What percentage of your income goes to rent/ mortgage?

Discussion in 'Community Discussion' started by AppleLover9o, Sep 20, 2009.

  1. AppleLover9o macrumors regular

    Joined:
    Aug 2, 2009
    #1
    After reading through the "trust fund" thread, it got me wondering. After reading this post

    Originally Posted by Iscariot
    The OP also said he has a "paid for" house, which suggests that he doesn't have to pay rent or a mortgage. If that's the case, his expenses drop dramatically and $3 000 becomes a lot of money.

    I started to wonder, what percentage of your income goes toward your mortgage/ rent? How much easier is life when the house is paid for and you have a good income?

    Thanks,
    -AL9O :apple:
     
  2. dmr727 macrumors G3

    dmr727

    Joined:
    Dec 29, 2007
    Location:
    Southern California
    #2
    I'm assuming you mean as a percentage of my take home pay (i.e. after taxes, retirement, SS, health/dental/vision/life, etc...).

    Right now it's about 19%. When my wife was working, it was 11% or so. It'll be nice when she gets her job back. :(
     
  3. chstr macrumors 6502a

    chstr

    Joined:
    Mar 25, 2009
    #3
    after taxes and before any extra money I make 33%
     
  4. leekohler macrumors G5

    leekohler

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    Dec 22, 2004
    Location:
    Chicago, Illinois
    #4
    Less than a quarter. That's how it should be.
     
  5. ss957916 macrumors 6502a

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    Jun 17, 2009
    #5
    After tax, about 2.5% (man, I love this recession and my 1.29% mortgage).
     
  6. AppleLover9o thread starter macrumors regular

    Joined:
    Aug 2, 2009
    #6
    No, I think you guy's are misunderstanding. I mean.

    How much is the percentage of your income you "lose" to home payments.

    Sorry.

    -AL9O
     
  7. leekohler macrumors G5

    leekohler

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    Dec 22, 2004
    Location:
    Chicago, Illinois
    #7
    No- we understand. I pay less than a quarter of my income to rent.
     
  8. dmr727 macrumors G3

    dmr727

    Joined:
    Dec 29, 2007
    Location:
    Southern California
    #8
    Yeah, it seems to me that when I first moved back to Socal and was looking for places to rent, the rule of thumb is that the rent couldn't be more than a third of your take home pay. A few months back my wife and I were house shopping, and it was amazing that the banks were still willing to lend money such that with property taxes, association fees, and so on - we'd be pushing close to 40%. I find that wholly irresponsible - the banks obviously haven't learned.
     
  9. Iscariot macrumors 68030

    Iscariot

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    Aug 16, 2007
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    Toronteazy
    #9
    Probably between 25 and 33%. I pay a premium to live downtown, which has the benefit of reducing my travel costs to about ~$100/month, so my expenses overall represent less than 35% of my income.
     
  10. macbook yes macrumors 6502

    Joined:
    Jun 1, 2009
    #10
    60% rent
    20% food
    20% sucks to be a college student
     
  11. dukebound85 macrumors P6

    dukebound85

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  12. Rodimus Prime macrumors G4

    Rodimus Prime

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    Oct 9, 2006
    #12
    before I moved back home after losing my job I was paying less than 1/4 my gross in Rent/ Utilities.

    With a take home pay of 2800 a month i was putting in the bank about 6-700 a month. Not back considering that was after everything was paid for including fun stuff.
     
  13. runplaysleeprun macrumors 6502a

    runplaysleeprun

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    Jul 27, 2004
    Location:
    Chicago, IL
    #13
    About 50%. Closed on a house about 3 weeks ago. No kids or anything, so my other costs are pretty low.
     
  14. gmanterry macrumors regular

    gmanterry

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    May 31, 2008
    Location:
    Phoenix, AZ
    #14
    I'm retired.

    I rented until I was 45. Then my best friend talked me into buying a house. Then I moved once so mine isn't paid for. My mortgage is 24.6% of my retirement income.

    Terry
     
  15. LumbermanSVO macrumors 65816

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    Denton, TX
  16. robbieduncan Moderator emeritus

    robbieduncan

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    Jul 24, 2002
    Location:
    London
    #16
    I'm overpaying into my mortgage every month (by about 50% of my normal payment) to pay it off early. So right now 40% of my take-home pay goes into paying it :eek:

    But I can stop overpaying whenever I want and I could use the overpayments to take a payment holiday if I really needed to (or if interest rates go through the roof reset the mortgage to it's original term and pay less instead of paying off early). So basically it's all money in the bank right now.
     
  17. bartelby macrumors Core

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    Jun 16, 2004
    #17
    Currently less than 20%, of take-home pay, goes on the mortgage.
     
  18. ddiogyn macrumors member

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    Aug 4, 2009
    Location:
    UK
    #18
    About 25% of gross salary; 35% of net salary ... for what is essentially a studio flat :mad::(
     
  19. SpaceKitty macrumors 68040

    SpaceKitty

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    Nov 9, 2008
    Location:
    Fort Collins Colorado
    #19
    None. My house is paid for and left to me when my parents died. I'm 21.
     
  20. edesignuk Moderator emeritus

    edesignuk

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    Mar 25, 2002
    Location:
    London, England
    #20
    About 33% of take home pay goes on rent, then there's council tax, and bills; OH LORDY, BILLS!
     
  21. Spritey macrumors regular

    Spritey

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    Sep 22, 2006
    Location:
    Canada/Norway/USA
    #21
    Paying extra

    My "other half" and I do the same. We're both fresh out of school and recently started our permanent jobs. We decided to continue living our student lifestyle more or less, despite the higher and more regular income. We're a bit more on the frugal side, just meaning we think twice before spending money.

    The additional money that we put into our mortgage is probably money we would have wasted away random everyday bull* anyway. So right now about 40-45% of our total after tax income is mortgage payments (principal+interest)

    But it's nice to know that it will also give us a bit more financial flexibility in the future if interest rates go up a lot, or one of us become unemployed.
     
  22. maflynn Moderator

    maflynn

    Staff Member

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    May 3, 2009
    Location:
    Boston
    #22
    33% on my mortgage, that excludes my real estate taxes - 42% with my taxes.

    Its a tad high because of one important fact. My wife is unemployed. Drops into the 20% when she was working but that was 9 months ago :(
     
  23. sushi Moderator emeritus

    sushi

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    Jul 19, 2002
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    キャンプスワ&#
    #23
    Some financial folks suggest 25% or less of net pay for your mortgage. Others suggest less than 30% of your gross pay where housing costs include your mortgage, insurance, property taxes, utilities, maintenance fees, homeowner's fees, parking fees, etc.

    Using the gross pay method, we're less than 30% We'd like to be less than 25% Unfortunately, Japan is expensive!
     
  24. Blakely028 macrumors regular

    Blakely028

    Joined:
    Apr 29, 2008
    Location:
    Scotland
    #24
    As a student, just under 51% of my income goes on accommodation. It's not so bad that rates, insurance and services are included so the other 49% is spent on food, books and travel.

    Don't spend much on travel as I live on campus about 2 minutes from my lecture theatre! :rolleyes:
     
  25. MattG macrumors 68040

    MattG

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    May 27, 2003
    Location:
    Fletcher, NC
    #25
    21% -ish
    Closer to 30 if you factor in utilities, condo dues and stuff.
     

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