How much should I spend on rent?

Louth_101 · 02-05-2011 6:39pm #1

Hi,

I am thinking of moving out in the near future. I would like to know how much should i spend on rent. My gross income is just over €2,000. My net income is just under €2,000.

I have lookking to spend around €550 a month on rent. Includeing my expected rent my net outgoings would be €1,250 at the top end of the scale. If am factoring in everything.

I don't know if that is too much to spend or not. I realise I could get someone top move in but I would rather live alone for a while. I don't want to end up on one of those shoes living at home when i'm 30.

Your help would be gratly appreciated.

Thanks

nessy382 · 02-05-2011 6:43pm

hi would you not be entitled to rent allowance?

athtrasna · 02-05-2011 7:12pm

nessy382 wrote: »

hi would you not be entitled to rent allowance?

No - Rent Allowance (now Rent Supplement) is a social welfare benefit for those unable to afford to rent on their own.

You may have been referring to tax relief for tenants, which is being phased out. In order to qualify for this the OP would have to have been renting privately on 07 December 2010 and as they refer to "moving out" that is unlikely. http://www.citizensinformation.ie/en/housing/renting_a_home/tax_relief_for_tenants.html

Louth_101 · 02-05-2011 7:18pm

I remember reading bout that being phased out. Just not sure how much is too much

Treehouse72 · 02-05-2011 8:58pm

There is an old rule-of-thumb going back decades that says spending about 1/3 of disposable income on shelter - rent or mortgage - is about right. Banks are now stress testing incomes when giving out mortgages very much along those lines.

Louth_101 · 02-05-2011 9:23pm

So spending around 500 is about right then

the groutch · 02-05-2011 10:50pm

really depends on whether you're trying to save as well

Louth_101 · 03-05-2011 7:24am

I still should have around 900left over so I can still save. I know a few friends that live with someone but not many people I know want to move out.

Azureus · 03-05-2011 7:26am

I spend around 500 (€475) on rent and I earn a bit less than you per month so I reckon around that is just fine.

Louth_101 · 03-05-2011 9:23am

Azureus wrote: »

I spend around 500 (€475) on rent and I earn a bit less than you per month so I reckon around that is just fine.

And do you find that you have enough money to do other stuff

Azureus · 03-05-2011 12:12pm

Louth_101 wrote: »

And do you find that you have enough money to do other stuff

Absolutely.
Dont get me wrong, I dont have much leftover at the end of each month usually, but for the last couple of months Ive managed €200 savings per month aswell as clothes shopping and nights out/bowling/cinema etc. Im definately not housebound because of rent.

This is taking into account that I live with my boyfriend though and we share bills/food bills etc-so if you live alone that might be a little higher.

P_1 · 03-05-2011 12:50pm

Living by yourself €550 probably won't get you too much, I'm currently lving with a friend in a flat, the rent is €900 a month between the two of us (€450 each).

Your best bet would be to find yourself a flatmate.

stargazer 68 · 03-05-2011 12:52pm

pithater1 wrote: »

Living by yourself €550 probably won't get you too much, I'm currently lving with a friend in a flat, the rent is €900 a month between the two of us (€450 each).

Your best bet would be to find yourself a flatmate.

Yeah 550 on your own will get you nothing. Check the costs on daft in the area you want to go and it will give you a better idea of the actual cost of renting.

Azureus · 03-05-2011 1:15pm

€500 is enough for places outside of Dublin imo, ranging from €400-650 for apartments in Louth for example where I assumed (possibly wrongly though) that the OP was looking for judging by his username

Louth_101 · 03-05-2011 6:10pm

From Louth so there might be a bit more choice than say dublin only guessing. There are a few 3 bed houses from 500 too 600. A few of the places used to be used as college places but closer estates arrived.

Dont get me wrong there not mansions but very suitable to live in. Might be able to haggle a small bit on the rent.

Quick question are bills like esb and heating generally inclueded in the rent or would they be in addition to the rent. Just trying to make a budget out

Azureus · 04-05-2011 7:36am

In most apartments afaik waste/bins would be covered by the management company, but esb/gas bills would be put into your name. This does vary from landlord to landlord though.
If you want to cut your heating bills get an apartment on a higher floor-im on the fourth floor and pay next to nothing in heating because I get heat from the lower and surrounding apartments

Diarmuid · 04-05-2011 8:22am

Louth_101 wrote: »

From Louth so there might be a bit more choice than say dublin only guessing. There are a few 3 bed houses from 500 too 600. A few of the places used to be used as college places but closer estates arrived. t

If you are renting on your own on a tight budget, then renting a 3 bed house is a bad idea IMHO. They are generally more expensive to run (heat/light) and will have more of an overhead than apartments. Especially if you are going for the budget end of the spectrum, the BER ratings will be low, costing you even more to keep the place.

P_1 · 04-05-2011 9:21am

Azureus wrote: »

In most apartments afaik waste/bins would be covered by the management company, but esb/gas bills would be put into your name. This does vary from landlord to landlord though.
If you want to cut your heating bills get an apartment on a higher floor-im on the fourth floor and pay next to nothing in heating because I get heat from the lower and surrounding apartments

Same here, its bloody fantastic

How much should I spend on rent?

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