Renting/Budgeting

[Deleted User]

Good morning!

Would you consider paying £480/£500 on rent on a £1050 take home salary?

I would be living alone. I would not be entitled to any benefits. I have never been in debt, have nothing on finance. I will also be getting three small (very, very, very) increases in my take home salary through the year with the tax allowance rising from April, a generous 1% wage hike and reaching my yearly increment. Council tax for me should be around £750-800 per year.

I have savings put aside for upfront costs of moving out, it's the monthly approximations I struggle with as it's all guess work until I actually am living alone. Anyone living alone on a modest wage here?

I know it's a question with a lot of variables but just gut instinct, would you?

Would have put this in renting section but thought it fell under budgeting?

Thank you!

Javens

Does that include bills? I think the answer is going to vary depending on the person, however I wouldn't rent somewhere for £500 without bills on a £1050 salary.

On £1700 a month, I'm looking at moving into a house-share for £600-£700/month including bills.

getmore4less

Rent is just one element of a budget(plan),

do a full years income/outgoing then you have a budget.

pinkdalek

Difficult to answer if we don't know the reason for why you want to rent?

If it just because you are at home and you want your own place, if it was me I would rather try and stay put, save that "rental" amount and try to look at getting a property for the future.

If you do rent as you are now, I think it would be difficult for you to then save as your monthly expenses I reckon will not be much different to what you are currently earning, you've not allowed for

Food
Gas/Electric
Water
TV Licence
Phone/Internet/Mobile
Petrol
Plus you still might want to have some money for some social events too.

It's just my opinion, I've never rented, always felt it was dead money.

[Deleted User]

Javens wrote: »

Does that include bills? I think the answer is going to vary depending on the person, however I wouldn't rent somewhere for £500 without bills on a £1050 salary.

On £1700 a month, I'm looking at moving into a house-share for £600-£700/month including bills.

Some of the ones I'm looking at include water rates but nothing more than that. House shares are near impossible to come by in my area unless you are a student and all of my friends, the ones I would consider renting with anyway, are coupled up so don't want to share.


If I don't look at £450-500 I'm stuck with the scuzziest of the scuzzy parts of my area in a manky bedsit for £300. There's doesn't seem to be much middle ground and I don't particularly want to move further afield at this point.
Thanks for your reply!

[Deleted User]

pinkdalek wrote: »

Difficult to answer if we don't know the reason for why you want to rent?

I'm 27 and still at home. I get on fine with my parents but... I'm 27! I never thought I would still be at home. I can understand why people think it's dead money but if I waited until I can afford to buy somewhere I'll be here until I'm forty. I've spoken to my bank about a mortgage. They will only lend around £55k, £60k if I'm lucky which is 4x my gross salary. That doesn't go far in North East Kent! I've considered relocating but I'm not sure that's for me at the moment. I might not live in the best area but it's my home and all my family and friends are here.


Obviously I'm looking for better paid jobs but that's easier said than done. If wishing made it so, eh?!
Thanks for you reply!

lizzieliz87

Hi
I totally sympthasise, I am on a modest salary (1200 per month), I have no choice but to rent if I want to pursue my career choice.
Here is approx how my rent/bills/living costs breakdown
Rent: 415 per month
Bills (CT, Elec, Water, TV, mobile, internet/landline): £180-200 per month
On top of that is food and petrol, car tax and car insurance.

It is doable but some months are tighter than others but this year I am trying to be more careful and save money for which so far is working, all be it not very much and I can't see myself being able to save for a house deposit.

[Deleted User]

lizzieliz87 wrote: »

It is doable but some months are tighter than others but this year I am trying to be more careful and save money for which so far is working, all be it not very much and I can't see myself being able to save for a house deposit.

Rubbish isn't it?! I feel like I'm stuck between a rock and a hard place because even if I stayed at home and saved like mad I'd still need years to be able to afford even a half decent place in my area. I don't have extravagant tastes and I've always been good with money but I will be forced to stay at home, which I don't want to do, get into debt for somewhere decent to rent, or live somewhere that I would dread going home to every night.


Thanks for your reply. I'll have to keep hoping something comes up nearer to £400 I suppose!

savings_my_hobby

Deleted_User wrote: »

I'm 27 and still at home. I get on fine with my parents but... I'm 27! I never thought I would still be at home. I can understand why people think it's dead money but if I waited until I can afford to buy somewhere I'll be here until I'm forty. I've spoken to my bank about a mortgage. They will only lend around £55k, £60k if I'm lucky which is 4x my gross salary. That doesn't go far in North East Kent! I've considered relocating but I'm not sure that's for me at the moment. I might not live in the best area but it's my home and all my family and friends are here.


Obviously I'm looking for better paid jobs but that's easier said than done. If wishing made it so, eh?!
Thanks for you reply!

I see your point, although if i were you I'd stay at home for as long as possible, pretend you are renting and put the "rent" money in a high interest bank account. Your 27 life ain't what you thought it would be is it? there are thousands of people in the same situation, the difference between you and alot of people is you have the option to stay at home and save - Take it, I'd be more embarrassed about throwing money away renting than living with parents

Houseplant26

Hi Deleted_User,

I can sympathise with your situation. I didn't really have the option to live at home as my parents live in a rural area, there aren't many jobs near and also I think I'd be very miserable.

I sadly spend about half my salary on rent and bills (this doesn't include other essentials such as food or cleaning items etc). So similar to what you're saying, that's half a one bed flat I share with partner (in a more expensive city).

For me although it's tight and I'm struggling massively to save and no idea how and when I will own a house of my own it's the lesser evil as my independence is worth a lot to me. Also although poorly paid I like my job and I couldn't live at home and have the same one. I also have no travel costs for work.