What can you really afford?
It is a popular question. People often overstretch with what they can comfortably afford. We feel that this article is going to be rather timely as it will help you work out what rent you can afford.
Our first piece of advice at this stage would be to work out what all your other outgoings and costs will be.
After you compare your other costs, take into account your financial backing and monthly income, you will be able to have a a monthly figure in your head.
Estimate the cost of your rent plus bills
It can be all too easy to overstretch yourself financially. If you fall into the trap of thinking that as long as you pay the rent it is fine, you will soon be in for a shock. There are many other costs of living associated with renting that you will need to consider. We cover the main ones below.
Council Tax, utilities and service charges
- Usually Council Tax is paid monthly. This is mainly influenced by the size of the property. Council Tax Bands.
- Gas and electricity bills will either by on a pre-payment meter, monthly Direct Debit or quarterly).
- Water bills (usually paid monthly).
- Service charges - in some properties - these are paid monthly or annually.
You can ask for estimates for these bills from the Landlord or previous Tenant.
Other monthly costs to consider
You will also have additional monthly bills to take into account:
- Tv License
- Landline phone bill
- Broadband
- Contents insurance
- Digital TV or satellite subscriptions
Hopefully you have found this article helpful. Next time we will look at drawing up a budget of all your costs.
For more information about us, please visit our website www.direct2landlord.co.uk
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