Rent is one of the great challenges for families, especially in the case of larger cities, given the constant increase in prices. But, what is the maximum rent that we should face based on our payroll? We tell you.
He rental cost It has become one of the great social problems that we currently have in Spain. In many cases, it is not always easy to know what is the maximum amount that we can allocate based on our salary. And this indicator can be key to being able to focus our search when we are exploring new options to move to. Below we will tell you What is the maximum price we should pay for rent? taking into account our economic situation.
What to take into account
One of the most common mistakes that we usually commit when we are in the middle of apartment search process It is taking into account only our salary to determine our budget. However, the reality is that, in addition to the salary, it is necessary to determine other elements such as, for example, the possible debts that we may have and that represent an important part of our salary. And, therefore, they must also intervene when determining our maximum budget.
As recommended by Bankinter in his web pagefor calculate the maximum amount that we can afford, we must take into account the sum of all sources of household income in order to determine the gross monthly income. In addition, we would also have to take into account credit card expenses or possible loans, in this way, we could determine What is our debt level?
Once we have both figures, we will have to subtract our expenses from the total income. And, with the resulting data, we will be able to apply the two rules that we will detail below.
Rules for calculating rent
First of all, we can rely on what is known as “30% rule”. According to it, rental expenses should not exceed 30% of our gross monthly income minus debt. A person who has some monthly gross income of 1500 euros, Without debt, you could reach a maximum rent of 450 euros per month.
In the event that our payroll can be added any other income: a rental of an apartment that is in our name, the benefits of an investment or any other similar income, all of this would influence when taking it into account to add to our salary and, from there, know the 30% that we should to dedicate.
Another rule that is not as well known as the previous one, but that is also recommended by the banking entity mentioned previously, is the “Limit of 40 times.” In this case, the rule says that our annual salary has to be, at least, 40 times the rental price. For example, for a rent of 500 euros per month, we should have an annual salary of at least 20,000 euros.
In both cases, find rentals For that amount in a large part of Spanish cities it can be a real challenge. Trying to search in peripheral areas or spaces with the cheapest square meter can be good options to try to find prices that adjust as closely as possible to the previously mentioned rules.
