# % Of Salary



## jamesleahymma (May 27, 2013)

Heya Guys and Gals!

Hope all is good. 


Just a quick question with regards to lifestyle and expenditure in UAE. I know everyone on here is bored of salary questions and "how much is cost of living" type stuff - and I know its like asking how long a piece of string is. 

But, may I ask you all what % of your salary goes on rent? And I mean just rent, not bills or cars and telecoms. Just rent. 


Would really help me get my numbers together. As I'm sure you all know its unnerving moving out there - especially as debt can get you locked up and all that. 

I'm expecting a salary of 275000 to 300000 pa. 

Would a 100000 rent be too much for me? I dont want to live a lavish life. But would like to go out to eat whenever I like and not worry too much about money. Saving would be nice but not a necessity. The move to Dubai is more about what it could do for my CV than anything else. 

If you were earning 275000 pa, how much would you be willing to spend on rent?

Cheers guys.


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## de Mexicaan (Apr 16, 2012)

I spend 30% of my salary (basic/housing/transport) on rent, which is a bit more than I had in mind.


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## Bigo (May 22, 2013)

Acceptable average is 30% .. On rent only no bills or transport or anything... Unfortunately it's the biggest expense. Do you have a family or you are alone?


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## sammylou (Oct 29, 2012)

i don't think the fact that we are in Dubai should change basic fiscal recommendations. that being that one should generally spend no more than 25% of their after tax income on rent. probably why de mexicaan thinks 30% is a little high. what would you do if the figures were all in pounds?

but be advised that rent here tends to run a little high, esp in certain areas like downtown, marina, etc. at least compared to toronto rents [where i am from].

it's also a matter of perspective. do you spend a lot of time at home? is a spacious and well equipped kitchen important to you? will you have many visitors expecting you to rent a space with an extra bedroom? is a certain view or location a must? etc. etc.

and of course, are you receiving a separate allowance for accommodation? if so, that could certainly allow you to "splurge" on rent given it is above and beyond your basic salary.

i personally am a bit of a homebody, love a great view, like certain things to be just so, and am willing to pay a little more for rent if necessary as it is an important part of my daily life. at the same time, we are going without a car for the first year since our "perfect place" is so close to the metro and available taxis.

just some food for thought. my perspective is it always comes down to individual context. but don't spend more than you can afford!


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## jamesleahymma (May 27, 2013)

Thanks for the replies folks. 

Its me and my wife moving out. She has no job out in Dubai but will be looking. My office will be in JLT so we're looking in that area to cut out on travel and metro and stuff. 

A decent apartment is important to me. So it will be a big part of life. I'll be expected to work hard - so coming home to a place that I love will be important.

I have no official offer contract on paper yet. I'm expecting it this week. My salary in UK was £52,000 and they said they'd match that. So I expect at least that, if not a little more.

Its a new company and they're cautious with money - they didnt want to pay more than £40,000 english - but, without blowing my own trumpet - I'm good and I have a lot of skills and experience that I know they need and value. 

So thats around 300,000 dirhams all in. I'm sure there will be bonuses but thats not been confirmed to me yet. I may have to pay for medical insurance for my wife. We have no kids and dont plan on having a car for the first year. 

We've seen some great places for 100,000 that I'd be really happy with - but am terrified that it would be too much with the bills and the cost of living. My job will be very stressful so I dont want the stress of money too - but perhaps I'm being a little paranoid. 

Plan is to move in to JLT for the first year to settle in and be around other expats, and then maybe have a child and move to a villa one we're more comfortable with the lifestyle and finances. 

Better safe than sorry eh? 

Just wanted to know if you guys thought 100,000 was excessive on a 300,000 salary. 

Sammylou, Bigo, de mexicann, 

Thanks for the input. Love out to you guys,


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## skyrookie (Jun 3, 2013)

My contract includes housing, so to answer your question 0%. 
Keep in mind that you will no be paying taxes like the UK/US, so you're money will go that much farther. 

Good luck!


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## Roxtec Blue (Jan 14, 2013)

skyrookie said:


> My contract includes housing, so to answer your question 0%.
> Keep in mind that you will no be paying taxes like the UK/US, so you're money will go that much farther.
> 
> Good luck!


Be careful reference the tax issue. You need to take professional advice. I'm no tax or accountancy person but there are potential minefields. For sure there are no local income taxes but this doesn't mean that you are not liable for taxes in your home country by default. A colleague of mine has recently been "hit" for back taxes on income earned in the UAE because the relevant criteria was not met with the UK HMRC.


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## skyrookie (Jun 3, 2013)

Roxtec Blue said:


> Be careful reference the tax issue. You need to take professional advice. I'm no tax or accountancy person but there are potential minefields. For sure there are no local income taxes but this doesn't mean that you are not liable for taxes in your home country by default. A colleague of mine has recently been "hit" for back taxes on income earned in the UAE because the relevant criteria was not met with the UK HMRC.


True, I guess for me as a teacher I don't make enough for it to matter. In the US, we can make the equivalent of $94000/yr before it's an issue. However, I have no idea how the US would know how much I made either way.


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## TallyHo (Aug 21, 2011)

That's not quite a fair statement. You may pay nothing in housing but the actual value of your package is the salary + housing. If your salary is 15K and your housing value works out to 5K a month, you're no better off than someone making 20K and spending 5K a month on housing. Because the school pays for your accommodation they get away with paying you less than they otherwise would have to. 





skyrookie said:


> My contract includes housing, so to answer your question 0%.
> Keep in mind that you will no be paying taxes like the UK/US, so you're money will go that much farther.
> 
> Good luck!


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## TallyHo (Aug 21, 2011)

Yes, I think it's excessive.

Rent = 100K

Utilities + internet + district cooling charges (since you're looking at JLT) + 5% agent's fee in your first year and another 5% deposit (theoretically refundable but sometimes it doesn't happen). It all adds up. For a 100K flat I'd be realistically looking at spending closer to 120K altogether.

Dubai is very expensive and newcomers really don't appreciate how expensive this place is until they get here. There are scores of ways to mitigate the expenses and one can live quite frugally here and still have a decent life, but it takes time to figure out how to do it. 

In your first year, if it's just you and your wife, I'd be looking at a one-bedroom flat for 70K (max) which will give you a lot of breathing space, financially, to come to terms with the realities of life in Dubai. After you've been here for a year and have a realistic idea of what your expenses are, then I'd upgrade.



jamesleahymma said:


> Thanks for the replies folks.
> 
> Its me and my wife moving out. She has no job out in Dubai but will be looking. My office will be in JLT so we're looking in that area to cut out on travel and metro and stuff.
> 
> ...


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## sammylou (Oct 29, 2012)

just to tag onto what tallyho has said, you do also need to consider the rest of the bills that go along with the basic rent. to sum up:

rent per annum
5% agent's fee up front
5% security deposit [as tallyho said, it is refundable but that money will be in someone else's hands]
5% housing fee on your DEWA bill [split over 12 months]
DEWA bill for water and electricity per month
DU/Etisalat for phone/cable/tv per month
chiller fees per month where applicable [some buildings include chiller, i don't think that is the case with JLT]

have you confirmed if you are receiving a separate housing allowance on top of your 300k salary? because that will make a huge difference. my understanding is that it is quite standard for any expat taking a job here to either receive accommodation, have it paid for directly, or to receive an allowance with their monthly salary deposit.


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## vantage (May 10, 2012)

i pay 27% of total income in rent. 
family of 4. 
3 bed villa.
there were cheaper options (as low as 20%) - it was a balance on quality of life / location / proximities etc.


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