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    • jordon1703
    • By jordon1703 11th Jan 18, 6:54 PM
    • 8Posts
    • 1Thanks
    jordon1703
    Rent % of income question
    • #1
    • 11th Jan 18, 6:54 PM
    Rent % of income question 11th Jan 18 at 6:54 PM
    Hi all,

    After considering all known outgoings and working out my maximum comfortable rent allowance, I have decided that I'd be able to afford up to £1100pcm; I'll have ~£200 left at the end of each money to save/spend some on a night out etc. So I'm looking for flats between £900 and £1100pcm.

    I've heard online that you should be spending, as a general rule of thumb, 30% of your income on rent - but, based on calculations, £1100 is 36% of my income before tax, and 47% of my income after tax.

    Is this too much? Am I being silly to even question this as I have worked it out quite thoroughly?

    Thankyou!
    CAT B,C,C+E Lorry driver, PPL license holder
Page 1
    • jonesMUFCforever
    • By jonesMUFCforever 11th Jan 18, 7:05 PM
    • 24,363 Posts
    • 11,642 Thanks
    jonesMUFCforever
    • #2
    • 11th Jan 18, 7:05 PM
    • #2
    • 11th Jan 18, 7:05 PM
    What about Council tax,water rates, Electricity, Gas , Food, clothes etc?
    What goes around - comes around
    give lots and you will always receive lots
    • jordon1703
    • By jordon1703 11th Jan 18, 7:11 PM
    • 8 Posts
    • 1 Thanks
    jordon1703
    • #3
    • 11th Jan 18, 7:11 PM
    • #3
    • 11th Jan 18, 7:11 PM
    What about Council tax,water rates, Electricity, Gas , Food, clothes etc?
    Originally posted by jonesMUFCforever
    Yes all has been accounted for. I was going to link an image which shows my spreadsheet, but I'm a new member so it wouldn't allow me
    CAT B,C,C+E Lorry driver, PPL license holder
    • datlex
    • By datlex 11th Jan 18, 7:30 PM
    • 1,508 Posts
    • 1,348 Thanks
    datlex
    • #4
    • 11th Jan 18, 7:30 PM
    • #4
    • 11th Jan 18, 7:30 PM
    My rent is under 19% of my wage. You'll be paying nearly 50% of yours. That is a huge amount of money. I am wondering how realistic your other figures are.
    • jordon1703
    • By jordon1703 11th Jan 18, 7:37 PM
    • 8 Posts
    • 1 Thanks
    jordon1703
    • #5
    • 11th Jan 18, 7:37 PM
    • #5
    • 11th Jan 18, 7:37 PM
    My rent is under 19% of my wage. You'll be paying nearly 50% of yours. That is a huge amount of money. I am wondering how realistic your other figures are.
    Originally posted by datlex
    Here are my other figures:
    Income - 2334 (after deductions)

    Rent - 1100
    Council tax - 88
    Elec - 30
    Gas - 30
    Water - 33
    Mobile - 43
    TV License - 12
    Sky TV/Broadband - 38
    Contents insurance - 12
    Food - 150
    Car finance - 336
    Car insurance - (Paid in full)
    Fuel - 70
    Healthcare - 20
    Birthdays - 5 (I do spend more than a fiver lol, spread across 12 months what I'd usually spend on my small family)
    Flying - 130
    Going out - 50 (Only occasionally)
    Netflix - 8

    Remaining: ~£200
    CAT B,C,C+E Lorry driver, PPL license holder
    • TheEffect
    • By TheEffect 11th Jan 18, 8:41 PM
    • 2,234 Posts
    • 1,753 Thanks
    TheEffect
    • #6
    • 11th Jan 18, 8:41 PM
    • #6
    • 11th Jan 18, 8:41 PM
    My income after deductions is £2350 (increasing to £2430 in April). I'm looking to rent soon, and my maximum is £900/month, though I'm hoping to get a place for £875.

    Paying any more than £900/m for rent on my income (similar to yours) is too much IMO.

    I live within a London borough also, so £900 doesn't get you much, however I lower my standards.

    • jordon1703
    • By jordon1703 11th Jan 18, 8:58 PM
    • 8 Posts
    • 1 Thanks
    jordon1703
    • #7
    • 11th Jan 18, 8:58 PM
    • #7
    • 11th Jan 18, 8:58 PM
    My income after deductions is £2350 (increasing to £2430 in April). I'm looking to rent soon, and my maximum is £900/month, though I'm hoping to get a place for £875.

    Paying any more than £900/m for rent on my income (similar to yours) is too much IMO.

    I live within a London borough also, so £900 doesn't get you much, however I lower my standards.
    Originally posted by TheEffect
    I'd be intrigued to learn what you've worked out for your bills and everyday costs. It would be good to compare.
    CAT B,C,C+E Lorry driver, PPL license holder
    • badger09
    • By badger09 12th Jan 18, 11:24 AM
    • 5,581 Posts
    • 5,020 Thanks
    badger09
    • #8
    • 12th Jan 18, 11:24 AM
    • #8
    • 12th Jan 18, 11:24 AM
    I'm puzzled by why you are starting with the max you can afford

    Where are you looking to rent?

    Can you get somewhere decent for a lower figure? If so, why not do that instead?
    • gt94sss2
    • By gt94sss2 12th Jan 18, 12:03 PM
    • 3,981 Posts
    • 1,850 Thanks
    gt94sss2
    • #9
    • 12th Jan 18, 12:03 PM
    • #9
    • 12th Jan 18, 12:03 PM
    As others have said, it would be interesting to know which part of the country you are talking about. Also, have you ever lived on your own before?

    Looking at some of your figures above:

    a) you don't seem to be planning to put any income in savings (for unexpected bills or a housing deposit etc) and/or for potential cost increases;

    b) monthly energy bills can vary dramatically due to weather and as many providers change the sums due every 6 months;

    c) for things like car insurance, you may need to include a monthly 'notional' sum if its payable annually;

    d) some of your figures seem low even if you think you don't go out much etc, while you could probably save money in areas like Sky and on your mobile.
    • Mrs Arcanum
    • By Mrs Arcanum 13th Jan 18, 8:33 AM
    • 15,981 Posts
    • 32,421 Thanks
    Mrs Arcanum
    If you are renting, you might also be trying to save long term to save a deposit for a home purchase.

    Plus with so many short term lets, you almost need to have 6 months rent squirrelled away in order to move if needed. No good relying on a deposit guarantee scheme getting your deposit back before you need to put a deposit on a new place.
    “We put all our politicians in prison as soon as they’re elected. Don’t you?” “Why?” “It saves time.” ― Terry Pratchett, The Last Continent.
    • TheEffect
    • By TheEffect 13th Jan 18, 11:51 AM
    • 2,234 Posts
    • 1,753 Thanks
    TheEffect
    I'd be intrigued to learn what you've worked out for your bills and everyday costs. It would be good to compare.
    Originally posted by jordon1703
    Roughly...

    Rent 900
    Council tax 80
    Electric 30
    Gas 30
    Water 30
    Mobile 22
    TV License 12
    Food 200
    Birthdays/Xmas 15
    Holidays 100
    Haircuts 10
    Going out 50
    Godaddy Hosting 15
    Bank Insurance with account 13
    Amazon Prime 7

    Total Outgoings 1514
    Salary 2350
    Remaining 836


    Where I've saved a bit: I do not have a license so no car expenses. i use public transport, which is paid for by my employer. I don't have sky, I just use freeview/amazon prime. I bought my iPhone outright and have a sim only from EE, I wouldn't bother with content insurance, as what I own VS the cost isn't worth it IMO.

    If I rented a property at £900, I'd have roughly £800 left at the end of the month. I've got £5k in savings as my emergency fund.

    The biggest problem I'm having is I've lived with a family member renting a room for the past few years... which letting agents do not like.

    • Anthorn
    • By Anthorn 13th Jan 18, 2:56 PM
    • 3,339 Posts
    • 874 Thanks
    Anthorn
    Hi all,

    After considering all known outgoings and working out my maximum comfortable rent allowance, I have decided that I'd be able to afford up to £1100pcm; I'll have ~£200 left at the end of each money to save/spend some on a night out etc. So I'm looking for flats between £900 and £1100pcm.

    I've heard online that you should be spending, as a general rule of thumb, 30% of your income on rent - but, based on calculations, £1100 is 36% of my income before tax, and 47% of my income after tax.

    Is this too much? Am I being silly to even question this as I have worked it out quite thoroughly?


    Thankyou!
    Originally posted by jordon1703
    Are you referring to the campaign started by Lord Bird in the House of Lords in which credit rating agencies are asked to take account of rent paid as a means of ensuring that tenants are reasonably safe to rent to? c.f. link below. So therefore what is proposed is that it's not a case of the percentage of income paid in rent but that rent forms part of the credit history.

    As far as I understand it that 30% figure comes mainly from the U.S. and not from the U.K. For example people living in London pay 49% of salary on rent whereas people living in the North East pay half that. So in the U.K. what is paid and therefore what is acceptable varies according to the area of the country.

    http://www.bbc.co.uk/news/business-42179119
    Last edited by Anthorn; 13-01-2018 at 3:00 PM. Reason: minor edit to clarify
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