It’s a fairly typical “rule” in personal finance not to spend more than 30% of your income on housing or rent, which is probably why that’s what the study is using. You’re right it is a little conservative, and especially in cities most people have been going over that for quite a while. Some landlords will not even consider your application though if your income isn’t 3x the rent. It’s still a good idea to spend 30% or less on housing or rent, if you have the option. Not everyone does.
What does it mean that they ‘paid unaffordable rates’? Are they paying with borrowed money?
It means they had rents that were more than 30% of their income, by this study’s definition.
Shit, I consider myself in a good position if I’m under 50%
I’m not saying that rent isn’t high but I don’t like this definition. 30% is not crazy high. I would say 20% is low, 30% is medium, 50% would be high.
It’s a fairly typical “rule” in personal finance not to spend more than 30% of your income on housing or rent, which is probably why that’s what the study is using. You’re right it is a little conservative, and especially in cities most people have been going over that for quite a while. Some landlords will not even consider your application though if your income isn’t 3x the rent. It’s still a good idea to spend 30% or less on housing or rent, if you have the option. Not everyone does.
I paid my rent with real money. I bought my groceries with borrowed money.
People are maxing out their credit cards, so probably.
Wtf? The answer is literally in the first couple of paragraphs. All you had to do was open the article and read for less than 5 seconds.
deleted by creator