With the cost of properties on a constant rise, first time property buyers are becoming more and more disheartened when it comes to buying a new home. But there is hope for those who want to move out of their current living situation and move into better spaces.
Renting a property is a very reasonable option for those working on a tight budget. While a lot of people think that renting is not such a great idea, it’s actually a smart financial move to help prepare people for bigger better things.
First things first – renting a property will cost a lot less than buying. It doesn’t matter if you plan to take out a loan, renting costs are always going to be more affordable than loan payments. This can give first timers a better chance to save for their future considering that they have less expenses to worry about at the end of the month. Many of those who opt to rent want to move out of their parents’ place or just get the feel of living alone and this might take some time to get used to. Diving into a property purchase without knowinghow it feels to pay for monthly bills might be a little overwhelming. Renting a property can help ease you into the process of individualization and give you a better understanding of what to expect when you finally buy a place of your own.
Tips for First Time Renters
- Bigger isn’t Always Better – Of course, the objective when it comes to renting is to give yourself a little leg room at the end of every month to set some money aside for savings. If you opt to rent a place that’s too big for your needs, you might find yourself paying a bigger amount that you’re prepared to shell out. Think about how much space you need and get a property that’s just right for your stuff and yourself.
- Think About Location – If your rental is 3 hours away from work, then you might find yourself spending enough money every week on travel expenses big enough to have paid for a mortgage instead! Consider your location – are you close to any grocery stores, schools, churches, shopping malls, and your place of employment? This will all help lower any expenses you’ll have to pay for and will make it easier to set money aside.
- Read the Contract – The contract might seem like a daunting piece of information you’re not quite prepared to understand just yet, but you have to read the terms your landlord has specified. You don’t want to be surprised by any hidden fees or unfavourable agreements. Understand the terms of your rental before you dive into a deal.