Proportion of income on rent/mortgage - and which would you choose?

[Smoke Jaguar]

Not to mention factoring in the cost of insuring the home.
We are servicing a mortgage AND paying rent, but the mortgage is on a farm and the rent is cheap, through DP's boss (a dairy farmer who owns the house we're in and even if he sells this house he'll move us into anothery, just to keep DP on!). We're also planning on selling the farm this year and easing that payment stress (it's not a huge repayment, as we put up about 3/4 of the equity).
Anyway, having owned a house before buying the farm (we lived in a shed with minimal costs before moving to the rental) I can definitely see the appeal for renting long term! However, DP is handy and there are things we can't do ... but then, this isn't a house we'd readily own because of the work that would go into it, so we're happy to have all living and much less responsibility It also helps that we're not on a contract, not through RE and DP fixes things around here and puts costs on the tab at the local hardware. Every situation is a little different and the big weigh up to be considered - including all those 'hidden' costs of owning a house.

[lee09]

Thanks everyone for your thoughts. It seems you are right about the 30% rule - I just googled and it seems 30% of your gross income "should" be be spent on rent/mortgage. Fortunately, I worked it out based on our after-tax income, so using the before-tax rule, we are sitting at about 35% - and that is with me only working casual while we are in baby-making mode. Once I go back to work, this ratio will decrease.

So, I feel better with that figure! Now just to weigh up the pros and cons of renting close to work/where we love/in a small and old unit OR buying further out in the suburbs/where love less/in a big house with a yard... Any more advice/experiences appreciated. Anyone made one decision or the other and lived to regret it?

[Smoke Jaguar]

Cost of commute will come into either repayments or rent, but whether renting or buying if you are further out on a bigger site you can grow more of your own veggies in raised beds