Date Posted: 2012-07-13 03:48:22
Site Posted: Myproperty.ph
If you’re living on your own and renting an apartment or condo for the first time, computing your new financial obligations can be overwhelming. Knowing how to budget well is essential, especially if present economic times are tough and you’re not earning a lot to begin with. Before choosing an apartment or condo for rent to settle into, remember to choose a unit you can afford based on these tips.
Keep in mind the standard rental fee rule. Financial experts generally recommend that a renter spend 25% of his take-home salary on rent. With expenses like water and electricity, experts believe 30% is a good amount to keep in mind. However, there are those who end up spending more than this because of variables that tend to change depending on a lot of factors, such as local real estate prices and the costs of basic necessities in that area.
Familiarize yourself with your chosen geographical area. Rent rates differ depending on the current real estate market condition of the area where you want to rent. To find out how much renting in that specific area would cost, scout various available apartments and condos. Aside from looking at their asking prices, consider the amenities they typically offer for these rates.
Map out your potential monthly expenses. Aside from rent, write down what expenses you’ll be incurring every month while renting, such as utilities, food and gas. After calculating how much you think you might be spending, add a little bit more to the number so that you’re not locked to a certain amount and leaving yourself financially vulnerable in case of an emergency. Doing this will let you know how much you can actually afford without zeroing out your monthly salary.
Don’t start looking at rental units until you’ve done the math. It’s easier to know how much you can spend on a condo or apartment for rent now, than find a perfect unit first, only to realize that you can’t afford it.
Jillian Cariola, Writer
(cover image by sanja gjenero)
Recently Posted Properties from Around the Web:
