Buy a house within your means

I AGREE with the writer in “Many factors to consider when buying a house” (The Star, Feb 25), on the irrational buying of properties.

However, properties are a good hedge against inflation and a necessity of life.

People who buy property to stay in must be careful on the value of the property that they can afford.

If he or she cannot afford a big unit, opt for a smaller one or for a cheaper location even though it may be a bit far from their place of work.

Once their incomes improve, they can rent the current unit or sell it to buy a bigger property at a better location later.

The irony is that if you do not buy now, inflation will make your dream of owning a property for your family more difficult later.

The instalments for the house should not be more than 20% of the household income.

Take out an insurance policy to cover any eventuality to avoid your family suffering.

Purchase an insurance to cover health and children education.

No one can predict what will happen in future but we can minimise the adverse impact by being prudent in our spending and save enough for rainy days.

Not saving to buy a property for your family to live in is wrong.

Renting can give your family insecurity as one will not know when the owner will want to take back or sell the property.

This can upset the children’s social life as they may have to change schools and make new friends in the new area.

A property can be used to support the children’s education in event one needs to in future.

The whole rational is to buy within your means and upgrade gradually when your incomes improves.

THOMAS FOO

Subang Jaya