Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Retirement Housing Expense to Budget
Old 09-10-2012, 11:28 AM   #1
Recycles dryer sheets
 
Join Date: Aug 2009
Location: westerville
Posts: 242
Retirement Housing Expense to Budget

Hi,
Was going over the retirement budget and current expenses and was wondering for those that are FIRED what percent of your annual expenses or budget goes to cover your basic housing costs?

For DW and I we have no mortgage and live in a single family 2180 sq foot in Ohio with the following annual expenses:

Real Estate Tax $5,870
Utilities gas heat ,electric, water, sewer and trash $3,800.
Ave maintence last 6 years $1,600 This may go up some due to travel as I do yard work today myself.

Total $11,270 and is apprx 15.5 % of our Retirement Budget.

Thinking of maybe renting it out first year as we do not plan to use it much fisrt year.
__________________

__________________
Trawler is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 09-10-2012, 11:46 AM   #2
Recycles dryer sheets
arky's Avatar
 
Join Date: Jan 2012
Location: Colorado
Posts: 236
About 10 to 15% of my annual expenses can be related to housing. Property tax, utilities, painting about every 5 to 7 years and a new roof every 15 to 20 years.
__________________

__________________
Don't you know that dynamite always blows down ? --- Moe to Curly
arky is offline   Reply With Quote
Old 09-10-2012, 11:59 AM   #3
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,925
Quote:
Originally Posted by Trawler View Post
Hi,
Was going over the retirement budget and current expenses and was wondering for those that are FIRED what percent of your annual expenses or budget goes to cover your basic housing costs?

For DW and I we have no mortgage and live in a single family 2180 sq foot in Ohio with the following annual expenses:

Real Estate Tax $5,870
Utilities gas heat ,electric, water, sewer and trash $3,800.
Ave maintence last 6 years $1,600 This may go up some due to travel as I do yard work today myself.

Total $11,270 and is apprx 15.5 % of our Retirement Budget.

Thinking of maybe renting it out first year as we do not plan to use it much fisrt year.
I have been retired for just short of three years, and my yearly average housing expenses for a 1600 sq ft paid off house has been:

Real estate tax: $884
Utilities gas heat ,electric, water, sewer and trash: $1670
Ave maintenance last 3 years: $811

BUT... you also forgot homeowners/flood insurance and some other expenses that I have such as lawn and landscape maintenance, phone, cable, and so on.

Overall including the expenses you list, insurance, lawn guy, and other housing expenses that I have (but not upgrades), my house expenses come to 11% of my budget. I don't spend all that I have budgeted, so it comes to a little under 20% of my spending.

I would really dread renting out my house. I can't imagine the amount of damage to be repaired, the issues when having to evict tenants who won't or can't pay, the stress over late rent checks, and so on. Ugh, ugh, ugh. I think some people like me just aren't cut out to be landlords.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is offline   Reply With Quote
Old 09-10-2012, 12:02 PM   #4
Thinks s/he gets paid by the post
 
Join Date: Jul 2012
Location: Mississippi
Posts: 1,878
What about insurance ?

Prop Tax - 1600
Utilites - 1800
Insurance - 800
Maint - 500 ?

No major maintenance so far so that's a guess. Probably around 30% of what I spent last year. Prop Tax is my biggest expense.
__________________
rbmrtn is offline   Reply With Quote
Old 09-10-2012, 12:26 PM   #5
Thinks s/he gets paid by the post
Onward's Avatar
 
Join Date: Jul 2009
Posts: 1,667
I rent, and for me it's about 22%, including utils, cable, etc.
__________________
And if I claim to be a wise man, it surely means that I don't know.
Onward is offline   Reply With Quote
Old 09-10-2012, 12:28 PM   #6
Moderator Emeritus
 
Join Date: May 2007
Posts: 11,044
I rent too. Including rent, renter's insurance, and utilities, housing expenses exceed 50% of our budget.
__________________
FIREd is offline   Reply With Quote
Old 09-10-2012, 12:33 PM   #7
Moderator
Alan's Avatar
 
Join Date: Jul 2005
Location: Eee Bah Gum
Posts: 21,125
Housing expenses as a % of annual budget is 16.5%. We rent, and that figure includes maintenance, gardening, contents insurance, prop taxes, water. Add in utilities and it is 18% of annual expenditures.
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Now it's adventure before dementia
Alan is online now   Reply With Quote
Old 09-10-2012, 12:34 PM   #8
Thinks s/he gets paid by the post
 
Join Date: May 2005
Location: Texas
Posts: 1,038
About 18% including maintenance.
__________________
In theory, theory and practice are the same. In practice, they are not.
Lazarus is offline   Reply With Quote
Old 09-10-2012, 12:35 PM   #9
Recycles dryer sheets
arky's Avatar
 
Join Date: Jan 2012
Location: Colorado
Posts: 236
Is this a stealth "Rent vs Own" thread ?
__________________
Don't you know that dynamite always blows down ? --- Moe to Curly
arky is offline   Reply With Quote
Old 09-10-2012, 12:38 PM   #10
Thinks s/he gets paid by the post
grasshopper's Avatar
 
Join Date: Oct 2010
Posts: 1,671
As a percentage

Property tax - 2.5%
Propane - 2%
Electric - 1.5%
Insurance - 1%
Home repair - .3%

Just under 7.5%
__________________
For me experiences are not good or bad, just different
grasshopper is offline   Reply With Quote
Old 09-10-2012, 01:41 PM   #11
Thinks s/he gets paid by the post
 
Join Date: Jan 2006
Posts: 2,972
I'm not retired but here's mine:

condo fee:1380--going up to 1560 next year
Prop. taxes:840
Condo ins.:175
Electric:1080
Maint./special
assessments:250
Internet:780

Total:$4505/yr=36% of budget
__________________
aaronc879 is online now   Reply With Quote
Old 09-10-2012, 02:02 PM   #12
Full time employment: Posting here.
NYEXPAT's Avatar
 
Join Date: Jul 2009
Location: Miraflores,Peru
Posts: 884
We have two 1700 sq.ft. apartments (Own one,rent one) a block away from each other. We live in the rental and rent out the owned. Netting all expenses for both, housing actually adds a significant percentage (25%) to our budget and provides for capital appreciation at 3x to 5x inflation rate as well!
__________________
NYEXPAT is offline   Reply With Quote
Old 09-10-2012, 02:10 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,450
Our sf and total cost are similar (~2,000 sf and $11,540). But our overall budget is lower so the percentage is higher (~20% of total budget).
__________________
pb4uski is online now   Reply With Quote
Old 09-10-2012, 02:40 PM   #14
Recycles dryer sheets
 
Join Date: Aug 2009
Location: westerville
Posts: 242
Thanks for the replies thus far.
I will add the $640 per year for insurance. Property tax is 2nd largest single line expense in the projected budget.
__________________
Trawler is offline   Reply With Quote
Old 09-10-2012, 03:54 PM   #15
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Mulligan's Avatar
 
Join Date: May 2009
Posts: 7,382
Mortgage - $6000
Prop tax - 1600
insurance - $600
Utilities (just trash, water, heat, a/c)- $2400
Its about 18% of my take home pension income.
__________________
Mulligan is online now   Reply With Quote
Old 09-10-2012, 04:03 PM   #16
Thinks s/he gets paid by the post
 
Join Date: Aug 2005
Posts: 2,056
Mine's going to come off a little brutal-sounding, mainly because I have an HELOC on it that I'm trying to pay down fast. So, here goes:
HELOC: $13,200
Property taxes: $3100
Homeowner's Insurance: $750
Electricity: $3000 (all electric, old, drafty house, minimal insulation)
Water/Sewer: $400
Phone/Internet/TV: $1200

Total: $21,650 per year.

I'm projecting a retirement budget of $40,000 per year, so housing represents a fairly big chunk of that...54%. And that's not budgeting for maintenance/repairs.

However, I'm not retired yet, and figure I'll have the HELOC paid down, or at least down considerably, by the time I do. Just gotta resist the urge to keep raiding it!
__________________
Andre1969 is offline   Reply With Quote
Old 09-10-2012, 05:01 PM   #17
Dryer sheet aficionado
CMH in CO's Avatar
 
Join Date: Mar 2011
Posts: 41
Glad you asked. Didn't realize its 26%--33% if we keep the house we live in now. Its good to have a comparison with others on this board. Now I'll be thinking about it.

Cass
__________________
CMH in CO is offline   Reply With Quote
Old 09-10-2012, 05:43 PM   #18
Recycles dryer sheets
truenorth418's Avatar
 
Join Date: Sep 2011
Location: New York
Posts: 484
I own a small NYC studio apartment, no mortgage.

$6,648 co-op maintenance fees - about 50% of which is property taxes
$577 - electricity
$361 - insurance

Total is $7,586 - which is about 14% of budget.

For me, one of the keys to early retirement was keeping my housing expenses low the last 10 years.
__________________
truenorth418 is offline   Reply With Quote
Old 09-10-2012, 05:51 PM   #19
Dryer sheet aficionado
 
Join Date: Aug 2011
Location: Northampton
Posts: 29
It is 18% of budget, including taxes, utilities, maintenance, condo fee and insurance.
__________________
Rachel is offline   Reply With Quote
Old 09-10-2012, 07:36 PM   #20
gone traveling
 
Join Date: Jun 2012
Location: Austin
Posts: 245
Not retired yet, but annual expenses on our primary residence and what I use as a benchmark for my upcoming ER are:

Property taxes: $6,500
Electric: $1800
Water/Trash/Sewer: $1200
Insurance: $600

Maintenance is less than $200 a year because I fix/repair/improve everything myself.
__________________

__________________
LakeTravis is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 02:56 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.