Bogleheads.org

by **crowd79** » Mon Mar 11, 2013 3:01 pm

I currently spend exactly 20% of my income to rent my 1 bedroom apt in the city, minus utilities. Wondered about others? Fire away....

by **livesoft** » Mon Mar 11, 2013 3:02 pm

0%. Thanks for asking!

Taxes and insurance: about 3.5%.
Next someone is going to ask about utilities: So for us that's a fraction of the taxes.

by **climber2020** » Mon Mar 11, 2013 3:05 pm

6.3 %

by **Aptenodytes** » Mon Mar 11, 2013 3:13 pm

8%, but the number is meaningless out of context. I could make it zero if I wanted to but I choose not to. I could make it higher if I chose to but don't want that either. For many people the normal trajectory is for the mortgage to be sticky if not flat, and then to drop to zero; but for income to go up. So where you are on the career path shapes the percentage a lot. In graduate school I think I paid 40% of my income in rent.

by **rr2** » Mon Mar 11, 2013 3:21 pm

About 11%.

by **Peter Foley** » Mon Mar 11, 2013 3:22 pm

My mortgage is paid off. However, if I were to include my lake cabin in addition to my primary residence, the property taxes = 10% of our gross income.

I now pay as much in property taxes on my primary residence as I did on my mortgage on my first house (33 years ago).

by **gkaplan** » Mon Mar 11, 2013 3:24 pm

30.79109426811937%

by **feh** » Mon Mar 11, 2013 3:27 pm

0%

If we include property taxes, it's 4-5%.

by **fizxman** » Mon Mar 11, 2013 3:29 pm

About 8%

by **mhc** » Mon Mar 11, 2013 3:43 pm

0.0000000%

by **Toons** » Mon Mar 11, 2013 3:47 pm

by **Mill** » Mon Mar 11, 2013 3:49 pm

10% takes care of rent.

by **CharlieSue** » Mon Mar 11, 2013 3:51 pm

I personally spend 11.5% of my monthly gross on my half of rent. With my husband-to-be, we spend 14% of our combined monthly gross. Of our combined annual gross, in 2012 it was about 10.3%.

by **mikestorm** » Mon Mar 11, 2013 3:53 pm

23.77% Includes principal, interest, insurance and RE taxes. Relatively new home purchase. I live in Mass, and while (over the past five years) housing pricess dipped less around here than the natural average, they did dip. I capitalized on this and bought (at the time) more house than we need.

Now the context: I got married in September 2011 (this is our first house together) and my wife is pregnant with our first. God willing, we plan on having at least one more, with each child making our big house exponentially smaller :happy

We plan on raising a family and growing old in this house.

by **chaz** » Mon Mar 11, 2013 4:06 pm

0%. No rent and no mtg.

by **Default User BR** » Mon Mar 11, 2013 4:06 pm

Which gross? AGI? Total wages? Plus earnings? Do home equity loans count as mortgage? Requiring people want to know!

Brian

by **MnD** » Mon Mar 11, 2013 4:08 pm

6.1% for a 2500SF house.
Of that, 13% is interest and 87% is principal repayment.

by **red5** » Mon Mar 11, 2013 4:13 pm

principle and interest - 20.4%
principle, interest, taxes, insurance - 25.4%

by **22twain** » Mon Mar 11, 2013 4:23 pm

Now: 0%

When we bought the house, our payments were about 12-13% of our combined gross income. Just before we finished paying it off, about 5%. At that time, and since then, property tax, insurance and utilities have been about 5% also.

by **kamo** » Mon Mar 11, 2013 4:36 pm

7.5%, and decreasing I expect (unless my gross income goes down)

by **MathWizard** » Mon Mar 11, 2013 4:40 pm

between 8 and 9%

by **Confused** » Mon Mar 11, 2013 4:41 pm

10% - $400 out of $4,000.

by **davebarnes** » Mon Mar 11, 2013 4:48 pm

4.4% for PI
7.4% for PIT

by **boknows** » Mon Mar 11, 2013 4:50 pm

Mortgage + Property Taxes + insurance = ~14% gross income.

by **OAG** » Mon Mar 11, 2013 4:50 pm

Exactly 0%. (tried 0% but minimum characters is 5).

by **Quickfoot** » Mon Mar 11, 2013 4:54 pm

We currently rent an almost new 3 bedroom house and spend 8% of our gross income in rent. I've previously owned two houses and have spent as much as 15% of my gross income on mortgages.

We will be buying in the next two years and I will not spend more than 12% gross income on the base mortgage payment because I don't want to be house poor.

by **michaelsieg** » Mon Mar 11, 2013 5:05 pm

Our mortgage payment is 23% of our after tax (net) income, consisting of: Interest( 8%), principal(11%), taxes (4%)
Despite a 3.125% APR I want to pay it off as fast as possible.

by **nirvines88** » Mon Mar 11, 2013 5:10 pm

10% (before taxes, FICA, etc.) of income on rent. This does not include utilities nor internet.

by **Khanmots** » Mon Mar 11, 2013 5:13 pm

Mortgage + Property Taxes + Insurance = ~10% gross
Extra principle paid = ~8% gross

by **Jake46** » Mon Mar 11, 2013 5:24 pm

0%. Thank you very much

by **AnimalCrackers** » Mon Mar 11, 2013 5:29 pm

11.9% Includes principal, interest, insurance and RE taxes.

by **bourg** » Mon Mar 11, 2013 5:39 pm

4.9% but like others have said the number is pretty meaningless as I could refinance or pay it down depending on where I wanted it to be.

by **empb** » Mon Mar 11, 2013 5:45 pm

Salary: £4,000.00
Rent: £1,200.00 (and that's with 2 flatmates!)

So about 30% but realistically, it's about half that after bonus. London is a depressingly expensive place to live.

by **midareff** » Mon Mar 11, 2013 5:46 pm

about 10% .. maybe 7% after tax adjustments.

by **Clearly_Irrational** » Mon Mar 11, 2013 5:48 pm

My situation is kind of complicated due to the fact that I have rental properties and live in half of one of them. Using the rental equivalent amount I bill myself and not counting our rental property income or portfolio income, just gross wages for the two of us we're looking at 12%.

by **awval999** » Mon Mar 11, 2013 5:48 pm

I think you need to include property taxes in the mortgage calculation because it's implicitly included in a rent payment.

Rent = 10.6% of gross monthly combined income

by **EmergDoc** » Mon Mar 11, 2013 5:50 pm

10%. It was more before my income came up to this level and will be less as it goes up a little more. I usually recommend no more than 20% including utilities and maintenance, but that's tough on a lower income and in some areas of the country. I also recommend the amount of the mortgage be under 2X your income, and I'm at around 1X now.

I actually do include property taxes and insurance because they're escrowed, but if you want something to be comparable to rent you should include other things too like depreciation, maintenance, buying/selling costs etc. It gets impractical after a while.

by **mrspremise** » Mon Mar 11, 2013 5:55 pm

8.4% for PIT
6.2% for PI

by **downshiftme** » Mon Mar 11, 2013 6:10 pm

I think you need to include property taxes in the mortgage calculation because it's implicitly included in a rent payment

So should the 0% paid off mortgage crowd revise their estimates to include property taxes and insurance?

by **Tortoise** » Mon Mar 11, 2013 6:13 pm

Mortgage Was 14%. It's now 0%. Taxes and insurance are around 3%

by **awval999** » Mon Mar 11, 2013 6:23 pm

downshiftme wrote:
I think you need to include property taxes in the mortgage calculation because it's implicitly included in a rent payment

So should the 0% paid off mortgage crowd revise their estimates to include property taxes and insurance?

I think so. In my opinion of course. I suppose you don't need to include insurance because it "is" optional with no mortgage but I'm quite sure you wouldn't get very far telling the city/county you weren't going to pay the property tax. Pretty sure you'd come to realize you aren't getting away with "0%". I think that story would end with the Sheriff coming with guns a' blazin.

by **czeckers** » Mon Mar 11, 2013 6:27 pm

Mortgage 10%, taxes 5%, other housing costs (utilities, insurance) another 5%.

by **G12** » Mon Mar 11, 2013 6:30 pm

0%. Roughly 2% on property taxes, HO insurance + large umbrella policy. Property taxes were lowered the last two years after "negotiating" with the county tax assessor board. Probably start increasing in 2014.

by **German Expat** » Mon Mar 11, 2013 6:40 pm

Mortgage, taxes, insurance and hoa is approx. 11% of our gross income. We also do pay extra on the mortgage though and I did not include this amount (would add another 5%).

by **Munchkin Man** » Mon Mar 11, 2013 6:44 pm

Greetings To All:

The Munchkin Man spends approximately 25% of the Munchkin Man's monthly gross income on the Munchkin Man's monthly rent.

The Munchkin Man lives in a studio apartment building on the 4th floor of an old high rise apartment building built back in the 1960s.

The Munchkin Man's studio apartment has a balcony view which overlooks the skyline of downtown Norfolk, Virginia.

The Munchkin Man can see the building for the national headquarters of PETA from the Munchkin Man's balcony.

The Munchkin Man's rent includes all basic utilities and 24-hour security.

The Munchkin Man's apartment building is also located right across the street from a hospital and medical building.

The Munchkin Man is also in walking disance to several restaurants.

Even though rents in the Munchkin Man's area tend to run high, the Munchkin Man can probably find a place for less.

But the Munchkin Man would probably get a lot less in return.

In view of all of the above, the Munchkin Man is content to stay where the Munchkin Man is for the time being.

Best Wishes,

Munchkin Man

by **Marmot** » Mon Mar 11, 2013 6:45 pm

11.5%

by **Clark & Addison** » Mon Mar 11, 2013 6:52 pm

Currently:
10.9% for mortgage
13.5% if insurance and taxes are added

Starting next week:
0% for mortgage

2.6% for taxes and insurance.

by **Sunflower** » Mon Mar 11, 2013 7:08 pm

15% - renting. And that's under rent control and considered good! :shock:

by **bottomfisher** » Mon Mar 11, 2013 7:20 pm

Gross income varies, mortgage is about 8 to 10% gross (not including wife's income)

by **smiley** » Mon Mar 11, 2013 7:34 pm

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