Ill probably add to this thread as the night goes on and I run more numbers but...what percentage of your income goes to housing? What do you think is a reasonable %? I am planning on moving out of my parents house, and assuming I get the raise I am looking for from my boss, I should be making decent money -- I want a nice place but...I dunno. Im gona post up percentages of how I plan to spend my money (food, car stuff, housing, investments, etc) and see how it compares maybe to you guys? I dont know. AAAAAAAAAAA.

 

dude if you can live in your parents house then do it. the best % to pay for housing is 0%!!!

 

^ +1000 man

 

You shouldn't spend more than 30% on housing. That's what the experts say. I'm also currently looking to buy a home. But with everything that goes along with a house, I'd be closer to 40-50% of my monthly income. That's not great when you consider car payments, insurance and groceries and hoping that nothing happens to your cars or house that you have to pay out of pocket.

 

What the experts say doesnt really apply to the Bay Area because of the ridiculous high housing prices. Unless, of course, if you have a ridiculous high salary. Don't forget, with high housing prices comes high property tax. Thats what kills you.

And even though the housing market is softening, you'll never find a house here for 150K like in other parts of the country like Houston.

After we purchase another crib in Santa Rosa in the next couple years we'll be about 50% also. And I think we make decent money. If we lived in Houston like me sister, we'd be living like kings. Here in the Bay, we are peons.

 

My word of advice. Take 3 of your monthly bank statements and see how much you spend in gas food, etc.

The typical monthly expenses you're going to spend when your living by yourself are.

1. Rent
2. Renter's Insurance
3. Utilities (gas/electricity/water/waste)
4. Car payment
5. Car insurance
6. Mobile phone
7. Internet (could maybe if you decide to get a room somewhere pay 1/2)
8. Cable? (if you need it or not)
9. Car Gas
10. Food costs

Dunno if I'm missing some of the standard basics but that's it I think.

Now after you factor all that in, you're going to want to have a good amount of "fluff" money. Money you could put aside for other things. Getting car serviced (tires, oil, etc), Unforeseen expenses, Savings, and play money.

I recommend you at least have no less then $300/month of "fluff" money you can keep in the bank. The more the better though.

There are ways to save though. It all depends on your lifestyle. Never live paycheck to paycheck because you don't know what unforeseen expense you might see down the line.

Btw don't assume you're going to get a raise. Factor all this in with your current pay so when the raise comes, you'll have more fluff money.

Hope that helps.

 

oo also don't forget to factor in the initial investment if you're getting your own place. Couch, plates, pots/pans, eating utensils, bed, etc..

 

Don't listen to Soggy, he makes way too much money to know what to do with it all, hahaha.

 

I spend about 24% on mortgage, insurance and property taxes. I could get comfortable with spending more. When I bought the house, it was 40% and manageable. If I hadn't made the stretch then, I'd probably have never gotten into the Bay Area real estate market. Looking back, I should have stepped up and mortgaged 50% of my pre-tax (for which I could have been approved) and bought a house where I really wanted to live. As it stands now, I'll never be able to afford that neighborhood.

Honestly, though, the "percentages" are a lousy way to look at it. To a bottoms up analysis and figure out how much money you need for gas, insurance, car payments, groceries, etc., then figure out how much mortgage you can afford taking the tax break into account.

 

+ * Inifinty!

If your relationship with your parents is good, don't move out yet! Save your money for a home over the next year or so. Don't rent, plan so you can BUY a home.

 

hehe I was doing that a couple of weeks ago. Trying to see how much house I could afford and how it would impact my lifestyle.
Good stuff.

 

I've been playing with numbers for the past 2 months. Trying to figure out how much I could afford. It sucks sometimes looking at it and realizing even with a combined income of nearly $90,000 you still can't really comfortably afford a decent house. hahaha

 

The one major item I see missing on here is the CC bills, everyone has them...its the american way


*Don't forget about what it really takes to live, GROSS PAY is not take home pay...last time I checked I take home net pay. When your in a ***** competition GROSS is a good number but the reality is life is about NET!

House living (see post #6) typically takes up anywhere from 75-100% of ones pay. (even if you lived in the middle of nowhere). Anyone who can do it for less is doing better than the rest of everyone else.

When I was doing mortgages, the bank said not more the 45-55% of your mortgage payment is acceptable...THIS IS CRIPPLER, I know myself personally my housing or what it takes to stay alive is at 100% of what I take home. And for most of us, if we make more...we just add more fluff and spend it anyways

my $0.02

-Noah

 

Getting a room in the bay area ranges so widely - decent room in a home can be around or <$500, while a shared apartment ~$1000, w/ a single room apartment 1300-1600, and in places like SF north beach/soma, palo alto downtown SJ, singel room apartments are $2000+

It all depends. Really you gotta ask yourself why you're moving out?

- Does your girlfriend complain about you living at home?
- Do you need space to do a side business your parents may not agree with?


Cause if you're just moving out for the hell of it so you can feel independent, that's like buying a bimmer thinking that'll make you more pimp - you really gotta think about the expense and what you realistically gain for SUCH a large payment.

 

Dont worry, prices are adjusting. Its going to be slow and painful, but the market will adjust. Just keep renting and saving.