I recently read about the rule of 30 for renting a property.
What percentage of your income goes to rent on average?
For me is around 40%. To get a decent accommodation in a decent place in London I think hard to go below this percentage... Thoughts?
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Depends on where you work. If you consider a starting salary of 50K for the average analyst, that's 37.5K net so 3,128 per month. 30% is about 950 meaning you'll most likely be limited to studio apartments on the outskirts of Zone 1 or be in Zone 2. Or you need roommates.
I'm a 24 year old living in downtown Toronto, Canada.
For myself, total annual rent is ~15% of my gross annual income (2 bedroom condo in the financial district shared with a roomie)
Rent is 17% of my net monthly income, excluding bonuses. I live in a ~1200 square foot 2 bedroom/2 bathroom. It's nice to not be getting raped in a high COL city.
Assuming you work somewhere in the City or CW, only way to really abide by that rule at the analyst level is to have roommates. Assuming a budget of around 1000 PS, you can easily find an ensuite in a decent area/building with a reasonable commute to work.
It's another story if you're working around Mayfair tho...
16% in a LCOL City. 1000 Sqft, no roomates.
Commute is important to keep in mind too. Mine's 25 minutes.
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