Can I afford to rent my own place?

HappyMJ

It's actually a bit tight...but not by much. To get through the door of any agency you need to earn 30 times the monthly rent. You earn £1,400 times 12 is £16,800 then divide by 30 is £560...very very close.

Bogof_Babe

Is there central heating? You mention gas costs so obviously there is gas at the property. I'm assuming the fireplace is a feature, not the sole source of heating?

I own a Victorian converted one bed flat with gas central heating, and although it gets chilly in winter when I haven't been there for a while, it's toasty warm after half an hour with the heating on.

pmlindyloo

IMO your figures seem absolutely fine and it seems very doable.

However, (and I do not want to appear a party pooper!) but it never seems to work out like that!

There are always unexpected expenses and never enough money!

My advice is to have a good read of all the excellent articles and forums on here and keep a very tight rein on your budget.

I know you have some savings but there are always emergencies and, God forbid, that, for example,you should lose your job or something similar then your savings would diminish rapidly.

Be very careful with your spending and don't get into debt - just words of advice from someone rather old and (I like to think) wise.

Hope that doesn't sound too condescending! I have two single children in their late twenties and am amazed what they spend on necessities and I call luxuries!

Best of luck with your new life!

BCBob

Bogof_Babe wrote: »

Is there central heating? You mention gas costs so obviously there is gas at the property. I'm assuming the fireplace is a feature, not the sole source of heating?

I own a Victorian converted one bed flat with gas central heating, and although it gets chilly in winter when I haven't been there for a while, it's toasty warm after half an hour with the heating on.

Indeed, I cant imagine there are too many places around nowadays without central heating or the leccy equivalent. Wood burners sound lovely in theory, but in practice are a pain in the bum (experience).

@happymj; I thought that equation was based on pre tax income? I earn near enough £24k pa but lose a lot to NHS pension and student loans.

Sharon87

Well I don't think you'll have £750 spare each month, there'll be price rises in bills, you may use more than you think, also TV Licence is £26 a month for the first 6 months if you pay by monthly DD, then £12 something after that. They make sure you're 6 months in advance. But you might be better paying it off yearly. So first month with be £145 for that. Don't forget all the connection fees for phone and other utilities they may have.

You can still live comfortably with your monthly wage. And if you get lonely you can find someone to move in with you to share the costs, just make sure it's someone you get along with though.

Just do a budget and stick to it. Keep some money in an instant access savings for emergencies. I assume your 9k savings aren't instant access without penalties, as they have the best rates.

HappyMJ

BCBob wrote: »

Indeed, I cant imagine there are too many places around nowadays without central heating or the leccy equivalent. Wood burners sound lovely in theory, but in practice are a pain in the bum (experience).

@happymj; I thought that equation was based on pre tax income? I earn near enough £24k pa but lose a lot to NHS pension and student loans.

It sort of is but when you have student loans and NHS pension taking money from your gross pay they can take that into account. You could contribute nearly all your salary to a pension and have virtually no take home income at all and therefore be entitled to 100% housing benefit and if over 25 you would also get 100% working tax credits.

They may do the calculation on your take home pay. You should pay no more than 40% of your take home pay on rent.

ShALLaX

HappyMJ wrote: »

It's actually a bit tight...but not by much. To get through the door of any agency you need to earn 30 times the monthly rent. You earn £1,400 times 12 is £16,800 then divide by 30 is £560...very very close.

Surely that's 30x Pre-tax?

Also, remember to keep enough savings to cover six months of expenses in case of the unforeseen (job loss).