Whether you are renting your first home or your tenth there are still certain steps that you need to take to ensure you are in the best position possible to take on that challenge.
Let’s face it; it is a challenge to take on a rental. It may be that you can afford the rental payments easily but you must remember that you are living in someone else’s property so you must live in it with respect – and pay your rent on time.
So, how do you know if or when you are ready to take the plunge into renting? Prudential Real Estate (more rent) have put together some tips to help you.
Take Stock
When you are renting a property in Liverpool or any Sydney suburb it is no different from actually taking on a mortgage in many ways. You must prepare a budget to find out if you are over-spending. Once you understand your own spending habits and realise where the money is going, it is much easier to plug any leaks that may be whittling away your cash.
Again, just like a mortgage, there will be a need to have some ready cash to put down that all important rental bond. It is not usually such a sizeable investment as a deposit but a large amount of money just the same.
A bond will usually be four weeks rent and is held by the Residential Tenancies Authority.
This deposit is necessary in case there is a need to reimburse any property owners for lost rent, repair any damage made by the tenant that may not have been attended to by them or to clean up any mess that may be left behind.
The Bottom Line
Once you have considered your income and spending habits you should come out with a figure of how much spare cash you have.
It is a good idea to be mindful of any last minute expenses that may crop up such as motor vehicle repairs or getting your teeth fixed. If you can put a little aside each week you will have a little nest egg for these emergencies.
Putting away a little each week will also go towards holidays or weekends away. This is very important to keep in mind as you don’t want to feel trapped and unhappy with paying more rent than you can afford.
Once you have taken all of this into account you will have a figure on the bottom line. This is how much rent you can afford to pay.
