Need advice on renting first apt rop

[Trying2save]

I'm in my late 20's and currently live at home and looking to move out in the next couple of months but have been having challenges on finding a place that I like and can afford! I don't want to go the roomate route.

I had a look at my first apartment today, one that I can afford, that is. Let's just say that it wasn't the nicest place but I think I could make it look great.

The apartment would cost me about 35% of my budget + additional for utilities. It's in a good area, has laundry in suite, parking etc. Which are really hard to find for this price! The suite itself isn't the nicest. It has carpet (yuck - light pink to boot) and older appliances. Needless to say it's not the place that I had in mind when I envisioned myself in my first apartment.

I keep thinking that for an extra $200 I could live in one of the newly built condo's down the street with stainless steel appliances etc. That would cost me 42% of my income + additional utilities.

Anyone have any sound advice to give me? Part of me thinks "this is your first apartment, it can be a little crappy" and then another part of me thinks "for an extra $200 you could get the one you really like down the street". Help!

[Ima saver]

I hate to say this, but I think both apartments are too expensive. You need to find something for under 30% of your take home.

[kork13]

What are your prospects for increasing your income? From what you've said, I'm estimating your monthly income around $2850/mo? So the place you looked at was $1000/mo rent? Where do you live? In most areas, $1000/mo could fetch a reasonably nice place, so I assume you're in a high-cost area, perhaps in a metro area?

In any case, I would recommend a few things...
First and foremost, you may need to adjust your expectations. Surely you've gotten used to the niceties that you've had while living at home with your parents, but they've worked their entire lives to reach that point. You can't expect to go right into the same standard of living immediately after moving out. If you want to live like you do at home, then stay at home. Otherwise, accept the fact that you can't live like that on your own, at least not yet, and not with your current level of income.
Second, 35% of your income isn't really "affordable" -- that's stretching the limit of what you can probably realistically manage. Don't even think about reaching for 42%. You'll still need to pay utilities, insurance, and whatever amenities you want (cable, internet, etc.). By the time you do all of that, you could EASILY be paying over 60% of your income JUST for a place to live. Bad idea.
Third, keep looking. You said you've only looked at one apartment in your range... Just keep looking, and as I said before, don't expect so much. What size of an apartment are you looking for? Being on your own, all you need is a small 1-bedroom apartment. You could even look at a studio (no bedrooms, basically a single large living space). Look at places further away from town, in lower-cost areas away from the niceties of your city.
Last, explore your options. $2850/mo isn't necessarily a great salary for someone in their late 20's -- can you find a better paying job at a different company? Or even, can you move to another city (a lower-cost city), and pick up a well-paying job there? Look into your options. Alot of people hesitate to move away from the city they know, but there are alot of opportunities out there if you strike out and look for them.

[disneysteve]

First and foremost, you may need to adjust your expectations. Surely you've gotten used to the niceties that you've had while living at home with your parents, but they've worked their entire lives to reach that point. You can't expect to go right into the same standard of living immediately after moving out. If you want to live like you do at home, then stay at home. Otherwise, accept the fact that you can't live like that on your own, at least not yet, and not with your current level of income.
Second, 35% of your income isn't really "affordable"

I agree 100% with kork. I think you are suffering from a very common problem which speaks to why so many adult children are still living at home with mom and dad beyond college age. They want to move out and have the same lifestyle they enjoy in their parents' home and life just doesn't work that way. Nobody wants to struggle anymore. Your parents didn't start with all the nice stuff they have now. Ask them. They'll tell you.

I'm 46. My first apartment was a studio, no bedroom, a tiny roach-infested kitchen and not much else. I had a sofa bed that was my sofa during the day (if I felt like closing it) and my bed at night. The laundry room was down the hall and I had a small storage locker in the building's back room. I lived there for 2 years. My next place was a 2-bedroom duplex apt which was much nicer but still nothing fancy (and still had roaches). My third "adult" home was a rented house. It actually belonged to my then to-be-wife's great aunt who had taken ill and moved in with family. I moved in about 6 months before our wedding. That was a 3-bedroom house built in the 1940s that had carpets worn through to the floor in some spots, a bowed wall in the basement and a grand total of 1 electric outlet in each room of the house. Only one of us could be in the kitchen at a time because there wasn't enough room to pass each other.

The point is that you need to start with what you can afford, not what you'd like to have. Don't find the place first and then figure out how to afford it. Figure out the money first, then find the place that matches that amount. Will you love it? Probably not. But you get what you can afford. When you can afford better, you move.

[maat55]

You're struggling with something you want but cannot afford. This is just one of the numerous financial decisions you will make in your lifetime.

They who chose to adhere to a solid financial plan will stick to a %'s that fits prosperity. 30% should be your target, not 35 or 42. You need to establish first your savings and investments over excessive housing.

IMO, housing and autos are the two worst decisions people make that detour prosperity.

[briandownie]

I'm not going to say that I disagree with our esteemed savers, because there is some very good advice here, but there may be some other things to consider like proximity to work. It may make sense to spend a little more on rent if it can reduce traveling expenses.

If you need to move further away from work to get a more affordable apartment it may be smarter to take the more expensive apartment if it means being able to park the care and walk to work. If this is the case I would try cutting some of your other expenses.

Sometimes you need to look at the whole picture.

I agree with Kork13, keep looking you may find a diamond in the rough.

Good luck

Brian

[snafu]

Sorry to sound harsh but I'm not convinced you are mature enough to leave home. You need to balance cost, safety, parking [if you have a car], and location [access to work and services you use regularly]. Kork kindly laid down the figures since you define yourself as 'late 20's Trying 2save.' Check Craigslist, Kijjiji online & bulletin boards in grocery stores in your preferred location. There are often 'rough gems' to be found that you can fix to suit your circumstances. Have you looked at suites [basement or 2nd flr.] in a private homes? Landlords often allow good tenants to make approved changes that add value. A can of paint and a sheet of vinyl can do wonders for cheap. As a renter you are paying a % of someone else's mortgage and property tax and you needn't stay forever. When your income increases you can be upwardly mobile and have a better understanding of what is truly important to you like space [sf] or bling like SS fridge/stove.

In this economy it is downright dangerous to drown in debt. As a 1st time renter, you may need funds for utility deposit, renter insurance, furniture, kitchenware, basic food supplies, bed linens and a thousand incidental which are small in themselves but add up mighty fast.

Wishing you well, it's exciting to be totally responsible for yourself.

[Trying2save]

Thank you all for your advice. As I read over the posts I realize that you all are right. My expectations are completely out of whack - I was hoping to get a great newly built condo with nice appliances lol. Can't really afford that yet 42% of my pay without utilities, cable etc is A LOT.

I may consider moving closer to work (its in the suburbs and cheaper rent). I was trying to not have that option as I wanted to be closer to family and have access to subway if needed but considering this city is too expensive for me right now, I have no choice but to look on the outskirts.

Thanks all! Hope to find a 'diamond in the rough' soon!

Cheers

[cjscully]

Just to chime in a little bit on the reality check. For your first apartment you want a safe neighborhood, a building that is at least clean and an apartment with appliances that work. If you consider anything more than those basic requirements to be bonuses, you're more likely to find a place within your price range.

[jpg7n16]

The point is that you need to start with what you can afford, not what you'd like to have. Don't find the place first and then figure out how to afford it. Figure out the money first, then find the place that matches that amount. Will you love it? Probably not. But you get what you can afford. When you can afford better, you move.

I think this sums it up well.

And your monthly expense should be maximum 25-28% of your monthly income. (lower if possible)

I have 2 roommates - my rent (incl utilities) is about 12% of my income. And I always have someone at home to hang out with, cook with, go bowling with, whatever. Place is nice too. Cheap cause we split costs.

[Joan.of.the.Arch]

I encourage you to look at living in your first apartment as an adventure. If it is not nearly what you eventually hope to live in, at least enjoy knowing that you are meeting a little challenge with pluck and humor.

The first places I lived were nearly like camping out except that there was a roof. If I left water in a cup overnight in winter, it was frozen when I awoke. On cool evenings there were often snakes sunning themselves on the sidewalk approaching my apartment. I even came home to a snake in the kitchen one day-- and what a funny memory that is. My friends from school came over to study and I had two chairs from the used hotel supply, plus two milk crates turned upside down to offer as chairs. My friends were beyond that stage of life, being late returners to school, but they understood and completely accepted it. That was about how they'd lived earlier in their lives, after all.

Have an adventure and enjoy yourself! Fresh, new, tidy condos just don't have the same cache. They don't give you the same quality of stuff to look back upon in future years. Uh, well, I think memories are worthwhile, anyhow. And as you move along to better places, you'll get to wear your invisible First Apartment Survivor badge. It glints cheerfully in the sun, but others will mistake the glint for sparkle in your personality.