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/biz/ - Business & Finance

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49399363 No.49399363 [Reply] [Original]

Do you subscribe to the 20/30/50% rule when it comes to allocating budget for housing? I just landed a job where I can afford my own apartment and wanted to see what the educated approach to choosing an apartment in the pandemic economy is like.

>> No.49399433
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49399433

I choose the cheapest place I can find. I like keeping my housing expenses at 20% - 25% of my income. If I can't find a place for the budget, then I go homeless and keep 100% of my paycheck.
I've been homeless off and on for 2 years because everywhere available is about $1800/m for 1 bedroom apartment. The same spot I rented in 2018 for $1200/m is now $1800/m with no utilities included. I only make $70k/y, and there is no way I'm cucking out $1800 every month for the luxury of having my own designated box for shitting and sleeping.

>> No.49399439

>>49399363
>the 20/30/50% rule
explain pls

>> No.49399441

Rules are dumb, everyone has a different situation with different financial obligations

>> No.49399468
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49399468

>>49399433
I'm kind of in the same boat as you, only I earn a little more and thus pay a little more for my rent. In order for me to find any apartments within reasonable distance to my job, I have to pay at east $3,000 a month for a cramped studio.

>> No.49399487
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49399487

>>49399433
Just rechecked the spot, and it's actually $1900/m now. Fuck this shit

>> No.49399535

>>49399439
Depending on your net income you should spend no more than X% of your net income on your lodging including utilities. If you make under 30k, 50%. If you make under 30%, and if you're over then 20%.

>> No.49399554

>>49399535
>If you make under 30k, 50%. If you make under 30%, and if you're over then 20%.
how about someone who hasn't had a stroke

>> No.49399734

>>49399535
sorry bro do you have a link for this in more detail?

>>49399554
kek this

>> No.49399770
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49399770

$750/mo small town chad checking in. I have 3 bedrooms. Imagine being a retarded city nigger

>> No.49399788

>>49399554
Well deserved (you)

>> No.49399877

>>49399554
>>49399734
If you make less than 20k a year, you'll have to spend a higher percentage of that (50% give or take) to afford the same kind of living space someone of a higher income bracket would, such as someone within a 30k income would match equivalently with about 30% of their income.

>> No.49400011

>>49399363
I found this video about rent vs buy
https://www.youtube.com/watch?v=Uwl3-jBNEd4

He breaks it down like this
unrecoverable costs of home ownership = (value of home * 5%)/12
so if you want to buy a property worth $500k, that's $2083 a month in unrecoverable cost for the property. Therefore, if you can rent cheaper than that, it's better to rent. Or on the flipside, if you can pay $3k in rent, it's equal to owning a $720k property

>> No.49400551

>>49400011
anyone who had the option to buy but chose to rent due to rationalizations like these since 2008 got BTFO.

maybe "quantitative tightening" will change things but i dont see this car turning around any time soon.

>> No.49400571

>>49399363
You will make 3x the rent and be happy. (30% for the retards that can't math)

>> No.49400602

>>49399468
>>49399433
So, do where do you live then?