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That's way more rent than is recommend for that income level. You're also assuming little to no debt. If you are paying that much for a room on that income, go find somewhere more reasonable to live.
Most finiancial advisors claim you shouldn't spend no more than 30% of your income on rent. Not sure if that is net pay or gross pay but that means $1250 a month of monthly gross or $1000 a month for net.
I currently make $50k and pay $620 for rent (15% of my gross pay monthly) and have plenty of money left over for savings.
The median home price in my area (Morgantown, WV) is $176,000. I did a mortgage calculator on $176k and the estimated monthly payment was $808 with 20% down payment. I could afford a home in my area but currently don't have the down payment for it yet.
That's way more rent than is recommend for that income level. You're also assuming little to no debt. If you are paying that much for a room on that income, go find somewhere more reasonable to live.
Let's see, take home would be about $3500/month. Take out $1200/month for rent and $600/month for transportation, and $600/month for everything else, leaving you $1100/month to save.
If you have debt, well you use the $1100/month to murder the debt, then you save. Simplified, but you get the idea. It can be done.
Most finiancial advisors claim you shouldn't spend no more than 30% of your income on rent. Not sure if that is net pay or gross pay but that means $1250 a month of monthly gross or $1000 a month for net.
I currently make $50k and pay $620 for rent (15% of my gross pay monthly) and have plenty of money left over for savings.
The median home price in my area (Morgantown, WV) is $176,000. I did a mortgage calculator on $176k and the estimated monthly payment was $808 with 20% down payment. I could afford a home in my area but currently don't have the down payment for it yet.
The 30% recommended ceiling is generally gross pay.
30% of NET pay in high CoL areas is definitely not realistic for most people IMHO...
LOL but don't you know, they want to live in a luxury place like yours but "they don't want to pay for it".
Oh and how do you like that "not so affordable" catastrophic health care insurance that is called Obamacare. I get to pay $800 a month while the people in section 8, who get the same care pay nothing.
It's all screwed up. When government intervenes, in an effort to help the poor it makes it worse, a lot worse.... Hold on to your wallet because they're coming to dip into it!
They'll never be happy.
When I delivered pizzas, the buildings which accepted Section 8 were the dumpiest. There was one called Fox Run but it was more like Hood Rat Run. (And why is it that many apartments have the most pretentious names which are pretty much the opposite of the reality?)
One of the problems with Section 8 housing is all the hangers-on who don't belong there. Unmarried boyfriends and baby daddies aren't supposed to be there but you can be sure a lot of them are living there, and that's probably half the crime right there.
Sane landlords would not rent to these people if they were not subsidized with guaranteed payments, so greedy landlords are clearly to blame here.
Let's see, take home would be about $3500/month. Take out $1200/month for rent and $600/month for transportation, and $600/month for everything else, leaving you $1100/month to save.
If you have debt, well you use the $1100/month to murder the debt, then you save. Simplified, but you get the idea. It can be done.
Are you assuming no state/local income tax, no retirement savings, no medical insurance, before insurance? Netting $3,500 on $50k is going to be a tall order.
When I delivered pizzas, the buildings which accepted Section 8 were the dumpiest. There was one called Fox Run but it was more like Hood Rat Run. (And why is it that many apartments have the most pretentious names which are pretty much the opposite of the reality?)
One of the problems with Section 8 housing is all the hangers-on who don't belong there. Unmarried boyfriends and baby daddies aren't supposed to be there but you can be sure a lot of them are living there, and that's probably half the crime right there.
Sane landlords would not rent to these people if they were not subsidized with guaranteed payments, so greedy landlords are clearly to blame here.
Oh that's right, I keep forgetting that landlords take on debt, responsibility, liability, pay taxes, pay insurance, out of the goodness of their hearts. If they don't keep rents super cheap, below their cost, forgo profit, they are called "greedy" <sarcasm>.
When I delivered pizzas, the buildings which accepted Section 8 were the dumpiest. There was one called Fox Run but it was more like Hood Rat Run. (And why is it that many apartments have the most pretentious names which are pretty much the opposite of the reality?)
One of the problems with Section 8 housing is all the hangers-on who don't belong there. Unmarried boyfriends and baby daddies aren't supposed to be there but you can be sure a lot of them are living there, and that's probably half the crime right there.
Sane landlords would not rent to these people if they were not subsidized with guaranteed payments, so greedy landlords are clearly to blame here.
Ahh yes, section 8 housing...., doesn't government do a great job? LOL.
Oh that's right, I keep forgetting that landlords take on debt, responsibility, liability, pay taxes, pay insurance, out of the goodness of their hearts. If they don't keep rents super cheap, below their cost, forgo profit, they are called "greedy" <sarcasm>.
There was a time when I approached the leader of a landlord organization in Michigan. As an opponent of Michigan's steep "nonhomestead tax" on the primary residences of renters, I saw an opportunity for landlords and tenants to come together in opposition to government and homeowner overreach in taxation.
I suggested we work together to defeat the tax at the polls, and suggested landlords pass along 50% of their tax reduction when the tax goes away. (Without a specific financial incentive, renters would have no incentive to vote against the tax - c'mon, admit it, landlords would pocket the four figures if the tax expired - and very few would bother to vote at all.) He said he would consult his members, and a week later said his members would not support it.
But he did connect with his newspaper media contact and wrote a piece for the paper, explaining how unfair the tax was. The homeowner backlash was vicious; it was homeowners who were objecting to "greedy" landlords.
I proposed a coalition to defeat the tax, and thus a half loaf for landlords. The landlords refused - the explanation given me was that taxes are just a cost of doing business, and thus expensible for state and federal taxes, and the landlords preferred to not allow their tenants any peek into their numbers.
Ahh yes, section 8 housing...., doesn't government do a great job? LOL.
As far as landlords who accept Section 8 go, YES government does do a great job. These are landlords who sign up in order to accept Section 8 tenants and subsidies, while they won't rent to me because without a government subsidy, I don't have "enough" income to suit them.
I was mid-30's before I had enough down payment and had consistent job/income to buy a house....so we rented for almost 20 years and it was fine. Now we can afford to buy just about anywhere we want and we currently own 4 houses and now in a vacation house we purchased in southern Spain....I sometimes yearn for the less hassle of renting.
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