How big part of your salary goes to rent?

[Emelee]

How big part (percentage) of your monthly salary goes to your rent or loan/mortgage each month?

How much of your salary goes to electricity/water/heat?

 

[Crimson]

Funny you would ask; I spent much of yesterday doing a deep dive into my budget and spending habits.

I should probably flip those percentages for Savings and Mad Money -- but, well, I get awfully mad.

 

[Emelee]

Funny you would ask; I spent much of yesterday doing a deep dive into my budget and spending habits.

View attachment 23029

I should probably flip those percentages for Savings and Mad Money -- but, well, I get awfully mad.

Interesting. Would you say your rent is low compared to what you get? Or do you just get a pretty good salary? 23.3% for rent is quite good. When I move (that is, when I can find a decent apartment), I will most likely end up paying closer to 30% of my income.
I hope I can get up to 25% of my salary for fun spending & saving after paying for rent, utilities, insurances, car related things, student loan, streaming sites, phone & food etc. etc.

 

[Daniel Avery]

"People in the know" say you should not spend more than 33% on rent/mortgage, but I'll assume those people have never lived in Florida! Home prices and especially rent prices fluctuate wildly with the economy. I'm "sheltering in place" (not looking to move out) for now because rents have gone NUTS in my area. To get something similar to what I have, I'd probably pay 50-75% more than what I pay now. That said, I really lucked out when I moved here and found an apartment that had most utilities included in the rent. I don't know how to draw a nice graph, but I can estimate about 30% of my net income goes to rent and utilities.

If I bought a condo, I'd likely have a mortgage higher than the rent I pay, and I'd have to add on utilities, HOA fees, insurance, and all the other lovely extras that come with home ownership. I see condos here in modest complexes that are listed for (example) $200k, and when you look up their sales history you see they sold for half that ten years ago. The owners haven't done any large upgrades either--the price increases are simply supply and demand. The good economy makes everyone want to move to Florida, and they are willing/able to "over-pay" for a place because there isn't a large supply of available, nice places. A lady I work with listed her home and accepted an offer within two weeks back in December, and even in the depths of the Covid-19 nightmare in May, a realtor-friend of mine was selling three properties per week, more than he typically sold each month.

So people are willing to pay a lot more than 33% each month here, mostly because of location-specific issues. I would never allow myself to get bogged down in such a high-cost purchase, because I prefer to live beneath my means. But areas like this tend to stoke those "Keeping up the Joneses" feelings where people feel they have to conspicuously spend money, while privately in debt up to their eyeballs.

 

[Snarky Oracle!]

I don't pay rent or a mortgage anymore, but I make up for it in food.

 

[Crimson]

Would you say your rent is low compared to what you get? Or do you just get a pretty good salary? 23.3% for rent is quite good.

I live in a town that might be considered lower-upper middle class and I am presumably (well) above the median income. The town has been slowly inching its way towards being a bit seedy and sketchy, but the development I live in is kind of tucked away. Other than an over-abundance of feral cats (thanks to one crazy lady), I have no problems with where I live. It's pretty spacious and I have a large screened-in patio. To get a comparable space in a more upscale, nearby down would put my rent closer to 35% of my income. Plus, I have something that would be nearly impossible to duplicate in another rental complex: privacy. I don't know of any other apartment/condo/townhouse development in the area that offers "views". Every building would look out onto another building, a parking lot, or a dumpster. My views in both directions are grassy lots and trees, but virtue of being on the periphery. So, 37 feral cats sleeping on the sidewalk* aside, I think I get a good deal.

*Not an exaggeration

 

[Emelee]

I see condos here in modest complexes that are listed for (example) $200k

I'd never ever pay that much for a condo. You can get a big house with a decent size garden for that sum in my town.

If I ever buy a condo, I'd pay maximum $60.000 for it since (at least in Sweden), you'd still have to pay rent even if you've bought the condo. Granted the rent is much lower if you've bought the condo.

 

[Emelee]

I live in a town that might be considered lower-upper middle class and I am presumably (well) above the median income. The town has been slowly inching its way towards being a bit seedy and sketchy, but the development I live in is kind of tucked away. Other than an over-abundance of feral cats (thanks to one crazy lady), I have no problems with where I live. It's pretty spacious and I have a large screened-in patio. To get a comparable space in a more upscale, nearby down would put my rent closer to 35% of my income. Plus, I have something that would be nearly impossible to duplicate in another rental complex: privacy. I don't know of any other apartment/condo/townhouse development in the area that offers "views". Every building would look out onto another building, a parking lot, or a dumpster. My views in both directions are grassy lots and trees, but virtue of being on the periphery. So, 37 feral cats sleeping on the sidewalk* aside, I think I get a good deal.

*Not an exaggeration

 

[Daniel Avery]

I'd never ever pay that much for a condo. You can get a big house with a decent size garden for that sum in my town.

Real estate prices here are higher because we're an oceanside town in a desirable climate. The $200k I quoted wasn't even referring to ocean-view; those would be twice as much and more. If I went to a real estate office and asked to see a house for $200k in this county, they'd double over laughing. There are...shall we say less desirable areas to the north and especially the south (in Palm Beach County) where prices are better, but the trade-off is that they are scary.

 

[Snarky Oracle!]

Real estate prices here are higher because we're an oceanside town in a desirable climate. The $200k I quoted wasn't even referring to ocean-view; those would be twice as much and more. If I went to a real estate office and asked to see a house for $200k in this county, they'd double over laughing. There are...shall we say less desirable areas to the north and especially the south (in Palm Beach County) where prices are better, but the trade-off is that they are scary.

I've had a recurring dream for years that I resettle in an oceanside community south of Miami (before you get to the Keys) as improbable as it seems. Any recommendations?

 

[Daniel Avery]

That's two hours south of me. It might as well be a different planet, though, because Miami-Dade is densely populated and English would not be considered their first language. I've only ventured down there once (for work) and it was much too urban for my taste. Also, the land near the ocean has all been bought up and developed, so there is very little access for the common (poor) folk like me. I never went south of Coconut Grove so there might be some places like you dreamed about---but I doubt it.

 

[Snarky Oracle!]

That's two hours south of me. It might as well be a different planet, though, because Miami-Dade is densely populated and English would not be considered their first language. I've only ventured down there once (for work) and it was much too urban for my taste. Also, the land near the ocean has all been bought up and developed, so there is very little access for the common (poor) folk like me. I never went south of Coconut Grove so there might be some places like you dreamed about---but I doubt it.

I haven't been down there in .... many .... years.

 

[DallasFanForever]

I’m in Boca Raton about 40 miles north of Miami. Take it from me when I tell you Snarky to start dreaming about a different place to resettle. I’ve been down here since 1994 and it’s ridiculously congested now. Traffic is absolute murder. Just wayyyyyyyy too many people. Great place for the weather, just a hurricane scare every once in awhile, but overall my advice is forget Florida

 

[Snarky Oracle!]

I’m in Boca Raton about 40 miles north of Miami. Take it from me when I tell you Snarky to start dreaming about a different place to resettle. I’ve been down here since 1994 and it’s ridiculously congested now. Traffic is absolute murder. Just wayyyyyyyy too many people. Great place for the weather, just a hurricane scare every once in awhile, but overall my advice is forget Florida

My conscious mind doesn't want re-settle there. But my unconscious mind seems to be curious about it.

Is there anywhere around Miami you'd recommend??

 

[DallasFanForever]

Around Miami, I’d have to say no. My advice would be to go up to the northern part of the state. My brother lives up in a place called Punta Gorda and from what I understand it’s much less congested than south Florida. It’s beautiful down here, don’t get me wrong. But just way too many people. Maybe Daniel Avery can help with this. Sounds like he is a little north of me as well

 

[Emelee]

I've found an apartment and will be moving in 2 months. My rent will be 25% of my income, so I am satisfied.

 

[Daniel Avery]

Congratulations!

....and I got a raise that allows me to update my previous post. Instead of my rent being ~30%, it's now closer to 25%. So yay to me, too.

 

[Emelee]

Congratulations!

....and I got a raise that allows me to update my previous post. Instead of my rent being ~30%, it's now closer to 25%. So yay to me, too.

 

[Sarah]

I live in a town that might be considered lower-upper middle class and I am presumably (well) above the median income. The town has been slowly inching its way towards being a bit seedy and sketchy, but the development I live in is kind of tucked away. Other than an over-abundance of feral cats (thanks to one crazy lady), I have no problems with where I live. It's pretty spacious and I have a large screened-in patio. To get a comparable space in a more upscale, nearby down would put my rent closer to 35% of my income. Plus, I have something that would be nearly impossible to duplicate in another rental complex: privacy. I don't know of any other apartment/condo/townhouse development in the area that offers "views". Every building would look out onto another building, a parking lot, or a dumpster. My views in both directions are grassy lots and trees, but virtue of being on the periphery. So, 37 feral cats sleeping on the sidewalk* aside, I think I get a good deal.

*Not an exaggeration

Cats rock - feral or otherwise. Be nice to them. Could be worse - could be people everywhere.