Paying rent has always been a challenge especially when you are an earning an amount that cannot accommodate all your expenses. An ideal solution is to make use of a rent calculator that can provide you with an answer regarding how much you can afford to pay for your rent.
The following rent calculator will give you an estimate regarding the rental fee you can afford based on your income and debt level.
Finding a Place to Rent
Depending on where you choose to live, it can be exceptionally easy, or very difficult to find a place to rent.
Finding a place to live can be easy if you live out away from major urban areas, you may even see “For Rent” signs on houses around the neighbourhood. This can give you a variety of prices that you can compare and use to come up with a price that best suits your financial well being. You can alternatively write down the telephone number on the sign, and arrange a viewing, or just ring the bell, and take a look.
The above scenario is different in major cities where rental apartments and houses are quite scarce. The reason is that the large and dense population has been around for some time, and has had time to occupy them all. Finding a vacant place takes a lot of hard work; you have to make use of the internet and newspapers so as to find information regarding adverts. You also have to look at the agency sites or pay an agency to search for you.
Once a place becomes free, you may have to rush to view it, and then, if it’s practicable (and you have to be quite flexible), you have to put in an application for it right away. You should also prepare references and credit reports so that you can present the agent or owner with all the required information. You should also set up a paying method that you can use for paying your rent.
Renting a Place You Can Afford
Finding a place to rent is such a struggle in some places, the question is how do you decide where to draw the line and say what you can and cannot afford?
The common method for determining rental payment is that it should be not more than one-third of your income. You can go a bit higher than that if you are really in love with a place, but plan on spending vacations at home and not dining out. Some people can make this kind of sacrifice; others shouldn’t, as they won’t do it and will hit the skids.
It’s important to really think about what your real income is, and not figure it in terms of your overall salary and investment income. Leave room for emergencies, extras for your children and yourself, etc.
Worth mentioning is that this figure needs to cover all housing costs, not just rent. Include things like utilities, insurance, and other house-related expenses as part of it.