Can i afford to live?

Question

I have a full time job at a big company, that is very stable. I earn £15,500 annual, whick works out at about £1000 a month. I have a longterm girlfriend and a 3 month old daughter. We currently live with our parents and are planning on moving out in a private rented house. My girlfriend doesnt work, as shes caring for our daughter. On my wage would i be able to rent a house and pay my bills?

Answer 1

I'll covert to US dollars so I can relate...

15000 pounds is just under $30000 US

That's enough to live on in an area that has a modest cost of living.  But you'll have to find an inexpensive apartment and keep a very strict budget, especially with trying to raise a little one.  Infants can be costly...

Answer 2

Agreeing with the first poster, one can usually spend 30-40% of their take home pay (300-400lbs for you) on their rent.  You may be a bit towards the low end due to having a wife and kid to support but if you can get a place in this range you can probably afford it (and they'll likely accept you as a renter if your credit it ok).  Of course I'd do a budget before you move in anyhow to see if the numbers work (take all your old expenses over a few months and make sure there really is 300-400 that you can save up each month for rent).

Answer 3

You "qualify" for a monthly rent of 400 pounds.  Most people spend much more than they really qualify for because they want  a nice home.

Answer 4

A good rule is to not pay more than 25% of your monthly income on housing.  As an apartment manager, our criteria mandated income be at least 3 times the rent.