How much did you spend on housing last year???

[wolfbay]

Did you have to make any upfront investment to achieve this? If so, how much do you have tied up in housing in order to achieve this low annual expense level?

We always LBYM and saved a large part of our income before retirement. We have no debt and paid cash for our house. It's very well insulated and we planned on solar(south facing roof at correct angle for our latitude.) The main additional cost was a very expensive off grid PV solar system and solar hot water heater.The large system was$ 60, 000. However with state and Federal rebates we paid 20000. A large expense but eventually it will pay for itself especially if utility rates continue to increase as they probably will.
Also living in a low tax area helps.

 

[FreeAtLast]

Mortgage -0-
Taxes 3300
Electricity 4500
Water 800
Garbage 400
DirectTV 1000
Comcast 850
ATT 600
Insurance 2800
Flood Ins. 500
Pest Control 180

Total 14,930
This does not include repairs /maintenance/housekeeper which is at least $6000

 

[golfnut]

NW Indiana. You might not consider it Chicagoland, but literally half the license plates in my neighborhood are Illinois (cheating on personal property taxes), folks who work somewhere in Chicago proper. It's a big metro area...

But look at what we pay for water/sewer, a complete ripoff. They find a way to tax/fee/charge you no matter where you live...

Thanks Midpack, We live in DuPage County and I have been thinking about moving to NW Indiana for the cheaper property taxes. Can you recommend any towns ?? My inlaws have a summer getaway place near Plymouth.

 

[Enuff2Eat]

Mortgage -0-
Taxes 3300
Electricity 4500
Water 800
Garbage 400
DirectTV 1000
Comcast 850
ATT 600
Insurance 2800
Flood Ins. 500
Pest Control 180

Total 14,930
This does not include repairs /maintenance/housekeeper which is at least $6000

Wow, that's seem high even for zero mortgage. You're paying quite a bit for communication fee TV, Comcast and ATT ... and also high on insurance too.

A few of the folks here paying over $20k to keep a roof over there head. IMO, that's too much... it's like making $60k a year and pay half of after tax money on just housing.

enuff

 

[W2R]

Wow, that's seem high even for zero mortgage. You're paying quite a bit for communication fee TV, Comcast and ATT ... and also high on insurance too.

A few of the folks here paying over $20k to keep a roof over there head. IMO, that's too much... it's like making $60k a year and pay half of after tax money on just housing.

enuff

We have forum members with many different financial capabilities. It might seem like too much for you, or for me, to spend $20K per year on a house, but I wouldn't be surprised at all if the wealthy and famous like Donald Trump, Mick Jagger, or Bill Clinton spend quite a bit more than that on housing. While we may not have Trump, Jagger, and Clinton posting here some of our members have incomes that are pretty amazing to me.

 

[Nords]

We just refinanced into a new 30-year 3.625% fixed, so this year we'll pay:
$17,348 mortgage P&I

Last year's other numbers are
$15,493 mortgage interest
$5,868 mortgage principal
$2,397 property tax
$980 homeowner's insurance
$907 umbrella liability
$402 homeowner's association fees
$302 electric (photovoltaic array and net metering)
$1112 water/sewer (and it's going up 10-20% this year!)
$404 phone
$250 home improvement
$28,115

No heat or A/C in our house... just tradewinds and ceiling fans.

We're getting ready to rip the familyroom apart for renovations (including a new roof) so this year's spending will probably be double last year.

Wow. We waited until they got married. I suppose that has to be a judgment call...

Sorry, I was using milspeak.

When she graduates and gets her commission and gets ordered to her first duty station, she's entitled to a small household-goods shipment from her home of record (Hawaii) to that duty station. I think it's something like 600-1000 pounds... just enough for a bed and a room or two of furniture. It'll work out to one heckuva second-hand housewarming present. But that depends on where she goes in 2014, because the housing situation is a lot different in Yokosuka than in Norfolk.

We got the idea from another military family. Spouse worked with an officer who was planning to retire from that tour and live in their current home "forever". Their daughter married an active-duty guy. When she and her new spouse transferred off the island (with a full household goods shipping weight allowance of at least 10,000 pounds) they pretty much cleaned Mom & Dad out of their furniture, which had already survived 20 years and about a dozen military moves. They didn't have to worry about damage or theft or hardly even insurance. Then Mom & Dad went shopping for their house of brand-new retirement furniture, so everybody won!

 

[pimpmyretirement]

Wow, that's seem high even for zero mortgage. You're paying quite a bit for communication fee TV, Comcast and ATT ... and also high on insurance too.

A few of the folks here paying over $20k to keep a roof over there head. IMO, that's too much... it's like making $60k a year and pay half of after tax money on just housing.

enuff

Everytime I scan my budget, my housing costs tick me off. Here I am, trying to figure out how to eat on $30 a week, and I watch $32k a year going to my housing.

So I break things down...

In my area (where I grew up, by jobs, friends, and family), the cheapest non-condo housing in a decent neighborhood starts around $150k, with property taxes of around $3500 a year. If I assume the cost of capital is about 4%, that's $9500 a year to start. I don't think it's a stretch to say another $5500 would go to utilities, maintenance, insurance. etc. Especially considering these inexpensive homes are older.

So that gives a $15k a year floor for housing. Then I look at my $32k expense and see $12k is going to principal. In theory I get that money back when I sell. So I'm really dropping about $20k a year.

This means I've got a $5k per year difference between the floor price and what I pay. To change homes would cost me around $15k, meaning a best case 3 year payback period. However, there are probably hidden expenses I don't know about, so let's assume a 4 year payback period.

So then it becomes, how long will I stay put in the new house? Let's say it's 10 years until I am FI and ready to move away from where the jobs are. I've got 6 years clearing an extra $5k a year after the payback period, so $30k total.

$30k over 10 years? That's not much payout for the level of effort required to move, especially considering the risk of other life events forcing another move.

Add in the good chance I'd be downsizing at the bottom of the real estate market, and I say screw it. I close my budget spreadsheet and go cook my lentils.

A return to apartment living could do substantially better, yielding $60 - $75k over those 10 years. But, I save that in a year and it's only going up. Am I willing to work an extra year to not live in an apartment for 10? Absolutely.

I do think a downsize upon FIRE is key to early financial freedom.

 

[walkinwood]

No, I think the % cost doesn't do justice because if you retire your % housing budget will different from someone who is still working. This way we know how much "cold cash" you're spending to keep a roof over our head. My 2cents

enuff

This argument works both ways.

You don't live like I do or where I do. If I were to buy a house in Denver, I would pay 16%-20% of the property tax that I payed in NJ. So, how would knowing what I spent in NJ help me in Denver?

I find the percentages more useful, but I also I do not feel comfortable giving actual $ amounts.

On the other hand, it is easy to figure your specific housing costs, and if you know the percentage that most people spend on housing, you could work out what your annual budget should be, or if you're spending too much or too little on housing.

 

[Enuff2Eat]

This argument works both ways.

You don't live like I do or where I do. If I were to buy a house in Denver, I would pay 16%-20% of the property tax that I payed in NJ. So, how would knowing what I spent in NJ help me in Denver?

I find the percentages more useful, but I also I do not feel comfortable giving actual $ amounts.

On the other hand, it is easy to figure your specific housing costs, and if you know the percentage that most people spend on housing, you could work out what your annual budget should be, or if you're spending too much or too little on housing.

I am not sure if I am 100% agree with you. "You don't live like I do or where I do" Everyone have a different life style. For example, retire in Thailand at $1500/mon vs. retire in San Fransico at $5500/mon. Or I pay $3000/yr for transporatation vs. someone else paying $6000/yr. Of course, model,life style and location will be different. I am just trying to compare the US Dollar Cold Cash for housing.

Also, "I do not feel comfortable giving actual $ amounts". I agree with that part, it's quite dangerous to put real number out there but I am hoping that noone here know who I am and we all remain "faceless".

enuff

 

[Skimmer]

MOEMG - I'm with you on taxes and insurance. I'm in Florida and apparently we are getting ripped off down here. I'm paying over $4k in property taxes for an 1100 square foot house on the water. Plus about $2k in Homeowner's insurance. Guess we're still paying for all those hurricanes years ago.

 

[Ronnieboy]

Man, I am over paying for everything.

Natural gas and electric is about $5400/yr (equal pay on both)
Water/Sewer/Garbage $1320/yr
Prop tax $3500
Homeowners ins $720
3/4 acre, 3800 s/f livable, 3300 unfinished basement.

Still need to get that windmill to offset the electric bill

 

[Koolau]

Haven't gotten into this interesting discussion because of our annual trek to the great prairie. Just got our internet turned back on here.

Actually, our 1100 sf 2/2 condo in paradise is free, but our picture-window view of the Pacific ocean costs about $6500 HOA/Bldg. Maint & water, about $600 elec., $1500 property tax, $400 Condo insurance. Maybe $1000 for minor repairs/improvements/consumables/etc. (Total - about $10K) I don't count cable/internet, phone, etc. in housing costs - just my thing to do it that way. No mortgage (now). Not sure how to deal with "opportunity" cost. I simply "assume" that the value of my condo goes up (on average) as if it were an "investment" - making it all a wash. Don't know if that is (or will be) true, but don't know any better way to figure it for my situation. Recent prices of sales in our area suggest this is an acceptable way to figure it. YMMV

 

[Beryl]

I paid off the mortgage before retiring in January so I won't include it for comparison purposes.

Standard Home Expenses
. Mortgage $0
. HOA $1000
. Insurance $1000
. Yard work & Snow Removal $2000
. Property tax $3000
. Maid service $1000
. Water/Gas/Electricity $2500
. Phone & Internet* $1000

Total ~$11,500

*Internet is a necessity for my home but Cable TV, TiVo, and other home entertainment is excluded.

There will always be home projects like a backup home generator and webcams this year and 3 new garage doors next year. $5000 annually for these things is in the budget.

 

[Danmar]

Not sure why any of you would be interested but here goes: 3 places( city condo 1800sf: lake house 3000sf: mountain house 3500sf). Condo costs about $25k per year, lake house about $50k per year, and mountain house also about $50 k. Obviously expensive but an integral part of our lifestyle.

 

[obgyn65]

Mortgage 0
Property Taxes 2,000
Monthly assessment 4,000
Electric 240
Home Insurance 220

ANNUAL TOTAL about 6,500

 

[obgyn65]

Why is it dangerous to put actual amounts ? As long as you do not give your name and address, you will remain anonymous - correct ? Assuming other posters tell the truth, I actually find many of these threads quite helpful.

Also, "I do not feel comfortable giving actual $ amounts". I agree with that part, it's quite dangerous to put real number out there but I am hoping that noone here know who I am and we all remain "faceless".

enuff

 

[pimpmyretirement]

With enough posts on a message board, it's not too hard to figure out the real person behind the fake handle. If someone's expenses stand out enough to make them of interest, I can see not wanting to post real numbers.

 

[FANOFJESUS]

Mortgage 0
Property Taxes 2,000
Monthly assessment 4,000
Electric 240
Home Insurance 220

ANNUAL TOTAL about 6,500

That's awsome for a doc.

 

[kcowan]

Condo costs about $25k per year, lake house about $50k per year, and mountain house also about $50 k. Obviously expensive but an integral part of our lifestyle.

Does the $125k represent 30% or less of your normal income? I assume there are no mortgages in those numbers.

 

[obgyn65]

I live below my means as I have been planning to retire in 2012, age 47.

That's awsome for a doc.

 

[FANOFJESUS]

Good for you many of them do not. I am sure you know what I am talking about.

 

[Danmar]

Does the $125k represent 30% or less of your normal income? I assume there are no mortgages in those numbers.

No mortgages. Represents about 15% of normal spending/income.

 

[Enuff2Eat]

No mortgages. Represents about 15% of normal spending/income.

danmar, I glad to hear you're done quite well. Mind to share how and what you do to accomplish such success?? and mind if I borrow one of those unit on one of the weekend that you're not using?

 

[Pete44]

This thread has been interesting. I think it would have been better if you stated where you are. I surprised by taxes and utility costs for some.

I'm in a luxury 2 bedroom condo overlooking a few pools with a five minute run to the beach in Thailand.

Rent is $9000 a year. Utilities, internet and cable are $320. No insurance, don't have many possessions. Utilities are cheap because I don't use A/C. I could easily live for about 40% less but I love the pool and the amenities. Less than that in a area not near the beach.

 

[kcowan]

danmar, I glad to hear you're done quite well. Mind to share how and what you do to accomplish such success?? and mind if I borrow one of those unit on one of the weekend that you're not using?

Actually we have done home swaps with people who have second homes. They are non-simultaneous swaps and very flexible, provided you can time the swaps. In our case, they came to our home in Vancouver when we were down south, then we used their cottage in the summer. It worked really well.

Now we sublet our place in Vancouver so have no free cottage to use anymore.