Register FAQ / Rules Forum Spy Search Today's Posts Mark Forums Read
Go Back   MacRumors Forums > Mac Community > Community Discussion

Reply
 
Thread Tools Search this Thread Display Modes
Old Nov 26, 2012, 02:20 PM   #1
puma1552
macrumors 68030
 
Join Date: Nov 2008
Renters--how much are you paying?

Curious here--not interested in knowing a dollar value (too personal) but I'm curious to know how much you renters pay as a percentage of your NET income. I realize for all intents and purposes gross income is usually used when discussing finances, but again trying not to get too personal since everyone has different claims, deductions, etc., it's probably a better takeaway in comparison to net income.

The rent for my wife and I is currently about 15% of our net income. Nice and cheap, but we really want to get into a better place now that our lease is nearly up. We found a place that is much nicer, for about a 38% increase over what we are paying now. That sounds like a lot, but in terms of our net income it would still only be around 22%. Additionally, this would include two reserved, heated underground parking stalls. Right now we have one crappy outdoor parking spot in the parking lot behind the building, which can be sketchy at times. It's also unreserved, and can be difficult to get a spot at times since there are more apartments than parking spots.

We are going to go look at this new place Thursday night, and are tossing around the idea of whether or not to bite the bullet and get out and pay more. Problem is that for what the new place would cost, that's only a hundred bucks or so shy of the payment on a $200k mortgage, and that's even factoring having to pay PMI with less than 20% down.

We aren't quite ready to buy a house, but where we are has been good for saving. If I knew we could buy within 6-12 months, I would suck it up and stick it out. But I'm not sure that's the case, and I feel like if I was in a place we liked better we wouldn't have any problem living there for 2-3 years and wouldn't be in a hurry to try and get a house.

One thing to factor in also is we currently have one car payment, but are soon to have two. Not a huge deal though.

So, in terms of net income, what percentage do you pay in rent? I know 22% of net income is still well within any heuristic of what people say you should pay, but I still have a hard time shelling out that kind of money for rent, knowing that it's basically mortgage ballpark. Problem is, that's pretty much what you have to pay to get an apartment that's pretty nice.

TIA.
puma1552 is offline   0 Reply With Quote
Old Nov 26, 2012, 02:25 PM   #2
dukebound85
macrumors P6
 
dukebound85's Avatar
 
Join Date: Jul 2005
Location: 5045 feet above sea level
26% including all utilities

have 3 roomies though
dukebound85 is offline   0 Reply With Quote
Old Nov 26, 2012, 02:33 PM   #3
twietee
macrumors 68040
 
twietee's Avatar
 
Join Date: Jan 2012
About 25-27%.

It's a lot, (actually it could be much more next time I've to move - 2 1/2 rooms now) but as long as the apartment seems worth it, I don't mind too much. Since I moved aprox. 30+ times in my live, I guess I shouldn't think about buying one either. But I have friends who call these amounts crazy. But buying an ok-ish apartment here, I've to become kind of a millionaire, which isn't my plan exactly at the moment....but I'll keep you updated.
twietee is offline   0 Reply With Quote
Old Nov 26, 2012, 02:46 PM   #4
GoCubsGo
macrumors Nehalem
 
GoCubsGo's Avatar
 
Join Date: Feb 2005
When I did rent, the rent alone was 23% of my net.

If you have a place that is nicer and still keeps you under 25% of your net income then I would take it if you like it.
__________________
Because I'm a smartass.
GoCubsGo is offline   0 Reply With Quote
Old Nov 26, 2012, 02:51 PM   #5
puma1552
Thread Starter
macrumors 68030
 
Join Date: Nov 2008
One other thing to note is this does not include utilities.

At our current place, gas and water combined are a paltry $8-12 a month (lol) and are based on square footage of the apartment rather than actual usage and electricity ranges from $30-$70. Trash is currently included. Internet is $57.

The new place includes trash as well, but that's it, so I'd have to expect the utilities to be a bit more since it's 622 square feet versus the current 457 (which we don't mind the size, we are minimalists and don't feel cramped at all).

I think out the door it would put us right around 25% of our net at the new place. For what it's worth, we also both claim 0 so they are taking the max out currently.

It's certainly doable, I just really have a hard time biting that monthly rent price.

EDIT: I should say, I'm DYING for a garage. It really sucks to park a brand new car outside in a parking lot with some sketchy people back there from time to time. Worse yet, I'd have to park my new car in the near future on the street (traded my car for my wife's new car, lets me get something new in the spring when the salt is gone), which is probably even worse. The biggest benefit at this new place is that aside from getting two heated and reserved spaces, it has a free do it yourself car wash bay in the garage as well, so I can wash and wax all winter long at my leisure, which is a huge turn on to me. I'm currently the guy always peeping out the back window to check on the car, the paranoia sucks.

Last edited by puma1552; Nov 26, 2012 at 02:57 PM.
puma1552 is offline   0 Reply With Quote
Old Nov 26, 2012, 02:55 PM   #6
heehee
macrumors 68020
 
heehee's Avatar
 
Join Date: Jul 2006
Location: Same country as Santa Claus
Probably under 15% or so, I don't know how much my wife makes exactly and my income varies greatly depending time of day.

This certainly beats having a $600,000 mortgage and $5,000 property tax. Housing prices are insane over here.
heehee is offline   0 Reply With Quote
Old Nov 26, 2012, 02:59 PM   #7
blevins321
macrumors 68030
 
Join Date: Dec 2010
Location: Winnipeg MB
14.9% here rent-only. I chose to live a bit farther from my job in downtown. Longer distance drive and a bit more gas, but much less traffic and congestion on my commute from the south. Equals out dollar wise probably but I'm much more patient and live happily :-).
__________________
Late 2013 15" Retina MBP; iPhone 5S; iPad Air
blevins321 is offline   0 Reply With Quote
Old Nov 26, 2012, 03:16 PM   #8
leenak
macrumors 65816
 
Join Date: Mar 2011
When we rented, our rent was about 10% of our net income. Then we bought a place and it went up to about 20% or our net income.

And I should say that is base, we recently refinanced into a 15 year mortgage and pay about 1.5x the mortgage. We would've sought a 10 year mortgage but I thought I was quitting my job for a few years but changed my mind.

Last edited by leenak; Nov 26, 2012 at 03:22 PM.
leenak is offline   0 Reply With Quote
Old Nov 26, 2012, 03:22 PM   #9
Orange Crane
macrumors 6502
 
Join Date: Jul 2012
Beach adjacent in Seattle is outrageously expensive. When I moved in to my house rent and utilities were nearly half my income. I've grown into the place financially over the past two or three years and it's now down to about 10%, and still just as nice as when I moved in. More so considering I actually can afford it now. I intend to move out of the city in a few years and don't want the hassle of owning; my house is around a hundred years old and though remodeled in most ways still has the aches and pains of the past century that I prefer to be paid for by its owners.
Orange Crane is offline   0 Reply With Quote
Old Nov 26, 2012, 03:27 PM   #10
garbeth
macrumors regular
 
Join Date: Apr 2010
Location: Brisvegas
I'm at around 10-15% depending on how much overtime I work each month. And as heehee said, I'd rather be renting than have a giant mortgage to deal with!
garbeth is offline   0 Reply With Quote
Old Nov 26, 2012, 03:27 PM   #11
bizzle
macrumors 6502a
 
bizzle's Avatar
 
Join Date: Jun 2008
Quote:
Originally Posted by heehee View Post
Probably under 15% or so, I don't know how much my wife makes exactly and my income varies greatly depending time of day.

This certainly beats having a $600,000 mortgage and $5,000 property tax. Housing prices are insane over here.
$5000 property tax on a $600,000 property? Wherever you live has it easy. Come on over to New Jersey and see how insane property taxes really are. You can pay that much on a less than half an acre with a home with material value (not retail) of less than 75k.
__________________
get your own damn blood.
bizzle is offline   2 Reply With Quote
Old Nov 26, 2012, 03:44 PM   #12
prostuff1
macrumors 65816
 
prostuff1's Avatar
 
Join Date: Jul 2005
Location: Don't step into the kawoosh...
I said screw renting and bought a house.

I hate paying others for something that I will never own. I moved out of my apartment 4 months before the end of the lease, and sub-let the apartment for the remaining 4. I asked the landlord if that was ok before doing so and they said so long as they get paid they don't care who is in the apartment. I would be the one help liable for any damage and what not.

IMO, renting is a waste of money. I knew i was going to be in my current city for a while so made the decision to purchase a house and stop paying rent. If you sit down and think you are going to be in the same city (or general area) 5 years from now I think you are better of buying a place and paying a mortgage.
__________________
Vista: It's the blond version of OS's; pretty and fun, just... not functional for everything
prostuff1 is offline   0 Reply With Quote
Old Nov 26, 2012, 03:51 PM   #13
puma1552
Thread Starter
macrumors 68030
 
Join Date: Nov 2008
^^^That's well and good, but my wife and I need a place to live while we save up a substantial down payment while still having enough money in savings to cover general incidentals and emergencies...don't want to blow our whole savings on the down payment.
puma1552 is offline   0 Reply With Quote
Old Nov 26, 2012, 03:57 PM   #14
prostuff1
macrumors 65816
 
prostuff1's Avatar
 
Join Date: Jul 2005
Location: Don't step into the kawoosh...
Quote:
Originally Posted by puma1552 View Post
^^^That's well and good, but my wife and I need a place to live while we save up a substantial down payment while still having enough money in savings to cover general incidentals and emergencies...don't want to blow our whole savings on the down payment.
I don't know how much you saved up or how much you want to put down, or even how much you are looking at spending on a house in your area.

I am a single dude with only room mate living with me. I do not have anyone else on the house papers besides myself. I put 10% down when I first did my papers and that got me a 30 fixed rate conventional loan. I just refinanced to a 20 year and am paying almost exactly the same price i was paying for the 30 year.

If your wife and yourself are paying for the mortgage I don't think it will be to hard to build back up a savings in a short amount of time.

I keep depleting my savings, but that is because I keep doing things to the house. I usually plan one "makeover area" a year at my house and it usually starts in the spring and I get all summer, if need be, to complete it if need be.
__________________
Vista: It's the blond version of OS's; pretty and fun, just... not functional for everything
prostuff1 is offline   0 Reply With Quote
Old Nov 27, 2012, 12:36 PM   #15
Gregg2
macrumors 601
 
Join Date: May 2008
Location: Milwaukee, WI
Quote:
Originally Posted by puma1552 View Post
One other thing to note is this does not include utilities.
But don't some landlords charge for some utilities in the rent, and not tell you how much is paid for them?
Gregg2 is offline   0 Reply With Quote
Old Nov 27, 2012, 12:44 PM   #16
WestonHarvey1
macrumors 68000
 
Join Date: Jan 2007
Quote:
Originally Posted by Gregg2 View Post
But don't some landlords charge for some utilities in the rent, and not tell you how much is paid for them?
I include gas and water in the rent, because I don't even know what they cost, myself. They are included in my association dues which I pass on to my tenant.

----------

Quote:
Originally Posted by prostuff1 View Post
IMO, renting is a waste of money. I knew i was going to be in my current city for a while so made the decision to purchase a house and stop paying rent. If you sit down and think you are going to be in the same city (or general area) 5 years from now I think you are better of buying a place and paying a mortgage.
I really wish I had not listened to the "renting is a waste of money" advice 7 years ago. I'm stuck being a landlord now, probably for the next 20 years, which I really don't like.
WestonHarvey1 is offline   0 Reply With Quote
Old Nov 27, 2012, 12:46 PM   #17
Btrthnezr3
macrumors 6502a
 
Btrthnezr3's Avatar
 
Join Date: Aug 2010
Location: Texas
About 19% just for the rent ...

3 Bedroom rent house with car port in TX

They also include lawn care in that cost.
__________________
iPhone 5, iMac, MBA
Btrthnezr3 is offline   0 Reply With Quote
Old Nov 27, 2012, 04:03 PM   #18
Synchromesh
macrumors 6502a
 
Join Date: Jul 2009
Location: SF
Send a message via AIM to Synchromesh
Quote:
Originally Posted by prostuff1 View Post
IMO, renting is a waste of money. I knew i was going to be in my current city for a while so made the decision to purchase a house and stop paying rent. If you sit down and think you are going to be in the same city (or general area) 5 years from now I think you are better of buying a place and paying a mortgage.
Your o is very very incorrect in certain cases. I bought an apartment near Boston in 2005 and it was one of the worst decisions I ever made in my life. Not only did I end up paying quite a bit more monthly (probably $200-300 more), my apartment went down in price quite a bit. I barely scratched the surface of my principal because of several refinances and at this point my apartment is worth approx. what my mortgage is.

Which means that all the money I paid so far was basically wasted. I did a calculation about 2-3 years ago and it turned out that if I rented the same place instead I would have about $30K extra in cash. Now it's probably close to $50K in cash.

On top of all this, the condo fees went up while desirability went down for various reasons including when 2 neighbors died and their places were sold for rock bottom prices recently. Then there is the fact that it's too far away from Boston to commute there which limits my job searches. And now I can't sell it off unless I'm willing to lose even more money. So buying isn't always the answer.

If I ever sell this place I definitely will not even consider buying for several years.
Synchromesh is offline   0 Reply With Quote
Old Nov 27, 2012, 04:09 PM   #19
twietee
macrumors 68040
 
twietee's Avatar
 
Join Date: Jan 2012
Quote:
Originally Posted by Btrthnezr3 View Post
About 19% just for the rent ...

3 Bedroom rent house with car port in TX

They also include lawn care in that cost.
Out of interest: would you say you made an exceptional good deal for your area? Because it sounds like it.
twietee is offline   0 Reply With Quote
Old Nov 27, 2012, 04:34 PM   #20
leenak
macrumors 65816
 
Join Date: Mar 2011
Quote:
Originally Posted by twietee View Post
Out of interest: would you say you made an exceptional good deal for your area? Because it sounds like it.
I don't know, Texas is pretty cheap. I went on a business trip to DFW and saw a flyer for a huge house, few acres in the DFW vicinity and... it cost less than our townhome in the DC area. Our townhome is a decent size but still.
leenak is offline   0 Reply With Quote
Old Nov 27, 2012, 04:37 PM   #21
Wild-Bill
macrumors 68020
 
Wild-Bill's Avatar
 
Join Date: Jan 2007
Location: ?
30.9%.

__________________
Wild-Bill is offline   0 Reply With Quote
Old Nov 27, 2012, 04:51 PM   #22
roadbloc
macrumors 604
 
roadbloc's Avatar
 
Join Date: Aug 2009
Location: UK
Send a message via Skype™ to roadbloc
33%

Then there is council tax and bills.
__________________
roadbloc is offline   0 Reply With Quote
Old Nov 27, 2012, 04:52 PM   #23
Btrthnezr3
macrumors 6502a
 
Btrthnezr3's Avatar
 
Join Date: Aug 2010
Location: Texas
Quote:
Originally Posted by twietee View Post
Out of interest: would you say you made an exceptional good deal for your area? Because it sounds like it.
Well, my home is about 45 miles outside of DFW and it's near a lake but it's not one of those "posh" areas.

My rent is about $850 and my wife and I, while we make enough, definitely don't make a lot...around 80K combined
We are both professionals with experience but I'm a teacher and I just don't make a lot--I would make around 10K more a year in the DFW Metroplex but I'd probably pay more for a house, or have to commute.

Anyways...the deal is pretty decent and since the neighborhood is not full, we have an empty lot behind us, on one side and on all lots across the street. It's pretty nice but it is teaching me things to look for, and things I want in the house we end up buying in the future...assuming we can save up enough dough.

Overall though, I'd say Texas is a really cheap place to live--especially when I see friends in the Northeast or out West complain about what they pay. Yikes!!
__________________
iPhone 5, iMac, MBA
Btrthnezr3 is offline   0 Reply With Quote
Old Nov 27, 2012, 04:55 PM   #24
Colombianito
macrumors member
 
Join Date: Jul 2012
Mortgage is about 25-30% for my new house including all bills.
Colombianito is offline   0 Reply With Quote
Old Nov 27, 2012, 05:00 PM   #25
leenak
macrumors 65816
 
Join Date: Mar 2011
Quote:
Originally Posted by Btrthnezr3 View Post
My rent is about $850 and my wife and I, while we make enough, definitely don't make a lot...around 80K combined
We are both professionals with experience but I'm a teacher and I just don't make a lot--I would make around 10K more a year in the DFW Metroplex but I'd probably pay more for a house, or have to commute.
My first apartment after graduating college cost $950 month. It was a 1 bedroom, 700 sq ft apartment in Southern California. So yeah
leenak is offline   0 Reply With Quote


Reply
MacRumors Forums > Mac Community > Community Discussion

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Similar Threads
thread Thread Starter Forum Replies Last Post
Paying $90 via paypal Help!!! raise334 iPhone 0 May 9, 2014 09:57 PM
Renters - How much does your rent increase each year? puma1552 Community Discussion 35 Oct 26, 2013 11:43 AM
Are you paying for iCloud? rctlr iCloud and Apple Services 41 Oct 8, 2013 05:38 AM
A question for experienced renters 12dylan34 Community Discussion 18 Apr 8, 2013 09:34 AM
Paying for the iMac (UK) The Peasant iMac 10 Nov 29, 2012 05:47 PM

Forum Jump

All times are GMT -5. The time now is 08:59 PM.

Mac Rumors | Mac | iPhone | iPhone Game Reviews | iPhone Apps

Mobile Version | Fixed | Fluid | Fluid HD
Copyright 2002-2013, MacRumors.com, LLC