Do we spend too much money on rent?

[flappyf]

After tax and good pension contributions we have around £7,000 a month. We spend £2,500 a month on rent but do not have any daily transport costs or heating and hot water costs.

We save a decent chunk. We travel and live a full cultural life.

Do you think we pay too much rent? My non-London in-laws were aghast that we spend so much on rent.

Presumably they dont know the details of how much you take home every month? Without that info, any opinion on it is relevant.

You're spending about 35% of your take home, which is a little higher than recommended (30% is the average), but if that includes your heating and water costs too it's probably balanced out.

What other people think is neither here nor there really- you can clearly afford it, and don't feel like you go without. Who cares if they're aghast?

Unfortunately they do know because MIL works for the same company, and so knows what employees of our grade earn!

I thought the 30% thing was based on gross, not net?

It is none of their business, just say you don't want to discuss your personal financial choices.

You have a high family income, it's up to you what you do with it.

Most of the rest of the country are aghast at London property prices... but if that's what it costs then that's what you need to pay.

Most people on lower income can spent 60-70% of income just to rent a crumby room in London so the only 30% of income is in an ideal fairy world. You have £5000 month left after housing, travel, heating and water that bloody amazing. Yes you could find a smaller flat in London for half that but assume you don’t want spend 2h traveling to work or live above a kebab shop.

Whats more important having extra £1200 a month to save on rent or living I assume
in a nice home in decent area?

Honestly…. No.

I think it’s fine, you have a great level of disposable income we had similar pre kids and lived the life of Riley…

I'd stop discussing you finances with them for a start.

No it's not too much, it's what it costs, you can afford it.

That seems a low % of income to spend on rent in London. if I had that much take home pay I'd want to be trying to buy somewhere though, you could be putting that £2,5k towards paying off a mortgage.

We earn more but spend less on mortgage - we have two children though so it's relative. You know it's a great salary and also a high rent so not sure what you want people to say!

It means you have no transport costs and includes your heating and hot water. Sounds quite sensible for London to me. We aren't in London but in comparison each money we spend £250 on petrol, £400 on 2 cars, £250 on insurance and road tax and £200 on heating. Your rent may be a lot but if you were further out of London and your bills weren't included you could be spending an extra £1100 or more on transport and heating.

I think if you're happy it doesn't matter. As PP has said, we earn more and spend less on a mortgage but of course, we're not in London. I think as long as you're stashing a bit away for a deposit at some point then you do you! Life your best life and all that.

It’s your money, so spend it on anything you choose to. Personally, on an income like tgat, I’d prefer to buy somewhere than rent, but it’s not for everyone, and if thats what you choose to do, then do it.

Why does it matter to your in-laws? Are you asking them for money? If you are happy, you like your home and you can afford it, then it's nobody else business what, where en when you spend your money.

30% of take home covers rent and utilities. I'd say that seems fine. Especially given the fact you can save well too.

It is a lot to me, more than my take home and 5x our (non London) mortgage repayment. However, you earn well and have plenty left over for other things so it doesn't really matter does it?

I assume you don't have any choice but to spend £2,500 on rent in London. Tye key point is your inlaws are non Londers?. * *

Maybe think about decreasing your rental cost and saving for a deposit might be better ? Long term best to buy if you can

It’s a lot of money to spend on rent (£30k a year!!) and almost 5x what I spend on my mortgage repayments so I can understand why your MIL is baulking at it.

I have to ask though, as you are high earners, why don’t you own? It does seem like such a horrid waste of money.

30% of income on housing costs? Who decided that figure? I can't see it being accurate especially for single income households!

Every single letting agent we dealt with recently had it as a requirement that you earned at least 3 times the rent, which is basically 30%. Although I think they based that on gross salary rather than take home

Wtf is this post??? I earn more but don't brag about it. Have some morals woman!!! This post shouldn't be here

If it was a mortgage I'd say fair enough but for rent it's a lot, unlike mortgages rent doesn't stop ever! I certainly was paying nearly 40% At some points but that was overpaying my mortgage, which is now paid off

Don’t tell them how much you spend on rent if you don’t want to!

Are they saying you’d be better off buying?

We also live in London and pay £2850 on rent. That’s actually the cheapest flat we could find in the location that’s near to where we both work, we could easily have paid more but don’t because we’re saving up to buy.