How Much of Your Income Goes to Rent?

mroarsome on 15/10/2015 - 11:33

I am living in central Melbourne and it always surprises me when I talk to my mates how much they spend on their rent. I share with my partner and we pay around 20% of our income on rent and admittingly we do live in noisy shoebox of an apartment. I don’t know how much all my mates get paid, only how much rent they pay. However, it seems like they would be spending 50-80% of their income on rent or I seriously underestimate how much they get paid.

Anyway, what percentage of income (I’m talking after tax) are OzBargainers spending on their rent/mortgage?

Financial

Comments

  • lupiter on 15/10/2015 - 11:48
    +2

    1.5 incomes:
    Rent (last year): ~30% of net on ~95 sqm
    Mortgage (this year): ~20-25% of net @ minimum repayments on ~88 sqm

    But I do know people spending ~50%, mainly because they (a) want a big house or (b) live alone and 1bed rents are sky high

  • Looking4Bargians on 15/10/2015 - 12:01

    33% .. so why not pay your own mortgage rather then someone else in rent…

  • [Deactivated] on 15/10/2015 - 12:18

    around 30%

  • lenlynn on 15/10/2015 - 12:24

    It was 20% when I was renting and living alone and now it is about 40% for our mortgage.

    • inherentchoice on 15/10/2015 - 13:22
      +1

      The 40% would presumably include interest and the repayments of the principal.

  • cypher67 on 15/10/2015 - 12:41

    25%, however I live out in the sticks of Sydney.

  • bobbified on 15/10/2015 - 13:09

    One bedroom apartment in the Melb CBD.. spending just under 20% on rent.

    The people I know of that spend the largest proportion of their incomes on rent are the international students. They pretty much work part time so that they can pay their rent.

  • inherentchoice on 15/10/2015 - 13:20
    +1

    11.5% of my post-tax income. I do live in a share house.

  • fickre on 15/10/2015 - 13:26

    23% pre tax.

  • ESEMCE on 15/10/2015 - 13:52

    30% Principle + Interest Mortgage

  • ilikeradiohead on 15/10/2015 - 14:04

    10.3% of disposable income. I live in a share house with 2 housemates + my partner. If I paid the whole thing it would be around 39%.

  • Google Chrome on 15/10/2015 - 14:04

    ~25% of our income comes from property rent. Luckily, we don't pay rent ourselves.

  • freelife on 15/10/2015 - 14:08
    +2

    100% cos I recently stopped working. I have enough savings to keep me going for a year or two. But hoping to land a new job next month fingers crossed.

    • inherentchoice on 15/10/2015 - 14:34
      +3

      Error. Cannot divide by 0.

      Or if you are getting a little interest income on your savings, then you might be paying more than 500% of your income.

      • freelife on 15/10/2015 - 14:50

        Good point I was referring to my redundancy as income :P

  • pyramid on 15/10/2015 - 14:36

    25% of my net monthly income goes into rent. and dont have enough savings to buy new house.

  • [Deactivated] on 15/10/2015 - 15:17

    About 35% for me - but not counting the wife's own income - counting that maybe more like 25%?

  • tomleonhart on 15/10/2015 - 15:24

    30% of my own income for mortgage. Wife's income goes into saving.

  • kolorijo on 15/10/2015 - 15:30

    40% of my income goes to my mortgage.

  • Eivad on 15/10/2015 - 16:34

    Probably around 35-40% of my and wife's post-tax income goes into the mortgage.

  • 2jzzzz on 15/10/2015 - 17:58

    40% of my income, my wife makes the same as me for now. Kids will be soon though…

  • HereAndNow on 15/10/2015 - 19:26

    In previous years it was always about 65%.

    My entire salary last year covered about 90% of my rent.

    This year looks like my salary is also going to be less than rent.

    • freelife on 15/10/2015 - 21:43
      +1

      You live on 10%??

      • HereAndNow on 17/10/2015 - 19:46

        Other way around. I have to get the other 10% from the bank.

        • freelife on 18/10/2015 - 10:13

          Still don't quite get it. I feel dumb.

        • Steptoe on 20/10/2015 - 13:48

          @freelife:

          = currently living beyond means

  • EBC on 15/10/2015 - 19:52
    +1

    I hadn't calculated it before, but 43%. Granted that is on a PhD stipend. I don't feel I am hurting though. Still manage to save a decent amount.

    • Findo on 15/10/2015 - 21:42
      +1

      That's seriously impressive. PhD stipends are hard to get by on without being really frugal.

  • justaverage on 15/10/2015 - 19:57

    40% but I am not earning much as I'm full time at uni.

  • NamandSpam on 15/10/2015 - 20:11

    How do you guys calculate the percentage?

    • Vampyr on 15/10/2015 - 20:18
      +1

      (Monthly Rent / Monthly Salary into bank account)*100

      Or yearly… Same same for me. Assuming PAYG.

      • NamandSpam on 16/10/2015 - 00:06
        +1

        thanks Vampyr.

        A hero lies in you.

        You know what?
        I just went to Boyz II Men Concert on Wednesday and it was CAPTIVATING!

  • rohanp16 on 15/10/2015 - 20:16

    8% of my after-tax income. Share house of course !

  • kryptoz on 15/10/2015 - 21:46

    20% of family income, for half of an interest only mortgage

  • [Deactivated] on 16/10/2015 - 09:13

    0% . I'm house-sitting.

  • plowry1977 on 16/10/2015 - 15:08

    24% of our after tax income goes on mortgage, but missus currently on maternity leave. Sounds a lot when work it out

  • ozbargainer888 on 17/10/2015 - 12:53

    Live with my partner in a house and after tax rent is 23% of our income.

  • ectogammat on 17/10/2015 - 21:08

    30%

  • donbot on 19/10/2015 - 16:16

    16% of our combined after tax income pays the interest on the mortgage… the same amount per month as if we were renting.

    25% of our combined after tax income pays down the principal on the mortgage.

    Same way we saved for a deposit - so have been living like this for years.

  • onetwothreefour on 24/10/2015 - 19:50

    About 25% of pre tax wages/family tax benefits.

    We are a single income family with 3 kids and we rent as we cannot afford a mortgage within a reasonable commute to work.

  • [Deactivated] on 27/10/2015 - 17:47

    About 30% combined post tax income.

    Feel it is a little high but we like a nice place and had bad experiences in share houses.

  • Bazzier on 06/11/2015 - 00:01

    Around 30% as well. I can reduce it by moving into further distance than the CBD, but then I am going to spend more transport cost :-/

  • tomorrows_angel on 06/11/2015 - 15:43

    Mine is 35%. I choose to live in an expensive share house because it's well located and has a good view.

    Now that I think about it, that's a lot of money…

  • strikerzebra on 09/11/2015 - 09:35

    About 20% as I live with a partner, have a unit about 10 minutes from the city in Adelaide

  • DarkOz on 09/11/2015 - 11:05

    Sydney inner west 20 minutes walk from train station. Around 40% for a single income or 20% for a household income of 2 people.

Login or Join to leave a comment
Login Join