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What percentage of your monthly income goes to rent? - Page 8

post #106 of 138
14% of Net. I would never rent - you can always sell a home if you want a change or just rent it out. Be smart and live within your means. 30-50%+ of your take-home pay is not smart. I would say your goal should be 25% or less.

R
post #107 of 138
Quote:
Originally Posted by stevent View Post

Meis / OTC what about buying something, remember when they had one bedrooms / studios overlooking Soldier Field for like $400k in 2009 or so. Place was pretty nice and had the usual stuff as well as roof terrace. Not sure how much prices have gone up since then but at that cost...

Zero interest in buying something. Only reason to buy is if you are in a position where you are willing to pay a premium for the luxury of getting exactly what you want. Otherwise, rentals make the most financial sense by far. I'd love to own a place place some day that I have full control over (which probably means not a condo or HOA) but I don't buy into the american delusion that homes are sensible investments.

Also, 400k for a 1br/studio overlooking soldier field (in some building that looks like it should be on a highway leading into houston rather than on the chicago skyline) is pretty much a rip off.
post #108 of 138
Quote:
Originally Posted by otc View Post

Zero interest in buying something. Only reason to buy is if you are in a position where you are willing to pay a premium for the luxury of getting exactly what you want. Otherwise, rentals make the most financial sense by far. I'd love to own a place place some day that I have full control over (which probably means not a condo or HOA) but I don't buy into the american delusion that homes are sensible investments.

Two counterpoints:

-The quality of finishes in rentals, even the high end ones renting for over $8,000/mo, generally suck.

-Price-to-Rent ratios in most cities are at historic lows, and that's not even taking into consideration the low interest rates available. IMO, it's a buyers' market.
post #109 of 138
Quote:
Originally Posted by Relentless View Post

14% of Net. I would never rent - you can always sell a home if you want a change or just rent it out. Be smart and live within your means. 30-50%+ of your take-home pay is not smart. I would say your goal should be 25% or less.
R

disconnect. buying something with 20% equity and 80% debt is not living within your means.
post #110 of 138

23% of net and 16% of gross goes to mortgage

post #111 of 138
Quote:
Originally Posted by Pennglock View Post

Two counterpoints:
-The quality of finishes in rentals, even the high end ones renting for over $8,000/mo, generally suck.
-Price-to-Rent ratios in most cities are at historic lows, and that's not even taking into consideration the low interest rates available. IMO, it's a buyers' market.

Agree with the first. Hence my comment about being able to pay a premium to get what you want. Around here, the finishes in condo buildings tend to be far nicer then rentals (although there is always the option of renting condos that are being rented out by their owner) and that would be one of the reasons why I will probably own someday.

The problem with the second point is that while it is true that its probably a good buying time for an investor (someone buying homes with an investment eye and not intending to live in them), the biggest determining factor on whether or not you should buy a house is all about your needs and not about the market.
A 25 year old with a high likelihood of job hopping to some other town, meeting the love of their life, or going off to grad school has a good chance of making a commitment that they can't keep. They can't look at it like a regular investment since they have to live in it--if they have to move, they are now forced into selling it. Sure it could have appreciated and the value may be enough to cover all the associated costs of selling and buying a new place but since their hand was forced, they don't have the option of riding out a downturn (or selling before it hit) like they would have with a real investment.
At the same time, when it is time to buy and you know you want to buy...you just do it. Sure interest rates matter a bit, but you are essentially paying market rates. If rates on a mortgage go up, rates that you can earn with your money in other places are also likely to go up...and if rates fall down later you can always refinance. If and when I buy something, I'm not gonna care too much about rates other than making sure that I have all my ducks in a row and a high credit score so that my mortgage is on the low end of whatever the current range is.
post #112 of 138
Quote:
Originally Posted by stevent View Post

Meis / OTC what about buying something, remember when they had one bedrooms / studios overlooking Soldier Field for like $400k in 2009 or so. Place was pretty nice and had the usual stuff as well as roof terrace. Not sure how much prices have gone up since then but at that cost...

hahaha holy fuck no. First, I'm 27 and just got out of law school two years ago... I have nowhere near the money to buy in the place you're mentioning. Second, I don't care much for a place like that or South loop in general - I like neighborhoods and S loop to me always seems to be mostly new construction high-rises. Third, I actually am considering buying, but more in the 100-125k range which can get you a decent 1bdrm in my neighborhood (though the pickings are slim - there's just generally not that many places for sale in Logan Sq). I don't like spending a ton on housing; my rent right now is ~ 16% of gross.
post #113 of 138
Thread Starter 
Since moving to Dallas, my apartment is considerably nicer and considerably cheaper.

Rent is ~11% of gross.
post #114 of 138
Quote:
Originally Posted by Relentless View Post

14% of Net. I would never rent - you can always sell a home if you want a change or just rent it out. Be smart and live within your means. 30-50%+ of your take-home pay is not smart. I would say your goal should be 25% or less.
R

Ok, granted you qualified that this is your opinion- but you're oversimplifying.

1-Would never rent? That's easy for people well into their careers, but for younger people (with student loans) it takes years until you've saved enough to buy a place unless you're getting plenty of help from relatives...they have to rent for a number of years -because buying is not an feasible option.

2- Ok 50% is quite high, but for someone living in say... Manhattan 40% of take home is not outrageous. It's still high...but you also have to remember people have different situations and (non-housing) expenses. 40% isn't as high when that person doesn't have to pay any of the costs associated with owning a car. Not to mention people renting don't have to pay property taxes...
post #115 of 138
Quote:
Originally Posted by GreenFrog View Post

Since moving to Dallas, my apartment is considerably nicer and considerably cheaper.
Rent is ~11% of gross.

no more Boston? por que?
post #116 of 138
Thread Starter 
Quote:
Originally Posted by NAMOR View Post

no more Boston? por que?

Nope. Signed and accepted a relocation offer back in December; made the move to Dallas exactly four weeks ago!
post #117 of 138
Quote:
Originally Posted by Meis View Post

Ok, granted you qualified that this is your opinion- but you're oversimplifying.
1-Would never rent? That's easy for people well into their careers, but for younger people (with student loans) it takes years until you've saved enough to buy a place unless you're getting plenty of help from relatives...they have to rent for a number of years -because buying is not an feasible option.
2- Ok 50% is quite high, but for someone living in say... Manhattan 40% of take home is not outrageous. It's still high...but you also have to remember people have different situations and (non-housing) expenses. 40% isn't as high when that person doesn't have to pay any of the costs associated with owning a car. Not to mention people renting don't have to pay property taxes...

yes, especially point 1. Who the fuck steps out on their own and immediately has what it takes to put a down payment on a home? I could put a down payment on a tiny matchbox here in Tokyo but I wouldn't actually be able to live in it, nor would it really be an investment as management fees would come to me like a rent requirement all the same - and I'm sure as hell not close to getting like 20-25% cash to plop on the kind of $3-5m apartment I'd want to actually buy in Tokyo right now (that's like, 1500-2000 sq ft with some modicum of outdoor space in a location that isn't suicidally boring), so renting it is, and will be, for quite some time. It doesn't really bother me, you win some, and you lose some, but you gotta enjoy life and be comfortable all the while. I imagine people in London, Paris, NY, Chicago, Tokyo, HK, Singapore, and maybe Sydney, among other cities, share the same sentiment.
post #118 of 138
Quote:
Originally Posted by GreenFrog View Post

Nope. Signed and accepted a relocation offer back in December; made the move to Dallas exactly four weeks ago!

sorry to redirect thread but, out of curiosity, did you apply/request a move or did someone internally recruit you to go down there? i'm interested in making a move internally to the US Northeast - we're an NYC based company but i work in the Toronto office - and i'm trying to figure out the best way to do it.
post #119 of 138
Thread Starter 
Quote:
Originally Posted by chrisjr View Post

sorry to redirect thread but, out of curiosity, did you apply/request a move or did someone internally recruit you to go down there? i'm interested in making a move internally to the US Northeast - we're an NYC based company but i work in the Toronto office - and i'm trying to figure out the best way to do it.

Neither, really. The head of our group announced that we would be expanding geographically and asked for volunteers to move down here for the firm. I was one of the few who accepted smile.gif
post #120 of 138
Interesting. Glad you did it, so far?
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