How much rent can we I afford on £31K combined wage (gross)

nikorusama

My gross wage is £17,850 and my partners is £14,000. We both live at home and are ready to move in together. I want to split the rent so it is fair-I earn more so i'd like to pay more. What is the maximum amount of rent per month do you think we should be looking at and how should we split it? We are currently looking at 2 bed flats in Leeds, some are all electric-what do you suggest our bills will be?

My partner doesnt have any debt and I have £2000 student overdraft (I am being charged interest on £1000 of it atm but is only a very small amount per month £9 or something). I also have a student credit card of £300 and something.I am in a position where i have enough money this month to put down a deposit on a place and also pay the credit card off so we can move out next month. I don't get on very well with my parents (I'm threatened to be kicked out every other week or so) and there just isn't enough room for me to be at home anymore so I really need to move out asap. I'm just looking for a bit of sensible advice really. Thank you in advance!

CLAPTON

it's difficult to see how you can afford to move out if you haven't managed to pay off your OD or clear your credit card... they should be your first priority.

I would suggest to go you the cheapest suitable accommodation to see how you get on... why do you need a 2 bedroomed flat?

nikorusama

Well whilst I was living at home I havent been motivated with paying off my OD, whilst I was a student I was pretty good with money I always paid the bills and rent on time and very rarely got into trouble (and I was studying in London). When I moved home I just bought myself all the things I never had as a student instead of paying off my OD. I think moving out will actually force me to put money aside to repay the OD as I'll be more worried about finances than I would be at home.

Well to be honest I'd be happy with a 1 bed but my partner wants a 2 bed so he can use one as a study. It doesn't have to be a double 2nd room, we'd be happy with a single. He draws you see and would like to one day make a career in Manga even though its not very likely over here, i told him not to give up on his dreams. Anyway he has a regular job and does that on the side/as a hobby.

gazfocus

When we moved into our current property, the letting agency used the following calculation to determine if we could afford the house: monthly salery x 30 = < annual salery.

So, as we wanted a £725 per month house, we needed a minimum of £21,750 annual income.

Judging by that calculation, you should be looking at a maximum of £1033 pcm rent, but bear in mind that you'll need a minimum of 1 months rent as a deposit AND 1 months rent in advance plus the letting agents fees.

nikorusama

oh right...The most we have been looking at is £650 which we thought was our top end of the budget. My partner wants to pay max £275 and I'd have to pay £375. We have also decided to look at some cheaper properties around £500-£550.

maginot

I think over £1000 is far too much. That's £12000 that is dead money every year. Although I'm sure the estate agents/landlords would like you to be spending most of your income on rent.
To live comfortably I think you should be looking at 1/3 of your net pay on rent, 1/3 on bills and 1/3 on savings/enjoyment.

Flibertigibit

nikorusama wrote: »

Well to be honest I'd be happy with a 1 bed but my partner wants a 2 bed so he can use one as a study. It doesn't have to be a double 2nd room, we'd be happy with a single. He draws you see and would like to one day make a career in Manga even though its not very likely over here, i told him not to give up on his dreams. Anyway he has a regular job and does that on the side/as a hobby.

You could save a lot by just having the one bedroom. If it was a reasonable size why can't your partner draw in there? I don't suppose he'll be wanting to draw when you're in bed, and during the day, if he's drawing, you can just use the rest of the flat. My son and his wife decided to rent a nice 3 bed semi much to our surprise (he's a non earning student and she has a precarious income as a supply teacher/private tutor) and now, 18 months on, they realise it's just much more than they need or can afford, so are looking to move. And it's not just the higher rent - it would be another room that need to be heated.

casper_g

nikorusama wrote: »

oh right...The most we have been looking at is £650 which we thought was our top end of the budget. My partner wants to pay max £275 and I'd have to pay £375. We have also decided to look at some cheaper properties around £500-£550.

The level at which an agent would refuse to rent to you because they wouldn't believe you could afford the rent (the income = 30 x rent level referred to in another post) is something quite different from the level you should be looking to pay. With just the two of you setting up home together, a two-be place should be the absolute maximum you need, and in most parts of the country £650 will get you this comfortably.

Pay as little as you can to get something you will be happy to live in. Pay off your debts, and build up some savings -- you'll need them for something, whether it's a house deposit, getting through a period of unemployment or starting a business.

nikorusama

yeah, the problem is that he does like to draw late into the night...Also I like to get up much earlier than he does for work and i'd like to use the other room to get dressed it etc so i dont wake him up. He is a get-up-fifteen-minutes-before-work-get-dressed-and-leave sort of guy. We can get a nice 2 bed for around £600. Does that sound too much?

BitterAndTwisted

I honestly think that you should sit tight for as long as you can bear it and get some decent savings under your belt. Like a couple of grand, minimum on top of your month's rent as deposit and a month's rent in advance. If you find a property through a letting-agent you could find that the credit-checking and other fees could cost you a couple of hundred pounds each. Please do not underestimate what heating-bills could cost in the winter months: some people find it crippling, especially in a poorly insulated place with electric heating.

theoretica

I don't know what Leeds properties are like, but don't discount ones with only one bedroom- a boxroom, or corner of the lounge might make a decent studio and dressing space. If you are looking to rent a furnished house a second bedroom will be full of bed anyway!

How much you can afford depends very much on your lifestyle and how much other spending you have which you don't want to cut down on. (Smoking, nights out, haircuts, gym, mobiles - if you have none of these you can afford more rent.) Do you want a TV? Broadband? Do you have a car? I suggest you both look through your past bank statements and list everything you have been spending and if you are happy to cut it out. Then you will know how much you have left for rent, council tax, utilities, food...