Renting a nice flat in a decent area in Central London is going to set you back at least £200. Spending 50% of your income on housing is normal when you are buying the property however when you are simply renting it is quite wasteful. Since that money is never going to come back to you. Ideally, strategically speaking, you should be saving a little more and spending as little as possible on your rental accommodation.
It is a lifestyle choice in essence. You can either spend now or save for later. Getting an expensive rental flat gives you a great place to live and a fantastic lifestyle. However can you afford to save for a deposit to buy a house, go on holiday or buy little extras? The responsible method is to go as cheap as possible, share if you can bear other people. Make sure you put the money away you save from your cheaper accommodation so you can use it later.
It’s getting harder and harder to buy a flat in London, needing more and more money just to get a deposit together. If you go for an expensive rental property now you could be delaying getting your own dream home.
Renting in general is wasteful. Buying is like a form of saving since your monthly repayments are stored in the value of your property and returned to you upon a sale. A rental property never pays you back.
However if you are only in London for a short period or just don’t want to rent never go above 60% of your salary. London is expensive and you need at least £50 + bills a week to survive.
Typical costs in London per week
- · Food £40
- · Bills £20
- · Council Tax £35
- · Travel £20
- · Phone? Internet? Clothes? etc
So it is not advisable to spend more than 60% of your salary on your accommodation. Ideally try and spend 30%. The more disposable income you have, generally the more comfortable you will feel. Struggling for money each month is not pleasant.
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