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What does "wise" have to do with it? If you make minimum wage and you're not living with mommy and daddy, being wise won't exempt you from the necessity to pay market rent - which won't be 15% of a minimum wage income anywhere in the developed world.
Definition of the word wise: having or showing experience, knowledge, and good judgment.
What I was saying is that I bet many of the financially wise people on this forum are spending a relatively small % of their net income on housing...and my guess is that many of them are spending 15% net or less in this area (probably should have included a poll).
I grew up in a minimum wage household. I understand the hardships of being low income. When my parent was being wise, she wasn't paying market rent...she had herself, myself and my brother living in a 3 bedroom home with 3 other family members. Ideal? No. Wise considering her wage? Yes.
Anyways, your statement about people making minimum wage having to pay market rent just like everyone else who is not making minimum wage has to pay market rent really has nothing to do with my thread question of 'how percentage are you paying of your net income in rent (or a mortgage)'? But I do have an idea where you want to try to take this thread based on this one post...I ask you to please try to stay on topic.
Definition of the word wise: having or showing experience, knowledge, and good judgment.
What I was saying is that I bet many of the financially wise people on this forum are spending a relatively small % of their net income on housing...and my guess is that many of them are spending 15% net or less in this area (probably should have included a poll).
I grew up in a minimum wage household. I understand the hardships of being low income. When my parent was being wise, she wasn't paying market rent...she had herself, myself and my brother living in a 3 bedroom home with 3 other family members. Ideal? No. Wise considering her wage? Yes.
Anyways, your statement about people making minimum wage having to pay market rent just like everyone else who is not making minimum wage has to pay market rent really has nothing to do with my thread question of 'how percentage are you paying of your net income in rent (or a mortgage)'? But I do have an idea where you want to try to take this thread based on this one post...I ask you to please try to stay on topic.
Show me a wise person earning minimum wage and paying market rent who spends no more than 15 percent of their income on housing.
I'm living in a 3 bedroom home with 10 other non-family members. What does 'wise' have to do with it?
You are the one who brought 'wise' into this thread, and I'd like you to expand on that term.
That's true, but typically, the person earning $500,000 isn't going to put 80% or even 50% of their income toward housing costs.
Yes, I realize that. The numbers were to accentuate the differences in what people receiving different salaries might have left over after paying their rent. In other words, even at the ridiculously high amount of paying 80% of income in rent, that person still has more to live on than a person only paying 20% of their income in rent.
It's also something to consider the next time you hear someone say that all taxes should be x% across the board, no matter what you make. People who are for a flat tax never stop to think that it's not the percentage of tax a person pays that counts, it's the amount of money he has left over after he has paid his taxes that counts.
Quote:
Originally Posted by freemkt
Renting is where you pay a premium that increases over time, to enjoy temporary, impaired use of property which depreciates over time.
I'm saying that it is irrelevant whether I am wise or not; because the market is indifferent to the wiseness (or lack thereof) of its participants, and because I have never seen or heard of a landlord who offers better terms to wise applicants.
The best a rent serf can hope for is to life for free by arbitraging the house/apartment rent you pay by collecting higher room rents from others.
Percentage of my net income that I spend on rent or mortgagee: 0%.
Percentage of my net income that I have spent on mortgage or rent for my entire life? Mostly zero percent, although I did rent for 7 years in the middle there. About 1/6 of the net income went to rent for a very nice place to live. Only because I knew I wouldn't be there long enough to make it worthwhile to buy.
That zero percent is one of the reasons that it is a good idea to get onto the real estate merry-go-round. Eventually, you end up with the zero percent for mortgage or rent, for many people that happens about at retirement when it is exceptionally nice to have zero percent of your income going into a mortgage.
Percentage of my net income that I spend on rent or mortgagee: 0%.
Percentage of my net income that I have spent on mortgage or rent for my entire life? Mostly zero percent, although I did rent for 7 years in the middle there. About 1/6 of the net income went to rent for a very nice place to live. Only because I knew I wouldn't be there long enough to make it worthwhile to buy.
That zero percent is one of the reasons that it is a good idea to get onto the real estate merry-go-round. Eventually, you end up with the zero percent for mortgage or rent, for many people that happens about at retirement when it is exceptionally nice to have zero percent of your income going into a mortgage.
For many people, own/rent is the difference between being able to enjoy a modest retirement standard of living, and never being able to retire at all - because you funded your landlord's retirement rather than your own.
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