2006-08-22 05:52:01 · 10 answers · asked by Jasmin A 1 in Business & Finance ➔ Renting & Real Estate
No more than 28% of your gross income (before taxes). In fact, mortgage companies use 28% in qualifying people for mortgages. I would say the same guideline works well for rentals.
2006-08-22 06:20:04 · answer #1 · answered by mr_law_jersey 3 · 0⤊ 0⤋
It really depends on not only your income, but on your monthly expenses. Go through and add up the amount of all of your bills, then how much you usually spend on excess things during the month. Subtract this from your monthly salary and that number should be the highest you pay for rent.
2006-08-22 06:56:25 · answer #2 · answered by uscchikk 2 · 0⤊ 0⤋
I own rental property, and I won't rent to anyone who doesn't have an income of 3x more than the rent - so if the apartment they want to rent is $800 per month, they need to net $2400 per month. I've read suggestions by financial planners that you shouldn't spend more than 25% of your net income (after taxes) on housing, but that doesn't seem realistic in a market that has a high cost of living.
Good luck!
2006-08-22 06:02:09 · answer #3 · answered by Vicki D 3 · 0⤊ 0⤋
The typical answer you will receive will be between 30 and 40%,
Financial institutions look at debt service ratio's and although there is no hard and fast rule, you may want to follow these and mix it up with your lifestyle and comfort level.
Total debt service ratio, meaning the total of all your fixed expenses (loans, hydro, insurance, rent/mortage credit cards etc.) should not exceed 40 to 45 % as far as banks are concerned.
Good luck
2006-08-22 06:11:05 · answer #4 · answered by peterpfann 3 · 0⤊ 0⤋
When I started out, I was paying almost 50% for a mortgage. Rent would be similar. Make sure to take into account phone, electric, cable, food, entertainment (you're not going to stay in the apartment every day), gas for the car, any other utilities.
2006-08-22 06:00:49 · answer #5 · answered by words_smith_4u 6 · 1⤊ 0⤋
The guide which the referencing companies use to check if you can afford the rent is that your gross salary should be at least 2.5 times your rent. So if you earn £24000 per annum, your rent should be no more than £800 per month.
2006-08-22 06:37:25 · answer #6 · answered by Lewiy 3 · 0⤊ 0⤋
you can't buy a home with more then 50% debt to income including the home payment!
2006-08-22 08:50:24 · answer #7 · answered by statewidecanton 1 · 0⤊ 0⤋
No more than 30 percent.
2006-08-22 05:58:52 · answer #8 · answered by alanc_59 5 · 0⤊ 0⤋
go here and the answer is provided individually for your situation
http://www.mortgage-x.com/calculators/Pre-Qualifier.htm
2006-08-22 06:32:35 · answer #9 · answered by newmexicorealestateforms 6 · 0⤊ 0⤋
Half or less
2006-08-22 05:59:54 · answer #10 · answered by Elim 5 · 1⤊ 0⤋