new - dirt cheap retirement?

[REWahoo]

For comparison purposes:

We replaced two roofs on family homes in the last three years (The Woodlands and Conroe, TX) area. One was on a 1,970 square foot single level house and a two story 2,600 square foot house. Both roofs were stripped of old shingles and replaced with GAF 30-year architectural shingles. Both roofs had new ridge vents put in, all new flashing, etc. Bids included a few sheets of plywood underlayment if necessary. Cost for the 1970 sq.ft. house was $4,800 and for the bigger house was $6,850.

Both jobs were done by a contractor that only works on re-roof job (stays away from new construction due to the cheapness of materials generally used and having to deal with GC's). This was the only roof contractor we found that had a Better Business Bureau account. He was near the low bid, but not the lowest.

Because I am a Veteran, GAF sent me a $300 rebate for one roof.

Wow again. Not sure why the big difference in what you guys are paying vs. what I'm hit with. We have a single story 2,700 SF home with attached
oversized garage. SF of the roof is 5,500 - 55 squares.

US Roofing Prices Trends for 2015 | RoofCalc.org

According to the above website the avg. cost in the US to remove/replace asphalt shingles is $3.50 per SF. That calculates out to $19,250 for me.

 

[aja8888]

Wow again. Not sure why the big difference in what you guys are paying vs. what I'm hit with. We have a single story 2,700 SF home with attached
oversized garage. SF of the roof is 5,500 - 55 squares.

US Roofing Prices Trends for 2015 | RoofCalc.org

According to the above website the avg. cost in the US to remove/replace asphalt shingles is $3.50 per SF. That calculates out to $19,250 for me.

Our two story 2,600 sq foot house has less roof area due to being two stories. It probably needed less squares (20 less?). The quote did not specify number of squares.

One thing is labor is probably less expensive here than where you are.

 

[Fermion]

Our two story 2,600 sq foot house has less roof area due to being two stories. It probably needed less squares (20 less?). The quote did not specify number of squares.

One thing is labor is probably less expensive here than where you are.

labor three times more expensive in one area than another?

This really highlights the benefit/drawback from retiring in one place vs another. You want to work in the expensive area and retire in the cheap one. I knew it was drastic, but did not realize exactly how drastic.

I am coming around to the idea that $50,000 a year in one part of the country might get you the same standard of living as $100,000 a year in another. The only gotcha is things like European vacations, which would cost the same for both retirees.

 

[W2R]

Wow again. Not sure why the big difference in what you guys are paying vs. what I'm hit with.

My guess is local differences? It's not like you can import a roofing crew from Louisiana to do your roof, so you're stuck. I gather from prior posts that your house is in a fairly plush community pretty far out of town, and you might be paying a premium for that reason. Who knows. It is what it is, though.

 

[W2R]

This really highlights the benefit/drawback from retiring in one place vs another. You want to work in the expensive area and retire in the cheap one. I knew it was drastic, but did not realize exactly how drastic.

Yeah, it constantly blows my mind when people want to stay in the expensive location after retirement. I guess they must really love living there. That's a perfectly valid reason to stay, as long as they know how much they are paying for that choice.

 

[imoldernu]

yes I realize that when I hit 65 I will get maybe $20k a year in social security, or maybe some means tested reduction to $10k per year because SS blew a gasket (is failing)
***yes I know that many predict there will be mass starvation of seniors if you expect to live on $30,000 a year but I guess I do not see that.

Only to say we'e been there, done that... retired at 53, with just a tiny bit more than you infer in your posts. Very happy, never really worried, and coming up on the 26th year of freedom... Long and short of it, here:
http://www.early-retirement.org/forums/f27/sharing-23-years-of-frugal-retirement-62251.html

Best wishes...

 

[Teacher Terry]

Here it is cheaper to own then to rent. A house in our neighborhood rents for $1400/month. Our taxes & ins are $110/month. WE do most maintenance ourselves or hire our handyman who works for $15/hour & the only thing he can't do is electrical which my hubby can do.

 

[Teacher Terry]

It can be done to live on so little but many like us don't want to.

 

[martyb]

Wow again. Not sure why the big difference in what you guys are paying vs. what I'm hit with. We have a single story 2,700 SF home with attached
oversized garage. SF of the roof is 5,500 - 55 squares.

US Roofing Prices Trends for 2015 | RoofCalc.org

According to the above website the avg. cost in the US to remove/replace asphalt shingles is $3.50 per SF. That calculates out to $19,250 for me.

Oops...made a mistake. I talked to my daughter today, and she said their new roof in Shreveport last month cost $6000, instead of the $5000 I posted.

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[offroad]

Here it is cheaper to own then to rent. A house in our neighborhood rents for $1400/month. Our taxes & ins are $110/month. WE do most maintenance ourselves or hire our handyman who works for $15/hour & the only thing he can't do is electrical which my hubby can do.

How much does the home buyer today need to put down on the house you live in to buy identical? Let's say $20,000. And let's also say I can earn $200 per month interest on that $20000 in many aggressive funds.

So you are at a loss of $200 per month by tying it up in a house. It's just math. Locking up money is a loss.


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[offroad]

Yeah, it constantly blows my mind when people want to stay in the expensive location after retirement. I guess they must really love living there. That's a perfectly valid reason to stay, as long as they know how much they are paying for that choice.

Expensive locations in the country are quickly loosing the luster. Between internet and fast travel and cheap lake side locations and low cost RV camping; why does anyone want to live near ORLANDO. Or near LAS VEGAS? To each his own of course, but still factoring in financial risk you can't live in certain locations.


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[daylatedollarshort]

Initial price is one factor in housing. A $200K house that appreciates to $500K in ten years may be a better long term investment than a $100K house that drops in value. (I just made up those numbers). There are lots of factors to consider in the definition of "cheapest". Cheapest initial purchase price? Cheapest to own long term?

 

[offroad]

More chance of a $200k house freezing in value for ten years. Competition to sell houses to the public, who does not have the money, will just stop all trying to make money from a house. Most areas are never going to get 10% increase in house value yearly over ten years.

There are so many new ways that competition for living locations happens. Tiny houses, more condos, creative rural virtual job locations.

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[daylatedollarshort]

More chance of a $200k house freezing in value for ten years. Competition to sell houses to the public, who does not have the money, will just stop all trying to make money from a house. Most areas are never going to get 10% increase in house value yearly over ten years.

There are so many new ways that competition for living locations happens. Tiny houses, more condos, creative rural virtual job locations.

That scenario is certainly one possible future for housing, but this is what I'm reading is happening currently: "Home sales have been constrained by a shortage of properties on the market, which has pushed up home prices and limited choice for potential buyers. "

Home sales hit 18-month high; prices accelerate | Reuters

That aside, all real estate is local. The Detroit market is different than San Diego and has different probabilities of likely future appreciation.

 

[offroad]

Half way between Detroit and Chicago in a small town. Girlfriend sold her three bedroom house with full basement and new furnace about half mile from town center. $85000. It was gorgeous and that's all it was worth. --- my opinion is that everything else is over priced.


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[Music Lover]

How much does the home buyer today need to put down on the house you live in to buy identical? Let's say $20,000. And let's also say I can earn $200 per month interest on that $20000 in many aggressive funds.

So you are at a loss of $200 per month by tying it up in a house. It's just math. Locking up money is a loss.


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Locking up $20k in a house is a loss, but $1400 a month in rent isn't?? 20 years of $1400 rent will cost $336,000 and you own absolutely nothing. A 20 year mortgage at 5% costs $1055 per month, leaving $445 or $5340 each year for taxes and maintenance. And, after 20 years, you own a $200,000 house and the payments stop forever.

After the mortgage is done, you now have $1055 per month to invest. Assuming your generous 12% return, you can build quite the next egg over the next 20 years.

*EDIT* math error. $345, not $445, leaving $4140 per year.

 

[hnzw_rui]

Locking up $20k in a house is a loss, but $1400 a month in rent isn't?? 20 years of $1400 rent will cost $336,000 and you own absolutely nothing. A 20 year mortgage at 5% costs $1055 per month, leaving $445 or $5340 each year for taxes and maintenance. And, after 20 years, you own a $200,000 house and the payments stop forever.

After the mortgage is done, you now have $1055 per month to invest. Assuming your generous 12% return, you can build quite the next egg over the next 20 years.

Yeah. If houses weren't prohibitively expensive where we currently live (minimum $450K for 2B/2B 1200 sq ft in move-in condition), we'd buy, too and stay there forever (or maybe downsize upon retirement). Unfortunately, the areas we can afford are minimum 30 miles away and the additional expense for gas and SoCal traffic is more than I'd want to deal with. Right now, I live just 5 miles away from work and buying would increase our housing and related costs by more than 100%.

 

[Fermion]

Locking up $20k in a house is a loss, but $1400 a month in rent isn't?? 20 years of $1400 rent will cost $336,000 and you own absolutely nothing. A 20 year mortgage at 5% costs $1055 per month, leaving $445 or $5340 each year for taxes and maintenance. And, after 20 years, you own a $200,000 house and the payments stop forever.

After the mortgage is done, you now have $1055 per month to invest. Assuming your generous 12% return, you can build quite the next egg over the next 20 years.

*EDIT* math error. $345, not $445, leaving $4140 per year.

Nice math. Reality for us is a $300,000 house purchased in 2001, $5k a year in real estate tax, $1k in insurance, worth $250,000 today.

It is all a crapshoot. Might as well rent and invest in a biotech.

 

[Music Lover]

I'm not familiar with real estate tax??

I got lucky...bought a fixer for $80,000 in 1997 just before a boom, now worth $350,000. Spent $30k on renos over the years doing most of the work myself. At the time of purchase, the mortgage was less than renting. However, renting was never an option...2 bands with loud drummers rehearse in my basement.

Per year: property taxes $2050, insurance $700, heating and electricity $1500.

 

[pb4uski]

Yeah, it constantly blows my mind when people want to stay in the expensive location after retirement. I guess they must really love living there. That's a perfectly valid reason to stay, as long as they know how much they are paying for that choice.

That's me. I'm loco. $6,750 in property taxes on a 2,000 sf house and detached 2-car garage with finished loft on 75' of lakefront that's probably worth $500k. In other parts of the country my property taxes would be half or less.

 

[Derslickmeister]

We got a new roof last year. 2300 sqft single story, fairly complex roof. Lots of hail damage so the insurance company paid up. Total cost was $15k. I'm in North Texas BTW...

 

[ExFlyBoy5]

Just replaced our roof last month. North suburb of Atlanta...33 squares (don't remember square footage, but lots of crazy angles and pitches on our 70s contemporary home). 30 year architectural shingles and two ridge vents with new flashing and the new required by code rake and soffit edges...$7100. Two other bids came in within about $200 of the contractor we used.

Taxes are about $2000 a year but at the age of 62, school taxes go away in today's tax dollars, that would reduce our property taxes to about $500 a year. A house very similar to ours in the neighborhood (age/updates/etc) just went under a lease contract of $2250 a month. For me, it's wildly cheaper to own mortgage free. Also, we bought the house in 2012 for $140'ish and spent about $40k in improvements. According to the DW (who is a real estate broker) it's worth in the vicinity of $260'ish.

Sent from my mobile device so please excuse grammatical errors.

 

[offroad]

That's me. I'm loco. $6,750 in property taxes on a 2,000 sf house and detached 2-car garage with finished loft on 75' of lakefront that's probably worth $500k. In other parts of the country my property taxes would be half or less.

You must live in the perfect location on the planet to pay that kind of taxes and stay. If you have it then might as well enjoy it.


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[LRDave]

You must live in the perfect location on the planet to pay that kind of taxes and stay. If you have it then might as well enjoy it.


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There is a property tax survey thread active over on Bogleheads. You should go take a look - it will make you even more sure you are right. Plenty of folks in the NE pay much more than pb4uski - double or more.

 

[target2019]

You must live in the perfect location on the planet to pay that kind of taxes and stay. If you have it then might as well enjoy it.

There is a property tax survey thread active over on Bogleheads. You should go take a look - it will make you even more sure you are right. Plenty of folks in the NE pay much more than pb4uski - double or more.

Perfect is in the eye of the beholder, they say. It is not uncommon in this great state to have RE taxes of $2,500 per quarter. I use quarterly, so that it does not seem as high. Our trash was just picked up as I gaze out my front window...

When we sit in our back yard it is well worth the price of admission. When the hordes of lawncare minions show up during the week, it is not so blissful. However, I give this location a 90+ rating (out of 100). Reasons: higher paying jobs, healthcare, environmental, transportation, schools, adn culture. Of course I am only talking about this special location. Not too far away you can find the most dangerous city in America. Go a little further and you have access to a very wide range of attractions. The music in this area is very rich. Recently saw Sufjan Stevens, and on the following evening saw Bela Fleck/Abigail Washburn.