How much should you pay rent now?

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  1. #1

    Join Date
    Jul 2008
    Posts
    49

    How much should you pay rent now?

    Hi everyone, given the current financial crisis and uncertainty of job security especially for those in the finance industry, if you were to rent an apartment now, what percentage of your monthly salary should be for rent?

    Any advise or suggestions?

    Thank you!


  2. #2

    Join Date
    Jun 2008
    Posts
    58

    I don't think the rent/income ratio should really change. If you loose your job, paying the rent will be a challenge anyway.


  3. #3

    Join Date
    Nov 2008
    Location
    TKO NT
    Posts
    431

    I think a realistic ratio would be 1:4 - I'm managing on a 1:7 ratio as I don't live on HK island and have a nice 1 bedroom apartment in NT. Admiteddly not as swish as a serviced apartment which are gorgeous. I could make that ratio even higher though if I downgraded...

    I think like everywhere a balance needs to be struck if I were living on the Peak that ratio would be closer to 1:1 as we're talking in excess of Knightsbridge rents there (great place to live but not entirely cost effective). As a fellow IB'er though I suggest saving as much as possible and possibly improving your skill set whilst you still can nothing beats being prepared

    Now where did I live my chauffeur hat second job to pay the rent is calling...


  4. #4

    Join Date
    Jul 2008
    Posts
    23

    Rent negotiations

    Not sure about the ratio, but in terms of bargaining power, it's completely with the tenant these days.

    I just moved into a new apartment in Central and negotiated the rent down 35% from the asking price, without giving up anything (except a shorter rental period, which I wanted anyway). Of course, this was from an individual landlord. At the serviced apartment I was living at before, I negotiated the rent down 20%, but it was really pulling teeth.


  5. #5

    Join Date
    Jul 2008
    Posts
    49
    Quote Originally Posted by kadler:
    Not sure about the ratio, but in terms of bargaining power, it's completely with the tenant these days.

    I just moved into a new apartment in Central and negotiated the rent down 35% from the asking price, without giving up anything (except a shorter rental period, which I wanted anyway). Of course, this was from an individual landlord. At the serviced apartment I was living at before, I negotiated the rent down 20%, but it was really pulling teeth.
    How did you negotiate for such a discount? Any advise? I am looking for an apartment. According to some agents, can only negotiate 1k or 2k down...not a lot.

  6. #6

    Join Date
    Jan 2005
    Posts
    188

    Just be aware of what previous rents were and settle for nothing less than 20-40% off.

    For instance, we got 35% off compared to the previous tenant in our new place, but we didn't negotiate all that much off the asking price. The landlord was already aware of the current market situation and had repriced accordingly.

    Last edited by jahoga; 03-02-2009 at 02:26 PM.