Living on your own? Bye bye hotel mama: a list of what you’ll have to pay
It’s time: you’re graduated, you found your first job and you’re totally ready for the next step… your own place! But living on your own isn’t that cheap. Luckily, this article teaches you everything so you know what to expect (and how to save money).
Living on your own by buying or renting?
Buying = initial capital
The first decision you’ll have to make is the one between buying or renting. Unfortunately, for many young people, buying a house is too expensive. It’s not just the purchase price (€200.000 -€350.000), you must pay a registration fee and the property tax. On top of that, you have to be able to pay 15% of the purchase price immediately. An example: if the price of the house is €250.000, you need €37.500, and that’s quite a lot for someone who just left college.
To buy or to rent: that’s the question.But there is good news too! Not every banking institution has the same requirements. Moreover, getting a bank loan is possible without an initial capital. In that case, you’ll have to pay a higher interest. So in the end, you better start with something.
Renting = security deposit
If you rent a house, you don’t need that much money to start. What you do have to pay at the start, is the security deposit. Mostly, that’s about 2 to 3 months of rent and the sum is fixed on the bank account of the owner. Of course you get that money back when the contract ends (and you leave everything intact).
Don’t forget: there is more than just the monthly costs, you need a little money in advance.More than just the initial capital
Before getting a loan or rental contract, you must have saved some money. All done? Congratulations! But the real deal is just about to start…
Rent + common costs
Most young people choose to rent for many reasons: you don’t need a big initial capital, you don’t have to decide where you’ll live forever (or for a long time) and living together with a friend is a lot easier. The rent of your apartment, house or studio depends on different factors: the location, the surface, the amount of bedrooms… You should expect between €600 and €700 per month. Renting an apartment? Don’t forget about the common costs, such as the stairs and the lift (about €100 per month).
The average rent in Flanders is somewhere in between €600 and €800.Monthly fixed costs
Unfortunately, that’s not all. On top op the rent, you pay monthly fixed costs:
- Water, electricity, gas, internet… all facilities have their price, about €140 per month.
- You usually pay this part once a year: the insurance. A fire insurance is mandatory and costs about €100-€150 per year. Besides that, there is the home insurance, which is very important.
- Don’t forget about the food! Calculate a monthly cost of €200 for that (although it depends on what you eat and drink).
Don’t forget to take the food and drinks into account!Initial budget
Of course your apartment needs to be furnished too: another cost to take into account!
Make sure you have some extra budget, apart from the initial capital or the security deposit for furnishing and decorating your place, since eating, sitting and sleeping on the floor is not what you want. Invest in decent furniture. Luckily you’ll always have people around with some stuff they don’t need anymore, and these things won’t cost a lot.
Important sidenote: you don’t have to buy everything at once, the essentials will do in the beginning.Living on your own and saving money
Living on your own will make a big difference in your monthly expenses, but if you keepn these tips in mind, you might be able to save a little:
- Co-housing is the way to go! This way, you can share the rent, common costs and fixed costs.
- House brands are as good as A brands. The only difference? The price. Choose wisely!
- Saving energy means saving money!
A tip to save energy (and money): turn the heating down and wear a comfy and cosy sweater!
