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Those with paid off houses, how much basic maintenance cost ?
Old 11-06-2015, 08:33 PM   #1
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Those with paid off houses, how much basic maintenance cost ?

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).






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Old 11-06-2015, 08:49 PM   #2
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Annual Amounts
Taxes $2,434
Insurance $1,422

It translates to $321.33 a month.

The house is valued ~$250K.
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Old 11-06-2015, 08:50 PM   #3
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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).
In Tx property taxes on 350k house run 5800 (county and school, not in city so no city taxes) and insurance runs 2000 a year. Note I am not near the coast or the insurance would be much higher. plus have a metal roof which cuts homeowners cost.
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Old 11-06-2015, 08:55 PM   #4
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I know that it is a milestone to pay off your mortgage and your house free and clear.

This isn't a 'known'. Many of us retirees are just fine carrying a mortgage into retirement.

Quote:
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'd include utilities, regular ongoing maintenance (like cutting the grass, etc.), less regular maintenance (like painting, new roof, furnace, water heater, appliance repairs, etc), and a few other misc.

Quote:
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).
Why? What difference does it make what someone else pays for something? What sort of enlightenment would any of us gain from a list like that?

Some people have bigger houses than others. Some live in climates that require more heating/cooling. Some may have higher/lower property taxes, but pay more in other taxes to make up the difference. Insurance costs can vary (hurricane areas, for example).

I guess I'm just curious as to why you are curious.

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Old 11-06-2015, 09:03 PM   #5
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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).

Property taxes -$7400
Insurance $1924
HOA $500
Those are annual expenses for a 3450 sq ft home plus finished basement. Home value -$480,000.



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Old 11-06-2015, 09:05 PM   #6
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I guess I'm just curious as to why you are curious.

-ERD50

I'm still thinking where I should retire - should I move or not, so I ask because different places have different realty taxes and home insurance rates.

For example, you're in Illinois and based on what I know - your real estate taxes are probably pretty high. But I don't know if your home insurance is low or high. So, I'm asking.

I hope you get my drift, as to why I'm asking about taxes and insurance.

Thanks to some of the answers, I know a bit about MN and TX about their taxes and insurance. Most people would just say, move to Florida. But Florida is too hot for me.





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Old 11-06-2015, 09:05 PM   #7
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Tax: $3400 (will increase 2% per year from now until doomsday)
Insurance: $700

This is on a small 3/2 house in expensive southern CA where Prop 13 favors long time homeowners. A new owner buying my home would pay about $6000/year in property tax.
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Old 11-06-2015, 09:13 PM   #8
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I'm still thinking where I should retire - should I move or not, so I ask because different places have different realty taxes and home insurance rates.
Might be more informative to Google state property tax and homeowner insurance costs. Here's an example: https://wallethub.com/edu/states-wit...y-taxes/11585/
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Old 11-06-2015, 09:20 PM   #9
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The total cost to operate and maintain my 2 homes runs about 4%/yr of their total values, as averaged over the last 5 years.

The above includes all utilities, taxes, insurance, and also maintenance and updates. I am not in a high RE tax state like Texas.
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Old 11-06-2015, 09:25 PM   #10
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Originally Posted by cyber888 View Post
I'm still thinking where I should retire - should I move or not, so I ask because different places have different realty taxes and home insurance rates.

For example, you're in Illinois and based on what I know - your real estate taxes are probably pretty high. But I don't know if your home insurance is low or high. So, I'm asking.

I hope you get my drift, as to why I'm asking about taxes and insurance.

Thanks to some of the answers, I know a bit about MN and TX about their taxes and insurance. Most people would just say, move to Florida. But Florida is too hot for me.
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Might be more informative to Google state property tax and homeowner insurance costs. Here's and example: https://wallethub.com/edu/states-wit...y-taxes/11585/
OK, then I agree with REWahoo. Make your question more specific. What you really want to know about is COL in some areas, as you've clearly ruled out some areas, like Florida as too hot, (and I agree with that). And some would rule out N IL as too cold (and sometimes it's too hot too!).

And you might as well narrow that down to a house size, area (city, rural, suburb), etc. All those things will affect costs. And as I mentioned, many things outside of those numbers affect overall COL. And things like living in a high cost school district, versus a lower cost school district (here in IL, much of the school funding comes from local taxes, other states may fund at the state level, through other means).

I just don't think the answers here are going to tell you much that you could learn from. Even within an area - I could drive down the road 2 miles, and find homes that pay 4x or more what I do in just about all the costs you mention. And I could drive 2 miles in another direction and find homes that might pay 1/4 what I pay. So what can you learn from that? What if you only got only one of those numbers from this area? Would you decide that N IL is expensive/inexpensive/middling?

-ERD50
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Old 11-06-2015, 09:25 PM   #11
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We set aside $245/mo for taxes and homeowners insurance. $200 is for taxes, the rest for the insurance. It goes into an online savings account that pays interest. I set this up when we paid off the mortgage, just like we had an escrow account for taxes and insurance with the mortgage payment.


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Old 11-06-2015, 09:45 PM   #12
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Maintenance cost depend on a house age and proper past maintenance (like if you take care of a problem like a leaking roof right away it will not cause you much larger amount in near future due to floor repair, mold etc.). Depending on a house age, size, occupants and condition it could cost on average $100 to $500 or more per month. Property taxes, assn. fee, insurance comes on the top of it.
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Old 11-06-2015, 10:30 PM   #13
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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).
What state/municipality and what type of house? This is so variable.

We presently pay 1403 for property insurance; 700 for excess, and 1846 for property tax on a 4200 square ft house on 25 acres. (TN, 30 minutes from state capital building) But, 15 years ago, in small town Illinois, we were paying 12,000 a year property tax for a bigger house with 1.5 acres and an HOA--and our insurance was higher as well.
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Old 11-06-2015, 10:51 PM   #14
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$150k house in Raleigh.

$1600 taxes/yr.
$1500/yr amortized cost of large repairs (HVAC, roof, siding, plumbing, etc)
$500/yr routine maintenance (DIY supplies/materials, lawnmower gas, weed n feed, ant killer, etc)
$550/yr insurance
$3000/yr utilities

In other words, more than our mortgage was most years.
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Old 11-07-2015, 12:17 AM   #15
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Rewahoo's links are a good reference. Also you should be getting real estate listings from the areas that interest you; they often show property tax (this is how we figured out that PA's taxes would probably cost so much that it would outweigh the savings from having our Federal pensions free of state tax).

Bear in mind that within a state, counties and municipalities often charge a different tax rate on top of the state's bite. And they use a variety of ways to value your house, and to apply the tax rate to that value. Plus the "same" house in the neighborhood two miles from yours could be "worth" more, or less. And some counties re-value yearly, or every three years....I'm sure you know all this; just making the point that the data from other forum members probably won't enlighten you much.

Then again, when did that stop us from asking questions? LOL Amethyst
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Old 11-07-2015, 04:52 AM   #16
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Not sure which I find most entertaining:

- The notion that the answers to the questions give one any useful information whatsoever, especially since many don't list their location (and also that the question somehow only applies to those who have paid off their house);

- ERD's response, which I agree with;

- or the number of people who dutifully respond with their own numbers
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Old 11-07-2015, 05:25 AM   #17
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Not sure which I find most entertaining:

- The notion that the answers to the questions give one any useful information whatsoever, especially since many don't list their location (and also that the question somehow only applies to those who have paid off their house);

- ERD's response, which I agree with;

- or the number of people who dutifully respond with their own numbers
While I too agree with ERD's position, I thought the tone was a bit harsh. Maybe it's me.

OP is a new poster here and maybe is just getting a footing on how to post and question. I've found not everyone here can clearly state what and why they're asking a question; I've been guilty myself.

A little patience maybe?

We had another thread this week (re: Exxon) where the tone became a bit aggressive toward the end IMHO.
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Old 11-07-2015, 06:21 AM   #18
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Originally Posted by RunningBum View Post
Not sure which I find most entertaining:

- The notion that the answers to the questions give one any useful information whatsoever, especially since many don't list their location (and also that the question somehow only applies to those who have paid off their house);

- ERD's response, which I agree with;

- or the number of people who dutifully respond with their own numbers
You must be entertained a lot here because similar questions are asked all the time.
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Old 11-07-2015, 06:28 AM   #19
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This is really kind of a ill posed question.
I've lived in 3 places in my adult life: Ohio, Maryland and the UK.
I had a debate decades ago about which state had higher taxes, MD or OH. We both had lived in both states. Ohio funded schools through property tax, MD did not. OH had a city/local tax, MD had you pay have the state tax to cover local (they have few incorporated cities at the time (and maybe still do). Housing prices were much higher in MD, so a lower property tax rate could cost you more.
I'm not sure who was right in the end. The other guy bought much more expensive houses where I didn't... so property taxes were a smaller part of the tax scheme than for me.
As for maintenance, this last summer I spent about $400 on chimney repair. I rented a scaffold, but some materials, masonry blades and a couple tools. Did the work and returned the scaffold, an extra bag of concrete and called it a day. Compare that to having a chimney company come do the work. I put $400 in, but you many put $5000 or more. I cut my own grass and maintain the equipment for cutting my half acre of grass. Even for people who hire everything done. Two neighbors with nearly identical places could pay large differences based on how they shop for services. Those who use a small local guy verse a large name brand company with a good advertising department.
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Old 11-07-2015, 07:00 AM   #20
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While I too agree with ERD's position, I thought the tone was a bit harsh. Maybe it's me.

OP is a new poster here and maybe is just getting a footing on how to post and question. I've found not everyone here can clearly state what and why they're asking a question; I've been guilty myself.

A little patience maybe?

We had another thread this week (re: Exxon) where the tone became a bit aggressive toward the end IMHO.
+1
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