What Percentage Of Your Monthly Income To You Put Towards Rent?

[sdchargerfan]

Hello all, I am moving to BKK within the next 6 months; I have been offered a job with a Thai company and plan to accept it. (I am from the USA, single male, 26 yrs old)

However one thing that I am still trying to wrap my head around is the local economy...I expect my monthly salary to be at least 40k THB but possibly as high as 60k per month. With that in mind, I have been looking online at places to rent in the Sathorn/Silom area (this is where my company is located) and I see plenty of nice 1 bedroom furnished places priced 20k-30k per month.

My first question to you all is do you think 50% of monthly salary is too high to devote to rent (as a single person on a single income stream)? I don't plan on buying a car and can't really think of what other monthly expenses I might have besides daily meals and transportation costs.

My second question is what percentage do you spend on rent each month?

Thanks!

[neverdie]

Choice is yours. You can get a thai styled room for around the 6,000 baht range in that area with basic furniture and air con or you can get something nicer in the range you are speaking of.

Personally I wouldnt devote 50% of my income to a pad, where you mainly sleep, eat, shower, <deleted> etc. No doubt you will be working long hours, so thats more time away from the pad and then you will be on the go chasing skirt and the other tastes of Bangkok/Thailand.

The more you put into rent, the higher you're bond payment, the more money you have to lose when something goes wrong at the condo & you want to leave but the dodgy condo management milks part or all of you're money. UNDERSTAND THIS, the rights of the tenants here isnt exactly 1st class. If you doubt this, check this very forum for all the sad stories about the people who didnt get their bond back

Perhaps, AT FIRST, you could apply the KISS THEORY. (Keep it simple stupid). Go for something down scale until you get some personal experience and sense of what is going on. Its always easy to start low and upgrade. Flying first class all you're life and downgrading to an economy life is a real bummmmer.

Good luck in LOS!

Edited June 22, 2010 by neverdie

[Briggsy]

You are browsing apartment prices on the net. These adverts are for naive gullible foreigners only. Thais don't find accommodation on the net and if they do, they don't pay stupid tourist prices.

5000 Baht a month gives you a studio pad with a/c and furniture near Victory Monument.

[jackdawson]

first , 40,000 in bangkok is small money . keep that in mind . 60,000 would make a BIG difference .

it is SUPER important to have a place here which you look forward to coming home to (i.e., not a 6,000 a month thai style "dump")

living here with the heat , humidity , crowds , noise , pollution can be brutal on the senses . if u do it right ur home will be ur oasis .

paying 50% of you income for a place , though , is too high . the correct proportion is one-third .

sathorn / silom is like the most expensive part of the city ; even 60's not enough to live there . look along sukhumvit and u wanna be at most a 5 / 10 minute walk to the BTS (elevated train) .

good luck and wrangle like h e l l for the 60 k salary

Edited June 22, 2010 by jackdawson

[sdchargerfan]

Thanks for the responses guys!

@jackdawson I can really relate to your point about your pad being your oasis in BKK.... I was just there this month to conduct a few interviews and I stayed at a decent serviced apartment in Sathorn which I loved. I got a great deal on the place via Orbitz.com but after talking to the staff there, turns out the month rent is around 40k ... I would love to stay in a place like that but simply can't afford that price.

I spent two weeks in BKK this month, getting a feel for the city and what not. I do like it there and could see myself in BKK long-term. I'm really going to to hope for that 60k :jap: and I think I would be comfortable spending 25-30k a month in rent but if you guys say that 40-50% of our monthly salary is too high then I will take that to heart. But I would need a furnished place and I don't want to be coming home to some cheap room every day

[Forkinhades]

For a US citizen, the minimum amount of Salary is 50,000 baht a month I believe, anything less and you are breaking the rules (or your firm to be exact) which is something you really do not want to be doing.

Also, remember that you will be paying tax on that amount every month, and of course you will have to pay an annual tax bill as well.

edit changed 60,000 to 50,000

Edited June 22, 2010 by Forkinhades

[PattayaParent]

Less than 5% so I didn't vote.

[quiksilva]

20K a month is a reasonable budget for a partly furnished one bed apartment or large studio, especially in older condo units on Sathorn (try Silom Suites, on Sathorn Soi 10).

Your salary is that pre tax or after tax? Either way, you don't want to be spending 50% of it on accommodation costs. After tax and utilities you'll be struggling to get through the month.

[sdchargerfan]

20K a month is a reasonable budget for a partly furnished one bed apartment or large studio, especially in older condo units on Sathorn (try Silom Suites, on Sathorn Soi 10).

Your salary is that pre tax or after tax? Either way, you don't want to be spending 50% of it on accommodation costs. After tax and utilities you'll be struggling to get through the month.

The salary range I quote is what the company and I are verbally discussing, so I would imagine it would be considered "pre-tax"

Taxes....yet another thing I haven't considered...

[Capealava]

first , 40,000 in bangkok is small money . keep that in mind . 60,000 would make a BIG difference .

it is SUPER important to have a place here which you look forward to coming home to (i.e., not a 6,000 a month thai style "dump")

living here with the heat , humidity , crowds , noise , pollution can be brutal on the senses . if u do it right ur home will be ur oasis .

paying 50% of you income for a place , though , is too high . the correct proportion is one-third .

sathorn / silom is like the most expensive part of the city ; even 60's not enough to live there . look along sukhumvit and u wanna be at most a 5 / 10 minute walk to the BTS (elevated train) .

good luck and wrangle like h e l l for the 60 k salary

Good reply --these guys that think living in a 5000 baht thai room is fun are crazy. Maybe if your a back packer. But you will be working most everyday and coming home is always a relief where ever you live. Coming home to a place you like is even better.

[trogers]

First, the present min. expat gross salary to qualify for a work permit is Bt45k/mth. I would assume Bt40k is net after taxes.

I would, in your situation, budget a rent of not over Bt8k for rent, and a further Bt4k for utilities, phone and internet expenses. If you find a place near to a BTS station, you may need to spent a further Bt1k for traveling. Thus, that will total up to Bt13k (30% of your disposable income), excluding food and other expenses.

And you should save at least Bt10k/mth as emergency fund to tide you over the period to look for a new job when this employment contract ends.

[Forkinhades]

First, the present min. expat gross salary to qualify for a work permit is Bt45k/mth. I would assume Bt40k is net after taxes.

when did that change? This morning....look here Work Permit: minimum wages applicable to foreign workers? | DoingBusinessThailand.com

I would, in your situation, budget a rent of not over Bt8k for rent, and a further Bt4k for utilities, phone and internet expenses. If you find a place near to a BTS station, you may need to spent a further Bt1k for traveling. Thus, that will total up to Bt13k (30% of your disposable income), excluding food and other expenses.

And you should save at least Bt10k/mth as emergency fund to tide you over the period to look for a new job when this employment contract ends.

Edited June 22, 2010 by Forkinhades

[OxfordWill]

I have lived in a 5000 baht 25 sqm room for several years, and loved my life there.

I have lived in a 18 500 baht 80sqm room for 2 years, and loved my life there.

I have lived in a 40 000 baht 300sqm room for a year and loved my life there.

Maybe you see the point.. just do whatever you can to save money, Thailand has a way of keeping you happy, despite your room size.

You will make more friends living in a 5000 baht per month building than a building where the minimum room size is 100sqm. This I guarantee you!

Edited June 22, 2010 by OxfordWill

[trogers]

First, the present min. expat gross salary to qualify for a work permit is Bt45k/mth. I would assume Bt40k is net after taxes.

when did that change? This morning....look here Work Permit: minimum wages applicable to foreign workers? | DoingBusinessThailand.com

I would, in your situation, budget a rent of not over Bt8k for rent, and a further Bt4k for utilities, phone and internet expenses. If you find a place near to a BTS station, you may need to spent a further Bt1k for traveling. Thus, that will total up to Bt13k (30% of your disposable income), excluding food and other expenses.

And you should save at least Bt10k/mth as emergency fund to tide you over the period to look for a new job when this employment contract ends.

Thanks. I did not know that expats from Europe and the US is classed at Bt50k. Had the impression that expats from developed countries are all placed at Bt45k.

[Archimedes]

20k-30k sounds a bit stiff when compared to your expected salary, i would say you should atleast try to keep it under 30%. You should also have a look at something like mrroomfinder.com , there you can find appartments/condos in lower price ranges too...search for instance in the Sathorn aria with a price range from 10 to 15.000 thb and you can find many ok alternatives.

Edited June 22, 2010 by Archimedes

[Forkinhades]

@ trogers no problem m8y

[neverdie]

first , 40,000 in bangkok is small money . keep that in mind . 60,000 would make a BIG difference .

it is SUPER important to have a place here which you look forward to coming home to (i.e., not a 6,000 a month thai style "dump")

living here with the heat , humidity , crowds , noise , pollution can be brutal on the senses . if u do it right ur home will be ur oasis .

paying 50% of you income for a place , though , is too high . the correct proportion is one-third .

sathorn / silom is like the most expensive part of the city ; even 60's not enough to live there . look along sukhumvit and u wanna be at most a 5 / 10 minute walk to the BTS (elevated train) .

good luck and wrangle like h e l l for the 60 k salary

Good reply --these guys that think living in a 5000 baht thai room is fun are crazy. Maybe if your a back packer. But you will be working most everyday and coming home is always a relief where ever you live. Coming home to a place you like is even better.

Strangely enough, I didnt actually endorse staying in a 5000 baht place as be all and end all. I actually rent a 3bedroom airconned 260 square metre place on half a rai on the outskirts of bkk. Its certainly doesnt cost me 60k a month, not even half of that but is much nicer than the 60k place in the middle of bkk. MY POINT WAS, if I was only earning 40-60k a month, there is absolutely NO WAY I would be spending half of it on a rental. If you earn 60k, pay 30 in rent, once you consider all of the 'other' costs of life you will run out of money & sit at home in your down time looking out the window wondering <deleted>?

Sorry, but theres nothing like having a champagne taste on a beer budget. Theres plenty of nice (smallish) apartments near the BTS stations for the 24-18k mark & with a payscale of 60K (which apparently the OP is pushing) this is probably the best range for him. The OP may need to consider 'other' costs such as Health Insurance, which to be honest isnt something you should skimp on.

OP, already mentioned is Utility costs. It is common in Apartment complex's to pay above govt rates for the electricity and water. The managers make their cream off charging estra. Its not uncommon to pay 8 baht per unit for electric and 20 baht per unit (1000 litres) of water with a min charge of 200-300 baht on the water. If you are living in a 30,000 baht per month apartment, then spending another 5,000 baht per month on utilities, ít soon adds up.

Edited June 22, 2010 by neverdie

[neverdie]

I have lived in a 5000 baht 25 sqm room for several years, and loved my life there.

I have lived in a 18 500 baht 80sqm room for 2 years, and loved my life there.

I have lived in a 40 000 baht 300sqm room for a year and loved my life there.

Maybe you see the point.. just do whatever you can to save money, Thailand has a way of keeping you happy, despite your room size.

You will make more friends living in a 5000 baht per month building than a building where the minimum room size is 100sqm. This I guarantee you!

I havent seen any thai sized rooms at 100 square metres, perhaps you meant feet?

[witold]

It depends on your lifestyle needs, wants, and requirements. It also depends on your time frame.

Bangkok is fairly well developed city. Will you be happy buying a bottle at 7/11 and drinking outside for cheap? Would you rather go to a mid-range place that will run you 700 baht/night? Do you have the desire to check out some of the swanky places that charge a few hundred baht/drink? Will you be happy with 140 baht cinema tickets as opposed to vip couch seating for 700 baht? Same with housing. Do you have any hobbies? Almost every hobby will cost you a lot more to pursue in Bangkok. And if there is anything you want that needs to be imported, it will be *a lot* more expensive than in the US. My guess is that for a lot of these questions the answer is that you will be able to cut corners for a while and not worry, but eventually this will get old and you will want to at least try some of the more expensive options.

This leads us to the question of time frame. Do you want to do this for 1 year, or make a career/new life out of it? What about other life costs like health insurance? How about retirement savings? How about saving for a house, kids education, when you get married? Etc, etc...

[Crossy]

Less than 5% so I didn't vote.

Me too

[Forkinhades]

Less than 5% so I didn't vote.

Me too

pom dooi

(me as well)

[trogers]

Less than 5% so I didn't vote.

Me too

pom dooi

(me as well)

Those owning their own place of residence cannot vote ... :jap:

[Spoonman]

I pay 6% of my Salary towards rent, I work in Laem Chabang and live in East Pattaya in a 2 bed semi detached.

[johnnyk]

Avoid renting off the net. Its for lazy bozos.

You don't have to live in Silom/Sathorn, within 10 min walk of skytrain gives lots of choice.

Rent a decent 10-12K pad for a month and go looking. Make use of Thai co-workers.

Get a place with a pool. Its nice after work or on Sat/Sun morning.

[aussiebebe]

Hi sdchargerfan, yes, I reckon spending 50% on rent would be excessive, but that's only my experience. I earn 80k per month and rent for 5k because I am happy with little space, not choosing to spend much time there save for sleeping. It depends on your personal preferences. I pay about the same again on utilties, electricty, water, net, phone, service charge for the guards etc and condo insurance (if dividing the annual premium by 12).

Before you rush into renting a condo, remember that just like a house, the downpayment (possibly unreturned when you leave) is two-months rent, the electricity is sometimes over-charged in a condo, unless you get billed directly from the company and you may be limited to telephone and internet connection. If you rented a house the utilities may be cheaper, and you could have freedom and control over service providers. You could live further out for less and commute to work on the bus or BTS. Always get insurance if you're renting, never trust a landlord to have a policy.

[sdchargerfan]

Avoid renting off the net. Its for lazy bozos.

You don't have to live in Silom/Sathorn, within 10 min walk of skytrain gives lots of choice.

Rent a decent 10-12K pad for a month and go looking. Make use of Thai co-workers.

Get a place with a pool. Its nice after work or on Sat/Sun morning.

Thanks for the advice. I've heard that looking at listings online is not a smart thing to do from a few different people now, so there must be something to it. But what other options do I have? How else can I get a feel for price ranges and such while I'm here in California? And once I move out there, what other options do I have? I've also heard that hiring an agent is a good move, and I've also heard the opposite....

[aussiebebe]

Avoid renting off the net. Its for lazy bozos.

You don't have to live in Silom/Sathorn, within 10 min walk of skytrain gives lots of choice.

Rent a decent 10-12K pad for a month and go looking. Make use of Thai co-workers.

Get a place with a pool. Its nice after work or on Sat/Sun morning.

Thanks for the advice. I've heard that looking at listings online is not a smart thing to do from a few different people now, so there must be something to it. But what other options do I have? How else can I get a feel for price ranges and such while I'm here in California? And once I move out there, what other options do I have? I've also heard that hiring an agent is a good move, and I've also heard the opposite....

get a feel for the prices before you arrive by reading the responses in this thread, then when you move over, simply rent a room in a hotel or guesthouse near the area you want to live and have a walk around, asking to view rooms and ask about prices, there is no substitute. In my opinion, things are very standardized over here, so no need for an agent, you'll probably be asked for two-months rent as downpayment, which may or may not be returned when you leave. You'll be asked for a copy of your passport, signed, and then you'll sign a 1-year contract, in Thai. That's all there is to it. When Thai's leave, they usually don't pay the final month, so anticipate loosing one months rent.

Once you view a room, ask for the number to call and make a record of the details; the facilities, area, cost per electricity/water unit, monthly charge, internet options. Take a photo and then choose the best one at the end of the day/week. You'll find a place in no time. The only things to take are a camera/camera phone and copies of your passport. Everything else you can buy locally after you move in, including insurance, as you're a member of Thai visa, maybe you can contact them for a quote. It's very cheap and once you arrive and start reading the local newspapers, you'll soon happen upon cases of uninsured foreigners who rented in Thailand. You don't want to be like them, trust me.

[hhgz]

"My first question to you all is do you think 50% of monthly salary is too high to devote to rent..."

Let's not bother with the location of "Bangkok", or the opinions of others. Let's consider the question in general. Do YOU think spending 50% of your income to rent an apartment is a good decision?

[johnnyk]

Would 50% of your income be a suitable rent in falangland? The question and the answer are the same anywhere.

[bangkokburning]

Our rent here in Huay Kwang is B2700. Flat is small and cramped but the location is good (MRT). Bldg is new-ish and very clean w/ security.

I would not want to live near Silom personally (unless it was back near the embassies) -pollution/noise.

You can find a great flat for B4-5000 but you have to look about. Take security seriously.

Save your money, you are a young man.

Edited June 25, 2010 by bangkokburning