What % of your net income should go towards rental accomodation?

Hi All

I might have to start renting my own place soon, and was wondering from my net take home salary how much should i put towards rent, therefore knowing what price-range of accomodation/flats to look for?

thanks

The rule of thumb is 25%, especially when you are young. When you are young you often have more stuff to do that costs money and do not have much of a savings to provide a cushion to cover expenses if you get hurt or sick.

2 Comments

  1. elmo o says:

    the classic model says 30% of gross.

    in todays bus climate, may ll’s are looking at a bigger picture.

    is your car newer and paid for?, do you have much credit card debt? how many empty units does the ll have?

    how much is the travel expense?

    do you have a cosigner?
    References :

  2. linkus86 says:

    The rule of thumb is 25%, especially when you are young. When you are young you often have more stuff to do that costs money and do not have much of a savings to provide a cushion to cover expenses if you get hurt or sick.
    References :
    Realtor

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