How much do you pay for rent/mortgage?

[Capt Caveman]

Curious to know what percentage of your monthly gross income goes toward rent or mortgage/real estate taxes.

I'm thinking of buying in the city but then I'm looking at spending 40% of my gross monthly income on mortgage/real estate taxes or I could buy a place in the burbs and only spend 30%.

edit - Poll Added

 

[AgentJean]

Doesn't take Ben Stein to figure out which is the better option.

Cheaper is better.

 

[minendo]

The wife and I pay approximately 13% of our gross monthly income towards the mortgage, mortgage insurance, homeowners insurance, and property taxes.

That 13% includes an extra $100 towards principal on the mortgage each month.

 

[slsmnaz]

I pay about 25% and it's only me. After car payment, bills, etc I still have a good amt left over.

 

[mugs]

I like your username. I remember that cartoon.

 

[brtspears2]

Somewhere between 40-50% gross income.

 

[iamwiz82]

We are around 20%

 

[Capt Caveman]

Originally posted by: AgentJean
Doesn't take Ben Stein to figure out which is the better option.

Cheaper is better.

Well, living in the the city(Cambridge, MA to be exact) would mean being able to walk to work. A block away from the Charles River. Running along the Esplanade and Charles river. A ten minute walk to Harvard and Central Square.

Moving further out in the burbs means 1 hr of commuting to work and back every day. Having to drive back into the city to go out(after coming home to take care of the dogs).

Being single, it's a lot easier to meet people(even when just walking the dogs) when you're in the city. Just trying to decide if it's worth the money.

 

[geecee]

When I lived in NYC, I was paying approximately 35% of my gross salary towards mortgage, insurance and taxes on my apartment. If you don't maintain disciplined spending habits. you can get in trouble in a hurry, so keep that in mind when making your decision.

EDIT: question deleted, answered by OP

 

[JS80]

I pay 11% of my gross in rent in West LA.

 

[child of wonder]

Right now 19% of our income after taxes is going towards mortgage, ins., and taxes. However, right now we're paying taxes on our property value of mid 2006 and back then it was just an empty lot. In 2008 our taxes will go up by $180 per month and we'll be paying 23% of our income to housing.

 

[DrPizza]

Including the taxes and escrow (insurance, taxes, etc.), about 5 to 6% of our gross.

Note: I do not live in the city. I live in the sticks. I like it better out here too. I can't think of any "conveniences" available in the city that I don't have within 20 minutes from my house. But, I do have to do a bit more planning; I no longer just run to the store for a loaf of bread, or realize, "hey, the hamburgs are almost done, and I forgot we were out of ketchup. I can be back from the store in 3 minutes."

 

[KeithTalent]

29% and I live right downtown...definitely worth it for me.

The guy that said cheaper is better probably lives with his parents and pays nothing.

 

[Rage187]

30-40%

 

[K1052]

40%ish

 

[amdskip]

25% for rent, rent is such a rip off in a college town.

 

[Riverhound777]

16.7% of my gross for rent and utilities. But I have a really good deal on rent for the house I live in.

 

[Dirigible]

26% for mortgage, taxes, and insurance. It was 43% of my gross when I bought the place (yay, raises!). Totally worth it to me to live within walking distance to just about everything.

 

[FoBoT]

just under 20%
i have 3.5 acres in BFE and commute one hour each way to work

 

[Tiamat]

Different people value luxury and convenience to different extents. I would pay the extra money if I knew I could live comfortably with 60% going to bills, loans, food, etc. in order to live closer to the places I want to be at all the time.


I live in Allston btw, but currently renting because I dont make enough money for a downpayment :/

 

[markgm]

I spend 60% of my net income on my mortgage, taxes, and HOA fee. 25.6% gross. I'd rather spend more money and not sit in my car driving to work. My favorite place to live was an apartment in a "bad" town that was had everything I wanted within walking distance. Before that I lived in Philly and loved being able to walk anywhere I wanted to. I never understood why there could be DUIs! I like my house now, and there is a lot I can walk to, but something just isn't the same about the hole in the wall apartment I had that was close to everything.

Money is great and you want to save so you can have a great retirement, but spend a little now so you can have great memories of your 20's and 30's to reflect on in that retirement!

 

[ultimatebob]

Between my mortgage payment, common fees, insurance, and property tax, I'm spending about half of my net income on a condo right now. That doesn't include utilities, either

 

[Dr. Detroit]

Pay more to live closer to your work. City life is better than Burb life. Less commute time means more focus on your marraige and spending an hour + a day in a car would suck!

 

[Alprazolam]

ZERO ! Free house! 5000 sq foot home, given to me by my parents at the age of 22! I LOVE IT

 

[rivan]

About 20% here - but we just got a much larger home, and we're in a desirable, close burb (then again, the vast majority of Saint Louis is burb).