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Retirement Housing Expense to Budget
09-10-2012, 10:28 AM
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#1
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Recycles dryer sheets
Join Date: Aug 2009
Location: westerville
Posts: 262
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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.
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09-10-2012, 10:46 AM
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#2
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Recycles dryer sheets
Join Date: Jan 2012
Location: Colorado
Posts: 254
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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
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09-10-2012, 10:59 AM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2007
Location: New Orleans
Posts: 47,500
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Quote:
Originally Posted by Trawler
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.
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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.
Happily retired since 2009, at age 61. Best years of my life by far!
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09-10-2012, 11:02 AM
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#4
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Thinks s/he gets paid by the post
Join Date: Jul 2012
Location: Mississippi
Posts: 1,894
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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.
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09-10-2012, 11:26 AM
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#5
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Thinks s/he gets paid by the post
Join Date: Jul 2009
Posts: 1,934
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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.
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09-10-2012, 11:28 AM
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#6
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Moderator Emeritus
Join Date: May 2007
Posts: 12,901
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I rent too. Including rent, renter's insurance, and utilities, housing expenses exceed 50% of our budget.
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09-10-2012, 11:33 AM
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#7
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Administrator
Join Date: Jul 2005
Location: N. Yorkshire
Posts: 34,128
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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
Enough private pension and SS income to cover all needs
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09-10-2012, 11:34 AM
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#8
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Thinks s/he gets paid by the post
Join Date: May 2005
Location: Texas
Posts: 1,038
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About 18% including maintenance.
__________________
In theory, theory and practice are the same. In practice, they are not.
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09-10-2012, 11:35 AM
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#9
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Recycles dryer sheets
Join Date: Jan 2012
Location: Colorado
Posts: 254
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Is this a stealth "Rent vs Own" thread ?
__________________
Don't you know that dynamite always blows down ? --- Moe to Curly
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09-10-2012, 11:38 AM
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#10
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Thinks s/he gets paid by the post
Join Date: Oct 2010
Posts: 2,472
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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
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09-10-2012, 12:41 PM
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#11
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Posts: 5,350
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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
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09-10-2012, 01:02 PM
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#12
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Thinks s/he gets paid by the post
Join Date: Jul 2009
Location: Miraflores,Peru
Posts: 1,992
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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!
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09-10-2012, 01:10 PM
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#13
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,373
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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).
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09-10-2012, 01:40 PM
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#14
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Recycles dryer sheets
Join Date: Aug 2009
Location: westerville
Posts: 262
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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.
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09-10-2012, 02:54 PM
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#15
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2009
Posts: 9,343
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Mortgage - $6000
Prop tax - 1600
insurance - $600
Utilities (just trash, water, heat, a/c)- $2400
Its about 18% of my take home pension income.
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09-10-2012, 03:03 PM
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#16
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Thinks s/he gets paid by the post
Join Date: Aug 2005
Location: Crownsville
Posts: 3,746
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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!
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09-10-2012, 04:01 PM
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#17
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Dryer sheet aficionado
Join Date: Mar 2011
Posts: 38
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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
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09-10-2012, 04:43 PM
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#18
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Full time employment: Posting here.
Join Date: Sep 2011
Location: Bushnell
Posts: 607
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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.
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09-10-2012, 04:51 PM
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#19
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Dryer sheet aficionado
Join Date: Aug 2011
Location: Northampton
Posts: 29
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It is 18% of budget, including taxes, utilities, maintenance, condo fee and insurance.
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09-10-2012, 06:36 PM
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#20
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gone traveling
Join Date: Jun 2012
Location: Austin
Posts: 245
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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.
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