Housing is very important because you obviously need somewhere to live and the right to shelter is a basic right of a human being. How are you going to decide how much you spend on a house or a luxury apartment if you cannot afford to buy a house? The thing is, you should never spend beyond your means or what you can afford. You should never put yourself in a situation where you are forced to live from paycheck to paycheck. Below, are some guidelines you can use when you are deciding how much you should spend on housing.
Fixed Percentage of Your Income
No more than 30% of your monthly income should go towards your mortgage or rent. If you have other loans, your loans should not exceed 43% of your monthly income. If your other loans are high, you should consider refinancing. Another option is to get a longer loan period to reduce your monthly debt. If you plan to get a luxury apartment or just a home, you should save up enough money to pay off your debt before committing to another one so your payments can be comfortable. Look for a mortgage broker that can get you the best deals on mortgage or mortgage refinancing so that you can maximize the money you have to spend (and not just pay it all back to the lender).
Make the Budget Work
Luxury apartments are very expensive, especially in populated cities like California, Boston, New York and D.C. In these areas, you can pay a lot for a matchbox apartment. If you get an apartment out of the city, you may be able to get a much larger space for half the price of the matchbox apartment. So, if you insist on getting a luxury apartment, consider getting it in an area that lies on the city's outskirts. This is a choice you should make because you still have to budget food and bills.
When Cost Exceeds the Budget
So, if you see the perfect apartment but it is out of your budget, you should not write it off immediately. Ask the landlord if utilities are included in the rent. If they are included, then you should consider the apartment as it may fall within your budget. If the utilities are not included, but the luxury apartment complex has good transportation, you should consider using public transportation rather than taking cabs or buying gas. It is a small sacrifice to make for your dream. Another thing you can do is get a roommate to help you with the rent.
Get in touch with a business like Premium Mortgage Corp for more information.