Housing Cost Revisit- What's your expense to keep your house afloat?

[ERD50]

...

How does a low income person can afford to keep their house? let alone eating, and unexpected bills?? $600-$1200/mon without mortgage?? Social security aren't gonna cut it. :-(

Soc Sec was never meant to be a person's sole means of support. It was described as one leg of a three legged stool. If one can't afford such an expensive place, they should find a lower cost one. Simple. Some posters here have done just that - their reported housing expenses are lower than a typical SS check.

....
Welcome to America. I wonder why don't we just adapt Japanese or Europe's life style where housing are much smaller and doesn't really "eating" them alive.

Because we don't want to? And we don't have to?

For the people reporting high expenses, I don't generally see them saying "Oh my! This is killing me, eating me alive! What should I do??!!" A few might be thinking of downsizing at this point, probably as they have become empty nesters.

-ERD50

 

[NW-Bound]

Is the average person in Japan or Europe really paying less of their income for housing than the average American? According to Property Prices Index by Country 2013 the United States looks very favorable in both home price to income ratio and mortgage to income...

Homes in other developed countries tend to be smaller than US homes, yet cost much more. And their disposable incomes are often lower. The statistics in the above link bear this out. And I suspect that the maintenance and operating costs are also higher in other developed countries.

 

[NW-Bound]

Smaller homes are common in Vancouver where purchase prices are insane.

Vancouver 'micro-lofts' billed as smallest in Canada - British Columbia - CBC News

I think many homebuyers focus on the purchase price and not on the operating costs.

Excerpt from article:

"The suites, which range in size from 226 to 291 square feet, go for an average of $850 per month, including cable and internet."​

For comparison, a typical class A motorhome is 35 ft long and 8 ft wide, for a square footage of 280 sq.ft. It likely has slide-outs, from 1 up to 4, that expand the space significantly. The operating cost is however often significantly more than $850/month.

 

[lovingAZ]

This is a very interesting excercise and fun to see the results .....
I'll chime in ~~~

2,100 sq foot home on one level
Sedona, AZ
670 insurance
2268 taxes (2.4% state tax)
3540 water, sewer, electric, trash
180 HOA

$6,658 annual
$555/month

views of the magnificent red rocks - FREE!

 

[Moemg]

Taxes $4,800
Insurance $1400
utilities $3920
repairs $3000 ( new lanscaping ,new pool pump & automatic cleaner )
total $12,620

3,800 square feet on Sarsaota Bay with a pool

 

[Danmar]

OK I'm leaving myself wide open for criticism here. We have 4 places with the following yearly costs: Canmore-$36k, Ontario lake house $40k (although much higher this year), Toronto condo-$24k, Arizona about $90k (although we are still getting this place into shape). This includes some travel to get between the places. Certainly not cheap. The value of our personal use real estate represents about 20% of our net worth. Really enjoy these places but certainly not a life style for everyone.

 

[Meadbh]

OK I'm leaving myself wide open for criticism here. We have 4 places with the following yearly costs: Canmore-$36k, Ontario lake house $40k (although much higher this year), Toronto condo-$24k, Arizona about $90k (although we are still getting this place into shape). This includes some travel to get between the places. Certainly not cheap. The value of our personal use real estate represents about 20% of our net worth. Really enjoy these places but certainly not a life style for everyone.

Criticism no, envy, perhaps. More like: how the hell did Danmar amass such wealth?

 

[HFWR]

Criticism no, envy, perhaps. More like: how the hell did Danmar amass such wealth?

How to make a million in real estate? Start with two million...

 

[KB]

Suburban California
1670 sq foot home, less than 10 years old with stucco exterior (so low maintenance).

Property tax 5600
Insurance 650
Utilities 1452
Water, sewer, garbage 1200
HOA 1452
Upkeep 1200
Total 11,554

I do a lot of gardening in my back yard and did not include those costs. I consider that my hobby, not an expense. The HOA includes front yard maintenance including plant replacement.

 

[NW-Bound]

OK I'm leaving myself wide open for criticism here...

The value of our personal use real estate represents about 20% of our net worth.

Really enjoy these places but certainly not a life style for everyone.

No criticism from me.

And how do you know people would not do the same, if they had your means?

PS. By the way, my 2 homes are also about [-]20%[/-] 22% of my NW, roughly the same as your 4 homes to your NW. And my homes are a lot smaller, just based your operating costs.

 

[Bestwifeever]

OK I'm leaving myself wide open for criticism here. We have 4 places with the following yearly costs: Canmore-$36k, Ontario lake house $40k (although much higher this year), Toronto condo-$24k, Arizona about $90k (although we are still getting this place into shape). This includes some travel to get between the places. Certainly not cheap. The value of our personal use real estate represents about 20% of our net worth. Really enjoy these places but certainly not a life style for everyone.

I am an excellent house sitter, just so you know. No criticism here either.

 

[CoolChange]

I am an excellent house sitter, just so you know. No criticism here either.

+1 here. Although, I am only a good house sitter in warm climates; so, I would be useless most of the year in at least 75% of your properties. AZ summers don't frighten me a bit though.

Seriously, it sounds like you are enjoying your choices and have the means to support them; so, please ignore any criticism you do get, here or elsewhere.

 

[NW-Bound]

Should I count RV-related expenses as housing costs? After all, I lived in it for many weeks each year. Cheap class C motorhome as it is, the little beast is thirsty!

Nah. I will keep classifying its costs under travel.

 

[MRG]

I'm moving.

MRG

 

[FANOFJESUS]

OK I'm leaving myself wide open for criticism here. We have 4 places with the following yearly costs: Canmore-$36k, Ontario lake house $40k (although much higher this year), Toronto condo-$24k, Arizona about $90k (although we are still getting this place into shape). This includes some travel to get between the places. Certainly not cheap. The value of our personal use real estate represents about 20% of our net worth. Really enjoy these places but certainly not a life style for everyone.

Danmar you win on the high side LOL
Looks like aaronc879 is the winner on the low side.

Good job guys you both sound like you are having fun. aaronc879 I admire you. You are one of my role models on this forum. It is very interesting to me what it cost to live in different parts of the country.

 

[aaronc879]

Danmar you win on the high side LOL
Looks like aaronc879 is the winner on the low side.

Good job guys you both sound like you are having fun. aaronc879 I admire you. You are one of my role models on this forum. It is interesting to me what it cost to live in different parts of the country.

I'd rather have his means but i'm better off than many. I will likely downsize in the not too distant future.

 

[FANOFJESUS]

I'd rather have his means but i'm better off than many. I will likely downsize in the not too distant future.

Do you think you can bring your housing cost down some more?

 

[Ronstar]

My Az condo checks in at:

taxes 1500
HOA 2920
Utils 2427
Ins 500
Total 7347

 

[FANOFJESUS]

aaronc879 we are living on 15k-16k here in MO for our overall budget. But our housing cost is about 2k higher that yours. Good job aaronc879

 

[Major Tom]

OK I'm leaving myself wide open for criticism here.

Heavens no. No criticism here either. The only people I have difficulty dealing with are those who live beyond their means (however big or small those means are) and refuse to change their ways, even when impending crisis is staring them in the face. You are obviously not one of those people. Enjoy your homes!

 

[aaronc879]

Do you think you can bring your housing cost down some more?

With what i'm doing for work right now, i'm only going to be home around 100 days per year. I'm considering selling or renting my condo and buying a cargo van to live in. I'd invest some money into it to make it comfortable and efficient. I think it'd save me a lot of money in the long run with minimal sacrifice. I've had noise problems at my condo for years so I don't think it would decrease my quality of life living in a van. I can move my home to where the nice weather is and where the work is. I have a membership at 24 hour fitness so I can go to a gym anywhere in the country to exercise and take a shower. It's certainly not for everyone but I think it would be good for me. It's at least worth a try.

 

[FANOFJESUS]

Not a high risk idea and if it noisy you can move the van to a quiet place. On a side note I have also heard of people living in camping places at a reasonable price. Lots of work in North Dakota but you would have to have that van super insulated. You got me thinking a 100 days a year? Maybe even a cheap rental? But maybe you could get in a better area with the van.

 

[Danmar]

How to make a million in real estate? Start with two million...

Actually, in total our real estate has appreciated by about 50% over cost. biggest winner is Paradise Valley, AZ. Don't own these places for capital appreciation though.

 

[Calico]

1050 sf ranch, NC
Septic and community well; propane heat.

Monthly:

Insurance 50
Taxes 100
Electricity 80
Propane 85
Water 25
Trash service 30
Yard guys 90
Internet 40
Upkeep 100

Total: 600/month

 

[RobLJ]

Houston suburb (2400 sq ft & pool)

6000/yr taxes
800 insurance
1800 utilities (mostly AC)
1200 yard (until retired)
360 internet

Not bad for about 900/month. We're moving to Seattle & downsizing when we pull the plug in a few years, but I'm calculating it will be about the same.