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#2
04-04-2006, 03:46 PM
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Re: quick question
25% is for a mortgage payment + taxes, rent should be much lower if possible.
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#3
04-05-2006, 08:42 AM
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Re: quick question
That's kind of worrying. I am paid some way above average wage in London (including poker, it's more like double), and I only just about pay 25%, and have often paid a lot more. I figure it's impossible to pay much less than I am. Wrong city to live in? :]
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#4
04-07-2006, 03:38 AM
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Re: quick question
[ QUOTE ]
as a rule of thumb, what percentage of your monthly income is safe to be using for rent. i remember hearing a ballpark number of like 1/4th or something of income going towards rent/shelter, [/ QUOTE ] I'd recommend no more than 1/4th. You don't want to rent for the rest of your life, and if rent takes up too much of a chunck out of your take-home pay, it's that much harder to save for a house.
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#5
04-07-2006, 11:57 AM
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Re: quick question
[ QUOTE ]
as a rule of thumb, what percentage of your monthly income is safe to be using for rent. i remember hearing a ballpark number of like 1/4th or something of income going towards rent/shelter, [/ QUOTE ] In "Fundamentals of Financial Planning" we learned no more than 28% of gross monthly income should go to all housing expenses. (Also no more than 36% of gross monthly income should go to housing expenses + debt payments.) Housing expenses for renters would be rent + renters insurance. (For owners it is mortgage (principal & interest), real estate taxes, and homeowners insurance.) (The other debt payments would be car loans, + the minimum payments on any other debt.) -Tom P.S. A little more than you asked for, but I'm a bit of a geek sometimes.
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