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rent vs income

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Comments

  • shimano
    shimano Posts: 157 Forumite
    Our mortgage is slightly less than 20% of my partner and I's income (London).
  • debrag
    debrag Posts: 3,426 Forumite
    is £900 (rent + CT) alot on a £1500 wage?
  • BitterAndTwisted
    BitterAndTwisted Posts: 22,492 Forumite
    10,000 Posts Combo Breaker
    I think it is. It doesn't appear to leave much for utility bills, fares and food never mind some savings for emergencies
  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    debrag wrote: »
    is £900 (rent + CT) alot on a £1500 wage?
    Yes that's far too much. It only allows you £600 per month to spend on everything else. If you can manage it then it's OK but I would aim for £500. You could claim Housing Benefit to make up the shortfall. On your wage and assuming your LHA rate is £900 per month I think you will get about £200 per month which should help.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • Leory
    Leory Posts: 386 Forumite
    debrag wrote: »
    is £900 (rent + CT) alot on a £1500 wage?

    it is really. dont forget that bills could be £75 a month, food on top of that and you wont have too much money left for fun.

    on that wage i was paying £350 (half of rent), and £100 a month on bills.

    gave me chance to save like crazy!
  • Doshwaster
    Doshwaster Posts: 6,345 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Many landlords and agents use a rule of thumb that your annual salary should be more than 30x the monthly rent.

    So for a £500 rent you should have a £15,000 salary.
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    HappyMJ wrote: »
    Yes that's far too much. It only allows you £600 per month to spend on everything else. If you can manage it then it's OK but I would aim for £500. You could claim Housing Benefit to make up the shortfall. On your wage and assuming your LHA rate is £900 per month I think you will get about £200 per month which should help.
    Surely you're joking???

    £1500 is a high wage, outside of HB I'd have thought.
  • quantic
    quantic Posts: 1,024 Forumite
    Part of the Furniture Combo Breaker
    We don't rent but our mortgage is 16.81% of our combined income. We are left with around £1800 after household bills, factoring in all other bills (petrol/car finance/food/mobile phones) we are left with around £1050 disposable income.

    We rarely have anything left though, as we are completely renovating our property.
  • princeofpounds
    princeofpounds Posts: 10,396 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    You'd live in Deptford?

    Haha nope, the whole point was that despite earning far more than any of my peers from university I still can't afford anything that you would think would match my earning power (at the 20% of net figure one person operates to).

    Maybe I was pointing out how expensive London is, how little a salary actually goes towards 'real' wealth, or how little 20% is to spend on rent. Probably all of the above!
  • debrag
    debrag Posts: 3,426 Forumite
    PasturesNew wrote: »
    Surely you're joking???

    £1500 is a high wage, outside of HB I'd have thought.

    Thats 2 wages together.

    We make about £20k a year together
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