How you can budget for your first flat

For some people, getting your first flat can be a stressful affair. At Moolr, we know that sometimes you need quick cash loan to secure that mortgage or upfront-rental payment. We have prepared a few helpful tips to help you budget for your first flat.

1. Find your ideal rent rate

If you need to budget for your first flat, there are first steps to take. Before you even begin searching for a flat you need to establish what you can afford to live on, where you need to live and what your job security is. If you are stable in employment, then you can move with more flexibility. Your ideal rent should make up less than 20% of your living expenses so that you can budget for everything you need including the unexpected. It’s no good owning a flat and having no money to do anything with it!

2. Deposits and Insurance

Many places on the market will require you to put down a security deposit, pay your first month’s rent in advance or even additional deposits for pets, utility and renters insurance. It’s a good idea to get renters insurance as this will protect both yourself and your property by ensuring you are adequately covered.

To keep your budget secure and lower the overall cost of moving you could try to negotiate a non-refundable entry deal as this will reduce the initial price of moving. Alternatively, if you are lucky, you can work with the company you are dealing with a pricing scheme that fits both of you. While all of this may seem daunting, Moolr has several options for short-term loans or personal loans to help you cover the cost.

3. Prepare for living expenses

For your first home, it is going to be easy to forget about the utility bills and expenses. Unless you negotiate a flat all-inclusive rate rent, you will have to factor in council tax, food, water, electric and gas bills. Be sure to cut back on some things and work out where your flat fits into your budget after considering all of the things you will have to pay for.

When you save for your first property purchase, you will require a mortgage. Our secured loan blog discusses in more depth.