Affordable means different for different people. But when we talk about homes, then it depends upon the cost of the apartments. When a 30 year old man trying to find a house in downtown, affordable means anything under $1000 000as the average cost but when we ask another Canadian, he has another set of budget for living.
What is Affordable?
Affordable means shelter costs account for less than 30% of before-tax household income. So, affordable housing refers to those people who need a home at an average cost. There are varieties of housing options and have varied cost, so there is a range of programs designed to make housing affordable for people of all socio economic classes.
How can you calculate Affordability?
The calculation of affordability depends on the income you get. How much your income should be allotted for rent? There is a proper division of the salary like you can spend 20% of your income to your household items, 30% income spend on your food and 30% of your income is available to pay rent. So, you must have an idea of expenditure.
Importance of Affordability
Affordability gives you an idea of expenditure and you can make a plan which house is better and how much you can spend. So, according to your budget, you will proceed towards your search.