Quote:
Originally Posted by Husky
Is it even possible for working class people like me? 50% leh... if I were to take a housing loan for $400k, then maybe buy a car take another $80k loan. In order for my debt/net worth ratio to be 50% I need to have one mil???
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Quite hard, but can be done. Don't forget your flat and car have some value, and that you and your wife will share the burden.
Assume you own nothing but a flat. If it's worth $300k in the market and you still owe bank $100k, then you'll achieve that ratio of 50%.
But for your situation, assuming your flat is worth $500k and your car's scrap value is $70k, then your wife and you will need $870k in OTHER assets to achieve that 50% ratio.
If the car doesn't come into the picture, it's just $700k you need in other assets.
If, further, you owe only 300k on the flat, it's just $400k.