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How much should I spend on rent?
BrandNewStart
Posts: 169 Forumite
Happy New Year everyone
I'm struggling at the moment with trying to change things in my life positively. I live a bit in the middle of nowhere so I have resolved to move somewhere livelier. However rents in more popular locations seem really really high to me. I was wondering how much people think is healthy to spend on rent? I have read online that it should be no more than 35% of outgoings. I guess the answer as usual is it's up to me, but I end up feeling like I can't afford to do anything if I change things in my life. I get a decent wage and have no debt.
Would be interested to hear people's thoughts. Be gentle it's been a bad day! #JanuaryBlues
I'm struggling at the moment with trying to change things in my life positively. I live a bit in the middle of nowhere so I have resolved to move somewhere livelier. However rents in more popular locations seem really really high to me. I was wondering how much people think is healthy to spend on rent? I have read online that it should be no more than 35% of outgoings. I guess the answer as usual is it's up to me, but I end up feeling like I can't afford to do anything if I change things in my life. I get a decent wage and have no debt.
Would be interested to hear people's thoughts. Be gentle it's been a bad day! #JanuaryBlues
Debt paid off: £19,999 Debt remaining: NONE!!:money::eek::):j:j:j:j:j:j
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Comments
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Usual maximum rent calculation used by lettings agencies is annual wage (pre-tax) divided by 30.0
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Thanks Slithery. Divided by 30? or 3??Debt paid off: £19,999 Debt remaining: NONE!!:money::eek::):j:j:j:j:j:j0
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As above said..... to rent £600/month you'd need a salary of £18k (before tax). That's their "affordability" figure.
To put numbers on that, £18k is a takehome of £1300/month, so it's just under half of takehome pay at that price/instance.
Earning ~£30k, it'd work out to £1000/month rent, on a takehome salary of ~£2000, which is, again, half.
Ignore official stats re %ages paid by people as there are many reasons some rents are much lower than you'd find advertised today .... and so the data is flawed quite often.0 -
Sorry, I wasn't clear enough.
Divide by 30 to get your monthly rent.0 -
It really depends on where you plan to move to, in London you might have to spend over 50% of your net income to get anywhere worth living in.0
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