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Old 09-28-2012, 09:14 PM
 
68 posts, read 133,965 times
Reputation: 37

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I have been reading through these forums and I have noticed a bit of a dichotomy. Everyone complains that the salaries are really low here, but the cost of real estate seems incredibly high. I have always heard that you should not spend more than 25% of your gross monthly income on your mortgage/rent. But based on what I have seen in Miami, I just don't know how that can be. Is that percentage higher for Miami? I would appreciate your thoughts.
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Old 09-28-2012, 09:31 PM
 
2,886 posts, read 5,834,965 times
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It was 25% like you said about 30 years ago. Now most people spend 75% of their monthly salary in rent if not more. That is the reason why so many people in Miami are treading water and have all of their credit cards to the limit, but what are most to do. That is also one of the reasons why we suffer from so much corruption, theft and scams.
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Old 09-28-2012, 09:50 PM
 
131 posts, read 323,946 times
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Seventy-five percent? That is awfully high. I could see 50 percent...

But I definitely agree that the cost of living is why there are so many desperate people willing to be corrupt.
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Old 09-28-2012, 10:18 PM
 
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Yeah, 75% might be an exaggeration on my part but it is high nonetheless.
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Old 09-29-2012, 12:36 AM
 
Location: Lakes by the Bay, FL (for now)
984 posts, read 4,325,194 times
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In my case the rent ranges just below 30% of my income. But I'm always looking and messing about with my spreadsheets where I keep my monthly budget. It's not that hard when I come to think of it. I just to stick to my bugdet as much as I can and try to be thrifty most of time.

I don't understand how all these people in Miami can keep driving new (or almost new) BMWs and Land Rovers in a place where the average household income (of the county) is factually $41,533. And I drive a sodding little Ford.
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Old 09-29-2012, 06:50 AM
 
600 posts, read 755,940 times
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Quote:
Originally Posted by JacobMAX View Post
I don't understand how all these people in Miami can keep driving new (or almost new) BMWs and Land Rovers in a place where the average household income (of the county) is factually $41,533. And I drive a sodding little Ford.
They're able to drive these fancy cars because of financing. They'll lease it or take out a car loan just so they can appear to look better off than they actually are.
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Old 09-29-2012, 07:14 AM
 
Location: America
6,993 posts, read 17,386,212 times
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Quote:
Originally Posted by tankhead View Post
They're able to drive these fancy cars because of financing. They'll lease it or take out a car loan just so they can appear to look better off than they actually are.
^^
This

Some of my cousins came down from NYC a few years back. So I took them to the usual haunts. We hit south beach and my younger cousin goes "why does EVERYONE drive a new car down here" lol. My brother laughed and said "this is a fake it, till you make it sorta place"
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Old 09-29-2012, 07:38 AM
 
68 posts, read 133,965 times
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I guess it is not just me then! I have a very good salary and I was feeling poor! But I guess that is because I am responsible. So...I guess the takeaway here is that 25% is probably not accurate but it is still less than 50%
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Old 09-29-2012, 11:51 AM
 
Location: Lakes by the Bay, FL (for now)
984 posts, read 4,325,194 times
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Quote:
Originally Posted by Wild Style View Post
^^
This

Some of my cousins came down from NYC a few years back. So I took them to the usual haunts. We hit south beach and my younger cousin goes "why does EVERYONE drive a new car down here" lol. My brother laughed and said "this is a fake it, till you make it sorta place"
And the sad thing is that's mostly true. A lot of people in SoFl are not financially responsible; it's like they buy first and think of the consequences later.
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Old 09-30-2012, 09:56 AM
 
5,187 posts, read 6,955,987 times
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I would say your rent should be no more than two weeks of your monthly income
.
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