Since earlier times, it is well said that for a good living, the basic requirements for any adult individual depends on 3 major resources: food, clothing, and shelter. These three resources are most essential for human survival.
Food, clothing, and shelter are preferably the basic necessity for the human race. Even though being an essential prerequisite the demand for residence today is increasing on a higher pricey side.
The desire for a household varies from person to person as per their stipulations, affordability and family size. In India, houses are shifting to become one of the most expensive resources as a basic necessity. The main reason for this shift is growing population, increasing income levels and changing lifestyles. Increasing the cost of housing has lead to fewer savings and more spending. Most people end up spending more on their rent where they could have to spend less and save more.
Presently with so many housing options available, people can select different properties with different rates to ensure savings. It can be difficult for a house tenant to figure out the most appropriate way to find out the correct spending on house rent.
There is a simple guideline applicable to any tenant to ensure the right spend on savings. Below guidelines can be followed to measure rent spending for easy housing.
Guideline to follow to measure your spending on rent
Study the location - It is very important to study the location. It is the first step to rent a property. It includes studying the rent of neighbouring properties. This ensures you that you are not overcharged or you don't end up paying more. It is important and the initial step to look for any rental property.
Visit the Location - It is also necessary to visit the location to check the housing property. It gives a clear picture of the actual outlook of the property.
Understand the true cost associated with renting - It is very important to understand the true cost associated with renting a house. It may include charges which are expected to be paid by the tenant. It includes broker fee, application fees, property tax, payment on maintenance and repairs, parking cost and insurance. Before renting a house it is important to know all the charges to fix up a budget.
Plan your spending - It is very essential to plan the spending. Ensure that you plan a budget for house rent.
50/30/20 - This rule is the traditional rule to make the process of renting easier it also helps in savings resulting in better financial situations. This rule states that 50% of your earnings goes to your needs which also includes housings. 30% of your earnings goes to your wants and 20% of your earnings goes to savings. Following this rule can act as a good change for renting houses.
There is surely a difference between buying a house and renting it. The most commonly acknowledged difference between buying a house and renting a house is home down payment. Where in for renting a house you have to pay a fixed smaller amount each month while on the other hand for buying a house you are required to pay up to 20% - 30% amount of the property as a down payment. The time period required for buying a house is usually more than renting one. Buying a house of your own surely give a higher status in society than renting one. On both, the aspect of renting or owning a house a continuous process involves that it should surely match your budget.
