How does anyone afford to rent alone?

Vahevala

MrMorooka wrote: »

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.

ah ok. I pay Virgin 146 on its own lol!

I think because I am eating healthier, most of my money goes on that! lol.

SpaceCowb0y

i should probably clarify 500 on rent and bills means:

1 room in a share house for a month with TV and Electricity

I still have a car which i need to run, tax and insure. as well as the credit card and loan and phone bill. I worked it out before and my outgoings not including food for a month as it stand is around €850/900

i then manage to wax the rest on whatever.

Obviously if i get my own place there will be other bills to consider. bins/water/gas etc on top of the rent. Seems living alone is a lost cause the more i think of it.

Ursus Horribilis

SpaceCowb0y wrote: »

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.

What you could try is taking a fixed amount of money out of an ATM and try to make it through the week on that. It's very easy to fritter money away when you're just using a plastic card and dipping in and out of an ATM at will.

MrMorooka

SpaceCowb0y wrote: »

Obviously if i get my own place there will be other bills to consider. bins/water/gas etc on top of the rent. Seems living alone is a lost cause the more i think of it.

It's not possible for you because you have the car costs, it's as simple as that.

SpaceCowb0y

MrMorooka wrote: »

It's not possible for you because you have the car costs, it's as simple as that.

FML. yeah i was afraid of that.

VisibleGorilla

With a salary of €40,000+ you should be able to live alone.

Ursus Horribilis

MrMorooka wrote: »

It's not possible for you because you have the car costs, it's as simple as that.

How so? I earn roughly the same as the OP and live alone. I have a mortgage so I've extra bills a renter won't have. I also run a car. It is eminently doable but you have to keep an eye on your outgoings and do some budgeting. For anyone, and not just our OP, keeping an expenditure diary can be an eye opener.

syklops

Odus fell down wrote: »

What you could try is taking a fixed amount of money out of an ATM and try to make it through the week on that. It's very easy to fritter money away when you're just using a plastic card and dipping in and out of an ATM at will.

Thats good advice and a good place to start. Another thing to think about OP, there are on average 22 days of work a month. The days you go to work are the days you are likely to spend more money, often just out of boredom so watch what you spend on your days of work.

For example, if you have the standard filling station chicken fillet roll and a bottle of water every working day for 5 euro, then your monthly spend on chicken rolls is 110 euros in a month.(5 x 22)

Likewise, if you always have your skinny latte on the way into work from the coffee shop on the corner, with the conservative estimate of 2.50 for the coffee then it becomes 55 euros a month on coffee.

Now obviously, you need to have lunch and maybe you need a coffee in the morning, but if you buy the ingredients in the supermarket and make it yourself at home, you can have your lunch every day for 1-2 euro a day maximum. Saving you 70+ euros a month.

I find the more money I have at my disposal the more I will spend. So have a savings account you can put money into, and don't go "Whatever I have at the end of the month I'll save", because using that approach you won't have anything at the end of the month. Instead put 10 or 20 percent into your savings account when you get paid, and when you make a saving in the month, like the chicken roll savings above, put that saving into he savings account. You'll be amazed at how it starts to add up. After a while you will be saving 3 or 400 a month and you can then decide to either stay as you are and keep saving, or look for your own place, knowing you can now afford much closer to the rent than what felt possible before.

Squall Leonhart

syklops wrote: »

I find the more money I have at my disposal the more I will spend. So have a savings account you can put money into, and don't go "Whatever I have at the end of the month I'll save", because using that approach you won't have anything at the end of the month. Instead put 10 or 20 percent into your savings account when you get paid.

Bingo.

Put your savings away immediately when you get paid and look at what you've left and make your living choices off of that number and just forget all about your savings pot.

sKeith

MrMorooka wrote: »

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:)

MrMorooka.

Example: If you wanted to buy apartment for 200k on salary of 36k you would need a deposit of 74k. The ltv would be 63%. The repayment over 30 years would be 600 per month. you would need to save more to cover 1% stamp duty + solicitor fees. Its possible, even with lti you mention. Just figure it out. Moving home would make it possible the quickest but it huge sacrofice.

Squall Leonhart

sKeith wrote: »

MrMorooka.

Example: If you wanted to buy apartment for 200k on salary of 36k you would need a deposit of 74k. The ltv would be 63%. The repayment over 30 years would be 600 per month. you would need to save more to cover 1% stamp duty + solicitor fees. Its possible, even with lti you mention. Just figure it out. Moving home would make it possible the quickest but it huge sacrofice.

The thoughts of trying to pull together a 74K deposit...
:eek::(

Greenmachine

Going to sound like a bore will throw out a few generalizations here cross out any that don't apply. Here where your money could be going.

Starbucks coffee on the way to work. €3 each morning *5 = €15 * 48 = €720
Lunch in work/ Subway/ Costa Etc. €7 each day * 5 = €35 * 48 = €1680
Takeaway once per week .................€12................................*48..€ 576
Grocery .................per week €60.................................*48 €2880
(great potential here to spend a lot in some small expensive shops in conveniences stores)
Pints and a takeaway once per month ... €70........................****12 €840
Taxi home..........................................€25..............................*12 €300

Thats about €6400 of expenses right there potentially. What about clothing, do you give your self a monthly clothing budget or just buy clothes whenever?
In a house share some of the minus are have to change the best laid plans at the last minute. That strip-loin, you plan on cooking after work, Oops Raul; your flatmate forgot to tell you he planned to tell you he was entertaining friends tonight.
You want to change electricity provider to get a better deal, better hold a meeting with the other housemates. etc etc. No chasing housemate up for their share of the rent. No old food in the fridge and no wondering whose turn it is to clean the shower. Plenty of advantages to going it alone.

pwurple

Squall Leonhart wrote: »

sKeith wrote: »

MrMorooka.

Example: If you wanted to buy apartment for 200k on salary of 36k you would need a deposit of 74k. The ltv would be 63%. The repayment over 30 years would be 600 per month. you would need to save more to cover 1% stamp duty + solicitor fees. Its possible, even with lti you mention. Just figure it out. Moving home would make it possible the quickest but it huge sacrofice.

The thoughts of trying to pull together a 74K deposit...
:eek::(

But the 200k of repayments are aok?

Irishcrx

SpaceCowb0y wrote: »

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!

I think a lot of young single people have that view on buying property, but the truth is the majority of them will change that tune down the line when they end up settling down 'falling in love; having a family etc...suddenly they then want the benefits that comes with buying your own property , it's a sound financial decision also weather you buy early or late, the fact is you'll pay less in a mortgage than in rent by a decent margin and personally I hated having to move out of a property and finding a new place to live I wanted some structure and I was very early twenties (21) and single when I bought my house , it was a long term decision I made to start setting myself up and Im really glad I did now. I still had a lot of fun through my twenties if anything it benefited me and gave me a lot of freedom.

But for me anyway, I like being able to do thing's with the house , I like that those thing's are my decisions and not a landlords...I like picking out new kitchens with my girlfriend , painting them what colours I want...picking out furniture...installing a decking and chilling out there in the summer with my other half and son...

Maybe I was 29 before my time , but there is definate benfits to owning a property down the line and especially with the rental market the way it is now..

keane2097

YNAB would be a good place for OP to start.

Sheep in a field

Rent is indeed very expensive. I don't know how more people don't end up roughing it in tents. Camping for a weekend is one thing..no wonder homelessness is on the rise.

Ashbx

Odus fell down wrote: »

How so? I earn roughly the same as the OP and live alone. I have a mortgage so I've extra bills a renter won't have. I also run a car. It is eminently doable but you have to keep an eye on your outgoings and do some budgeting. For anyone, and not just our OP, keeping an expenditure diary can be an eye opener.

In my experience, my friends who own their own house are paying a lot less on mortgage payments than what I am paying on rent. I know it obviously depends on certain circumstances but three of my friends who own their own houses (in tallaght, rathcoole and rathmines and I live in Dundrum) are all paying significantly less than I am.

Its the saving for the deposit that's the issue!

Ursus Horribilis

Ashbx wrote: »

In my experience, my friends who own their own house are paying a lot less on mortgage payments than what I am paying on rent. I know it obviously depends on certain circumstances but three of my friends who own their own houses (in tallaght, rathcoole and rathmines and I live in Dundrum) are all paying significantly less than I am.

Its the saving for the deposit that's the issue!

Perhaps, but there are also costs involved with the maintenance of a house which someone who rents won't be facing into. Anyway, my point is that if the OP gets better at handling his money and wants to live alone, it is possible. It depends how badly he wants it though. He said he travels a lot. If he does, then that may be something he'll have to dial back on.

Edit :I agree about the deposit. I house shared to get the money together for buying a house. I was happy to live there because it was a means to an end and I wanted to buy a house. The OP has different aspirations :-)

MrDerp

The biggest barrier to living alone is that you're competing with couples for the same properties, driving up the price of 1 beds. 2 people on 20k will net more money than 1 person on 40k due to tax credits etc, and will be willing to put more of their overall net pay into renting a nice place.

I never lived alone before I moved in with my now wife, because I found the cost too difficult to justify, and I wouldn't have been spending anything like the OP on entertainment.

There's some good advice on this thread, now is the time of your life to get saving and try to have 10K banked for if/when you meet someone and want to buy a place together down the line. It's very hard to build up a deposit, especially now, if you're only starting to save when you feel ready to settle down.

Ashbx

Odus fell down wrote: »

Perhaps, but there are also costs involved with the maintenance of a house which someone who rents won't be facing into. Anyway, my point is that if the OP gets better at handling his money and wants to live alone, it is possible. It depends how badly he wants it though. He said he travels a lot. If he does, then that may be something he'll have to dial back on.

Edit :I agree about the deposit. I house shared to get the money together for buying a house. I was happy to live there because it was a means to an end and I wanted to buy a house. The OP has different aspirations :-)

Oh totally agree. I mentioned in my original post that you always needs to set aside a couple of quid for when things break! Defo a pro to renting in that sense. Something breaks....just call the landlord!

Odus fell down

To answer the op's question it depends on how much you really want to spend on accommodation. I could afford to pay 1000 to 1200 in rent and still live a good lifestyle as I am with going out one or twice every week, eating out once or twice a week, buying a nice lunch everyday, buying any tech items I want, running a car etc etc but I would not be saving a cent.

I detest house sharing but I do it so that I can divert the difference between my rent and renting alone into saving for a deposit for my own place while still being able to spend on things on want to every month. I see housesharing as a means to an end and a faster way of owning my own palce. It would also absolutely pain me a lot to have to hand over the amount of money it would cost to rent alone, I don't know if I could make myself do it as you have nothing to show for that rent compared to spending it on your own mortgage.

Odus fell down wrote: »

Perhaps, but there are also costs involved with the maintenance of a house which someone who rents won't be facing into.

The difference between rent and mortgage can be very significant though. 300 to 500 per month less for the mortgage vs equivalent rent would not be unheard of.

If your fridge breaks for example and costs a few 100 to replace that's still only giving you a similar outgoing to a renter and its only that month. In my current place now for two and a half years and one radiator, a leaky tap, a small leak from a pipe, a boiler service and a few new blinds is the sum total of the work/maintenance required to be done by the LL. The whole lot would be barely 1k in 2.5 years.

Hrududu

Ashbx wrote: »

In my experience, my friends who own their own house are paying a lot less on mortgage payments than what I am paying on rent. I know it obviously depends on certain circumstances but three of my friends who own their own houses (in tallaght, rathcoole and rathmines and I live in Dundrum) are all paying significantly less than I am.

Its the saving for the deposit that's the issue!

Yeah people tend to always say that you'll pay less per month with a mortgage than you would with rent. But I always compare like with like. So I look at apartments for sale in the area I rent and a mortgage repayment for those is similar if not a little more than what I pay in rent. For Dublin anyway I think you'd only see a big decrease in rent vs mortgage if you move to a different area i.e. like your example Dundrum vs Tallaght.

dearg lady

Like Sebastian Incalculable Income I view house sharing as a means to an end, but after a couple of bad experiences I'm now seriously considering renting alone. Every time I think seriously about it tho I just can't justify it. And I don't really see things changing in the short or even medium term. There simply isn't enough supply

Chris_5339762

Hrududu wrote: »

Yeah people tend to always say that you'll pay less per month with a mortgage than you would with rent.

True, and I do. I pay far less on my apartment mortgage than I would if I rented it. Its frightening the difference.

That said, every penny of "the difference" any every saving I have gets ploughed back into the mortgage so "the difference" isn't that much on a month to month basic.

Now, of course I'll have it paid back and won't have any mortgage outgoings, but thats away off in the future.

TG1

I commute from kildare every day so I can live on my own, the petrol costs are ridiculous but I can live in a 1 bed house for the cost of a room in a house share in Dublin so it works out cheaper than the option of renting a 1bed in Dublin.

It's not easy but after a disaster with a crazy homeowner renting a room I would rather give up two hours to travel than give up my sanity to a house share!

Kai123

I rent a room in D15 and live with my landlord. My rent is 600 euro (bills included).

I'll be moving out in a few months to save my sanity. My savings will most likely be a quarter at what they are now but as long as I have savings its OK. I figure its a price worth paying at this point. I've been here for a year and have a good bit saved. That might be a good option for the OP. Stick it out as long as possible and have a nice safety net and/or enough to give you possible options down the line, and then rent a place for yourself.

Mrs OBumble

OP, another option for you to consider is getting a job in an area where rents are lower.

Neon_Lights

SpaceCowb0y wrote: »

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.

Have you got enough saved as a deposit on a Gaf? That would be your best option buying and putting your money against an asset as opposed to letting that 1400 go to waste each month yeno

mvt

Slightly getting away from the OP's question is it fair to say that anywhere in Europe that there are decent jobs it would be expensive for a person to live on their own.

I mean London, Paris, Madrid & so on.

Or is it just Dublin?

Sheep in a field

mvt wrote: »

Slightly getting away from the OP's question is it fair to say that anywhere in Europe that there are decent jobs it would be expensive for a person to live on their own.

I mean London, Paris, Madrid & so on.

Or is it just Dublin?

Look up world rent index numbeo have an interesting map. Dublin in red.