How do you find a house worth your while on a salary?
If you’re like most of us, you’ll find yourself looking for a place to live in a city that’s just barely scraping by, and a bit of work on your part might be necessary to make it worth your time.
But how do you know if you can afford to live there?
Let’s dive into the numbers and see if it might help you decide.
Rent is about to hit a record high 1.5 million properties in the UK are in the red, and this is only going to increase as we move towards a higher inflation rate.
This is because people are paying more and more in rent.
Rent per square foot is rising by around 1% per year, and the average price per square metre is set to go up by around 4% per cent by 2021.
You can afford a house by getting a higher rent You may be wondering what you could afford on a monthly rent basis, and if it’s not a big enough price tag to live on, you might have to go into a bit more detail.
For the sake of brevity, let’s assume you can keep your rent under £500 a month for the first three months of the new year.
This would equate to a rent of around £2,600 per month on a one-bedroom flat.
This figure is still quite low by today’s standards, but it’s actually quite good news for anyone looking to buy a house.
It means that your income from working and investing in your business and your household will increase substantially.
In fact, if you’re working in a field like architecture, it will increase your salary by around 3.5%.
In fact if you are living on an income of around 30% of your salary, you could be able to afford a two-bedroom apartment for around £1,000 a month, with a mortgage of £500 per month.
If you have a spare room in your flat, this could be as much as £250 a month.
The average rent in the capital of London is currently £1.15m, which means that if you want to buy, you’re going to need a bit less than £2m to get a decent price.
Your savings are growing rapidly This might not seem like a lot of money, but for many people, it’s more than enough to get them through the next few years.
In addition to the big increase in rent, the Bank of England expects to see an increase in mortgage repayments over the next five years.
If your mortgage payment is over the minimum, your repayments will go up.
This means that you can now take out a loan to buy your first home.
The interest rate on this loan will go from 1.75% to 2.75%, which means you’ll pay around £50,000 less over the course of 10 years.
So, if your current mortgage payments are under £300 a month and you can get your first mortgage approved within four years, you can potentially afford to buy an average-sized property in the city of London by 2021 for around 2,800-3,000 pounds.
Your mortgage will increase with inflation The interest rates on your mortgage will also go up, and that means that the value of your home will go down as you pay your mortgage.
For example, if the interest rate increases from 2.25% in 2021 to 2% in 2023, the price of a property will drop by 3.75%.
If your current interest rate is already 4.25%, you can expect your mortgage repayment to increase by around 2% a year.
So if you pay an interest rate of 2.5% for the next four years and you get approved for your first loan within five years, your interest payment will rise to 3.25%.
You’ll be able a decent mortgage If you’ve been saving and investing for the past decade, you will have a pretty good understanding of how the market works, and you’ll know that most mortgages are more or less similar to each other.
You might not think about it, but the interest you pay on your loan is based on the rate at which you can borrow, not the rate of inflation.
In other words, it can go up or down in relation to inflation, but there will always be an average rate of return on your investment, which will remain constant.
As such, you should pay your interest on your home in a rate that is more or more in line with the rate that inflation will push the rate to.
If inflation is going up, you need to pay more.
The Bank of Canada has stated that inflation is “likely to be about as high as 2.1% in 2020”, and it’s possible that you’ll be paying even more in 2021.
However, if inflation is still relatively low, and interest rates are not rising as fast as they are