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What rent can you afford? Ask a Property Management Company in Hobart
Places to rent are highly sought after in Hobart. At Baxton, we should know! Our property management company in Hobart is receiving dozens of enquiries every week.
One can easily feel pushed into to paying more rent than one can afford. Or you might fall in love with a place, but can’t really afford it. This will cause serious problems down the line. But we are here to help you find the property that suits both your lifestyle and your budget.
As a property management company we help you make the right decisions
The general rule when you are looking for a place to rent and you have to determine what you can afford, is that housing costs should be no more than 30% of your take-home income.
We all know what we want: spaciousness, a good location, beautiful fittings, great view, etc. Finding such a place within your budget might be a challenge. If you know your budget upfront you won’t be tempted by what you can’t afford.
To figure out what 30% would be, take you and your spouse’s combined annual income and divide it by 40. That will be the same as determining 30% of your income and splitting it across 12 months.
Remember: your housing budget must cover more than rent
Remember that the 30% has to cover all housing expenses. Are water and electricity included in your rent? If you are a first-time tenant you may need to buy furniture and other much-needed things for your home. Even the small items can add up to a significant amount.
Do you have to pay insurance? You should also make sure there are no hidden costs, upfront. You don’t want nasty surprises that will leave you on cold water and stale bread after the first week of the month.
Try saving for a secure future
Even if you can afford a high rent, should you pay it? Or should you be saving? If you can save 20% of your paycheck every month you are sure to prosper. Try to budget in savings. One day, you can use the money for a deposit on your own home, or to supplement your retirement.
So, if you sit down and have a good look at your budget, remember upfront costs, your deposit, moving costs, agency fees, and any furnishings you will need to buy.
Always make paying your rent a priority. As a property management company we know that building a good reputation as a tenant will give you access to the best rental properties later on.
Visit us or get in touch for any advice you may need when you are looking to find a place to stay in Hobart. We will gladly be of assistance, and we’ll work hard to match you up with the perfect property for your budget.
Still unsure? Contact your Baxton Property Manager for ideas.
We hope you enjoyed this article
The information contained in this article is based on the authors opinion only and is of a general nature which is not indicative of future results or events and does not consider your personal situation or particular needs. Professional advice should always be sought relevant to your circumstances.
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