How much rent should you pay?

Al­ways en­sure you have enough money saved

Weekend Witness - - Home -

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

PHOTO: SUP­PLIED

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.

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