2 to 3 years) before the property is delivered. Hence, the financial burden on the downpayment is reduced.

A buyer usually needs to pay 10-15% of the total property price when the unfinished property contract is signed. Example: Assume there is an unfinished property worths 6 million with a 70% of the mortgage loan, Only 10% of the 6 million is required to pay when the contract is signed, which is 0.6 million. And the rest of the 20%of the downpayment (1.2 million) will be divided into 2-3 years to pay before the property is delivered. The estimated monthly payment will be less than 40 thousand if the durationto pay is 3 years.
¡@The property owner should also consider your regular mortgage payment ability after the property is delivered and the downpayment is completed. A regular mortgage normally lasts for 20 to 30 years and the owner should consider his/her affordability to settle the mortgage payment and other daily expenditures.

A personal monthly profit and lost statement is a tool to know the affordability of your mortgage. The saving is equal to income minus expenditures. So the saving amount is the " maximum mortgage payment" allowed when expenditure and income remain unchanged. Generally speaking, the mortgage payment should not exceed one third of your monthly income. Other kinds of loan payment should also be considered to determine your " maximum mortgage payment ", which is lower than the original amount. Hence, if you are planning to buy a property, it is necessary to prioritize major item purchases (such as car) in order to optimize your monthly payment ability.
¡@ Recently, many real estate developers launched the plan such as " low downpayment and high mortgage loan amount " in order to attract buyers. The mortgage percentage reaches 90% in some cases. The buyer should consider his affordability (both downpayment and the monthly mortgage payment) carefully before making this purchase decision.
¡@ On the other hand, the property buyer can also take advantage of the related government subsidies, the interest rate of such loan is normally lower than the mortgage and can be combine used.

A property purchase involves a long term commitment in the family financial planning, Hence, a well-designed planning may help to release such problem. For those who want to become a homeowner, an early stage planning is necessary, For example, build up a regular saving plan earlier to enjoy the capital growth in order to have enough capital for your purchase in the future.
¡@ For the choice of investment tool, it is suggested to use gradual planning. A more aggressive investment tool is recommended in the initial period, in order to build up the first downpayment sooner. After that a moderate risk / return and stable growth investment tool is more suitable for the purpose of monthly mortgage repayment.