It goes without saying that when a person pays too much money for rent this in fact will lead to debt. Frankly speaking, some people fail to make this deal and as a result after paying their rent they are really short of money and can hardly pay for electricity, gas and so on. So, when you get your paycheck, try to think about finding out a reasonable payment that you really are able to pay for rent. And as a result, you’ll really see that you have either a place to live in or bigger amount of money to spend and even save.
Actually the question that everybody should ask himself or herself is that how little I can spend on rent to have wellbeing and comfort. It’s really great that you’ll be able to spend more and more money on your own dreams and aims thanks for paying less money for rent.
30 percent rule
Frankly speaking for the last some years, people found lower rent without any difficulties because the flats that were not sold were changed to flats for rent, and as a result it created an additional offer in the rental market. But you may wonder how you can select your budget range from amid a great variety of listings? Call your attention to the fact that financial specialists recommend setting a rent budget which is stood on a percentage of twelve-monthly income.
You should note that the universal rule of thumb is to allot 30 percent of your income to the amount of money that you pay for rent. This rule originates from the U.S. government’s subsidized housing policy that was last corrected in 1981. It said that people would have enough money for buying all necessary things after spending 30 percent of income on housing costs. But it will be a housing burden if a person spends more than 30 % of its income for rent.
Actually, nowadays, the “30 percent rule” has turned into a standard in the property industry. What is more, the majority of property administrators make use of this law when they calculate tenant risk. By the way, lenders make use of the “30 percent rule” to estimate mortgage affordability.