How much rent should I be paying?

fun loving criminal · 18-09-2021 4:41pm #1

Just thinking out loud and trying to figure out what is reasonable to spend on rent as a single person.

I earn €2000 per month after tax. It's not the best but it's not the worst either.

I can probably afford €1000 per month as I don't have a car or other huge expenses.

I also earn under €35,000, so I should be entitled to apply and be in the housing list. I have applied and waiting to hear back. But once I'm on the housing list, I should be entitled to HAP and I'll take anything I can get.

So with €1000 rent, HAP will pay €550. I pay the difference of €450 and a contribution to the council which I worked out as being €380 per month.

However, I am on temporary contract and probably won't get a permanent contract.

So if I was to lose my job, my contribution to the council will be €120 and the difference to the landlord €450 will be €570 per month on rent. Which gives me €230 per month or €57 per week to live on for bills and food. But I also have some savings built up, so they can tide me over until I get another job.

Even if I was to get a minimum wage job, my contribution to the council would be around €236 per month. So gives me around €700per month to live on after rent. Which alot but I done it before as a student.

Looking at €800 per month in rent. HAP of €550. Difference of €250 to the landlord, my contribution to the council would be €380. So €630 per month on rent. Looking at some houseshares costing €500-600 per month... This €800 per month is very ideal for me.

If I was to lose my job, my contribution to the council would be €120. After rent it leaves me with €430 per month after rent or €107 per week... I think this amount is very manageable for me. Even with a minimum wage job, it should leave me with around €900 per month after rent.

If I looked at a €900 per month rent and if I lost my job, it would be €470 per month in rent and leaves me with €330 per month or €82 per week. I lived of €75 after rent in my student days, so it can be done again.

My head is wrecked trying to figure out what I should be looking at. Increasing my budget gives me more options to look at. But I'm trying to be practical in things as well.

Darc19 · 18-09-2021 4:47pm

Maybe look at it another way.

If I do really well at my job I might get a permanent contract and a pay rise.

If I progress further, through training and "n the field" knowledge and try and become indispensable to the company I am working for and garner a further payrise.

In 5 years time I want to be earning approx €50,000 a year

The way you are looking at it is all doom and gloom. That will affect both how you approach your job and hinder any growth prospects. A more positive outlook will get you a lot further in life than looking at it the way you currently are.

fun loving criminal · 18-09-2021 5:11pm

https://www.boards.ie/discussion/comment/117908502#Comment_117908502

My job can go either way. I am actually employed through an agency and agency workers always get shafted. So not holding out much hope there.

Dr Turk Turkelton · 18-09-2021 5:25pm

Once again you're looking at it the wrong way.

The agency has given you a foot in the door at a company. so now you do your job extremely well and then the company say "hey we got ourselves a young go getter here" and pay the agency to take you on directly.

You get trained up and once again in five years you're on 50k.

fun loving criminal · 18-09-2021 5:54pm

https://www.boards.ie/discussion/comment/117908640#Comment_117908640

I'm not looking at 5 years, I'm looking at now and trying to be realistic.

Mrs OBumble · 18-09-2021 6:56pm

How much rent depends on the value of the property to you.

I live in the city centre and now pay approx 50% of my nett income on rent.

But I spend very little on transport, can visit the supermarket for specials daily and can be home from the pub in 3 minutes. And if this job ends, I'm on public transport routes for any job in the city. Worth it, IMHO.

fun loving criminal · 18-09-2021 8:34pm

https://www.boards.ie/discussion/comment/117908899#Comment_117908899

Oh I completely agree with you. So far I'm looking at places between 800-900 euro. But if something comes up in town that is 950euro, I would probably take it as well because of its location and close to public transport for work.

Maybe I should stop over thinking things.

Caranica · 19-09-2021 9:18pm

OP, I make this your 7th thread in this forum in a very short space of time, many asking variations of the same question.

The best advice is can give you is to back yourself, stop looking constantly at worst case scenario and do everything you can to put yourself in the best possible position to obtain and retain a property. Build a rainy day fund in so far as you can. Don't rely on HAP to be the solution, getting approval is only 10% of the problem, finding a landlord who will take it is a much bigger challenge.

fun loving criminal · 20-09-2021 11:36am

https://www.boards.ie/discussion/comment/117912825#Comment_117912825

And this is the second time you have pulled me up on posting for looking for advice. And you're not even a moderator.

I have received my termination notice, and trying to think of the best thing to do. I would like to find my own place and have questions before I get myself into that.

While at the same time, I'm trying to think of the worst case scenario and be prepared for it. Nothing wrong with being prepared.

Creamy Goodness · 20-09-2021 1:28pm

Aim for no more than 30% of net to go on rent/mortgage. More is doable in the short term but long term it's a huge amount of pressure.

fun loving criminal · 20-09-2021 1:49pm

https://www.boards.ie/discussion/comment/117914892#Comment_117914892

I see 30% alot online. 30% of my wages is 600 euro. From what I've been looking at, it's impossible to get anywhere for 600 euro. I have seen some for 700 or 800 euro as well. But I guess I can push my budget to 900 which I can probably manage as well.

I think I just worry too much and that's my problem.

How much rent should I be paying?

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