How To Make A Financial Plan For Renting A Property?

Every day of adult life brings a constant reality: the payment of bills. And one of the recurring expenses is rent. According to a survey carried out in 2011, more than 31 million people live in rented properties. Indeed, renting is a viable means of establishing housing without owning a property. However, good planning is essential to rent a property with 33 Realty for example without a headache. Check out!

  1. Setting A Viable Goal

This first step may sound rather simplistic, but it’s critical. You will need to remember the value of your personal or family income to find a property that occupies, at most, 30% of that value. But don’t be fooled into thinking that this amount only corresponds to the rent paid to the real estate company. Housing expenses also include the value of the condominium.

  1. Searching For The Ideal Property

You need to stick to a budget, but that doesn’t mean being extremely frugal — unless that’s your intention. Otherwise, you have to look for the best you can afford. After all, the house is your resting place, where you (except in rare cases) spend the most time.

The quality of life tends to be relative, but, for example, in large metropolises, comfort is living close to your place of study, work, or leisure. In other words, comfort lies in avoiding spending more than two hours of your day in traffic on your way to something.

Therefore, when searching, keep your spending ceiling in mind and consider these questions:

  • value under the 30% ceiling: indispensably, considering rent + condominium
  • location: proximity to frequently visited places
  • mobility: the presence of means of transport
  • services: proximity to essential establishments, such as a pharmacy and market
  • suitability of the property: floor plan, space, rooms, and differentials

The only criterion that cannot be changed in this hierarchy of importance is the value under the ceiling. In addition, not getting carried away by emotion is essential to have a financial balance. The rest of the questions can be changed in the way that best suits you and your family. Learn about Long Distance Real Estate Investing if you want to invest.

  1. Planning Expenses

Here, it’s time for good old Excel. That’s right! Put everything on the tip of the pencil or spreadsheet.

Consider all recurring expenses — fixed and variable — so you can see ahead. Create a spreadsheet or chart with all the expenses planned throughout the year, separated by months. Consider water (amount rounded up to the estimated), gas, rent, and condominium in the fixed expenses. You can also consider the installments if you pay them monthly or indicate them in the table as an annual expense since the full payment of this tax guarantees a discount to the taxpayer. As for the variables, an example is an electricity, which peaks in the summer due to the use of fans and air conditioners.


Post Author: Jennifer Sapp