How does anyone afford to rent alone?

SpaceCowb0y

I have spent the best part of 6 years now living in shared accommodation or with friends/girlfriend and before that about 3 years in dorms with other travellers in Australia & Spain and i really want my own place now but rents are mad money!

I live in North County Dublin and would like to stay local enough but for anything half decent i'm looking at minimum €1000 or more likely €1100+ by the time you factor in monthly bills etc i'm probably around €1400 deep. I mean i do alright, net salary around €2600 p/m but living off 1200 a month seems a bit tight. Just wondering what people thoughts are and if renting alone just isn't really feasible anymore unless you earn top dollar. I currently pay 500 for rent and bills (which i know is a good deal) so the jump up would be quite significant and even now there's still months where i'm skint for the last week of the month.

Moonbeam

Move out of the city or buy a place.
1200pm after rent and bills is an absolute huge amount to live on.

accensi0n

SpaceCowb0y wrote: »

net salary around €2600 p/m
I currently pay 500 for rent and bills
there's still months where i'm skint for the last week of the month.

:eek:

Squall Leonhart

Personally I could probably afford it, but by afford I mean I could physically pay for it. What was left over at the end of the month would be paltry, and the quality of living in that month would be okaaaay at best. Plus it would completely eliminate any chance of getting any savings together.

zl1whqvjs75cdy

Are you saving all the spare cash op? I'm in a similar situation but I'm skinned cause I'm trying to save for a house deposit. If you're not saving wheres all that money going?

Squall Leonhart

donkeyoaty0099 wrote: »

Are you saving all the spare cash op? I'm in a similar situation but I'm skinned cause I'm trying to save for a house deposit. If you're not saving wheres all that money going?

It does seem like a huge amount to zip through a month. Even after car expenses, bills, etc, you've gotta be blowing through 1200eur or more a month with nothing to show for it if you're not saving?

bmwguy

I bought on my own and am ploughing about 40% of my take home into my house between mortgage, bills, improvements etc.

I know a mortgaged property is a little bit different in that I am happy to do it but looking to rent on your own is always going to be expensive. I assume you will not consider sharing? Its what 90+% of renters do, the main reason is cost.

SpaceCowb0y

donkeyoaty0099 wrote: »

Are you saving all the spare cash op? I'm in a similar situation but I'm skinned cause I'm trying to save for a house deposit. If you're not saving wheres all that money going?

Squall Leonhart wrote: »

It does seem like a huge amount to zip through a month. Even after car expenses, bills, etc, you've gotta be blowing through 1200eur or more a month with nothing to show for it if you're not saving?

Being honest i'm terrible with my money which is my own fault. I have a loan repayment and credit card repayment which comes out and a small amount goes to the credit union each month but besides that i'm not too sure where it all goes. I don't even go out all that much. once a week if even but i can spend a fair bit when i do. I do travel quite a bit though.

SpaceCowb0y

Moonbeam wrote: »

Move out of the city or buy a place.
1200pm after rent and bills is an absolute huge amount to live on.

I don't live in the city, i live in the Fingal area of north county Dublin. Swords/Malahide area. Buying a house is the last thing I want to do. I have zero interest in owning a house right now in my life.

SpaceCowb0y

bmwguy wrote: »

I bought on my own and am ploughing about 40% of my take home into my house between mortgage, bills, improvements etc.

I know a mortgaged property is a little bit different in that I am happy to do it but looking to rent on your own is always going to be expensive. I assume you will not consider sharing? Its what 90+% of renters do, the main reason is cost.

I'm currently sharing so that defeats the whole purpose, as i said in my original post i've been sharing for so long now I want my own space.

Carlos Orange

You need to work out what you are currently spending money on and then decide whether you want to spend less on that and live alone or keep sharing.

Ashbx

Im living alone in Dundrum and currently paying 1100 in rent (not including bills). Its manageable but bloody well tough! I would be on similar money to you. Ignore people when they ask where your money is going. I know 1200 seems like an awful lot but when you have bills, cars, dogs (in my case), travel expense to and from work, food, nights out....the money goes VERY easily!

Im lucky if I can afford to save anything at the end of the month. Unfortunately, its just not a way to live so reluctantly I am looking for a housemate now. Would love to live alone but its just not possible anymore

mel123

It doesnt matter what the OP currently spends their money on, they are not asking questions re expenditure.

OP, on that salary, its going to be very tight for you. Again you factor in rent, broadband, sky tv, gas, electric, possibly bins, possibly water charges, along with what you currently pay out which might be petrol/travel expenses to work, phone bill, your loan, car tax/insurance etc etc, you will be left with very little expenditure to live on afterwards.
The rental market is gone crazy unfortunately.

accensi0n

Ashbx wrote: »

Ignore people when they ask where your money is going. I know 1200 seems like an awful lot but when you have..

I don't think that advice is entirely sound. He stated that there are months where his out-goings after rent/bills are most of 2100 after 3 weeks.

It's worth him tracking his out-goings and making pro/con, trade-off decisions from there.

Idbatterim

I'm currently sharing so that defeats the whole purpose, as i said in my original post i've been sharing for so long now I want my own space.

if you are already in north county dublin, would moving a bit further out make sense to save more in rent?

I have the dilemma you do. Simply I would love to live alone, sharing at the moment. There is no gain without pain. I see no point with the current rents of renting indefinitely (as property prices are semi reasonable, unlike the boom where buying was moronic IMO) and LOL at renting a 1 bed where I live. Renting on my own, wouldnt allow me save anything. If I were you , I would simply share, save as quick as possible and buy...

The value for 1 beds is appalling, sure a 2 bed is only marginally more. I wouldnt ever bother renting in an apartment again either. Get a 3/4 bed house, keep expenses as low as possible while still enjoying a decent quality of life and save save save...

if you are currently paying E500 for rent and bills, that means by your own estimates you are saving E9600 a year v your predictions for living alone. Two years of that and you would wouldnt be long having the money together for a started home...

Ashbx

accensi0n wrote: »

I don't think that advice is entirely sound. He stated that there are months where his out-goings after rent/bills are most of 2100 after 3 weeks.

It's worth him tracking his out-goings and making pro/con, trade-off decisions from there.

My apologies, I didn't realise he was only paying €500 now and still spending his wages! Even still, its no-ones business what he does with his extra money. But yes, speaking from experience, it does seems manageable until something comes up like an illness you need doctor/prescription for, your car tax/insurance is due, your hoover breaks and you need to fork out 100 for another one. Things like this you just cant budget for. OP I wouldn't move out until you are sure you can afford it and that's considering an extra 100/200 a month left over just in case something comes up.

MrMorooka

OP I make slightly less than you at €2400 net, I pay a €1000 rent to live alone, and live quite comfortably. €500 to savings, €100 on bills, maybe €175ish on food, rest on whatever entertainment/other expenses or also to savings at next paycheck.

Like others have said, it's about priorities. On your wage you can definitely afford it. Do you own a car? You probably can't afford that and to live alone. So it's a lifestyle thing. If I had to have a car or had a child or some other big expense it wouldn't work.

Personally I wouldn't mind just buying an apartment instead of dealing with the rental market, but 3.5 x €36000 = not enough for a place I would be comfortable committing to for a decade or two. Kind of a pain because I have a huge deposit saved up but it's pointless with the LTI rule(which I do agree with, before anyone says). I guess I just need to get a higher paying job(because that's easy :rolleyes:)

Butters1979

mel123 wrote: »

It doesnt matter what the OP currently spends their money on, they are not asking questions re expenditure.

his question is specifically "How does anyone afford to rent alone?"

I think people are trying to discuss how much his outgoings are as they seem high.
Basically there are 2 ways to afford to rent alone. Earn more or spend less on other stuff. So questioning what he's spending money on is completely relevant to the question.

OP, you mention credit card? It's not my business so no need to tell me. But in general if you owe a lot on your credit card, that's where to start, as it's money down the drain every month.

You say you're not sure where it's going? When I had this issue of spending too much a few years ago, i did a spreadsheet to keep track of what I was spending and when. I was spending over €100 a month on coffee for example. €150 on credit card interest. I couldn't believe it. In a few months i wiped €500 of my outgoings without sacrificing anything too important to me.

The first step to controlling something is understanding it. Get a budget going, make decisions based on what you find and stick to it. Even if this does not allow you to rent alone, it will at least allow you to save.

MrMorooka

Yes, it's very easy to piss away money on things like getting a chicken fillet roll every day and using the vending machine/nipping to the shop/buying coffee. You end up spending the guts of €10 every single work day on lunch and snacks - that's €200 a month. You need to control that kind of spending if it's an issue for you, since it's 'invisible'.

_Kaiser_

It depends on your stage in life and your circumstances really...

I live alone, but I moved out of Dublin last year when the rents became ridiculous and so now I commute about 45 mins each way (helped by flexible start times and work from home options)
But while I make a fair bit more than the OP, I also have a car and young son to support, as well as a personal loan, so taking that all into account I COULD live in Dublin but I would have very little left afterwards.
I also wouldn't WANT to to be honest - and I say that as a Dub who never thought he'd leave the city a decade ago but did in 2008 and preferred it. Dublin does nothing for me anymore and all my friends moved out in the Good Times anyway so they're all over the place too.

At least this way I'm halfway between my office and my son and can still buy him and myself nice things as well now and then. A mortgage will probably not happen at this stage anyway regardless of the above as I'm getting old so I'll probably save and buy somewhere for cash when I retire (when commuting distances to work aren't important) or emigrate to somewhere nicer

Idbatterim

Personally I wouldn't mind just buying an apartment instead of dealing with the rental market, but 3.5 x €36000 = not enough for a place I would be comfortable committing to for a decade or two. Kind of a pain because I have a huge deposit saved up but it's pointless with the LTI rule(which I do agree with, before anyone says). I guess I just need to get a higher paying job(because that's easy )

but you have a large amount saved, if the property is 200k, you wont meet that LTI criteria, but you dont need to if you have X saved...

Unless you are getting a great deal on rent or really dont have another choice, deciding not to make some small changes, so that you can get your own place, makes no sense to me...

El_Dangeroso

OP I highly recommend using the app expensify (or some other budgeting app) to log every last penny of your expenditure for one month.

You can create categories to assign so groceries, eating out, entertainment, alcohol, coffees, magazines etc can all be logged.

At the end of the month you'll see easily what you can cut back on.

Even having to log the spending will make you think twice. The first month I used it I ended up with €500 left over at the end of the month that I think just came from thinking twice about impulse buying.

stefanovich

Moonbeam wrote:

Move out of the city or buy a place. 1200pm after rent and bills is an absolute huge amount to live on.

That's the opposite of huge.

Sleepy

OP, I was where you are in my late 20's. I'm in my mid-thirties now and, while my salary has gone up, I'm still struggling to buy a house. I wish I'd had more sense with my money before I had a family. Clear the credit card and loans and start saving 10-20% of your salary every month.

enfant terrible

MrMorooka wrote: »

OP I make slightly less than you at €2400 net, I pay a €1000 rent to live alone, and live quite comfortably. €500 to savings, €100 on bills, maybe €175ish on food, rest on whatever entertainment/other expenses or also to savings at next paycheck.

Like others have said, it's about priorities. On your wage you can definitely afford it. Do you own a car? You probably can't afford that and to live alone. So it's a lifestyle thing. If I had to have a car or had a child or some other big expense it wouldn't work.

Personally I wouldn't mind just buying an apartment instead of dealing with the rental market, but 3.5 x €36000 = not enough for a place I would be comfortable committing to for a decade or two. Kind of a pain because I have a huge deposit saved up but it's pointless with the LTI rule(which I do agree with, before anyone says). I guess I just need to get a higher paying job(because that's easy :rolleyes:)

The banks can make exceptions for clients with good credit history like raising the LTI to 4.5.

MrMorooka

Idbatterim wrote: »

but you have a large amount saved, if the property is 200k, you wont meet that LTI criteria, but you dont need to if you have X saved...

Unless you are getting a great deal on rent or really dont have another choice, deciding not to make some small changes, so that you can get your own place, makes no sense to me...

Yes, I suppose you're right. If I continue saving for 3 or 4 more years and my wage remains the same or goes up, and prices are similar to now, I should be able buy a decent 2 bed apartment. I'd be 30 by then. To be honest I somehow didn't realise that, that I can buy a property worth $deposit + $morgage, not just $mortgage..

Like you say, I suppose I could also go very frugal and live with my parents and save 2 or 3 times more than I do now and build up a very large deposit to buy somewhere sooner than that. But I think for now I am much happier with my lifestyle this way so I will just hold out for as long as I can, and just hope I can manage any rent increases.

MrMorooka

enfant terrible wrote: »

The banks can make exceptions for clients with good credit history like raising the LTI to 4.5.

That's true, but I'd rather plan based on the more common case rather than relying on an exception.

Vahevala

MrMorooka wrote: »

OP I make slightly less than you at €2400 net, I pay a €1000 rent to live alone, and live quite comfortably. €500 to savings, €100 on bills, maybe €175ish on food, rest on whatever entertainment/other expenses or also to savings at next paycheck.

100 on bills.. gosh I wish I had as little bills as that :eek::pac:

SpaceCowb0y

Thanks everyone for the input, all taken aboard and appreciated.

like i said i know i am bad with my money, it really does seem to just disappear on me each month and its definitely something I need to get on top of.

That said, i hate this idea of i need to save to buy a house. Honestly i don't want to buy a house and i hate that everyone in this country thinks its a must. I don't know if i ever want to be tied to a mortgage and be stuck in the one place forever but at the same time i have to live somewhere.

Looks like i'll be stuck in a shared accommodation situation forever or at least until i win the lotto!

thierry14

Vahevala wrote: »

100 on bills.. gosh I wish I had as little bills as that :eek::pac:

I love these 40 a week on food posts.

How do they do it

MrMorooka

Vahevala wrote: »

100 on bills.. gosh I wish I had as little bills as that :eek::pac:

Actually, I am underestimating it, now that I actually check.

Meteor is €30, Virgin is €50, BGE is €50, so my bills are actually ~€130. Obviously, I don't have a car or any debt. I paid contents insurance upfront for a year so it's not really a monthly bill.