Hi GT. As usual, I come seeking advice after getting mixed feedback on the googles.
For a young professional in a major metro area not earning a ton but receiving consistent salary increases and on track to continue to earn more/be promoted soon, what is a reasonable percentage of annual income (pre-tax since I'm not sure I have a solid figure for post tax income) to spend on renting a dream apartment/home?
My thought is that it's ok to go quite a bit above the usual 30% rule for a bit if at some point in 2015 I'll make enough that it will be proportionately lower (probably closer to 35-40%).
Is spending around 50% of my current **pre-tax** annual income on renting the most amazing place a poor financial choice? I love it so, so much.
I feel like finding somewhere amazing to live selects against single people, since a couple could split this 1 bedroom unit easily.
But I like to be a semi-hermit so a good living space is important to me....and my current group house is ok but I miss living alone and high quality kitchen appliances.
It's probably a bad idea...but this place is so amazing....I suppose sometimes I feel like I need to pounce on a great thing or lose my chance forever.
ETA: for utilities, I would only have to pay electric and internet. I don't have other monthly expenses as work pays for my personal cell and my monthly health insurance. So no other recurring bills.