Is 40% of your income to much for rent?

Question

If you find a place that you really like, and you spend a lot of time indoors rather than going out and drinking etc... Would you spend 40% of your (roughly 3000K) income on rent. Or would you settle for a cheaper place that you hate?

Answer 1

follow your heart.  I pay about 40% of my pay towards my mortgage.  but, i own the house, it is not my dream home, but, i will be able to purchase the home that i really want in the future by doing this...so, there is a method to my paying this much.  

everyones needs are different.  It would be best if you could purchase something rather than rent...but, by all means it you feel this place will make you happy go for it...

best wishes

Answer 2

The most commonly quoted rule is that you should not spend more then 30% of your income on rent.  (Some people say 25%, but this is less common.)  However, if you live in a high rent city, like Boston or especially New York,  this rule probably does not apply.  For these cities 35% or 40% may be a better rule.  Many people in New York pay more than 50% for rent, but I would not advise following them.

You say you would hate living in the cheaper place, and that may be true.  However, I suspect you will hate living in the expensive place more, because you will probably be chronically short on cash.  In the end you have to make the choice:  Is the financial suffering you will go through worth the nicer place?  I doubt it, but I don't know what the apartments look like.

Answer 3

Whatever you bring home in one week.

net pay, is the max you should ever pay for rent.

if you get $600 a week that is your max rent you should ever pay or you could easily be over extended.

Answer 4

A bank etc. look at your debt to income ratio and all of your secured debt should not be over 40% of your income so I would say yes this is too much to pay for rent. Keep in mind rent is thrown away money. I would look for a cheaper place and use the extra money for something that would benefit you more. Always allow your self a way out and do not over extend yourself. Try to always be prepared for the unexpexted.If you tie a lot of your money up in rent where will you get the money you need if you have an unexpexcted expense such as you get sick or something. Think real hard about it and good luck

Answer 5

Yes, much too much.  But then, it's what many, many people pay.

Answer 6

Probably not, if you have a real, real taste for Ramen Noodles for breakfast, lunch and dinner.

You most likely won't even qualify on the application.

Answer 7

40% is way too much to pay for rent.

it should not exceed more than 28 to 33% of your gross income

Answer 8

Yes.

Generally you want to be paying NO MORE then 30% of your income for rent, and no more than 65% of your income for ALL living expenses.