How Much Should the Average Expenditure be on the Monthly Rent?
The place where memories are made is at home. Isn't it true that you always want your house to be a nice, safe, and comfortable place to return to, even if it's rented accommodation? When it comes to renting property, there's another crucial issue to consider: The rent.
So, how much should you budget for your monthly housing rent? Are you stumped as to what to do? Here's all you need to know in order to make an educated selection.
What should be the Monthly Average Spends on Rent?
Do you know that almost 30% of Indians in Urban areas live on rent? 69% of them belong to the income groups that are given salaries and around 16% fall under self-employed category. The remaining proportion out of this belongs to students.
The salaried class, on average, keeps a monthly rent budget of roughly Rs 15,000 per month. Students, on the other hand, are willing to spend Rs 10,000 per month for the same service.
If you look at the numbers, 40% of the salaried class is looking for a house with a monthly rent of Rs 10,000 or less. Another 40% is willing to pay a monthly rent budget of between Rs 10,000 and Rs 25,000. This brings the average monthly rent budget for a property to around Rs 15,000 in most cities.
When it comes to students, almost 45% have a monthly house rent budget of Rs 7,000 or less. Around 30% of people have a monthly budget of between Rs 7,500 and Rs 15,000 rupees. As a result, the average monthly budget in cities is around Rs 10,000 per month.
It is very important to know the rent spend per month. This will help you initiate savings for yourself.
How to decide your monthly house rent budget? There is certain criteria to decide this.
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What Is the Criteria for House Rent Affordability and expense?
Paying the rent is basically a recurring expense that has to occur every month. You need to spend money at regular intervals in paying rent.
You should not spend more than 30% of your income on the monthly rent.
If you spend one-third amount of your monthly income, you will have enough money left in the month to spend on other expenses for living and reach financial goals.
How can you find a house in India that is affordable?
There are a few things to consider when looking for a house to rent in India.
One of the first thing to notice is that housing rents are not standard throughout Indian cities. Rents vary within cities as well, depending on a variety of circumstances.
The rents for properties in the city centre are greater than those in the suburbs. Additionally, houses in areas with superior infrastructure and speedier internet cost more to rent than those in other areas. Houses for low security deposit will be available in the suburbs areas.
For example, if you are looking for a house in Gurgaon on rent. Living in cyber city is too costly that will cost you around 20,000 for 1bhk. If you go in the suburb area you will get a 1 bhk at around 10,000. You should also consider the fact that commuting from there is costing you high or is under your budget.
While in Delhi also the other commercial areas and posh locations will cost you a high rent. But the suburb areas will cost you less.
Given all of these considerations, the first step is to create a budget. Then seek for a place to rent in the neighbourhood of your choice. If you want to live in a certain neighbourhood but it is out of your price range, you can either increase your housing rent budget or downsize your home. This is how you get to know how much to spend on rent per month.
If none of these options are available to you, look for a house in a fairly priced area. Keep in mind that while your commute time and money may grow, your dwelling rent will stay inexpensive.
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Finding an affordable rental home in India isn't difficult if you know where to look. An online search can supply you with a plethora of rental property possibilities in a variety of cities. BivocalBirds, too, can help you find rental spaces based on your budget.
So, what are you waiting for? Team up with BivocalBirds and begin your rental home hunting right away!
Related: 5 Secrets to Create a Well Planned Monthly Budget While Living in a Rented Home