My favoured solution.
While you can also tie the strap end to the guitar head with a shoe lace, the guitar will not hang in line with your body plus this also puts a strain on the neck joint. As I rarely go near the twelfth fret I favour the underside of the heel but it really is a personal choice.
Strap buttons may be bought in most guitar stores. They will probably fit it for you for a small fee. To fit a button yourself, first hold the guitar between your knees and drill a hole into the heal using a small hand drill. The hole should be the same diameter as the body of the screw not including the thread. Check that it is deep enough by inserting a drill bit and measuring that against the screw. Do not over tighten the screw, if you feel a lot of resistance, redrill using a slightly larger drill bit. Should you make the hole too big simply pop a used match in to it and the screw should fit snugly.
Straps
As for straps it is quite simple, use a leather strap. The fabric ones are cheaper but they will slip on your shoulder. If the guitar is head heavy it will swing to the floor if you let go. If it is tail heavy it will come up and smack you on the cheek, neither is good for your image so use a leather one and avoid embarrassment.
After some time the strap end may become too pliable and lose its grip on the button. Simply unscrew the button, make a small hole in the strap and screw the button right through the strap back into its original hole in the guitar.
Should the button screw itself become loose in its hole then remove the button, pop a piece of used match into the hole and reinsert the screw.
Avoid straps with metal attachments and especially studs as these will scratch the paintwork of your beloved instrument and, even if you think a beat up axe looks cool, if you try to trade it in or sell it, the next buyer will not be impressed.
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