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-   -   How much of your net salary do pay in rent? (https://www.englishforum.ch/housing-general/97504-how-much-your-net-salary-do-pay-rent.html)

Marsalforn 22.10.2010 20:16

How much of your net salary do pay in rent?
 
30% is generally touted as a ball-park figure. Do any of you pay more than this? Do you think this figure is too high? I have been looking at some flats that would cost me 40% and wonder if I can afford to pay this. I am single, have no children or dependants, so I guess the figure could be higher. I dont want to buy for several reasons.

jack171 22.10.2010 20:20

Re: How much of your net salary do pay in rent?
 
I pay 20%, i think it is more or less ok

cyrus 22.10.2010 20:26

Re: How much of your net salary do pay in rent?
 
Quote:

Originally Posted by Marsalforn (Post 987884)
30% is generally touted as a ball-park figure. Do any of you pay more than this? Do you think this figure is too high? I have been looking at some flats that would cost me 40% and wonder if I can afford to pay this. I am single, have no children or dependants, so I guess the figure could be higher. I dont want to buy for several reasons.

40% sounds high, money spent on rent can't be spent on going out. If you're single, do you really want to spend all that money to stay in?

Kittster 22.10.2010 20:26

Re: How much of your net salary do pay in rent?
 
I'd say aim for a quarter, unless you are the type of person who prefers to have a really nice apartment and not go on fancy holidays instead. Even then, I wouldn't say more than a third, tops.

J_T 22.10.2010 20:53

Re: How much of your net salary do pay in rent?
 
The standard budgeting figure is 25%, but it depends on your disposable income thereafter and how important your hut is to you.

NotAllThere 22.10.2010 21:11

Re: How much of your net salary do pay in rent?
 
0%. I bought my house. :D

Mortgage rather than rent: 17%

22.10.2010 21:13

Re: How much of your net salary do pay in rent?
 
I can't answer because I put my apartment up here and my answer could give away my personal finances, but I'd say there is no figure - if your apartment is really important for you, go for it. There's no point in being depressed in a hole, when you bust your ass to earn money if you don't enjoy going out all that much. It's up to you.

NotAllThere 22.10.2010 21:18

Re: How much of your net salary do pay in rent?
 
I thought about that. But not knowing how much I paid for my house, how big my mortgage is, it'd be quite difficult to work out I'm on 650'000*CHF per year. ;)

* Believe that, you'll believe anything

Guest 23.10.2010 08:05

Re: How much of your net salary do pay in rent?
 
More than about 30% of your gross revenue will get the agent or owners wary about renting an appartement/house. Ditto for the banks, if the mortgage and estimated maintainence/renovation costs will more than about 30% of your gross revenue they will look very closely before granting a mortgage.

This is just a ball park figure, there are certainly exceptions, both ways out their.

jako 23.10.2010 08:08

Re: How much of your net salary do pay in rent?
 
Quote:

Originally Posted by Charlie R. Soles (Post 988143)
More than about 30% of your gross revenue will get the agent or owners wary about renting an appartement/house. Ditto for the banks, if the mortgage and estimated maintainence/renovation costs will more than about 30% of your gross revenue they will look very closely before granting a mortgage.

This is just a ball park figure, there are certainly exceptions, both ways out their.

^^ what he said. The banks' affordability calculation is based on 30% of gross income with a (compared to current) slightly inflated interest rate of 5 point something.

Venturello 23.10.2010 08:27

Re: How much of your net salary do pay in rent?
 
We pay 30% (with NK and 2 car parks) and feel fine with this amount. But, this is for a large maisonette with garden, for a family of 5, with guest room. If we where without kids, or I was single, I would put 20% into rent and focus into saving / enjoying singlehood. For us, with children and wanting a comfy place to live, 30% is perfectly fine. If we didn't have debt to pay we would have even considered more...

But this depends of course on what is important for you, what would you rather 'invest' into - it's economical, and decisions like this are normal. What would you rather have, left over money for outings/nightlife/savings or enjoy a good location, modern place, with ample space? Up to each one.

Kash_Z 23.10.2010 09:33

Re: How much of your net salary do pay in rent?
 
I have paid 40% before but that was to pay back the mortgage on the house. I wouldn't pay 40% of my salary to *rent* a place which will never be mine.

Kash.

Guest 23.10.2010 09:52

Re: How much of your net salary do pay in rent?
 
37 of net
27 of gross.

All bills are included though (Swisscom ADSL, heating, water, electricity, billag, etc).

biff 23.10.2010 10:13

Re: How much of your net salary do pay in rent?
 
Quote:

Originally Posted by J_T (Post 987932)
The standard budgeting figure is 25%, but it depends on your disposable income thereafter and how important your hut is to you.

I agree. That 30% guideline must surely be related to total gross earnings in relation to the average living costs of the average person. eg: if on a very low salary, then I would be looking at wanting a rent well below the 30%, to have enough money left to survive on. If, on the other hand I was earening 650,000 as mentioned by "Not All There" I would be able to afford to survive more than nicely on the remaining two-thirds. (On the other hand though, I wouold not want to spend aaanywhere like 200,000 on rent anywhere, so the 30% would still not apply.)

It makes more sense to think of what you need/want in a place, check the general prices fot that in your area, check how much you need for personal outgoings, savings etc, then make a personal decision based on all that. Then throw the housewarming apero.....

J_T 23.10.2010 11:19

Re: How much of your net salary do pay in rent?
 
I'd summarize it with this: If your rent is going to cramp your disposable income, going to limit your life in any way, going to limit your flexibility in decisions down the road, sooner or later you are going to stress out and hate the crib.

Better to take a look down the road and juggle your priorities appropriately because no principle can satisfy in reality and nobody else can tell you what you need and want, now or later.

Phil_MCR 23.10.2010 11:26

Re: How much of your net salary do pay in rent?
 
Quote:

Originally Posted by economisto (Post 987952)
I can't answer because I put my apartment up here and my answer could give away my personal finances, but I'd say there is no figure - if your apartment is really important for you, go for it. There's no point in being depressed in a hole, when you bust your ass to earn money if you don't enjoy going out all that much. It's up to you.

Drat. I was hoping to see if you has more money than sense ;)

23.10.2010 11:31

Re: How much of your net salary do pay in rent?
 
Quote:

Originally Posted by phil_mcr (Post 988263)
drat. I was hoping to see if you has more money than sense ;)

1%. .........................

Chuff 23.10.2010 11:35

Re: How much of your net salary do pay in rent?
 
I pay around 35% of my wage on rent. Sounds like a fair bit, but when all is said and done, your apartment is the place where you come home to every night, shut the door, and escape from the world. To me its very important I live somewhere I'm comfortable, so I found somewhere I was happy with (3.5 rooms, next to sihl city) and paid the extra to get it. It was a good decision considering how hard it is to find something decent without paying a fortune at the moment. :)

23.10.2010 11:37

Re: How much of your net salary do pay in rent?
 
Quote:

Originally Posted by Chuff (Post 988271)
I pay around 35% of my wage on rent. Sounds like a fair bit, but when all is said and done, your apartment is the place where you come home to every night, shut the door, and escape from the world. To me its very important I live somewhere I'm comfortable, so I found somewhere I was happy with (3.5 rooms, next to sihl city) and paid the extra to get it. It was a good decision considering how hard it is to find something decent without paying a fortune at the moment. :)

What's it like living next to Sihl City? Is it good?

23.10.2010 11:53

Re: How much of your net salary do pay in rent?
 
12% of gross, ~18% of net and I live in Zürich Enge.


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