Rental Dilemma - Financial advice required.

[kylel39]

Hello everyone,

 

Looking for some advice please - advice which I realise will be subjective.

 

My girlfriend and I have been in Perth 1 week now and have been offered a rental which is very nice, right next to a train station, in Subiaco and seems to suit our needs. We basically set a maximum budget of $550 per week to rent a property and this one we've been offered is $610 per week - over budget. There's a bit more to it as the current tenants have offered us two weeks free rent essentially as they need it leased asap (saving $1220 outlay or effectively 5 months at $550). They don't have time to sort viewings (both full time doctors with a child), we're ready to move in asap and they've met us and are very happy with us taking over the lease and would advise the real estate agent and owner so. Another pro is that we can get a short term lease to basically see if we like it so 3 months shouldn't be a problem then we can decide again after that. We can also rent out one of the car parking spaces for approximately $20-30 per week so a slight saving there.

 

Basically what I'm looking for is some advice on what people think of it financially. I start work in 1 week and my girlfriend has had an interview with an employer who is now checking her references - so looking good hopefully. Our combined salary would be around $120,000 - $130,000. We have bought a car which should do us fine so no finance or that required and insurance paid for. Our only bills would be Internet, Foxtel, Gas/Electric, food shopping and water rates (I think). We would be living modestly, nothing extravagant but we're young (both 23) so would be doing things, going out for tea, nights out etc. What do people think, is this realistic enough living? I think it's more than doable but would be nice to have some reassurance from anyone in a similar position?

 

Any advice would be greatly appreciated.

 

Kyle

[fifi69]

I would say it is doable. We've lived on a salary of less than that, paying similar rent and still managed meals out, drinks etc.

 

IMO that is a fair price for Subi, which is a perfect place for a young couple. Everything on your doorstep, so maybe a saving on taxi fares after a night out. Also being so close to a train station is a good thing, maybe saving on the need for a 2nd car.

 

If you like the property I would be snapping their hands off.

[Guest guest10912]

Earning $130k between you that is about $2k per week, assuming that you are more or less 50:50. This is a lot more than one person getting $130k which is about $1800 per week. It is often said that you should try not to spend more than about a third of income on accommodation and you would be less than that at $610, so I think it should be ok.

[kylel39]

Thanks very much Rupert and fifi, that's the news I was hoping to hear anyway.

 

The property is literally a 1 minute walk from the train station but not on the street everyone comes off at so that's good. If my girlfriend get's this job it's perfect for us because door to door it takes around 20 minutes including walking. So we wouldn't need an extra car which we didn't want to have anyway. It would take me around 15-20 mins to drive to work which is pretty reasonable and because I'm heading away from Perth, hopefully traffic shouldn't be too bad.

 

Thanks guys, I think we'll give the current tenant call just now and hopefully get the ball rolling :-) Will hopefully be back on here with a house to shout about.

 

Kyle