How much do you pay for rent/mortgage?

[ZetaEpyon]

13% gross for monthly rent.
I'd almost certainly be paying more (for a mortgage instead of rent), but I also have 18% gross going to student loans.

 

[DrPizza]

Originally posted by: 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.

Actually, I'd think that any price comparison that's made would have to include the costs of commuting to work, as well as the cost of time for the commute. Thus, a better comparison might be made of mortgage+transportation.

 

[KeithTalent]

Originally posted by: DrPizza

Originally posted by: 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.

Actually, I'd think that any price comparison that's made would have to include the costs of commuting to work, as well as the cost of time for the commute. Thus, a better comparison might be made of mortgage+transportation.

Totally agree. Many people do not factor in commuting costs when planning a move to the burbs. By commuting costs I mean not only gas & maintenance, but also time.

It costs me nothing in dollars to commute to work (aside from the occasional Starbucks stop) and about 20 minutes of time each way. So my percentage remains around 29-30%.

 

[DrPizza]

Originally posted by: KeithTalent

Originally posted by: DrPizza

Originally posted by: 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.

Actually, I'd think that any price comparison that's made would have to include the costs of commuting to work, as well as the cost of time for the commute. Thus, a better comparison might be made of mortgage+transportation.

Totally agree. Many people do not factor in commuting costs when planning a move to the burbs. By commuting costs I mean not only gas & maintenance, but also time.

It costs me nothing in dollars to commute to work (aside from the occasional Starbucks stop) and about 20 minutes of time each way. So my percentage remains around 29-30%.

Well, my commute is 4 miles and 20 feet; about 5 minutes. But, I'd probably have to take my kids to school anyway.

 

[gooseman]

About 18% here.

 

[bennylong]

I live in Los Angeles and I pay 20% of my gross income for rent. Early retirement and a fat 401k FTW

 

[shortspanishguy]

about 33%

 

[Engineer]

2 to 3% (depending on OT) for taxes and insurance.

No mortgage but it ranged from 12% to 20% (includes taxes and insurance depending on my income levels while I had the mortgage) when I had one (Lexinton, KY) for a 2,000 sq-ft 4 bedroom home.

 

[sdifox]

If I pay only the normal morgage payment, it's 27% of my net. But I am paying 68% of my net to pay it down asap. Good thing my wife works.

 

[zebano]

33% It was 35% when we first got the loan.

 

[jiggahertz]

This past storm reminded me why I hate living in the city. Having to find street parking in Boston is bad enough when the roads aren't a mess. I ended up staying at my GF's just outside of Boston and had a cop call me a "retahd". I'm looking forward to the comforts of my townhouse and heated garage in Nashua. I can't think of any "burbs" around Boston that don't have all of the amenities as living in the city.

 

[purbeast0]

I just did the math and my GF and I pay around 19% of our combined income and we actually live in a very desirable place. It's on the border of Bethesda, MD and a few more miles from Washington, DC. We can cab down to DC easily and have plenty to do, and we have Rockville stores right up the street. The metro (subway) is also literally right accross the street from us. That also includes our utlities in the monthly payment.

After this year of renting is up, we are probably going to purchase something.

 

[Capt Caveman]

Originally posted by: jiggahertz
This past storm reminded me why I hate living in the city. Having to find street parking in Boston is bad enough when the roads aren't a mess. I ended up staying at my GF's just outside of Boston and had a cop call me a "retahd". I'm looking forward to the comforts of my townhouse and heated garage in Nashua. I can't think of any "burbs" around Boston that don't have all of the amenities as living in the city.

Thanks for all of your opinions folks. Though it'll eat up 40% of my gross income, I'm leaning towards a newly constructed detached townhouse with yard in Cambridge. Being able to walk to work, be a block from the Charles River, a short walk to Harvard and Central Sq is really appealing. Not having to commute, gives me an extra hour a day. I can come home at lunch time and walk the doggies if I feel like it and be in the center of things, it'll be a lot easier to meet people(being single).

And more opinions are appreciated.

 

[GasX]

I am down to 15% for a large mortgage and an even larger tax bill (equal or greater than mortgage). Lots of expenses though as it is a large OLD house in an expensive area, so my savings rate is not as high as I would like.

 

[purbeast0]

Originally posted by: Capt Caveman

Originally posted by: jiggahertz
This past storm reminded me why I hate living in the city. Having to find street parking in Boston is bad enough when the roads aren't a mess. I ended up staying at my GF's just outside of Boston and had a cop call me a "retahd". I'm looking forward to the comforts of my townhouse and heated garage in Nashua. I can't think of any "burbs" around Boston that don't have all of the amenities as living in the city.

Thanks for all of your opinions folks. Though it'll eat up 40% of my gross income, I'm leaning towards a newly constructed detached townhouse with yard in Cambridge. Being able to walk to work, be a block from the Charles River, a short walk to Harvard and Central Sq is really appealing. Not having to commute, gives me an extra hour a day. I can come home at lunch time and walk the doggies if I feel like it and be in the center of things, it'll be a lot easier to meet people(being single).

And more opinions are appreciated.

not to mention, your house will probably appreciate more in the city than it would farther out.

 

[Descartes]

There are a lot of factors to consider, so it's not a simple percentage. Things that immediately come to mind:

1) Do you anticipate an increase in income? If so, 40% now might not be a big issue. Someone just starting in law or medicine is all but guaranteed to increase their income, but if you're an engineer and you're already at the ceiling of your earning potential and don't foresee breaking out of that, you have to consider the consequences.

2) Does the home have any significant appreciation potential? This would be an investment just like if you were to only pay 10% of your income and put another 30% toward an investment. This obviously depends on the capriciousness of your local housing market.

3) Will you be happier there? Based on your comments, it seems like it. You only live once, and sometimes that takes a sacrifice.

4) Will you still be able to reach your long-term financial goals? I know how much I need to save to reach my financial goals, so it's easy to calculate how much I have remaining for a mortgage, etc.

Personally, I wouldn't commit 40% of my income, gross or net, to a home. I'd feel that it wouldn't leave me financially flexible enough to pursue other interests. I am currently commiting < 10% of my gross or net to my condo in midtown Atlanta.

 

[jiggahertz]

My friend's GF wants to move back to boston because she thinks it will be easier to meet people. I was in Boston for 8 months for grad school and have met significantly more people living 30 mi out of the city going out with friends. YMMV, but I guess I don't meet random people on the streets, especially in the Boston area. The commute is a major pain like you said though. I'm curious how much newly constructed detached townhouses w/ yards are going for in the Cambridge area, $500,000?

 

[Capt Caveman]

Phase 1 of the townhouses will be completed in April. Phase 2(my townhouse) won't be completed til June/July. The prices range from $465-549k. Here is link to the development - http://290ontheriver.com/

On the site plan, I would be buying the upper right townhouse. Detached with a 800sq ft yard. 3 bedrooms and 2 full baths. I'd like to believe that I'm getting a little bit of a deal buying pre-construction and that it'll appreciate nicely over the years.

After moving back from the California Bay Area, the housing may be bad in the Boston area but it's horrendous over there. I decided to move back here b/c I would have been spending more than 50% of my income to own there.

But yes, moving further from the city I can get substantially more living space and land for less money. I've lived in the burbs before and thought it was nice I always found myself driving back from work and the city to take care of my dogs to driving right back into the city to go out. If I was married or with a girlfriend, I'd probably be leaning towards the burbs.

 

[JulesMaximus]

Less than 30%.

My mortgage payment is $1450/month.

 

[rh71]

20% gross

 

[MercenaryForHire]

About 20% counting the standard utilities. Townhouse, rural city.

- M4H

 

[jiggahertz]

Originally posted by: Capt Caveman
Phase 1 of the townhouses will be completed in April. Phase 2(my townhouse) won't be completed til June/July. The prices range from $465-549k. Here is link to the development - http://290ontheriver.com/

On the site plan, I would be buying the upper right townhouse. Detached with a 800sq ft yard. 3 bedrooms and 2 full baths. I'd like to believe that I'm getting a little bit of a deal buying pre-construction and that it'll appreciate nicely over the years.

After moving back from the California Bay Area, the housing may be bad in the Boston area but it's horrendous over there. I decided to move back here b/c I would have been spending more than 50% of my income to own there.

But yes, moving further from the city I can get substantially more living space and land for less money. I've lived in the burbs before and thought it was nice I always found myself driving back from work and the city to take care of my dogs to driving right back into the city to go out. If I was married or with a girlfriend, I'd probably be leaning towards the burbs.

They sound really nice, especially for finding new construction in the area. I assume they'll be part of a condo assoc but I didn't see that mentioned? Condo fees can up your costs pretty quickly too.

 

[Capt Caveman]

Being a new development, Condo Fees are supposed to be $175 which covers water/sewer. Not having to drive to work, will save me $100 a month in gas.