Housing is likely your biggest monthly expense but now experts have figured out just how much of your income should be going towards your home.
As a general rule, you want to spend no more than 30 percent of your monthly gross income on housing. If you’re a renter, that 30 percent includes utilities, and if you’re an owner, it includes other home-ownership costs like mortgage interest, property taxes and maintenance.
Why 30 percent? It’s a standard that the government has been using since 1981: Those who spend more than 30 percent of their income on housing have historically been said to be “cost burdened.” Those who spend 50 percent or more are considered “severely cost burdened.” Read more at CNBC.
How much SHOULD be spend. Go tell this to landlords.
This rule of thumb was known forever. This is not news.
Yeh, right. But with tuition costs, food, clothing, transportation, etc…, there’s nothing left for rent. At least that’s the matzav here in Brooklyn.
…but now experts have figured out just how much of your income should be going towards your home…
If those “experts” aren’t telling people – across all income levels – how to find housing that doesn’t exceed thirty percent of their income then they are just giving more meaning to the phrase “worthless expert advice”
Plenty of eitzahs, just no pleitzahs.