What percent of income do you spend on housing? - Mothering Forums

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#1 of 24 Old 06-30-2014, 10:59 AM - Thread Starter
 
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What percent of income do you spend on housing?

I have been trying to get my budget back on track and realize there just isn't much I can do atm other than just live the way things are.

I watched and read about how much housing should cost and I am spending a whooping 45% of my income on rent/utilities. I realize my budget is at or under the normal amount for everything except this one category. My food budget is tiny as well as my car expenses in comparision to this category. I live in one of the most affordable places I can in my town. 895$ per month for a three bedroom two bath duplex. In addition I have to pay all utilities and mow my own lawn.

The recommendation is 35% at MOST.

SO what is everyone else spending to live where you are?
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#2 of 24 Old 06-30-2014, 05:16 PM
 
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I live in HUD housing thankfully now so my rent is a flat 30% that varies if my income does(I quit my job recently to do a housing-sanctioned CNA training class so they adjusted down). But before I moved here 4 months ago, I was paying 68% of my income to rent in a bad neighborhood in a small place. It was no fun. And we did it for a bunch of years. So it CAN be done but you definitely have to skimp in other places and it's not easy. 30% plus extra for utilities, etc. makes me feel rich.

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#3 of 24 Old 06-30-2014, 05:43 PM
 
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I live in HUD housing thankfully now so my rent is a flat 30% that varies if my income does(I quit my job recently to do a housing-sanctioned CNA training class so they adjusted down). But before I moved here 4 months ago, I was paying 68% of my income to rent in a bad neighborhood in a small place. It was no fun. And we did it for a bunch of years. So it CAN be done but you definitely have to skimp in other places and it's not easy. 30% plus extra for utilities, etc. makes me feel rich.
I don't know what the % is but it has to be high...I am on unemployment and receive $167 a week...my rent alone is $510..Thankfully my car insurance is pd for another 6 months..I still have my gas and electric...trying not to freak while I job hunt...I wish Hud would call...
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#4 of 24 Old 07-02-2014, 08:42 AM
 
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We bought an avg priced old house long ago & fixed it up ourselves. We paid off the mortgage as soon as possible: refinanced twice, & now we own it outright. It's worth 2.5 times what we paid for it. If I could do it again, I would have bought a smaller/more efficient house and paid off the mortgage even more aggressively. We lived 25 years here as a family & have 40+ years ahead as a couple. For those 25 years I think we could have managed just fine with less house and would have had more $. However, we love our house now & are happy to stay here. If we were still paying for it we would probably ditch it for something cheaper. I didn't think & plan about the future & housing as much as I wish I had when I was a mother of a young child.
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#5 of 24 Old 07-02-2014, 07:17 PM
 
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I spend about 30 percent on rent. Utilities are more. I am in a two bedroom and sharing a room with my son so I need something bigger but can't afford it.
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#6 of 24 Old 07-04-2014, 05:27 AM
 
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I am moving from a low cost of living city to a high cost of living city.

In my low cost city I was making more then average and had bought a fixer upper; I was paying 16% of net income on mortgage/taxes/pmi. If I tried to buy/have this same house w/ my same income in the new city I am moving to, the house, in a similar urban neighbourhood, would now be worth about 600,000+ and I would be paying approx 50% of that income on it. Needless to say, I have neither job nor apt in new city but I suspect I will be paying approx 40 - 50% of income and the apt & income will both be smaller then I had in the old city. Nuts!

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#7 of 24 Old 07-04-2014, 01:12 PM
 
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We spend about 14% of our take home pay on a 3 bedroom duplex in a med-high cost of living town of 50,000. It is a tight squeeze to fit 2 adults and 4 kids here, but this was the cheapest place we could find.

We are saving to buy a house of our own and we we calculate our new mortgage (taxes, insurance, etc) to be somewhere between 20% and 24% of our take home pay. I would like it even lower, but a starter home in this town is about $250,000.
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#8 of 24 Old 07-04-2014, 01:44 PM
 
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With dh's new job change our current rental will now be about 12% of our bring home pay. We moved into this rental a couple of months ago to save money. It's a 2 bedroom, 1 bath and we have a family of 5 but it's working out fine. We moved here to save money so that we can eventually build on the land we have or sell it and buy something else after saving some money. Our rent was about 20% of our income before moving into the slightly cheaper rental and dh getting a pay increase.

Utilities are more but our small rental is actually not much more. Even with utilities we come in at about 15% of our income now.
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#9 of 24 Old 07-05-2014, 07:53 AM
 
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I will be paying approx 40 - 50% of income and the apt & income will both be smaller then I had in the old city. Nuts!
Ouch! Is the move really worth it?? I hope that you are able to find a good deal and keep that number as low as possible!
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#10 of 24 Old 07-05-2014, 09:08 AM
 
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When my husband and I first married 37 yrs ago, we paid $190 for rent and we both worked fulltime. It was 25% - that was the rule of thumb at the time.

Later, we bought a house, we both worked fulltime, and we paid $515.00 for PITI. It was 35% for a while.

Anything over 30% is criminal. People have to eat, pay insurance, maintenance, utilities and wear clothes!
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#11 of 24 Old 07-05-2014, 08:58 PM
 
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Or mortgage is currently over 50% of our monthly take-home income.

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#12 of 24 Old 07-06-2014, 11:31 AM
 
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We are at 52%

Hello all! I am a Mom in Chicago and we pay 52% of our net pay on a 675 square foot, "2 bedroom". We pay rent and all utilities except garbage so it is a little more than one of Hubby's biweekly checks each month. We share internet with our 3 neighbors (we are in a 4 unit building) and have cheapie pay as you go phones with the least expensive plan. *grin*

Hubby and I have looked at moving but anywhere that is the same rent is similar to what we already have (before we fixed it up) only farther away from his job (increased commuting costs), or dangerous. To move and start over (scrubbing, painting, getting cabinets off freecycle) and the crap shoot of who you will get for neighbors makes me freak out just thinking about it.

Anywhere less expensive is scary dangerous and I feel like I have "done my time" in dangerous areas and used up all my luck not getting severely hurt. Also, we want our child to grow up somewhere where physical violence is an oddity. She shouldn't have childhood memories of that terrified feeling of running as hard and fast as you can to get away to avoid getting hurt, or seeing me or her Dad get beat up or having to hide inside all summer with bars on the windows.

At the end of the day, we really feel so lucky to have found a rental for $1,000 a month and approx $400 for utilities (gas, water, electric, all of which we get to control so we can be frugal). We have been here 6 years and love our neighbors and even when I am completely stressed out about money, I am SO GRATEFUL we have a SAFE place to live.

I am looking forward to returning to work when our little goes to all day 1st grade this September. We will not worry about rent as much and might be able to open a savings account and save some money!

I think that suggested number of "32% of income on housing" has never been accurate. My parents both worked full time and spent closer to 50% (mortgage, taxes, utilities). I asked my Grandmother what percentage of my Grandfather's pay was spent on housing and she said in the 40's & 50's it was close to 60% (mortgage, utilities, taxes) and then much less when she went to work in the early 60's (as a telephone operator!!! talk about obsolete occupations!) My Great grandparents spent even more; the adult men all had jobs for pay that barely covered the mortgage and taxes, sometimes they didn't have electric to save money. The teenagers (male and female) worked part time jobs for money for clothing, winter heating oil, fancy food from the grocery store and the Mothers and younger children worked at home growing gardens, sewing clothing, fixing up the house, raising chickens, etc. They had outhouses and chopped firewood to stretch the heating oil and only had heat on the first floor rooms of the house. LOL!
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#13 of 24 Old 07-08-2014, 02:49 PM
 
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We pay 26% of DH's take-home income, after 10% contribution to 401k. We're a single-income family. We live in a high-COL area. Our house is very humble, but close to DH's work.

ETA: We're renting. I would be willing to pay more if we owned. We moved from across the country a year ago.
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#14 of 24 Old 07-09-2014, 08:31 AM
 
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Well over 50%. My paycheck varies (hourly wages), but my rent doesn't. I am looking to increase my income by adding a second job, home business, or finding a higher paying job. It is really a shame that a full-time job is not enough to live on. Something is very wrong in our economy.
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#15 of 24 Old 07-09-2014, 09:01 AM
 
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It is really a shame that a full-time job is not enough to live on. Something is very wrong in our economy.
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#16 of 24 Old 09-04-2014, 01:51 PM
 
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I use 25% of my income for rent, which includes all utilities apart from electricity. It also includes extra for three pets and HOA fee. Compared to what else is available this house is a huge bargain, and I have told the landlord that. I signed a 2 year lease, and have already extended it (with no rent increase) so will not have to think about moving out until November 2015.
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#17 of 24 Old 09-04-2014, 02:50 PM
 
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Ours is about 30% + electricity (lights only, heating is included). We live in a "bad" neighborhood though and if we didn't the price would be 40-50% for a similar sized apartment with the same amount of rooms. I don't think this place is too bad though, it is mostly considered bad because the houses are older and the area is perhaps not as pretty but it is not dangerous and I never feel unsafe here.

We just moved to a bigger place now so we have plenty of space I can almost see us living here until we are old and want to retire. I love our 3 bedrooms instead of one bedroom and the fact that we have two bathrooms. The kitchen is a good as in the old place and the living room is almost exactly the same as in our old place. (The two apartments are in the same house and the layout of the kitchen, one bathroom, the master bedroom and the living room is basically the same only that we now have two more rooms and a bathroom added to one side)
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#18 of 24 Old 09-04-2014, 03:28 PM
 
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Remember if you own a home, the property taxes, homeowners' insurance, utilities, any HOA fees, as well as the principal and interest and maintenance go into your costs of housing.
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#19 of 24 Old 09-04-2014, 04:10 PM
 
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For the past few years we've spent about 30-35%. (I think- did the math quickly. About $8K in taxes annually, $2,200/mortgage, not sure what insurance is. I don't think you count utilities and such. Do you?) For the next 18ish months our mortgage alone will 120% of our income! But we prepared to be bringing in less than we spend and think we'll be able to handle it for that amount of time.

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#20 of 24 Old 09-04-2014, 06:52 PM
 
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18%... that includes mortgage, property taxes, insurance, city utilities (garbage/water) and electricity.

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#21 of 24 Old 09-08-2014, 08:31 AM
 
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10% which just includes mortgage, tax and homeowners ins.

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#22 of 24 Old 09-08-2014, 06:26 PM
 
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17% for mortgage taxes and insurance.
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#23 of 24 Old 09-08-2014, 06:28 PM
 
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If you add water, tv, electric, garbage, phones and water softener rental 36%
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#24 of 24 Old 09-09-2014, 04:11 PM
 
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Until very recently its always been about 80% of our income went to rent/utilities. Now its locked at 30% and it is such a relief!
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Seriously?
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