Renting Dilemma

Feb 25, 2005 2 Replies
S

Hi all, Due to a break up I am toying with the idea of either renting or buying? Normally it would be a straight no brainer but house prices are so expensive around here that I would right on my limit if I bought a house. The simple maths of "3 times my income" would leave me right at the bottom of the housing quality here. Ironically the census tells me I earn above the average for the area?! No idea what's going on? Anyway I could get a better quality house if I rented but have no idea what percentage of your monthly income you should budget for? Most grateful for any pointers?



Sam


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S

You are right to be cautious in the current market and not to be tempted to go much above 3x income.

I wouldn't buy now, but recommend you get as much asking price information as you can from estate agents and monitor the price development for a while - if you rent that will be for a minimum of 6 months presumably.

As to proportions, I thought the rule of thumb was to keep rent below

1/3 of your take home pay. (Personal choice of course!) At the moment the numbers work out so that a £250K type property would rent out for around £250 per week, £300K /~£300 per week give or take.

Hope that helps.

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