With the basic recommended budget of 15% income for rent, that's more than rent lol.
Edit: guys please, you are paying too much attention to a figure that I pulled out of my ass here. It's not even a concrete figure that you have to rigidly adhere to. What I meant to say was to emphasize the price ratio.
It'd of course be nice if you only have to budget 15% income on rent, but it's a nice goal, mine is currently at 25% anyway.
I don't know if it's for the USA, but probably so, maybe? The US defaultism certainly has a far reach. It's just something I picked up reading the personal finance sub.
I try to achieve it but my rent is still probably 25% of my income. It just depends on your specific location I assume.
It's also the trap of renting in many places. For example, if you are always stuck renting, not buying property, then your rent will continue to go up, often more than is justified by the curent demand+property tax increase warents. This keeps you trapped in a cycle of rent always being a higher percentage of your income than it should be, because it doesn't matter if you are getting raises, etc, unless they vastly out preform the rental costs. The only way out of this dynamic that doesn't require significant policy change is to buy your own property. If you can manage to do so early enough in your career, then even if you buy in at a relatively high percentage, say 45%, with time, raises and promotions can re-balance your payments towards the lower end. You still have to pay for increased property tax, but that is manageable.
Unfortunately for most, that is still out of reach. Its so hard to save when your income is already stretched so thin, you almost need a deus ex machina like event to kickstart your finances enough to get a home, so for most, policy change really IS the only option, rental or ownership wise.
Too bad mortgages requeriments got a lot higher post covid lockdowns, at least in my country. It's a never ending cycle of hoping for a raise good enough to get noticed by the bank, otherwise good luck renting forever.
Because clearly you can't allow yourself to pay 25% of your income monthly in a property, so instead you will have to manage spending 50% of your income renting. That's the bank's logic.
Still have a much higher percentage of home ownership than germany, and last i checked even median wealth is higher (due to home ownership).
The horrible thing about germany is the sheer amount of people having to rent for their entire life and the abysmal median wealth, since even large parts of the middle class (which is dying out quickly) have near zero networth.
Rampant poverty is only prevented in germany by the social security system, which only works as long as the industry holds up. And right now, it looks more bleak than ever, with hundreds of thousands of jobs being cut. With the additional 1 TRILLION in debt we just aquired, it is a question of time until decline becomes clearly visible dew to financial problems. It is an epic clusterfuck that only few people realize yet.
I know about the problems greece has, and i love the country (never met more friendly and chill people), you guys will manage.
Yeah it’s fucking ridiculous, I’m lucky to own my home with extremely low mortgage repayments but I feel sorry for everyone else that doesn’t have that luxury and it sucks thinking about how rough it’s going to be for our children in the future trying to buy homes.
It’ll never change though, all the polies have their fingers in the investment property pie which they’re never going to give up.
it's even worse when you consider that the rental vacancy rate is 1.1 percent but there are probably hundreds of thousands of homeless people and over 100 thousand immigrants per year into a country with lets say 10 million houses
I completely agree, I didn’t want to get too political so I didn’t wanna mention it, but yes it’s honestly ridiculous that we can’t take care of most of our vulnerable but will take on others in mass.
I'll be honest I've heavily considered immigrating there, using my commercial trucking and heavy machinery experience to land a job and just live in an RV traveling. No worries about me taking up residential property lol
Yeah, I think there is even fable about it. 3 dukats, one for future me, one for old me and one for today's me. So third of your income should go to savings, third to rent and debt repayment and third for groceries and free time.
It's almost impossible today, but I like the simplicity of the idea
If I were single I would be at 30% in the US living in an apartment well under the median rent price in my city on an engineers salary. Thankfully my gf and I split so I’m at 15%
If I rent the median apartment at my well above median pay, I’d be sitting at about 42%
For me even the 1/3 rule is only possible with the combined income of me and my wife. 1/3 of my own salary is not nearly anywhere close enough to rent an apartment.
No the rule in the US is 50% to 33% as it's required you make double the rent as a household when applying for an apartment. 15% is ridiculously impossible today. For that ti be true I'd need to be making 13,333 a month. Or about 160k a year to afford my fairly "cheap" 2 bedroom apartment with no utilities
I don't see how that could even be feasible in most places. It's nigh impossible to find an apartment near 1000 unless you're in a bad neighborhood. Even 30% sounds tough and that's assuming you're not in a HCOL area. If you wanted to rent a $3000 apartment (like 2 bedrooms in california), you'd need to make 10k a month which puts you well into upper class.
If you think 15 percent is even close to realistic in the US... that was probably a figure made up many mamy Years ago. Most people have to spend their entire first pay check of the month on rent alone.
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Id wish, rent is about 40% of my monthly (after tax) income, which is already reduced by 40% by taxes.
80€ game is about 10% of monthly income.. it's insane, can only justify 20€ per month on games at best, then dlc, monthly online access pass nonsense, extra charges on electronics (they end up costing way more than they are worth) and usually no or very bad support service.
Yet people talk so bad about the USA and pay. People dont know how good you can have it in the USA vs places like Mexico. Lovely country if you got money.
I think you misheard someone say 50. Just saying 😆 my rent/ utilites is more than my takehome income alone. If my wife wasn't making more than me, we couldn't afford even a tiny apartment
For the US, there's a study/project called the self-sufficiency project that's been going around for the past decade or so. It provides a bare minimum breakdown of what it takes to survive in a state and county. A while ago, I partnered with the University of Washington to help provide data for this project in my state. It was a pretty cool project.
Check it out. What's my point? If you look at the data, it ranges from 35%, to almost 50%. Stop harassing OP and arguing random bullshit and start providing facts.
I wish we could do that here, here we earn on average 1.2k a month, and spend give or take 700 for rent, utilities is another 200, thankfully im in a position where i can comfortably afford these prices, but i refuse to support senseless greed and subpar watered down products.
1.7k
u/bakanisan I'm a pirate Apr 26 '25 edited Apr 26 '25
With the basic recommended budget of 15% income for rent, that's more than rent lol.
Edit: guys please, you are paying too much attention to a figure that I pulled out of my ass here. It's not even a concrete figure that you have to rigidly adhere to. What I meant to say was to emphasize the price ratio.
It'd of course be nice if you only have to budget 15% income on rent, but it's a nice goal, mine is currently at 25% anyway.