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I make $35,000 per year....
Jokes, Polls & Anything Else / 7:27 PM - Thursday April 16, 2009

I make $35,000 per year....

Can I afford $1350/month rent?

- Asked by Female, 29-35

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No.

A mortgage company would not give you a loan. That's more than half your take home pay. It's way too expensive for someone who makes $35,000 a year.

Your rent/mortgage should be no more than 28% of your gross monthly income.



- Response by myndseye711, A Thinker, Female, 29-35, Bilbao, Celebrity

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well divide 35000 by 12. that will give you an idea what you will bring home monthly. then add up all your expenses including the 1350 for rent. pockets feeling kinda empty yet?

- Response by rantingmadman, A Rebel, Male, 36-45, Transportation

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You could possobly afford it if you have very few other bills and don't set much aside for extra spending or savings. I wouldn't recommend anything over around $900 a month personally. It cOULD be done, but not very comfortably.

- Response by sweetnsilly84, A Cool Mom, Female, 29-35, Home Maker

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no, not if you have many other monthly bills...car payment, insurance, phone, electric, television, cell phone, internet, satelite/cable, food, gas, etc. not to mention credit cards, personal loans and entertainment expenses...

get a room mate or two and split the cost or find something within your means.

- Response by lasttrueromantic, A Creative, Female, 36-45, Teaching

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not a good idea, your spending close to twenty thousand a year on rent! And when you take tax out of that at the end of the year. not good!

- Response by loseing, A Guy Critical, Male, Who Cares?, Who Cares?

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only you can figure that out given what your current expenses are. you make $35K a year, but what is your take home is the real question. that is what pays the bills. don't you know how to do a budget?

- Response by msadvise, A Thinker, Female, 46-55, Transportation

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No, that's way too much.
Assuming your federal tax $3510
state tax 3% $1050
local tax 1% $350
total tax $4910
total left $31090
monthly ( x / 12) $2590
minus food, car, etc. ?

That rent would be 52% of your after-tax income. That's more than the computation for home-purchase allows--let alone just renting.

Honestly, you should consider buying a house (somewhere in the country) even if it is small. If you buy a home this year, there is a $7500 tax credit that you don't have to repay, as long as you own it (and live in it) at least 36 months. The rates are very low.

Assuming purchase price $165,000 with FHA loan, 3% down (can be paid by seller, $4950, and financing 160,050 for 30 years, at 5.5% your payment would be $909. If taxes are $150/month and PMI insurance is $133/month, and fire insurance is $25/month, you could be buying a house for $1217/month. Then you get some tax benefits which gives you an extra $10,560 of deductions per year. Your federal tax goes from $3510/yr to $1920yr, or saving 132.50/month. The house then costs $1085/month. This all assumes you're single with no other deductions, etc. A $200,000 house would cost about $250/month more.

Seriously run through the math and see if it makes sense. I bought a house in 2008 knowing what all the costs and benefits would be.

- Response by beachinbeachboy, A Jock, Male, 36-45, Pittsburgh, Consulting

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No!!!Unless you are very disiplined and frugal!

- Response by randolph, A Mr. Married Guy, Male, 56-65, Artist / Musician / Writer

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