How much rent should you pay?
Always ensure you have enough money saved
BEFORE setting out to rent a home, you need to know how much you can afford to pay each month, but that’s not quit e as simple t o work out as it may seem.
Andrew Schaefer, MD of Trafalgar, says financial experts will sa y you shouldn’t spend mor e than a thir d of y our gr oss monthl y inc ome on r ent. However, he says this does not take into account the f act that man y pr ospective t enants ar e also trying to save the deposit for a home of their own, or the fact that the escalating costs of utilities and transport can have a big influenc e on the siz e of property the y r ent or the location the y ma y choose.
He says although every situation will be slightly different, there are certain factors that all renters need t o weigh up bef ore signing a lease. Location For individuals who work long hours, a loft apartment close to the office may be a smarter choice than a townhouse in the suburbs, even if it is somewhat more expensive to rent, because it will save on commuting time and the associated costs. And if there are shops, restaurants and recreation facilities close b y, so much the bet ter.
Similarly, those with schoolgoing children may be prepared to pay more to rent in an ar ea close
Add up all your monthl y living expenses before budgeting f or rent, and then s ee if you c an sa ve on any o f these thr ough your choic e of pr operty.