Fhemmmy:

You mean 1/12th should pay a yearly rent, that will be low oh

=8.3%, you are right it is too small

Generally, I believe annual house rent should not be more than your 2 month salary, that's about 17% of your annual net pay.

My own rent at the moment is however just a little above half of my 1 month salary. That's roughly 5% of my annual net pay

from all una comments.... be like say I am living extravagant...... my yearly rent na 96k......I no de earn salary to calculate my annual income....na hustling tinx, money come today money disappear tomorrow..... just rented d house some 7months ago...
to live for public yard no de my blood again.... but dix 96k de do me one kind.... single though.

akinbe: 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.

10% how on earth can one earn 500k per month and still live in a rat hole of 50k per annum? Unless your will says bury with my money when i die!

reading this thread it appears to me most of the posters here either have very decent well paid jobs/ businesses or don't live in Lagos.

on the average around Lagos now a Mini Flat is going for 200-350k per annum depending on area. its 250k mostly.


2 bedroom flats start from 350-500k per annum.


applying the various 1 month/ 2 month salary template prescribed here means you are earning 200k and above monthly!


wawuu. NL rich peoples club.

Fhemmmy:

I dont think it is too much.....
360K Naira a year for accommodation is not too much at all, cos it means you have roughly 840K Naira left for the rest of all expenses.
What kinda job would you be doing to spend money monthly on clothing, in Nigeria, you buy your food in bulk and cook to eat in the house and cut down on your "Point and Kill joint"
Transportation, i will assume you have your own car, and if you dont, i am not familiar with cost of moving from one side to the other in Nigeria.
Fuel will be used only when you are home and for your ride if you have one and i dont see that as breaking the bank, i could be wrong cos i have no idea the cost of buying gas out there.
If you have children, you wont be paying school fees every year.
AGAIN, the 30% to me is the threshold that you wont wanna pass, if you are able to make it smaller, by all means

Not like you could be wrong, you are actually WRONG.

Rent and Mortgage repayments are different. Im sure you know that. 30% on mortgage? YES. 30% to-let a house? NO. 840K can barely run anybody over 2 quarters in Nigeria. Tithe alone is 84k.

I presently spend less than 10% on rent. I live in a decent 3bedroom. Downside is driving another hour than an average person who spends 20-25% on rent ONLY in the evening. I dont face traffic in the morning. Upside is having a better living standard than those who pay higher.

Financial management is a big problem in Nigeria. Peer pressure also is another factor. Folks just put springs on each others legs unnecessarily. Its unfair for someone in lekki to come to Agege in need of some loan to settle school fees. They never learn. Mid life crisis is REAL. You wont have that job forever.

When 30 percent of your earnings are exhausted on shelter, your labour 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.

Nigerians are suffering!

20% for rent
10% for God
20% for savin
40% for food and
10% for bear, babs, and all d bbbbbbbs!!!!!

By the time you spend 30% on the rent! where's the money for buying the furnishings which are like times two or three of the rent. Personally, I believe it depends on your marital status which determines the size of the house and the location to work. 10% I believe is ideal.

Depends on d city n cost of livin. In abuja where I work, except u want to live outside fct, u cnt get a place close to central area wit ur one month salary! Never!

2aces: 10% how on earth can one earn 500k per month and still live in a rat hole of 50k per annum? Unless your will says bury with my money when i die!

Oga, you do maths now. If you earn 500k monthly, your annual income is 6m. Living in a house of 600k p.a ain't a bad thing.

@Op, With over 6 yrs in financial sector, I assume you earn over 4 Million per annum, So am sure a 2 bedroom will be jst fine for you if your married or planing to get married, So atleast 400k-500k accommodation is jst fine, so that's abt 15% of your take home per anum

Should not be more than 15% of his TOTAL annual income, or else (s)he might die a tenant.

Spend whatever you want; and live a happy life.

Some Hotels in Ikoyi charge N70,000 per night. It doesn't mean those patronizing such hotels make N700,000 per day. I believe in making "yourself" happy. Do not let some economists dictate the short life...


However, one thing we should always avoid is "bad debt".

Fhemmmy:

I dont think it is too much.....
360K Naira a year for accommodation is not too much at all, cos it means you have roughly 840K Naira left for the rest of all expenses.
What kinda job would you be doing to spend money monthly on clothing, in Nigeria, you buy your food in bulk and cook to eat in the house and cut down on your "Point and Kill joint"
Transportation, i will assume you have your own car, and if you dont, i am not familiar with cost of moving from one side to the other in Nigeria.
Fuel will be used only when you are home and for your ride if you have one and i dont see that as breaking the bank, i could be wrong cos i have no idea the cost of buying gas out there.
If you have children, you wont be paying school fees every year.
AGAIN, the 30% to me is the threshold that you wont wanna pass, if you are able to make it smaller, by all means

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.

Acidosis: Spend whatever you want; and live a happy life.

Some Hotels in Ikoyi charge N70,000 per night. It doesn't mean those patronizing such hotels make N700,000 per day. I believe in making "yourself" happy. Do not let some economists dictate the short life...


However, one thing we should always avoid is "bad debt".

The boldened sounds to me like "Spend whatever you want now; and live a poor/sad life later". Human wants are insatiable, as such focus should be on needs, occasional indulgence is understandable.

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

That's 8.33%..Not bad but some wt big take home pay can afford more. Mine is only about 7.5% of annual pay.

kopell: 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.

30% is too much please,more like 20% max bro.

6% or 2 months pay. Anything above that is beyond your means

2aces: 10% how on earth can one earn 500k per month and still live in a rat hole of 50k per annum? Unless your will says bury with my money when i die!

I mean 10% of 500k x 12 months = 600k. But how on earth did you think I meant 50k per annum. I dey madt?

emiye:
The boldened sounds to me like "Spend whatever you want now; and live a poor/sad life later". Human wants are insatiable, as such focus should be on needs, occasional indulgence is understandable.

Sure, bro. I just do not see the need for the 10% ... 20% talks.

We cannot generalize reasoning that we do not even know his location (we also have bankers in villages). Telling a man living in Ikoyi to spend 10% of 4million on rent may end up living under the bridge. However, 10% of 4million can get the same man a palace in (say) Akure, Ondo state.

Acidosis:

Sure, bro. I just do not see the need for the 10% ... 20% talks.

We cannot generalize reasoning that we do not even know his location (we also have bankers in villages). Telling a man living in Ikoyi to spend 10% of 4million on rent may end up living under the bridge. However, 10% of 4million can get the same man a palace in (say) Akure, Ondo state.

If he cant spend 10% of 4 million(total income) to live in Ikoyi, maybe he has no business living in Ikoyi.

emiye:

If he cant spend 10% of 4 million(total income) to live in Ikoyi, maybe he has no business living in Ikoyi.

uhmn... If he works there, then he needs to consider traffic issues. He is a banker, remember?

na wa o nairaland now is now a testing ground to seek advise..why cant people think..by themselves..sometimes i know these stories are cooked up..and not fa real....fa sure

If you are still single (without marriage plans for now), you have no business renting a flat. Stay in a self contained apartment. If you are about getting married, you may consider renting a cheap 3 bedroomed apartment. Do not be extravagant, 15 - 20% is still ok.

2aces: 10% how on earth can one earn 500k per month and still live in a rat hole of 50k per annum? Unless your will says bury with my money when i die!

The question is addressing the percentage of the total annual earning and not monthly salary.

I think this is ok. However, in my family we spend a little below 4% of our income on house rent. I can live anywhere i want in my city but sometimes if you're too comfortable you won't be under pressure to start and finish your own house.

richtubor: One month income. One twelveth should be sustainable.

meforyou1: Op, your question is hypocritical. I am a federal employee, and earn same with every other of my colleague in any part of this country. But my annual rent in abuja for 3 bedroom is about 2 million, while my colleagues pay about 150 thousand to 250 in 3 bedrooms and duplexes they live in other parts of Nigeria.

Exactly my situation here!
It's eating deep in my heart
Sometimes I argue that government should give those of us living in Abuja a pay raise or better still introduce a working mortgage housing scheme. They should also mandate NGOs to adopt similar approach.

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.

Revolva: na wa o nairaland now is now a testing ground to seek advise..why cant people think..by themselves..sometimes i know these stories are cooked up..and not fa real....fa sure

Jarus: Generally, I believe annual house rent should not be more than your 2 month salary, that's about 17% of your annual net pay.

My own rent at the moment is however just a little above half of my 1 month salary. That's roughly 5% of my annual net pay

Trust me you wouldn't pull that off in Abuja
Unless you earn over a million monthly, and that wouldn't fetch you more than 2 bedroom flat here too.

emiye:
The boldened sounds to me like "Spend whatever you want now; and live a poor/sad life later". Human wants are insatiable, as such focus should be on needs, occasional indulgence is understandable.

You nailed it!