[chia-pet]

I'm searching for a new apartment. I've kind of been undecided about whether I'd like to pay $1000/mo on rent or find a cheaper place and pay $500/mo. Let's say hypothetically I make a fairly decent salary of approximately $32k/yr, have student loans, have credit cards, and other expenses.

Under the given circumstances, do you think it's worth it to live in a significantly nicer place but at $1000/mo? Or do you think it's better to save money and live at a $500/mo place? Note: both are within financial means.

And just curiously, what's your income and rent?

 

[crazychile]

Save your money and go for the cheap place. Be disciplined and use the $500 per mo savings to save for a house or buy a property as an investment. Renting is a waste of money and the sooner you can own something, the better.

Hypothetically, my household income is $95k and my MORTGAGE is $1100 per month.

 

[MrSlacker]

We pay about $1350 a month for our apartment. I would get a roomate and live in a much nicer place.

 

[Thaddy]

I'd save the money. And, not only where rent is concerned, but in other areas. You'll be surprised how much is actually left in your paychecks after taking out taxes, 401(k), rent, bills, food, gas, loans, and misc. expenses. I just got off my feet after moving to Houston, and it's an eye opener.

You can always move to a nicer place after sucking it up for year...

 

[chia-pet]

I neglected to mention, the $1000 place does have some things that make the price competitive:

● A washer/dryer
● A really great engineered environment consisting of mature college students/college student families.
● Uncapped University of Washington Internet (OC-48 2.488 gigabits up and down).
● Free parking space.
● In U-District. close to friends, close to food, close busses to everything in Seattle.
● Has it's own gym 20 feet away from us.
● Has free phone service.

The $500 place gives great square footage for the buck but not much else. It's in Lake City, which is pretty notorious for being a bad area. My fiancee and I agree that the $1000 place is superior in every way except for price.

The price becomes competitive after you factor in free internet ($75/mo), the washer dryer ($12+ a week for laundry for two ppl, depending on whether it dries on the first try + inconvenience), parking ($75+/mo at my current apt), gym membership (whatever that costs for two ppl), phone line ($20/mo).

FYI: I currently live with 6 other college students in a 6 bedroom apartment for $333/mo. The apartment isn't super cheap--it probably represents apts in the $500 range in terms of quality, just costs less cos so many people live here. $166/mo if you count my fiancee and me splitting our rent.

 

[Homeless]

If you add up what you'll spend on the other things that are included in the $1000/month place you'd be looking at close to $800/month. I figured about $30-40/month each for gym memberships. Not only that, if it's closer to everything it's more conveinient, you'd save on fuel (may or may not be a big savings) and if you're saying the place is nicer...then you get a nicer place! Obviously it depends on whatever you'd be happier with...

 

[Thaddy]

Oh, well, then that changes things

I was in the same position, and ended up getting the more expensive place because of the extras.

 

[vpivinylspinner]

I think you would end up regretting the cheaper apartment in the short run but find it was the best idea over the long run. If you can live in the cheaper place and save up for buying a residence you will probably be happier in the end. I own now but rented when I first got here for two years at $6,400 a month, meaning that I spent $153,600 and had nothing to show for it at the end of the lease.

That being said the prices are not too far apart and as it sounds like you have memorized their brochure it appears you have your heart set on the 1,000 a month place. The total rent is close to the 40% of your salary that some people recommend. You might have to cut back on the toys but it sounds like you would enjoy the arrangement a bit better so maybe it is worth it.

 

[Homeless]

Quote:

Originally Posted by vpivinylspinner I own now but rented when I first got here for two years at $6,400 a month, meaning that I spent $153,600 and had nothing to show for it at the end of the lease.

Wow! That's insane, just out of curiousity do you have any pics of what a $6,400/month place looks like?

 

[Jahn]

Quote:

Originally Posted by crazychile Save your money and go for the cheap place. Be disciplined and use the $500 per mo savings to save for a house or buy a property as an investment. Renting is a waste of money and the sooner you can own something, the better.

EXACTLY. Please someone tell my wife this, she won't listen to me!

 

[marvin]

I dislike giving out my salary, but as a single employed engineer with no debt and a paid off car, my rent is ~20% of my take home income, and living expenses are another ~20%. Course, I live in Texas so cost of living is quite a bit lower than in Seattle.

As for advice, well, I'd live in the cheaper place and use the difference to pay off debts and/or save for a house.

 

[crazychile]

Jahn,

My wifes millionaire boss recommended we read a book called "The Millionaire Next Door" I dont have the author memorized, but you and your wife should read it. Maybe your wife will change her mind when she sees the math.

Its really pretty much common sense- and I havent even finished reading it yet, but the premise is basically anyone, even lower salary earners can cut back on non-essential purchases and use the money to invest in areas that will appreciate.

 

[Jahn]

Quote:

Originally Posted by crazychile Jahn, My wifes millionaire boss recommended we read a book called "The Millionaire Next Door" I dont have the author memorized, but you and your wife should read it. Maybe your wife will change her mind when she sees the math. Its really pretty much common sense- and I havent even finished reading it yet, but the premise is basically anyone, even lower salary earners can cut back on non-essential purchases and use the money to invest in areas that will appreciate.

i bought that book for her. she uses it as a coffee coaster.

 

[VicAjax]

Quote:

Originally Posted by Homeless Wow! That's insane, just out of curiousity do you have any pics of what a $6,400/month place looks like?

that'll get a pretty good place in the city, but not as mindblowing as you might think, depending on the neighborhood. my first 5 yrs here were spent in a 2500/month 1 bedroom on the upper west side. i own a 2-br now, and pay only a little bit more for mortgage and maintenance combined, before tax breaks.

 

[JahJahBinks]

yeah, you kinda have to make over 300 grand a year to afford such rent. (assuming rent is 40% of your annual salary).