Bogleheads.org

by **hoppy08520** » Mon Mar 11, 2013 7:40 pm

Just under 20% for mortgage principal + interest + insurance + property tax. That percentage has gone up and down depending on income but I hope it will gradually go down especially after wife goes back to work after taking some time off with kids.

by **mortal** » Mon Mar 11, 2013 7:51 pm

I had to round up to 11%. Happy to rent until my needs change.

by **Iorek** » Mon Mar 11, 2013 8:07 pm

about 20% for PITI

by **Flashes1** » Mon Mar 11, 2013 8:47 pm

Approx. 16%.

by **steadyeddy** » Mon Mar 11, 2013 8:54 pm

Formerly paid 11% in rent and drove 17 miles into work.

Currently pay 17% in rent and drive or bike 1.8 miles into work.

Could pay 27% to rent a couple blocks from my office tower.

The truth is, I'd probably pay that much if necessary to avoid wasting my life in several hours of gridlock each day. [spoiled emoticon]

by **tylerdurden** » Mon Mar 11, 2013 9:03 pm

Currently, the mortgage is 5% of my gross base salary. If you include property taxes, it is about 7.5%.

Rent for the apartment we are moving to, due to a relocation, will be about 8% of my gross base salary.

by **Paul78** » Mon Mar 11, 2013 9:07 pm

16% of gross

by **ziszew** » Mon Mar 11, 2013 9:58 pm

Principal+interest+taxes+insurance+utilities+maintenance+repairs+cable+internet= (aka "all-in" living cost)

16% of gross

by **wjo** » Mon Mar 11, 2013 10:17 pm

0.00%

But the taxes and common charges are high!

by **WhiskeyJ** » Mon Mar 11, 2013 11:19 pm

Phew, thank you for the last couple of posts. I was feeling a little agressive, guilty, too lavish, etc. with my allocation. I'm at 22.8% considering my salary and 15.5% when I include my wife's salary.

Daycare is what get's us with two under 5. Monthly daycare expenses are more than half our mortgage payment. It's been an eye opening transition from 50% savings rate to 10%. My advice for single people or DINKs is save agressively if you plan to have kids.

by **wadefish** » Mon Mar 11, 2013 11:38 pm

I'm at 18% of my salary for rent in the south Puget Sound region. I pay a bit of a rent premium for my place, which is a fifth floor waterview (Puget Sound) apartment, within walking distance to my work, and many shops, cafes and parks. And, living alone is just more expensive than sharing. Great lifestyle, but the 18% makes me feel less than thrifty compared to many of the other responses. I still manage a 30%+ savings rate, though. I just compensate for the higher rent with savings in other areas (car expenses, etc).

by **scrabbler1** » Tue Mar 12, 2013 12:03 am

I own my co-op apartment outright, so no mortgage and no rent. But I do pay monthly maintenance charges which cover the financial and physical upkeep of the co-op and include optional charges for parking in my building's indoor, heated parking garage. The share of my annual gross income (which is all investment income because I am an early retiree) for 2012 was about 17%.

by LH » Tue Mar 12, 2013 1:24 am

0.34 percent

Could be zeroed out, but I choose to have a bit of leverage. That includes taxes.

Gross is not how I would look at it.

Of my monthly paycheck that actually gets deposited, it comes to 10 percent roughly. I shelter as much as possible, and that does not include bonus at yer end.

Interesting question, had never thought of it as a gross percentage before.

by **ddj** » Tue Mar 12, 2013 1:39 am

16.7% including rent and utilities.

by **MoonOrb** » Tue Mar 12, 2013 1:51 am

Including property taxes, just shy of 12%.

by **og15F1** » Tue Mar 12, 2013 1:59 am

9% (not including parking)

by **FoolStreet** » Tue Mar 12, 2013 2:00 am

Perhaps not everyone buying a house in the SF Bay Area, much less the rest of the country, pays 40% gross on PITI.

I wish I would have read Stanley's and Warren's books earlier. Aww, who am I kidding. I wish I would have bought one year earlier. Imagine buying TWO years earlier. Oh well. I love my family and neighbors. First world problems. ;-)

by **madbrain** » Tue Mar 12, 2013 4:57 am

14% on principal and interest.
Another 9% on property taxes and insurance.

by **BBL** » Tue Mar 12, 2013 6:59 am

More than 6% less than 7%.

by **assumer** » Tue Mar 12, 2013 7:04 am

Currently a poor grad student. 28% renting, which is actually significantly down from my last place.

by **Flashes1** » Tue Mar 12, 2013 7:43 am

Appears like there's a lot of apples to oranges comparisons on this thread.....the people who've paid off their mortgages aren't including property taxes in their mortgage payment and people who have a mortgage balance are including property taxes. My property taxes are 1/3 of my mortgage payment.....and they are a contractually obligated fixed charge regardless if you have no mortgage balance.

by **englishgirl** » Tue Mar 12, 2013 8:22 am

About 13% on the mortgage. Another 10-12% or so on property tax and insurance.

by **Grt2bOutdoors** » Tue Mar 12, 2013 8:30 am

About 9% - PITI.

by **wpTa96dquGh3WY** » Tue Mar 12, 2013 9:03 am

9.26% with property tax included

by **Harold** » Tue Mar 12, 2013 9:15 am

Flashes1 wrote:Appears like there's a lot of apples to oranges comparisons on this thread

The entire thread is apples/oranges.

Rent and mortgage aren't equivalent concepts.

But the question was asked (what % of gross income do you spend on apples/oranges?) and many people seem interested in the answers to that question as each person interprets it. So carry on.

by **Rob54keep** » Tue Mar 12, 2013 9:44 am

10.8% = Mortgage + taxes + insurance

by **Bacchus01** » Tue Mar 12, 2013 9:44 am

6.5% for mortgage
8.5% if you include taxes and insurance

5800 sq ft.

by **donaldfair71** » Tue Mar 12, 2013 10:13 am

15.3% total PITI. Another 1% in HOA

by **NateH** » Tue Mar 12, 2013 10:21 am

9.7% P&I
13.8% PITI

by **DVMResident** » Tue Mar 12, 2013 10:33 am

32% = Mortgage + Insurance + PMI + Taxes

We rent the back unit, adding 12.4% income (which I count because we wouldn't have the income stream without the property; also, the renter pays 1/3 utilities, which brings down some other costs)

So, 32% - 12.4% = 19.6%*

*Didn't include mortgage deduction or repairs.

California is expensive.

by **PreemieNurse** » Tue Mar 12, 2013 10:40 am

13% of gross income for principle, interest, taxes and insurance. This number should go down in a few years when we no longer have to pay PMI.

by **DrPeppaPig** » Tue Mar 12, 2013 11:19 am

8.9% - PI
11.1% - PITI

by **Rodc** » Tue Mar 12, 2013 11:30 am

About 8%

by **davebo** » Tue Mar 12, 2013 11:31 am

25% of mortgage, taxes, and insurance. But that just includes W-2 income from our full-time jobs.

I treat income from my side-business as variable. If I include that, it's more like 15%.

by **tigerman3** » Tue Mar 12, 2013 11:32 am

5% if I include property taxes and utilities. 0 percent if I don't include either.

by **Go Blue 99** » Tue Mar 12, 2013 12:33 pm

PITI + HOA is 18% of gross. It used to be as high as 30% before we re-fi'd and started getting raises.

by **Eldendor** » Tue Mar 12, 2013 1:13 pm

9.4% exclusive of tax and insurance (no HOA).

by **pbuler** » Tue Mar 12, 2013 3:21 pm

11.33% based on 2012 income includes (P&I, escrow, & condo fee)
Planning to buy bigger house, then it would be 22-23%. Not sure its a wise choice to make, but you got to live life too.

by **likegarden** » Tue Mar 12, 2013 4:15 pm

0% on rent or mortgage, but 6% on home insurance, school tax and property tax. Us homeowners with paid-off mortgages still have those expenses, not counting maintenance.

by **mptfan** » Tue Mar 12, 2013 4:37 pm

PITI = 13%. (15 year mortgage)

by **Mudpuppy** » Wed Mar 13, 2013 4:01 am

gkaplan wrote:30.79109426811937%

I applaud your dedication to precise precision

The procession of digits reminds me that Pi day draws near.

My own spurious number based on imprecise poll definitions only comes to a much shorter: 22.452%

by **Occupier** » Wed Mar 13, 2013 11:10 am

I am surprised no one mentioned this. The Governments home affordable program which reworks mortgage's to keep people out of foreclosure will reduce payments to 31% of income. You would be amazed how many people are higher than that. So that's for perspective. Most Bogleheads correctly recognize that the way to prosperity is to keep housing costs low. Dave

by **Cosmo** » Wed Mar 13, 2013 11:24 am

I am surprised and humbled at the same time. Ours, including property tax and insurance is around 20%, which is on the HIGH end here. Up to this point, I felt that we lived well below our means but now I am not so sure. I am really surprised at that large number of people here at only 5-10%.

Cosmo

by **Lon** » Wed Mar 13, 2013 11:53 am

No Mortgage--No Rent----Home is paid for-----40% of annual income spent on travel.

by **bkslainte** » Wed Mar 13, 2013 12:28 pm

It's about 20% for me for PITI, just purchased a house in December 2012

I have really enjoyed reading this thread but I think that asking for a few other factors would have made it more relevant

Age
Location of residence
Years in apartment/rent

For all those with 0% mortgage,well done!

by **GeauxBR** » Wed Mar 13, 2013 1:54 pm

20% here. 30 & 28 year old couple. Half way through our 15 year mortgage. Can't wait till it's done!

by **gkaplan** » Wed Mar 13, 2013 1:54 pm

Mudpuppy wrote:
gkaplan wrote:30.79109426811937%

I applaud your dedication to precise precision

The procession of digits reminds me that Pi day draws near.

My own spurious number based on imprecise poll definitions only comes to a much shorter: 22.452%

I credit it all to my calculator.

by **gravlax** » Wed Mar 13, 2013 2:00 pm

I spend almost exactly 15 of my gross income on rent!

by **mlipps** » Wed Mar 13, 2013 2:05 pm

Our rent is 10.24% of our gross income, excluding any earnings from my fiance's free lancing.

by **SC Hoosier** » Wed Mar 13, 2013 5:36 pm

0% PI
3.7% PITI

37 years old
Baby step 7

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