What Percentage Of Your Annual Earning Should Be Paid As House Rent Per Annum - Properties (4) - Nairaland
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| Re: What Percentage Of Your Annual Earning Should Be Paid As House Rent Per Annum by Fhemmmy: 2:24am On Aug 30, 2014 |
emiye: 30% of income to pay rent in Nigeria is disaster waiting to happen. Things like fuel for generators, buying of water (potable), subscriptions (internet, pay to watch satellite e.t.c) will still take a sizable chunk of the income. Thanks for correcting me, sir |
| Re: What Percentage Of Your Annual Earning Should Be Paid As House Rent Per Annum by Fhemmmy: 2:28am On Aug 30, 2014 |
dremoney: Nice analogy and I think I am out touch with reality in Nigeria, lemme run to my auto sales and technology market, while I learn..... and I mean this. I used to tell my wife that I can survive on omly 100$ in a week in Nigeria, I guess I am living in fool's paradise Thanks for waking me up |
| Re: What Percentage Of Your Annual Earning Should Be Paid As House Rent Per Annum by Tinyemeka(m): 2:55am On Aug 30, 2014 |
Mine is 8.33% of my annual. And I even felt guilty paying that large sum. IMO. Seems reasonable though. P.S @OP, why would you be asking such a question after spending 6 yrs in a bank post-NYSC? Where had you been staying all these while? 1 Like |
| Re: What Percentage Of Your Annual Earning Should Be Paid As House Rent Per Annum by abbakacici: 3:45am On Aug 30, 2014 |
what determined your rent is your location and your values not some estimate, because assuming your salary is 2 million annually there is no way you will find a house to rent in Abuja with less 25% even with that, you will be living outside the city in place like Nyaya, Zuba, marababa etc. i remember during my nysc the new staff of the organisation where given (800K) almost 25% of their salary as rent allowance. while most abuja staff have to added like 150k to 200k because average rent for 2-3 bedroom was like 1 million (garki, wuse life camp) while other abuja staff paid like 600-700 for similar house at Kubwa and Zuba but have to travel like 1-2 hours every day defending on traffic. so you see while other want to save time other want to save money at the same time their collogue at lagos paid like (700k) kano (500K) and i was very shock to hear some one paid like 250k at oshogbo for decent 4 bedroom house and a corper from enugu told someone can get similiar house at Enugu for 350k. 2 Likes 1 Share |
| Re: What Percentage Of Your Annual Earning Should Be Paid As House Rent Per Annum by Nobody: 5:34am On Aug 30, 2014 |
ayusco85: Hmmm sign of end time....na wu plant dis yam? Hmmmm, i dont understand. The yam is a resemblance of what? @op, anything beyond 20% is not adviceable. Remember you must think as one who has plans for the future and if you must bring those financial plans to reality, then spending too much on accomodation as well as every other thing should be cut to the bearest. 20% is ok. #MyOpinionThough |
| Re: What Percentage Of Your Annual Earning Should Be Paid As House Rent Per Annum by Mist100: 8:27am On Aug 30, 2014 |
Adventurist: i have been working in banking/investment/financial sector for about six years after my NYSC. So you should have an idea of my current salary. i dont wanna mention it here coz of confidentiality and security as well. You are seeking information when you are hiding your financial information. Does anyone know your name, your bank or your contact? Anyways as a finance person you are supposed to know. Nonsense. 2 Likes |
| Re: What Percentage Of Your Annual Earning Should Be Paid As House Rent Per Annum by Agbo2(m): 8:42am On Aug 30, 2014 |
I live in Lagos and my annual rent was 80% of my monthly salary, God just promoted me and its now 30% of my monthly salary. I plan to leave it that way till I can save enough to buy my own house. |
| Re: What Percentage Of Your Annual Earning Should Be Paid As House Rent Per Annum by Pesuzok(m): 8:50am On Aug 30, 2014 |
laivwire: if you live in abuja and you have a family, where do you think you will get accomodation for 600k, lets say a 3 bedroom flat considering you have a family, and you work in central area? |
| Re: What Percentage Of Your Annual Earning Should Be Paid As House Rent Per Annum by Revolva(m): 8:52am On Aug 30, 2014 |
Adventurist: Wake up bro. We are talking about real life issue here + responsibilities. This isn't joke, cooked up or fables. They are real personal issues. No everyone posts rubbish here. Hi Hi sir.....roger dat |
| Re: What Percentage Of Your Annual Earning Should Be Paid As House Rent Per Annum by laivwire(m): 9:30am On Aug 30, 2014 |
Pesuzok:True, we'll as I explained in my first pot on this topic, ,marital status goes a long way in determining the size of the house, location too counts.its not just placing a peg on the income proportion that works. Just wanted to point out the miscalculation on your post |
| Re: What Percentage Of Your Annual Earning Should Be Paid As House Rent Per Annum by cooldudeng(m): 9:32am On Aug 30, 2014 |
I often here people say 20% is ideal but again who says you can't go lower. Started out in a bank and when the long hours of driving to and from work nearly killed me I had to look for a place close to work. It would have costed about 30% of my annual and I was determined to cut down on some other expenses to accommodate this. Truth is, there was barely anything to cut, even the now reduced cost of fueling won't cover the increased rent. since I was fresh out of school, ended up sharing apartment with some fellow colleagues to achieve a 10% (of course that came with its own hurdles) Changed jobs, moved out of the Island only to discover that mainland was equally expensive. This time about 40% was all I saw close to the office. I had to widen my search and a bit of distance away from the office to finally settle for 12%. Now things have improved and it's down to 8%. Would continue to keep it down till I finally have my own house. I think the morale of the story is knowing what you want and believe me, you can always find ways around it. 1 Like |
| Re: What Percentage Of Your Annual Earning Should Be Paid As House Rent Per Annum by shizzle11(m): 10:06am On Aug 30, 2014 |
Ishsoph:nailed |
| Re: What Percentage Of Your Annual Earning Should Be Paid As House Rent Per Annum by dammytosh: 10:59am On Aug 30, 2014 |
mindworx: Yes i love ur idea. Mine is a bit more strict. Your net monthly pay or max 1 and half month net pay must pay ur annual rent. Like others said, the house should be based on ur need not trying to make a statement. |
| Re: What Percentage Of Your Annual Earning Should Be Paid As House Rent Per Annum by 4C2215131: 11:21am On Aug 30, 2014 |
I'd say 20 per cent tops as it is relative. A chap that earns 1.2 mil a year takes home 100k a month. 20 per cent of that is 20k which, I believe, save the chap is hopelessly stupid, should be what s/he reserves for rent as there are other expenses to take care of. Before anyone says it's too small, remember I said it's relative. Someone earning 3.6 mil per annum can go as high as 60k or more per month. Nigeria is so un-predictable a country. You gotta be savvy in money matters. So, it's about what you want though. If you just want to splurge and live it up as maybe still single with no immediate business plans or good use of your money you could go as high as 30 per cent (seen chaps doing 40 per cent!). It's your call. |
| Re: What Percentage Of Your Annual Earning Should Be Paid As House Rent Per Annum by olydedon: 12:20pm On Aug 30, 2014 |
one month of your salary should be able to pay your annual house rent. |
| Re: What Percentage Of Your Annual Earning Should Be Paid As House Rent Per Annum by Nobody: 12:54pm On Aug 30, 2014 |
Ishsoph: Okay. Noted. |
| Re: What Percentage Of Your Annual Earning Should Be Paid As House Rent Per Annum by Konnektions146(m): 1:16pm On Aug 30, 2014 |
Jarus:Oga Jarus, I guess the guy is either new here or never seen someone with a very very good pay. @topic Don't fall for peer pressure, if you are married, less than 15% as a Nigeria banker is OK but if you are not, you can still cut a little down and plan for the future. The moment of truth comes after you have extra mouth to feed , even if its 1person(wife) By the way , mine is about a month's pay excluding wifey's salary, |
| Re: What Percentage Of Your Annual Earning Should Be Paid As House Rent Per Annum by Nobody: 2:27pm On Aug 30, 2014 |
Jarus: One earning that much shouldn't be 'renting' a house. @topic It's all relative. I spend about 30% because I live in a decent apartment in Lagos. I must consider proximity of me and wife's office from home. I must also think of safety. If I was in Enugu or another smaller State, perhaps 10% would do. |
| Re: What Percentage Of Your Annual Earning Should Be Paid As House Rent Per Annum by Nobody: 3:10pm On Aug 30, 2014 |
Gaggi:You don't build a house overnight. 4 Likes |
| Re: What Percentage Of Your Annual Earning Should Be Paid As House Rent Per Annum by Nobody: 4:06pm On Aug 30, 2014 |
Jarus: Ok. Congrats then. Nice one. |
| Re: What Percentage Of Your Annual Earning Should Be Paid As House Rent Per Annum by kopell: 4:16pm On Aug 30, 2014 |
@victorv12. When 30 percent of your earnings are exhausted on shelter, your labor are no longer viewed as an opportunity for economic advancement, but rather as an act of self-preservation. In the real world that's called...slavery.? Sir, I don't know where you reside. My comment is based on the fact that is used to determine rent calculation where I reside. I believe it's a federal law that governs property owners and the renters. This law was also strictly enforced on banks as well. If you read my first post carefully, I said where incomes has good accounting practice and well documented, can easily be verified. Your comment above in my view, with Naija housing market that was run on speculations not the value of the houses themselves . I may agree with you, if at present, Nigerian 30% income may not support their rent, but I also find it difficult to understand the balance with present income, housing cost, and the programs the government has in place for the housing markets. I had read a lot about the cost associated with land etc. I can't imagine and average legitimate income of #1.6m a year that can afford an apartment of two or three bedrooms at 8-10millon on mortgage at monthly payment of #120,000 a month. Even so call bankers that believe they are making decent living with many of them@#5-8millon a year income. Mind you the entire banking sector hired only 90,000 or so workers, out of 160 million people. They are still considered poor in this part of the world, they may still need government assistant in one-way or other. I believe we have to put many things in order, like removing those crazy land fees charges to liberalize the sector. We have a long way to go as nation to make housing affordable for ordinary Nigerians in conclusion. 1 Like |
| Re: What Percentage Of Your Annual Earning Should Be Paid As House Rent Per Annum by kopell: 4:52pm On Aug 30, 2014 |
@victorv12. When 30 percent of your earnings are exhausted on shelter, your labor are no longer viewed as an opportunity for economic advancement, but rather as an act of self-preservation. In the real world that's called...slavery.? Sir, I don't know where you reside. My comment is based on the fact that is used to determine rent calculation where I reside. I believe it's a federal law that governs property owners and the renters. This law was also strictly enforced on banks as well. If you read my first post carefully, I said where incomes has good accounting practice and well documented, can easily be verified. Your comment above in my view, with Naija housing market that was run on speculations not the value of the houses themselves . I may agree with you, if at present, Nigerian 30% income may not support their rent, but I also find it difficult to understand the balance with present income, housing cost, and the programs the government has in place for the housing markets. I had read a lot about the cost associated with land etc. I can't imagine and average legitimate income of #1.6m a year that can afford an apartment of two or three bedrooms at 8-10millon on mortgage at monthly payment of #120,000 a month. Even so call bankers that believe they are making decent living with many of them@#5-8millon a year income. Mind you the entire banking sector hired only 90,000 or so workers, out of 160 million people. They are still considered poor in this part of the world, they may still need government assistant in one-way or other. I believe we have to put many things in order, like removing those crazy land fees charges to liberalize the sector. We have a long way to go as nation to make housing affordable for ordinary Nigerians in conclusion |
| Re: What Percentage Of Your Annual Earning Should Be Paid As House Rent Per Annum by lacastre: 5:13pm On Aug 30, 2014 |
irrespective of your status,married or unmarried,economically it should be between 25 and 30% but lavishly it can be 45% and above |
| Re: What Percentage Of Your Annual Earning Should Be Paid As House Rent Per Annum by tlops(m): 6:06pm On Aug 30, 2014 |
The percentage that the landlord demands. |
| Re: What Percentage Of Your Annual Earning Should Be Paid As House Rent Per Annum by skj1377(m): 7:48pm On Aug 30, 2014 |
lacastre: irrespective of your status,married or unmarried,economically it should be between 25 and 30% but lavishly it can be 45% and above thats high good example should be between 5% and 10%. remember your salary should increase over time. say you start work in a company that pays you 120k after tax per month at the age of 24yrs. if your parents have a house in lag stay in the house for four years and save the rent as part of savings. 120k * 12 months = N1,440,000 max 10% thats N144000 additional savings per year 144000 * 4 yeras = N576000 after 4 years assuming you are saving say 10% per month at the end of 4 years you should have N576000. your saving plus the rent saved = N576000 + N576000 = N1,152,000 N1,152,000 can buy you a plot of land in a new developing area and it will be in your name after only 4 years of working. now imagine your paying 30% as rent after 4 years you would have given away N1,728,000. and your savings will only be N576,000. and that can not buy you a plot as good as that of the first example. assuming the first example set aside the money you payed as rent to your land lord,he will now have N1,728,000 +N576,000= N2,304,000 with N2,304,000 he can buy two choice plots in a developing area. remember you have only N576,000 because you payed the land lord N1,728,000. mr stupid has land worth N2,304,000 while mr wise has land worth N576,000. lets assume the land appreciates by 100% after one year. mr stupid now has N4,608,000 worth of land and mr wise has N1,152,000. mr stupid worth N4,608,000+ N576000 saved on the fifth year= N5,184,000 mr wise N1,152,000+ N576000= N1,728,000 saved on the fifth year so mr stupid N[b]5,184,000[/b] and mr wise N[b]1,728,000[/b] after five years of working now you tell me is it wise to give a land lord your money? |
| Re: What Percentage Of Your Annual Earning Should Be Paid As House Rent Per Annum by magicalkid: 8:13pm On Aug 30, 2014 |
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| Re: What Percentage Of Your Annual Earning Should Be Paid As House Rent Per Annum by Emblj: 8:28am On Aug 31, 2014 |
Based on good financial discipline your rent should NOT be more than 10% of your income. While feeding should NOT be more than 30%. Remember other important aspects like transport, education and health are still pending. 1 Like |
| Re: What Percentage Of Your Annual Earning Should Be Paid As House Rent Per Annum by kackar22: 6:25pm On Aug 31, 2014 |
Una dey on una own |
| Re: What Percentage Of Your Annual Earning Should Be Paid As House Rent Per Annum by jennylove7575(f): 7:39pm On Sep 04, 2014 |
GoodFaith: 30%of ur income should be for rent or mortgageblessed my yansh. it takes an ashawo patroniser to know ashawo. ur mother is a ashawo...all you sisters are ashawo and you are a patroniser of one....you are a giggolo and bisexual..you sleep around with old women for money....ah?? so you marry no wonder you kept denying that poor girls pregnancy...you are a wicked child....i dont bloody care if you do cefa or naira or zimbabwe money.. you are a bad person. na blindy marry you...false advertisement...you are fraud that is what you are..hear yourself ha ha ha liar...its your family thing she will bore you that child. this is how your father decieved your mother it runs in the blood...my friend even tell me say your prick small like groundnut with plenty bear bear..you no dey shave...ha ha ha ha ha.....you are the crackhead oh i see what do you do? yahoo yahoo? liar, deceit, penniless fraud?. was that why you gave her 3000naira for an abortion? you heartless child. she loved you that was why she opened her legs for you. now you are denying your responsibilities. now you have failed. its me and you in this niaraland.goodfaith u impregnated my friend and and gave her money for an abortion and then u came to nl to start running your stinking mouth isnt it...go and take up your responsibility..stop donating your sperm...if u ain't ready for a child. you came using different usernames i know all of dem..you are a bad person all the ladies in da house needs to know..you come here posting silly topics. whom is fooling whom? for you information am waiting for your father to come and marry me. so that i can give him a legitimate child since you are born out of wedlock. charity begins at home |
| Re: What Percentage Of Your Annual Earning Should Be Paid As House Rent Per Annum by toniro(m): 5:42am On Sep 24, 2014 |
I trust dat by now u have made ur decision on accommodation. Well if u have not n since u reside in lagos, factor in transportation. This I mean is get a place relatively close to ur place of work;finance to me is not ur challenge so if u work in d island, yes u can get a place in d island. See there is no atm in heaven o!  |
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