What % of net income should be spent on rent?

[ExtremeGamer]

Re: What % of net income should be spent on rent?

hmm im almost positive I would be able to afford 1800. How much of a down payment did you put down?

Im also in suburban Illinois...stuff is pretty high here. 3 bedroom apartment like someone said earlier that they got for 950/m, would probably go well over 1100 here, maybe even more. Heck its between 850-1200 for 2 bedroom

Not if you bring home 2300 a month. No way you'll be able to afford 1800 a month. Gotta figure groceries, electric, gas, water, cable, phone, cell phones, going out to do anything, gas for your car, etc. Then things in houses/condo's break, meaning you fix them. In a condo you don't have to worry about the roof or yard, but anything inside is up to you.

If you are renting, or buying for that matter, you should have at least 60% of your pay left after paying your mortgage. 50% is cutting it close, but can be done. My house payment is $900, we put nothing down and have 1400 square feet ranch in a nice neighborhood with a garage and everything. I live 1/2 a mile from Lake Erie and have a great location like I said. Like BK said earlier, it's all where you live. Cleveland is much cheaper than San Diego.

But in the end, you are always better buying than renting. Yeah, you do get something for your money when you rent, being a roof over your head. But you aren't helping your credit and you are overpaying. Remember as well, you get a big tax break every year when you own a home. Take that break, divide by 12 and subtract from your mortgage and suddenly you are even paying less for your house.

[CaptainZombie]

Re: What % of net income should be spent on rent?

hmm im almost positive I would be able to afford 1800. How much of a down payment did you put down?

Im also in suburban Illinois...stuff is pretty high here. 3 bedroom apartment like someone said earlier that they got for 950/m, would probably go well over 1100 here, maybe even more. Heck its between 850-1200 for 2 bedroom

Magic, where in Illinois do you live? I would highly recommend buying over renting, but if your making $2300 a month spending $1800 would be too much in my book when you have to factor in car insurance, phone service, utilities, food, and then if you can afford cable/sat tv, going out.

Where I live, I'm paying about $1300 for my house. Illinois is one of the top 5 most expensive states to live in behind California and New York.

I went to the gas pump this morning and unleaded is up to $3.12 already. What do we do when we hit $4 gallon?

[Shaver]

Re: What % of net income should be spent on rent?

Buy if you can.... pay what you can afford....

And, to answer the question in the subject, the ideal percentage is 0.

[CaptainZombie]

Re: What % of net income should be spent on rent?

Not fresh out of college. I don't know why someone would buy, since most grads will change jobs quite a bit within the first ten years of graduation...not to mention life changes (marriage and kids).

My wife and I bought a house and had a devil of a time getting rid of it when the job I was at fell apart. It was an absolute nightmare! In some markets where housing demand is high, resale might not be a problem. But who can forecast three, four years and see the housing market...since in three years you might be passed over for a promotion and want out.

I guess if you really like an area and want to stay (close to home or whatever) then buying would be an option right off the bat...especially if you don't mind commuting. In fact we'll likely buy when we relocate in six months. However the mistake of buying with my first job will hang around our necks like a millstone for a while, despite the fact that we are so much better off now.

I can attest to not wanting to be at a job once you have been passed up for a promotion. I was promoted once 3 years ago, then opportunity comes knocking for the next level only to be passed up for an outsider which ended up getting fired 3 months later.

You will always remember those bad times.

[bryan_05]

Re: What % of net income should be spent on rent?

Wow. This thread blew up. Thanks for the replies...

My situation:
Moving July 7th or so.
Next April getting married. Wife will move in in May then we will want a house/condo.

Therefore I didn't really want to buy now b/c I will probably be moving in a year depending on where her job is. This is so damn frusterating.

[JohnnytheSkin]

Re: What % of net income should be spent on rent?

Wow. This thread blew up. Thanks for the replies...

My situation:
Moving July 7th or so.
Next April getting married. Wife will move in in May then we will want a house/condo.

Therefore I didn't really want to buy now b/c I will probably be moving in a year depending on where her job is. This is so damn frusterating.

Welcome to the "real world". It's fun, isn't it?!

[bryan_05]

Re: What % of net income should be spent on rent?

Yeah, planning a wedding, starting a job, planning a honeymoon, moving 400 miles from "home", oh yeah, packing boxes to move. So freakin stressful, ugh.

[MagicBucsWsoxFan]

Re: What % of net income should be spent on rent?

dang I said would be able to afford it when that would was supose to be a *wouldnt* LOL. my fault. Yea theres no way id be able to survive on a few hundred bucks a month between me and my girlfriend.

[VanCitySportsGuy]

Re: What % of net income should be spent on rent?

While I agree renting in most cases is useless, I wouldn't tell somebody to buy a house/condo unless they knew they weren't going to move and their job was stable.

It all depends on a persons situation and location.

Having car payments, credit card debt, student loans, etc.... makes things a lot tougher.

[ESPNdeportes]

Re: What % of net income should be spent on rent?

I say rent for at least six months, or more likely a year, given your situation.

You're moving to a new city, and it can take time to find a neighborhood or place in the city where you want to live. If you buy a house right-off, in a few months you could find you don't really like your area, or find somewhere you want to live more, etc. IMO, you'll be better off picking a house out once you know the city better.

Also, sounds like its your first job out of college. I don't know if you wanna get caught up with the commitment of a house immediatly with your first job. You gotta give it some time to see how you like it, and how the company likes you.

Just my two cents, though. Good luck......

[LetsGoPitt]

Re: What % of net income should be spent on rent?

Yeah, planning a wedding, starting a job, planning a honeymoon, moving 400 miles from "home", oh yeah, packing boxes to move. So freakin stressful, ugh.

I can relate to that. Wedding planning is stressful enough to be a full-time job.

My advice (maybe because it's what I'm doing) is to rent for a year or so and save up to buy a place. My wife-to-be (September 1) and I are going to enjoy the DINK (double income, no kids) lifestyle for a while, so we're going to be able to save quite a bit. Unless you're dying to have kids (or have one on the way already), I think that's the way to go.