While our needs are unlimited, accomodation is one of the most vital needs of every person. And it is something that we really can’t do without. How much of my income should I spend on renting accommodation so that I don’t live in a house above my means
Inem
Asked: April 16, 20242024-04-16T12:36:55+00:00
2024-04-16T12:36:55+00:00In: Personal Finance
What percentage of my income should go for rent?
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I do not know what should be the percentage of your income to rent ratio but I believe after paying your rent, you should have enough money to pay for your utilities, groceries and other expenses, as well as save money and invest money. If this is not happening, you need to move to a cheaper locatioRead more
I do not know what should be the percentage of your income to rent ratio but I believe after paying your rent, you should have enough money to pay for your utilities, groceries and other expenses, as well as save money and invest money. If this is not happening, you need to move to a cheaper location so that you will be paying less amount for rent. I guess 15 percent income for rent should be good.
See lessI have once read and someone stated that don't allow your rent to be more than 25% of your income. This is to say when you divide your income into 4 places don't allow your rent to be more than that. So this means that your rent should only be 25% of your income. You have other expenses to take of uRead more
I have once read and someone stated that don’t allow your rent to be more than 25% of your income. This is to say when you divide your income into 4 places don’t allow your rent to be more than that. So this means that your rent should only be 25% of your income. You have other expenses to take of us. So you need your rent not to be too high as as to take a whole lot of your earnings every month.
See lessAlthough there are no specific provisions on what percentage you have to set, the property rental price will depend on the condition/type of building, location, size of the property, environment and available facilities. The more complete the facilities you provide, the more expensive it will be. ApRead more
Although there are no specific provisions on what percentage you have to set, the property rental price will depend on the condition/type of building, location, size of the property, environment and available facilities. The more complete the facilities you provide, the more expensive it will be. Apart from that, you can also use a comparison indicator for different properties in a city/region or what we know as the cap rate. The average cap rate is around 3 to 5 percent, so if the property value is $100k then if we apply a cap rate of 4% then the rent is $4000 per year.
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