The topic of real estate affordability has always been relevant, especially in the context of lending. The question of the maximum loan payment for the purchase of a property has aroused considerable interest. Some time ago, banking institutions applied a rule according to which the monthly payment should not exceed 45% of the borrower's monthly income. However, the idea is now being considered that this percentage is too high and should be reduced to 30%.
Why 30%? This number is based on the idea of financial sustainability and responsibility. As a proponent of relative parameters rather than absolute ones, I believe that buyers should have a clear idea of how much of their monthly income they are willing to set aside to pay the mortgage.
It is also important to bear in mind that buying a property is a long-term commitment that can last from 20 to 25 years. During this period, economic conditions will change, and it is important to have reserves for any changes in interest rates or income. Also, real estate prices are dynamic and can fluctuate, which can affect your ability to sell the property in the future.
Therefore, before committing to a property purchase, it is important to set clear goals and consider your budget and needs. Remember, without a plan and strategy, you risk finding yourself in financial difficulty. As Henry Ford said, "If you fail to plan, you plan to fail."
