Hello house, please what percentage of one's annual earnings should constitute your house rent for a year? I am in the process of securing a nice accomodation however I jst want to make sure am not spending too much on the crib. Any financial planner in the house kindly assist.

Sorry it going to be hard for you to determine that in Naija. If it other side or the world, where good accounting practice exits on incomes. All incomes are well documented and can be verified. Your annual rent should not be more then 30% of income.

@OP
- how old are you?
- single/engaged/married/any kids?
- are you taking care of family members?
- whats your reason for renting this place?

I hav no idea of hw much u earn or ur present location for accommodation! I wud hav said ensure ur monthly take is higher n can pay the monthly accommodation rate conveniently. By so doing u r certain that d bill is always withi n ur gap.
Well if u r really crazy about a good house, ur comfort, etc then go for it but remember u hav to pay d bill from ur pocket!
Regards

I would also advice you let your monthly take home be the determinant in your decision on paying rent which should not be beyond 25%

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.

i wanna to know if am not spending too much on accomodation. BTW, I live in Lagos, Nigeria.

Thanks

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.
i wanna to know if am not spending too much on accomodation.
Thanks

Only you can be true to yourself. I always ensure my two months basic salary (max) must be able to pay my rent. I am thinking towards buying land and building mine. I limited my rent as such even though my total monthly income (salary and businesses) can afford more than where i live at moment. I realized one must be a futuristic and cultivate self-discipline, manage to cut excesses and deny yourself some affluence/pleasure if you really do plan to build your own house here in Lagos. Of course, am not referring to guyz with fat pockets.

.

Depends on how much you earn. If you earn 10k monthly and you squat with a friend who has made life a living hell for you, you should use 90% of your salary to get an apartment fast and be free (There is nothing like freedom). However, if you earn as much as 500k monthly but wants to relocate because your daddy still treats you like a baby or you have a wicked landlord or a witch (ayamatanga) landlady, you should use about 10% of your salary.

Hmmn...I think it depends on ur income...

5%-10%

Hmmm sign of end time....na wu plant dis yam?

Make I book space for front page first. @op dis question is just like asking us how many times u shuld Bleep ur wife in a day, expecting us to answer it even if we dont knw how ugly ur wife is.

Fhemmmy: 30% is ideal.... could be over in some cases, but will have to adjust some other expenses so as to have some savings at the end of the year

that's too much. For instance, don't you think a man earning 100k monthly (1.2m annually) & and paying 30k (360k annually) for house rent is living above his means? How much will he spend on feeding, clothing, transport, fuel (if he has a car or uses a gen, or uses both), school fees (if he has children)? How much will he save? when will he build his own house? 30% could only be justifiable if the house is located at a place where none of the family member will spend on transport or if the man is single, doesn't plan to have a family, doesn't plan to build his own house.

10% is okay. Your monthly bill should be able to cover all your expenses for a whole mont,and saving as well..

90%

F

send me the house rent make i check if he go reach u 4 the year

If you are married and have kids and your wife is not working, please dont spend more than15% of your income on rent. Dont forget that you have school fees, car to maintain and aged parents to care of. Anything above this will cause you to struggle through out the year.

5%

But it's hard for middle class and poor.

House allowance is in the template.

Your salary for a month should cover for your one year rent else you are living above your income.

1

Chy27: Your salary for a month should cover for your one year rent else you are living above your income.

false..

25 percent

ur monthly income should be able to pay ur rent for a year

I say 10%, ,now my house rent costs me my 1 month income,,,to be comfortable just build ur own house,no house rent wahala

Well depending on your taste, 30 to 40% not bad,IMO. Here in America like 50 to 60 % goes to rent or mortgage every month, yes every month. Plus in Nigeria you to have make your home accessible to your work, else you spend better part of your life in traffic. Choose wisely brother.

well it depends on your income weather you are married or single and your taste

ayusco85: Hmmm sign of end time....na wu plant dis yam?

.

Bad yam .

10% is d ideal rate