I’ve heard that 33% and below is considered good for rental costs.
Yet, here in Taiwan, I’ve never paid more than 12~15% of my take home pay.
I’ve found a place that I love but it is almost a quarter of my monthly pay.
How do you guys and gals do it?
[quote=“sojourner”]I’ve heard that 33% and below is considered good for rental costs.
Yet, here in Taiwan, I’ve never paid more than 12~15% of my take home pay.
I’ve found a place that I love but it is almost a quarter of my monthly pay.
How do you guys and gals do it?[/quote]
That is usually the limit that banks allow people for mortgage payments based on your monthly wage. Obviously some cities are more expensive then others when it comes to rent. If you can swing it then do it but keep in mind that buying a place may seem a better alternative for a lengthy stay.
Yes, most banks say about 30% of total income for buying. In Japan or New York, rents can eat up 25 - 35% of your salary, but here you should probably be aiming for no more than 25% of your salary. I have a really nice place for about 17% of my basic salary in Hsinchu (an expensive city). I used to have a perfectly good place for 12% of my salary.
Remember, this will depend where you live. Salaries for English teachers (if that’s what you are) are (bizarrely) pretty much the same across Taiwan, whether in Taipei city or rural Nantou. I guess in Taipei city you might be willing to pay up t 25% of your salary, while in Nantou you wouldn’t want to pay more than 8 - 10%.
I’m paying less than 9% of my money taken home in rent, and I live by myself in Taipei … needless to say, I live in a shoe box and work like a dog!
teggs