I’m a first year analyst at a bank in Toronto trying to find a new apartment… I’m just wondering how much of their income they allocate towards rent? Ie., I’ve heard suggestions that typically, people spend around 30% of their gross income (incl. utilities, etc.) Any thoughts?
The standard rule for purchasing a house is to keep mortgage expense to 33% or below. I would think renting should be lower than that since you’re not purchasing anything (albeit you did mention 30% would be inclusive of utilities.) 25%?
The “rule” for Low-Income Housing Tax Credits in the U.S. is that if you spend more than 35% of your income on rent, then you are rent-overburdened and are closing in on the label of “poor” by area media income standards.
ibank Wrote: ------------------------------------------------------- > I’m a first year analyst at a bank in Toronto > trying to find a new apartment… > > I’m just wondering how much of their income they > allocate towards rent? Ie., I’ve heard > suggestions that typically, people spend around > 30% of their gross income (incl. utilities, etc.) > > Any thoughts? That’s what I am at…around 30% to 1/3 renting.
“I’m just wondering how much of their income they allocate towards rent? Ie., I’ve heard suggestions that typically, people spend around 30% of their gross income (incl. utilities, etc.)” I would aim for 30% of net…30% of gross would be tough.
Mine is 34.5 % gross of my base for just rent. 30 % gross of my base is spent just on the weekends, God…
Rent (monthly) - base salary / 40 Buy (cost of house) - Total salary * 4
Turkish Wrote: ------------------------------------------------------- > “I’m just wondering how much of their income they > allocate towards rent? Ie., I’ve heard suggestions > that typically, people spend around 30% of their > gross income (incl. utilities, etc.)” > > I would aim for 30% of net…30% of gross would be > tough. It would certaintly eat into the beer and strippers budget~! I’m at this level net, can’t imagine gross even w/ my relatievly low tax rate.
wtf u guys spend so much money on? 30% of net including utilities… good luck finding one in downtown that will fit that budget probably for about 35% of gross you can find something decent… and if you stop buying those 20$ lap dances you will discover that you have lots of money left over at the end of the month…
“30% of net including utilities… good luck finding one in downtown that will fit that budget probably for about 35% of gross you can find something decent… and if you stop buying those 20$ lap dances you will discover that you have lots of money left over at the end of the month…” this makes no sense…my place would be described as above “decent” and you can not get much more “downtown”. I’ll forgive you if you forgot we were talking about Toronto. one more thing: “and if you stop buying those 20$ lap dances”…never.
Can you please tell me how big is your place and how much you pay for it? Maybe I’m getting ripped off… Another factor is, my 30% of net can be a lot less than yours 
yes i was talking about toronto too
700 sq. feet, $1,400…
I’m doing a purchasing power parity analysis for a complicated foreign currency arbitrage trading strategy. Would everyone help me out? Please post how much a lap dance costs in your city.
I spend just shy of 20% of my take-home (about 13.5% of gross). But that is just my base salary. My bonus goes untouched into the Etienne Miami Beach 2030 Retirement Acc Fund.
Turkish Wrote: ------------------------------------------------------- > 700 sq. feet, $1,400… That’s not bad for TO turkish. Still I bet you miss being able to walk the Alehouse, Lower Deck, Pouge etc. like I can in 5 mins! Plus we have no snow now~!
I think 30% of pre-tax monthly pay is pretty typical when you’re just starting out in your career. That actually makes it closer to 50% of after-tax monthly pay. If you’re paying that much 5 years down the line, it’s probably not a good thing, but I wouldn’t worry too much about it at the start. Of course, these figures depend a lot on the city you’re in and how expensive it is.
hotdawg Wrote: ------------------------------------------------------- > wtf u guys spend so much money on? > Paying down debt for me. Beats the equity market these days!!!
With the debt markets in such trouble, is there a way for ordinary joe/suzie to buy pay back his/her debt at 80 cents on the dollar or whatever without mucking up his/her credit rating? I know in the sovereign debt world, countries in debt crisis have sometimes repurchased their own debt when the prices got low enough; I’m wondering if there’s any way an ordinary consumer can do this?
bchadwick Wrote: ------------------------------------------------------- > With the debt markets in such trouble, is there a > way for ordinary joe/suzie to buy pay back his/her > debt at 80 cents on the dollar or whatever without > mucking up his/her credit rating? > > I know in the sovereign debt world, countries in > debt crisis have sometimes repurchased their own > debt when the prices got low enough; I’m wondering > if there’s any way an ordinary consumer can do > this? Yes. I would like to pay back my student line of credit at 80 cents on the dollar. I should ask Ben Bernanke to give those evil bankers a call!
kkent Wrote: ------------------------------------------------------- > The “rule” for Low-Income Housing Tax Credits in > the U.S. is that if you spend more than 35% of > your income on rent, then you are > rent-overburdened and are closing in on the label > of “poor” by area media income standards. So… almost everyone who lives in Manhattan is “poor”?