Are you currently renting?
If so, here’s the million-dollar question: What percent of your income is going
towards rent?
If it’s more than 30%,
you’re in a situation that might be causing you some financial stress. While it
may not be possible right now to reduce your rent payments, there are steps you
can take to help mitigate the effects of this high percentage.
It’s hard to find the right
place to live. You have to think about your location, security, amenities,
space and so much more.
But before you can even
search for your dream apartment, you need to know how much you can afford.
If you’re just starting out
in the world of home-owning, it can be a little intimidating to know how much
you should spend on a rental home, especially if this is the first time that
you’re living on your own.
We’ve got some tips for you:
1. Know what your salary is and what it means.
a) How much do you make? Is
it before or after taxes? What does your payment schedule look like (weekly,
biweekly, monthly)? How much do you have leftover once all of your regular
expenses are paid (rent/mortgage, gas, food, insurance, student loans)?
2. Do your research.
a) Find out how much houses
in the area cost. What features do they tend to have? How many bedrooms and
bathrooms? Is there a pool or just a front yard and backyard? Is there a garage
or a carport? Does the house come with any furniture other than kitchen
appliances? Are utilities (gas, water/sewer/trash, electricity) included in the
rent or are they extra?
3. Make sure you can cover your basic needs.
a) Search for houses within
your budget. Check out the features of each house that are listed in the
description. For how many bedrooms and bathrooms does the cost listed cover?
Does it include a private pool or just a front yard and backyard? Is an
attached garage part of the rental or is there just a carport? Will you have to
furnish anything besides kitchen appliances? Are utilities (gas,
water/sewer/trash, electricity) included in the rent or are they extra?
Find
Out How Much Rent You Can Afford
When deciding on your
budget, first you should find out how much your rent would be.
Then you need to
figure out how much you can afford to pay in rent every month.
Once you have a
general idea of how much money you’d like to spend, it’s time to decide on an
exact number. If that means taking a second job, getting a roommate, or cutting
some costs elsewhere, so be it.
Are
you planning to move out and live on your own? If so, you must have started
looking for a house to rent.
For most young
people, finding a house to rent is not always easy. This can be attributed to a
number of factors such as a lack of credit history, an insufficient amount of
money saved up for a security deposit, and earning a salary that is not enough
to pay for the monthly rent.
However, there are
certain measures in place that can help you better assess what kind of house
would be perfect according to your income and budget. For example, it’s very
common these days for landlords and homeowners to require potential renters to
submit proof of income before they’re approved to move in.
These measures are
put into place as a way to ensure that people who are renting out their
properties don’t end up losing money because their tenants were unable to make
timely payments. However, if you’re interested in finding out how much you
should spend on rent based on your salary, then keep reading!