Real estate: how much rent can you afford?
An unavoidable question in Cyprus real estate is the following: How much rent can you afford? As simple as it may seem, this question hides a lot of information about people's behavior in managing their budget.
As we well know, there is a wide range of properties in the Cyprus marketplace, with rental prices for all budgets. That is why it must be crucial to define an initial budget, which allows us to make a projection and thus know if we can pay rent in the long term.
We are going to define the budget from our family nucleus. How many people will live on the property? Do you need multiple spaces that allow privacy? Do we want a huge kitchen or a small one? Do we want a house with a garden, or do we prefer an apartment? Do we have pets? How many vehicles do we have? Do we want to have our parking or are we going to park our car on the street?
Not everyone wants to buy a property in Cyprus. Many are looking to rent due to temporary jobs or extended vacation stays. The important thing when renting is to know exactly where you want to live. Where possible, be advised by licensed estate agents, which will allow us to have a wide variety of options with prices in line with the property market. With better information, we will evaluate the characteristics of the neighborhood where we want to live, the age of the property, its proximity to hubs of interest (restaurants, shops, and educational centers, for example), and other factors.
Studies show that one in four tenants spends more than half of their income renting a property. In this context, and as we mentioned in the previous paragraph, the presence of a real estate agent is vital for this proportion to be consistent for both the renter and the property owner. There is nothing worse than a situation where the tenant is under challenging conditions to pay.
Real estate market rent rules
It is best to appeal to the general rule of the real estate market, which says that the rent of a house or an apartment should not exceed 30% of the tenant's gross monthly income. This is how licensed real estate agents have a calculator that efficiently calculates how much a person can spend on a rental. This will allow agents to offer vast possibilities for houses and apartments. Even Luxurious properties and high-quality ones, in the case, that the resident has an excellent income.
Here, too, another situation may arise. And it is that the tenant can evaluate, based on their income investment opportunities instead of renting. For now, the interested party should know if they want to make great investments in properties for sale or rent for a short period, as we already explained in other posts on our page.