Less than 10%
10% - 20%
Over 50% ???
I would pay no more than 20%. Spending over this is going over your means IMHO. One should never neglect other financial commitments as well as building up savings. If rent breaches 20%, sacrifices are inevitable.
Last edited by DimSumBond; 15-08-2018 at 08:56 PM.
You never lose when you are saving money on rent. Commute times are hardly an issue in such a small city here. I think people are becoming too lazy thesedays. Feel free to pay more rent and put off savings, investments, body and mind. You don’t really know what a real sacrifice is until negligence/ poor decisions consequences drops by and says a big hello
For me my home is important and where I spend a lot of my time.
Totally depends on salaries obviously, but for a fairly large salary span, say from 50-200k/month it makes sense to me to pay roughly 25-30% of your salary on rent (depending if you include electricity etc in rent). In the lower salary range, just because you have to, to live decently. In the upper end, because you can afford to, so with such a salary why would you be living in poor conditions. The only exception would be if you reached 200k/month and are still single, then I guess its over the top, but usually one has a family when reaching such salaries.
When/if you reach monthly incomes in the 300k range, one can start to discuss if its worth paying say 75-90k/month on rent. I think most people that earn that much do, but its probably better to save up for a while. Leave HK with a huge pile of cash, or if you are staying, save up to buy.
I'm currently at the lower end, at about 25% including electricity, internet etc. On the other hand I feel I'm not living very nicely and would consider paying a bit more for better living quality.
Well luckily in my case i get a housing allowance that covers my rent so i don't spend anything out of my income on rent. If i would not get an allowance, then maximum i would be willing to spend would be 25%
It doesn't matter if company puts money in your pocket and you pay it or company directly pays from its pocket, its part of your package so still counts as an expense in your personal account albeit with the benefit of tax deduction.. Anyway, this thread is quite old so i would assume today's median rent should at least touch standard rate of 1/3 of your salary..
I voted 20-30% but then realized I only considered my own income so it's actually 17%. I wouldn't feel comfortable spending more than 25%, no matter the salary. There's only so much I/we need. 3000sqft? That's an entire 3 story village house plus an extra 900sqft! Yikes, what do you do with all that space? Who cleans it (a maid I assume)? What does it cost to cool it?
As some others have mentioned, @Kowloon Goon, I'm also willing to pay more for a shorter commute, after a hard/long day a short commute is glorious, a long one is just like extra hours of work you're not paid for. That being said I could've lived closer to work and more cheaply (few $1K) but the layout was bad, the bathroom cramped, neighbours on all sides, and no view, it may not be worth it to some but I thoroughly enjoy sitting on my rooftop each morning sipping coffee, with an unobstructed sea & mountain view. I also think this makes it worthwhile living in a less than convenient village.