How much shpuld I be spending on rent?

theoallen

Hi there,

So I'm planning on moving out of my small rented room and into a house with my girlfriend. We don't yet have enough money to buy, so will rent for a couple of years until we can. My question is however, how much would you recommend spending per month on rent?

We are both 21, and I currently earn £39500 PA which works out at about £2400 after tax per month, and my girlfriend earns about £1800 per month.

We both work in a relatively expensive area, with me working at Gatwick Airport, and her working at St Peters Hospital in Chertsey, so the only realistic properties in terms of commute times are around Reigate, Redhill Dorking, Leatherhead, etc..

So how much do you think we should budget for rent, bearing in mind we would like to save for a house deposit within a few years?

Cheers

dancingfairy

I would think you're maybe looking around 1k a month, possibly a bit less? Depending on if you go for 1 or 2 beds.
I think I've heard that people struggle when rent is 50% of income so definitely below that.
Do bear in mind that you can see a disgusting, cramped place with smashed windows for one price yet also a lovely huge 1 bed for the same price in a really quiet cul-de-sac ( well that was my experience anyway).quality and size vary hugely ( from when I was looking) and often there was no obvious reason so shop around.
Also consider finding out letting agents fees up front. I'd try and avoid looking at houses on with the most expensive agents ( assuming you have plenty of choice and aren't in a huge hurry to move). Agents fees are a rip off so I'd rather pay 250 rather than 500 plus ( and you get stung for renewals etc). Again shop around. Obviously if the house you want particularly s a special place then you may be stuck with an agent or if all houses in an area are with 1 agent then you're a bit stuck but personally I would tend to avoid the ones with the huge, shiny glass offices, that serve refreshments ( because guess who's paying for all that!).
Good luck
Df

mildredalien

If you can spend a third or preferably less of your (joint) take home pay on rent that would be ideal. So no more than around £1300. That does depend on other expenses though so if you have expensive travel cards etc. that might eat up more of your income, you may want to aim for less.

You could also work backwards and figure out how much you want/need to save for a deposit, how much you will need for fixed bills and monthly spending, and the leftovers is your ideal rent maximum.

A very rough example:
Savings target: 1500
Bills: 600
General spending: 600
Leftover rent max: 1500

Obviously you may find your bills and travel expenses are a lot higher so you'd need to do a full and honest budget!

dancingfairy

Also some letting agents work on an affordability basis so rent can only be up to a certain amount of your salary. I can't think you will have problems given your salaries but it's worth asking the agents what multiplier they use for affordability. ( just so you are not caught out).
Also consider what service the agency are offering ,- is it tenant find only or will they be your port of call for repairs etc? I think a lot of the big agencies offer fully managed but it's worth finding out otherwise you sign contracts and then discover that all repairs go straight to the landlord ( which may or may not be better) but it's worth knowing so you don't have any surprises.
Df

dancingfairy

Don't forget all the fees letting agents charge, plus don't forget things like council tax, gas, electric, weather, insurance etc etc can make a dent in your budget.
Df

tripled

My wife and I rented a one bed fully furnished annex in that area with all bills included for £700 pcm (near Salfords). When we left last autumn I believe it was marketed at £750pcm. There's plenty of small flats around close to that price (albeit without bills) or houseshares for cheaper. 1k a month should do it inc bills, maybe slightly more if you're very particular or want something bigger.

Agency fees will be extra. If you use Mann, remember 1) they are shysters and 2) they will negotiate their fee (they're the most expensive in the area). Expect fees to be around the £400 mark. Plus renewals if you do those.

Only your wife should need a car as from Redhill, Gatwick is train/bike/buss-able

richard-

The one im dealing with now uses rent x 2.5

dancingfairy

Guildford/ Woking area you'd be looking at probably 800 -850 for a 1 bed and 900- 1000 for a 2 bed so I'm surprised it's a bit cheaper in Chertsey area.
Is house share an option for you? Maybe with other healthcare professionals near the hospital? It can be a pain sharing with a couple but some people don't mind and clearly it will be cheaper for you. .
Df

Hutchch0920

I am very curious to know what you both do! That is an great income at that age. I am impressed.

I just did a quick search on right move and there's some OK looking flats coming up within 10 miles of Gatwick starting from £800. So from that to perhaps £1200? It does depend a bit what you want. Would you be happy in a flat, or do you want a private garden? Do you want furnished or unfurnished? ...the finer details will have little impacts on the price.

Like one of the other posters suggested, do you have a savings target? If so, how does this factor in. A couple hundred a month is a couple of thousand over a year.

Brightspark87

dancingfairy wrote: »

Guildford/ Woking area you'd be looking at probably 800 -850 for a 1 bed and 900- 1000 for a 2 bed so I'm surprised it's a bit cheaper in Chertsey area.
Is house share an option for you? Maybe with other healthcare professionals near the hospital? It can be a pain sharing with a couple but some people don't mind and clearly it will be cheaper for you. .
Df

I would love to see a 900-1000 1 bed in Guildford. In 2007 I paid £900 for a 1 bed in Guildford....

Brightspark87

Seriously though, I would avoid the London commuter belt like central Guildford and Woking as you pay a premium for a service you don't seem to need - being close to a train station that takes you to London.