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Your housing cost in retirement
11-25-2015, 06:57 AM
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#1
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Full time employment: Posting here.
Join Date: Jun 2008
Posts: 534
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Your housing cost in retirement
I started a full retirement this past August. The city I live in just set the tax rate for the next year. Living in NH property tax is a big deal. I live about an hour north of Boston. I have a very modest home, small ranch, 1000 sq ft finished, full basement, 2 car carport, on a house lot. My cost of housing not including maintenance is about $880 a month. This includes prop tax, heating fuel, water and sewer, electric service, home insurance, trash collection, cable TV and internet and an ADT security system. For this year I think it's pretty inexpensive living arrangement. $800 a month would rent a single bedroom apartment in town house style apartment complex.
I am wondering, How does this compare with others?
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11-25-2015, 07:06 AM
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#2
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gone traveling
Join Date: Sep 2003
Location: DFW
Posts: 7,586
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Living in a no state tax state, Texas property taxes and sales taxes are high. I receive a generous over 65 property tax exemption, but am paying $600 month just in property tax on a 2500 sq ft home.
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11-25-2015, 07:17 AM
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#3
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Recycles dryer sheets
Join Date: Jun 2014
Posts: 440
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I live in socal. Taxes/insurance are about 1200/mo on a 900k house (3 bed, 2 bath 2300 sqft now worth about 1.3-1.4... Yeah... Nutty). Utilities about 200-300/mo. Maintenance probably 150-250 but too early to tell
Sent from my HTC One_M8 using Early Retirement Forum mobile app
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11-25-2015, 07:58 AM
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#4
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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: 36,204
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Our housing budget is about $1,125/month for a ~2,350 sf lakefront home in rural Vermont. Our property taxes include a "lakeside premium" via higher land value on our property tax appraisal.
Home Insurance | 758 | Property Taxes | 6,938 | Propane | 1,279 | Firewood | 375 | Electricity | 960 | Maintenance and repairs | 1,500 | Snowplowing | 800 | Telephone | 162 | Television | 720 | Internet | 720 | | 13,492 |
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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11-25-2015, 08:20 AM
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#5
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Thinks s/he gets paid by the post
Join Date: Jan 2012
Posts: 2,581
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Here in the suburbs of metro Atlanta, things aren't quite so pricey. Property taxes for my 2400 sq ft two-story house are $2,700/year. Home insurance is $700/year. Including things like utilities, TV/phone/internet, HOA fees, and routine maintenance, total cost is about $8500/year.
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11-25-2015, 08:24 AM
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#6
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,468
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Let's see.
2014 monthly average expenses, and 2014 totals, at my old house:
Category | Monthly | yearly |
---|
Utilities | $157 | $1884 | Property Tax | $80 | $959 | Insurance | $242 | $2904 | Maintenance | $100 | $1200 | Upgrades | $73 | $876 | TOTAL | $652 | $7823 | (Total minus utilities) | $495 | $5939 |
Utilities include electricity, natural gas, water, sewage, trash.
Insurance includes homeowners', flood, wind and hail (hurricane).
This house was a 1600 square foot brick home, 3 bedrooms, 2 baths, built in 1972. Property tax assessment was frozen due to being over age 65. I moved last summer and don't yet have any figures for my present home.
__________________
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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11-25-2015, 08:30 AM
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#7
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Gone but not forgotten
Join Date: Jan 2007
Location: Sarasota,fl.
Posts: 11,447
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Waterfront Large home south Florida $1017 for everything including flood insurance and utilities.
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11-25-2015, 09:09 AM
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#8
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Thinks s/he gets paid by the post
Join Date: Jul 2012
Location: Texas
Posts: 3,024
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I'm in Texas with high property tax, but no state income tax. House is 4,500 sqft on 2.2 acres with a pool, large pond, and two detached buildings. It's 50 years old, and not particularly energy-efficient, so maintenance and utilities are quite high. Here's a breakdown of our annual housing costs:
Property tax | 9,961 | Home insurance | 1,517 | Electricity, water, waste | 6,152 | Natural gas | 1,082 | Repair & maintenance | 5,700 | Phone, TV, internet | 1,056 | Home security | 220 | Total | 25,688 |
Current plan is to stay in this house for another 5-7 years (possibly a bit longer) and then downsize to a 2,500 sqft house where the annual cost will be sub $15K.
__________________
Retired at 52 in July 2013. On to better things...
AA: 85/15 WR: 2.7% SI: 2 pensions, SS later
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11-25-2015, 09:22 AM
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#9
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Posts: 3,046
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816 sq ft 1 bedroom condo, Long Island, NY
Maint Condo $3,793 (Includes heat, water, gas, landscaping, snow removal)
Mortgage 0
Taxes 2,599
Electric 600
Internet 778
------------------------
TOTAL per year 7,770
per month 648
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11-25-2015, 09:38 AM
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#10
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Thinks s/he gets paid by the post
Join Date: Dec 2009
Location: Alberta/Ontario/ Arizona
Posts: 3,393
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Really depends on your real estate. Maybe if we looked at it as a multiple of square footage or of total spend or percentage of market value it would be more comparable. Our real estate expenses represent about 22% of our total after tax spend and about $15 per square foot per year. Total maintenance costs are about 3.3% of total market value per year. These costs include everything. We keep our places pretty well maintained.
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11-25-2015, 09:41 AM
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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: Jul 2006
Posts: 11,401
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1122 sq ft view condo. Quick back of the envelope calculation:
Condo fees: $300 per month, $3600 per year
Utilities: $600 per year
Internet and phone: ~$80 per month, $1000 per year
Property taxes: $900 per year
Insurance: $400 per year
Home maintenance: sporadic. Allow $500 per year.
Total: $7000 per year, or $6.23 per sq foot per year, or 14% of total lifestyle expenses.
All figures are Canadian dollars.
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11-25-2015, 09:45 AM
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#12
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Moderator
Join Date: Apr 2012
Location: San Diego
Posts: 14,140
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Interesting what folks include. I would not have included cable tv/internet since those are items I could cut if I had to - and would likely have if I rented. OP did not include phone - which makes sense since you'd likely have a phone if you rented or owned...
My bills are a little atypical - we built a granny flat - so property taxes and water bill include that - (not seperately metered) Our property tax covers the primary house and the land the granny flat is on, but we have a separate landlord policy for the structure. That said - we get $1400/month income... so the bills are worth it.
Here's what I have annual:
Insurance | 1201.94 | rental unit insurance | 511.39 | gas/electric primary | 936.91 | water and sewer both units | 1415.41 | prop taxes (both units, includes trash) | 3236.12 | tv and internet (cable, netflix, etc) | 878.71 | total | 8180.48 |
Home maintenance and remodels adds $8k/year for the past 5 years - but that's because we've
- remodeled the kitchen
- replaced 16 windows (still have 6 left.)
- are remodeling our master bath
- replaced our concrete driveway with pavers
...
I budget $5k/year - but also have funds set aside for future improvements.
All this is on a 1960's 2000sf primary home, circa 2008 700sf granny flat on a 1/4 acre lot 10 minutes from the beach. The value is somewhere around a million - but that's not what we paid (or anywhere near close). Property taxes are lower than typical because of prop 13 and inherited prop 13 tax rates since I bought from my parents and had the original rate transferred. The granny flat was assessed at current rates of 2008 - so it is about 2/3's of the property taxes, even though it's all on the same bill. I don't worry about the value of the house since it's paid for and in any other part of the country would be worth about 300k. (Expensive dirt). The only factor I include the home value in is my plan B for market catastrophe and/or long term care costs for both of us for multiple years...
__________________
Retired June 2014. No longer an enginerd - now I'm just a nerd.
micro pensions 6%, rental income 20%
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11-25-2015, 09:51 AM
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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: May 2008
Posts: 5,170
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Quote:
Originally Posted by shotgunner
I started a full retirement this past August. The city I live in just set the tax rate for the next year. Living in NH property tax is a big deal. I live about an hour north of Boston. I have a very modest home, small ranch, 1000 sq ft finished, full basement, 2 car carport, on a house lot. My cost of housing not including maintenance is about $880 a month. This includes prop tax, heating fuel, water and sewer, electric service, home insurance, trash collection, cable TV and internet and an ADT security system. For this year I think it's pretty inexpensive living arrangement. $800 a month would rent a single bedroom apartment in town house style apartment complex.
I am wondering, How does this compare with others?
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How much is your cost if you do not include "cable TV and internet and an ADT security system"?
...Just curious.
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11-25-2015, 10:03 AM
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#14
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Full time employment: Posting here.
Join Date: Apr 2011
Location: Castro Valley
Posts: 788
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2050 sq ft 4 bedroom home is SF Bay Area:
Property tax: $455/month
Insurance: $85/month
HOA: $45/month
Fire Fee: $10/month
Utilities: $400/month
Total: $995/month
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11-25-2015, 10:09 AM
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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: Mar 2005
Location: Chicago
Posts: 13,149
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Quote:
Originally Posted by shotgunner
I started a full retirement this past August. The city I live in just set the tax rate for the next year. Living in NH property tax is a big deal. I live about an hour north of Boston. I have a very modest home, small ranch, 1000 sq ft finished, full basement, 2 car carport, on a house lot. My cost of housing not including maintenance is about $880 a month. This includes prop tax, heating fuel, water and sewer, electric service, home insurance, trash collection, cable TV and internet and an ADT security system. For this year I think it's pretty inexpensive living arrangement. $800 a month would rent a single bedroom apartment in town house style apartment complex.
I am wondering, How does this compare with others?
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It looks like you forgot to include the opportunity cost of having whatever your house would sell for included in your total housing costs. Without this, comparing your cost to renting doesn't work.
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
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11-25-2015, 10:42 AM
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#16
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2014
Location: Huntsville, AL/Helen, GA
Posts: 6,002
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2350 sq ft 3 bedroom home with 900 square ft finished basement on 3.5 acres in Northwest Alabama:
Property tax: $0 because wife is disabled. If paying taxes, it'd be $55 a month
Insurance: $110 month
Electricity/natural gas/water/Garbage: $175 month
Upkeep: $50 month
We are truly blessed to have not only the lowest cost of living, but the lowest price of housing anywhere. The low cost of living allows our citizens to have a high standard of living even in retirement.
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11-25-2015, 11:28 AM
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#17
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2009
Posts: 6,679
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Quote:
Originally Posted by jim584672
816 sq ft 1 bedroom condo, Long Island, NY
Maint Condo $3,793 (Includes heat, water, gas, landscaping, snow removal)
Mortgage 0
Taxes 2,599
Electric 600
Internet 778
------------------------
TOTAL per year 7,770
per month 648
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My expenses are similar to yours. I pay $541 a month for my studio apartment in a Long Island (NY) co-op and that includes all maintenance and property taxes, net of STAR rebate. It includes $67 a month for an indoor garage parking spot.
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.
"I want my money working for me instead of me working for my money!"
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11-25-2015, 11:34 AM
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#18
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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: 36,204
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Quote:
Originally Posted by rodi
Interesting what folks include. I would not have included cable tv/internet since those are items I could cut if I had to - and would likely have if I rented. OP did not include phone - which makes sense since you'd likely have a phone if you rented or owned... ....
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I attempted to include what was included in the OP and i included the details so the OP could exclude things as desired.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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11-25-2015, 01:51 PM
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#19
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Recycles dryer sheets
Join Date: Feb 2013
Location: San Jose
Posts: 289
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A hair under 2K/mon on a 1000sf apartment in southern California including rent, all utilities, and insurance. It's about 40% lower than what a similar place runs in my previous San Jose zipcode.
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11-25-2015, 02:36 PM
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#20
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,150
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Per year 2270sf single family detached home, distant suburb of Chicago.
Comparing completely different states and homes seems suspect and like some others, I don't consider some of these home expenses but FWIW:
Insurance | $1,081 | Lawncare | $ 726 | Other | $2,233 | Prop Tax | $1,893 | SFPOA | $ 850 | Gas/electric | $1,677 | Phone | $1,121 | Sewer | $ 780 | Trash | $ 163 | Water | $ 485 | Internet | $ 599 | Sat TV | $ 849 |
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No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
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