Renting Dilemma


S

SG

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

Sammy

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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