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I was reading this article (not "news", but you know, I was reading it anyway) and they quoted the "no more than 30%" rule. I was thinking, "yeah, we've NEVER been able to do that, and even with this new job, we're not doing that well.
So I subtracted the amount we get for "managing", divided our rent by Jeff's gross income (disregarding extras I can get for babysitting and sewing for my aunt's friends and stuff), and guess what? Our rent is exactly 30% of Jeff's income. I didn't think that was possible! No wonder our budget works out here! (We've been living in negative budgets since we got married. For the first time, we'll be able to pay off debt and even save-- even though, also for the first time, we're going to all have health insurance.)
Thank you, everyone who prayed about us finding a place to live; it looks like those prayers really were answered!
Posts: 21182 | Registered: Sep 2004
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Great news, ketchupqueen! So good to be going toward the positive. It lifts an enormous burden from your shoulders.
I think Dave and I spend about 10% of our total income on housing, but then again there's just the two of us, and we've been aggressively paying down debt. We'll probably buy a house at some point, but apartment living has worked fine for us. (I have owned before, but most of the 3 yrs I paid on mortage went to interest, and I've never lived anywhere longer than 3 yrs, so it didn't seem worth it.)
Getting out from under old debt has been so worth it! All I have left are some student loans and still paying off the balance of our divorce agreement to my ex. No more creditor calls.
Posts: 14017 | Registered: May 2000
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I just figured it out, and my rent is about 28% of my gross income... I'm doing better now than I ever have in my life, so I'm not complaining, but I still feel pretty vulnerable.
I've owned several homes in my past life, but renting suits me fine for now. I'd certainly like to buy a home again someday, but the median price for homes on Maui is over $700K. I certainly wouldn't want to live in anything I could qualify for here. And I don't have the stomach for the way the market is... I'd be afraid that six months after I bought a $600K home, I wouldn't be able to give it away. So I pay ever increasing rents for now. If my job remains stable until my youngest graduates in 2009, I'll be happy. Maybe then I'll go back to school again. Posts: 2069 | Registered: May 2001
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I am a huge fan of keeping the housing cost low. It's a big part of why I live where I do - I'd rather live in an unfashionable (okay - sketchy) neighborhood and have the extra money to pay for school and trips and my hobby of the season.
Posts: 26077 | Registered: Mar 2000
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I still need to get everything out, including six bookcases and a perfectly square art table. There's hope yet!
Posts: 26077 | Registered: Mar 2000
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I have a lease, yes, but fully expect that when it expires (or whatever it's called) that the rent will increase. Between housing and the price of gas (I just returned from a week in Honolulu for work, and gas went from $2.92 to $3.01 in that time ) I'm becoming pretty anxious. That, and all the airlines trying to stave off bankruptcy... We're so isolated over here.. without reasonable airfares it would be devastating.
Posts: 2069 | Registered: May 2001
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Well, it's not ALL bad... we do have the best beaches in the world, plenty of mangoes, papayas and pineapples, we never have to worry about heating bills...
It could be worse. I could live on Oahu. <shudder>
Posts: 2069 | Registered: May 2001
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Wow, we had an option at our last place to lease for 3 months, 6 months, or 1, 2, or 5 years.
And when rent isn't increasing disproportionately to income all over the city, you don't need rent control.
Posts: 21182 | Registered: Sep 2004
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So I did the math and found that my rent is 36% of my monthly income. I don't think it's all that bad though, because it does include heat, parking, water, so all I pay is electricity and internet. Also, I used my base income, not counting bonuses or overtime, which I do get some of most months.
From what I've heard about rent in the LA area, I'd say you guys have found a pretty good deal!
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Our mortgage payment is 18% of our monthly gross income.
We have other debt though, that we're paying down, and we spend a ton on utilities with seven people in the house and Alabama summers.
Posts: 14428 | Registered: Aug 2001
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