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Old 11-07-2015, 10:21 AM   #41
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Originally Posted by Amethyst View Post
Uh-oh, are we turning this into a "whether to pay off the mortgage" thread? I don't think the OP meant for it to go that way....
It is fine to say many think it is a milestone event to pay off a mortgage in retirement, but to declare it as a statement of fact may be misleading to others seeking retirement advice, and many more people than just the OP will be reading the replies in this thread.
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Old 11-07-2015, 10:27 AM   #42
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Originally Posted by marko View Post
We had another thread this week (re: Exxon) where the tone became a bit aggressive toward the end IMHO.
I guess that's what makes the world go around. I liked the XOM thread.
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Old 11-07-2015, 10:32 AM   #43
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Originally Posted by cyber888 View Post
I was just wondering if anybody cared to share the cost of of taxes, insurance and Hoa you guys still spend yearly (or monthly, if you prefer translating it to a monthly cost).
No HOA out here, just no trespassing signs. Total annual cost for home/property insurance and taxes is about $3000 but the tax component is super cheap here in the Texas countryside.
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Old 11-07-2015, 10:33 AM   #44
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...but the tax component is super cheap here in the Texas countryside.
Ag exemption?
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Old 11-07-2015, 10:35 AM   #45
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Ag exemption?
That does help.
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Old 11-07-2015, 10:37 AM   #46
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4000 sq ft on 5/8 acre in NJ.
$13k real estate tax
$1200 insurance
$3000 utilities

Zillow will give you most data on any location, for those looking to settle somewhere else.
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Old 11-07-2015, 10:44 AM   #47
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I agree with some of the points made - the taxes aren't just location based - here in CA because of our Prop 13, it's also length of time you live in a home. Our next door neighbors, who moved in less than 2 years ago, but have the same square footage, same size lot, pay 3 times what we do. And it would be 9 times what we do if we didn't have our granny flat - which had a base tax of the market value of the granny flat from the date of occupancy. Another factor here in SoCal is Mello-Roos.... an extra tax for newer neighborhoods. The developers used to have to pay into the city to cover infrastructure: fire houses, roads, libraries, parks, etc. But in the late 70's the developers figured out they could put a 30 year bond on homes and make the home owners pay for these costs... So it's a 30 year tax from the time the last home in a development is built. (So early buyers in a large development might pay longer. Yikes.)

My stats:

Taxes: $3236 - includes entire parcel which is multifamily since we have a detached granny flat.
Insurance: $1201 for primary, $511 for rental unit. (Same parcel since it's a granny flat)
HOA: 0
Mello Roos: 0
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Old 11-07-2015, 10:55 AM   #48
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Originally Posted by cyber888 View Post
I know that it is a milestone to pay off your mortgage and your house free and clear. However, we all know that we still have to pay real estate taxes, home owners insurance, HOA (I would consider these 3 items as the basic mandatory maintenance cost).

I was just wondering if anybody cared to share the cost of of taxes, insurance and Hoa you guys still spend yearly (or monthly, if you prefer translating it to a monthly cost).

Yes, paying off one's house is definitely a milestone on its own--some of us think it's not a very important or helpful one to aspire to and some think otherwise. Different strokes. And since you asked quite simply and nicely if anyone would care to share, I will:

Taxes are a little over $8k and going up, home insurance is a little under $1k, no HOA.

We have lived in this house forever and our taxes today equal our initial mortgage payments and taxes put together.
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Those with paid off houses, how much basic maintenance cost ?
Old 11-07-2015, 11:39 AM   #49
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Those with paid off houses, how much basic maintenance cost ?

Paid off or not the maintenance cost are the same..
RE tax $8,000 annually
Insurance $1300 annually
Umbrella $200
Heat electric $3000

No mortgage is a wonderful thing.... Maintenance varies.



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Old 11-07-2015, 11:54 AM   #50
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Seeing what others pay in property taxes has me a bit depressed .
I live in expensive Bergen County, NJ. I have a nice house, but it's modest. I honestly don't know if I'm on 1/4 acre or 1/5 acre. Anyway, here goes:
Property Taxes $11,000
Insurance: $1200
Lawn mowing/treatment: $2000

I paid off my mortgage years ago and for me it was the right decision.
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Old 11-07-2015, 11:57 AM   #51
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Property taxes on our main house--$0 Wife is disabled, and AL doesn't charge property taxes to the disabled
Homeowners Insurance--$1,100
$350K Lake house taxes--$1100
Homeowners Insurance on Lake house--$500
Property taxes on my daughter's house (I own)--$1400
Homeowners Insurance--$1100

Our biggest expense is insurance--homeowners' insurance on the 3 houses and the auto insurance on 5 cars.
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Old 11-07-2015, 12:09 PM   #52
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Live in MN. ~1500 sq ft SFH valued at 240K, market value around 310K

Taxes: 4100/yr
Ins: 1680/yr
HOA: 0

Maintenance varies, but we spend very little even though our house is old. We still have 100 yr. old windows and radiators that are working great. We don't have central air and our appliances have held up. We prefer the vintage maple floors and woodwork, so there's not much in the way of upgrades. House is insulated and our heating bills aren't that high, even though it's cold.

We do need to replace our roof in the next few years though. Most other things we DIY.
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Old 11-07-2015, 12:09 PM   #53
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Here are the figures for my old house, that I sold in August after living there for 13 years. It is a 1600 sq foot ranch style home on a slab, built in 1972.

$123/month average maintenance
$0/month HOA (no HOA)
$80/month property taxes (most recent, highest cost)
$242/month homeowners, wind and hail (=hurricane), and flood insurance, again most recent, highest costs.

So, I think the total you are looking for is probably this:

$123+$80+242 = $445/month, which is $5,340/year. If including opportunity costs, and not includinging the profit when I sold it, then $875/month. Rent for a similar home is $1600/month according to Zillow, and that is about what I observed as well. But rents here are comparatively high. I guess the demand for rentals went up after Katrina.

I don't have the figures yet for my Dream House although I expect them to be a little higher.
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Old 11-07-2015, 12:10 PM   #54
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Another way to look at the housing cost, not counting the mortgage cost if you still carry one, is as a percentage of your total expenses.

I just looked at mine that way, and found that for the last 5 years, my housing costs run 32% of the grand total expenses. Again, that's everything including taxes, insurance, utilities, repairs, etc...

It is high because of the 2 homes, plus the recent repairs and upgrades that I hope will not be recurrent for a while, except that the 1200 sq.ft. deck of the high-country home calls out for money next year. And if I were picky, I would do something about the pool in the urban home.

Homes are money pits, or can be. I would save a lot of money living in a motorhome, and throw a class A away every 10 or 15 years. Nah, make it a class C and I would save even more money.
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Old 11-07-2015, 12:36 PM   #55
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Originally Posted by Nodak View Post
Paid off $50,000 864 sq.ft. house in small town ND:

taxes - $50 per month
insurance - $60 per month
utilities - $300 per month
routine maintenance - $70 per month

There is a picture of my home in my "misc" photo album.
Nice.
Paid for small home in NE Georgia on one acre of woods.
$450 per year property taxes
$500 per year home insurance
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Old 11-07-2015, 01:03 PM   #56
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Paid for 2,500 sqft house in Huntsville, AL (annual amounts):
Property taxes: $1,350
Insurance: $1,280 (high liability limits)
HOA: $0
Maintenance to keep the house in top shape: ~$3,500

For giggles, if I were to purchase the 1,100 sqft condo I currently rent in San Francisco, CA:
Property taxes: $15,000+
Insurance:
HOA: $9,000 + special assessments

Utilities (electric, trash, water - all electric heating in both places) are about the same, ~ $200 a month.
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Old 11-07-2015, 01:21 PM   #57
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Originally Posted by FIREd View Post
Paid for 2,500 sqft house in Huntsville, AL (annual amounts):
Property taxes: $1,350
Insurance: $1,280 (high liability limits)
HOA: $0
Maintenance to keep the house in top shape: ~$3,500

For giggles, if I were to purchase the 1,100 sqft condo I currently rent in San Francisco, CA:
Property taxes: $15,000+
Insurance:
HOA: $9,000

Utilities (electric, trash, water - all electric heating in both places) are about the same, ~ $200 a month.
Your condo sounds gorgeous and I must admit, the idea of living in a place where you can walk everywhere but don't have to deal with yard work, is pretty appealing. Still, the costs are mind boggling and I know I'd be happier elsewhere too.
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Old 11-07-2015, 01:23 PM   #58
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the other thing is if you live in Illinois, especially cook county, I know they had a tiered system. You get one exemption for how long you have lived in the house, then you get a based homeowner exemption, then you get another exemption if you are over 65.. If you move even within the county, the clock starts over so neighbors with the exact same house paid drastically different rates. There was huge incentive there for people to retire in the same house they lived in and stay there.
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Old 11-07-2015, 02:05 PM   #59
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I forgot to put in our home maintenance. We've averaged just under $8k/year for the past 5 years.

But in the past 5 years we've replaced 18 windows, remodeled our kitchen, redid our tile floors in the downstairs, added insulation, upgraded wiring and panel box, added an on demand water heater, resurfaced our driveway with pavers, and are 80% complete on a master bathroom remodel. Once we finish the windows, remodel the hall bath, replace the roof, install solar, and recarpet, our big ticket home maintenance items will be done. We mow our own lawn and clean our own house - so no expenses there.
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Old 11-07-2015, 03:26 PM   #60
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Haven't posted for quite a while, but thought I'd get my info posted:

Location: Sun City Center, FL
House: Attached villa, 2029 sq ft air conditioned space. Built 2013.
Market value: $260,000 owned free and clear
Property taxes: $2193, homesteaded, early pay savings.
Insurance: $771 annually ($433 hurricane and $338 non hurricane coverage)
Home Owners fee: $398/mo ($4776 annually). Covers all building maintenance, lawn mowing and trimming, shrub and tree maintenance and replacement, reserves for roof repairs and replacement, water and sewer, maintenance of common grounds, management fee, security, etc.

We moved from our single family home two years ago when the maintenance became a headache. Health issues. I can't do all the things required of owning a single family home. I was paying at least the cost of the HOA fee in my monthly maintenance and about $135/mo for water and sewer. We stayed in the same community but now we are in the gated section. The change was a no-brainer for us. Our Master Association owns and operates an appliance warranty company that for about $385/year covers all appliance repairs and the heating/cooling system including full replacement cost. No worries!!
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