Post # 1
Member
162 posts
Blushing bee
Hello bees, I need some advice.
Current situation: renting a 2br/1ba duplex in a deteriorating neighborhood. New neighbor in the duplex moved in a month ago and we’ve already noticed shaddy activities we don’t want to be associated with. There’s more to the story but bottom line is that we need to leave this neighborhood. We do have the best landlords though and wish they had done a better screening.
Rental costs – 10%
Current savings rate – 60-70% of income
Expect to have 20% down payment next summer.
Potential situation: 3-4br/2ba 2200 sqft single family in a secluded and great area of town. For comparison sake, these type of homes normally get rented for about 30% of our take home pay. Most of the houses we are considering are the only rentals in their subdivision which we like.
Prospective rental costs – 20%
Savings rate: 50 – 60%
The dilemma is after 16 months of extreme cuts to pay off debt and now save, we are having a hard time doubling our rental costs. We WILL NOT purchase until we have 20% down and can get a house we could call a forever home (please don’t suggest it. It’s a personal goal). We also expect a 10 to 20% increase in revenue by the end of the year which will make the costs more “bearable.”
Are we being cheap asses? Is it reasonable to spend 20% of revenue on housing?
Post # 2
Member
8650 posts
Bumble Beekeeper
KamerChick : if you are close to the 20% and the neighbors are simply annoying then I’d stick I out. If the neighborhood is becoming unsafe and you are more than a few months from buying then spending 20% of your take home pay on rent isn’t bad considering you will still save at least 50%. Suzy Orman says it best – people first, then money, then things. Your safety is worth a higher rent.
Post # 3
Member
1936 posts
Buzzing bee
Unless you’re in genuine fear for your safety, sometimes, you just have to deal with trashy neighbours.
Since it’s saving you money and not deteriorating any assets (you’re renting, not owning) I’d care way less about the surroundings and more about the money in my bank account.
You can always be pro active concerning your neighbours. I’ve run a few out of my apartment building myself, lol. I take the time to file complaints, knock on their doors, etc. We currently rent, but the way I see it we pay money to be here so I’ll do whatever is in my power to get rid of the trash. (By trash I mean the partieres, dopers, squatters, etc.)
I say stay where you are and save the money. Again, this is only if you’re not concerned for your safety. Safety comes first.
Post # 4
Member
9588 posts
Buzzing Beekeeper
Isn’t there something in between? Move but to a less expensive place than the one you’re considering.if you stay get that doorbell camera.
Post # 5
Member
7898 posts
Bumble Beekeeper
It sounds like you are truly worried about your safety in your current rental. I know you’re worried about the increase in rent in the new place, but the lower limit of your current saving rate is the same as the upper limit of your potentially new saving rate. If the situation is so dire, I think it is reasonable to move to the safer place. You can cut costs elsewhere to make up for it, and your anticipated increase in future income will make up for it too.
Post # 6
Member
162 posts
Blushing bee
MrsBuesleBee : it’s a College town and staying in the 10-15% range would mean dealing with college students. We’ve been looking for 2 months now and sadly 20% is the “most” cost efficient option. We are hoping to find a good deal from an older couple like we have now but we haven’t been lucky yet.
LilliV : 1 out of 4 neighbors is definitely doing illegal stuff and summer tends to be the time their “activities” pick up. I’ve called the cops many times and I’ve been told that they need plausible cause to search the house. There’s already been one arrest last summer and a whole lot of drama that I can live without. New neighbor in duplex is mostly annoying and smokes weed in our shared areas (backyard, driveway) which I could deal with for another year.
Post # 7
Member
482 posts
Helper bee
I would just pay the 20% & move. 50-60% is still a ton of savings and you can relax and not worry about what they’re doing. The extra 10% is worth peace of mind
Post # 8
Member
9588 posts
Buzzing Beekeeper
KamerChick : well I agree that a 50% savings rate is still excellent so just move and be happy!
Post # 9
Member
13858 posts
Honey Beekeeper
I agree — I’d move. If you can still save 50% of your take home pay, you’re still doing great.
Member