Your housing cost in retirement

[liberty53]

It would be more interesting for me if the opportunity cost of the housing was included in the numbers reported here. For example, using 4% with $500K of equity would add $20K to the annual housing cost.

Just want to see how outrageous my $27K/year of rent is compared to others.

 

[kneehigh]

	MONTHLY	YEARLY
PROP TAX	195	2342
HOME INS	61	732
ELECT	56	672
WATER	30	358
GAS	39	462
INTERNET	35	420
WASTE	30	360
REPAIR	?	?
TOTAL	446	5346

Just above 1700 SQFT, 3 bedroom, 1-3/4 bath with a pool in San Gabriel Valley, L.A. county. The pool is empty. No one uses it and I don't see the use of keeping it maintained year after year. I'm still paying $900/mo in mortgage for a couple more years. Once I'm done with the mortgage, I'll start doing repairs. Don't want to dip into 403B to do repairs.

 

[BBQ-Nut]

I'll play.


House: 2500 sq ft, 5 bd, 3 bath in San Diego
Mortgage: $1300/month, $15,600/yr
Insurance: $122/month, $1,464/yr
Property tax: $5200/yr
Electric: $0 (we have had solar since 2014 that offsets usage)
Gas: $20/month, $240/yr
Water/Sewage: $80/month, $960/yr
Maintenance: $2000/yr (for various repairs or upgrades)

 

[REWahoo]

I'll play.

Mortgage: $1300/month, $33,800/yr

You do opt to pay it monthly, right?

 

[BBQ-Nut]

You do opt to pay it monthly, right?

yeah, bad calculation in excel..fixed above.

 

[robertf57]

We live in 3400+ SQ Ft mid-rise condo. Taxes are just under $4000/yr. But, HOA fee comes to $14,000/yr which includes gas, water, trash, internet, expanded cable, all exterior and garage-common areas maintenance/insurance/doorman/security system. I always thought the HOA was high. But when you consider all that is included, I guess it isn't too bad.

 

[Meadbh]

It would be more interesting for me if the opportunity cost of the housing was included in the numbers reported here. For example, using 4% with $500K of equity would add $20K to the annual housing cost.

Just want to see how outrageous my $27K/year of rent is compared to others.

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.

Opportunity cost: no mortgage, $300K property. Assuming 4% ROI, that's $12,000. Total would be $19,000.

 

[Senator]

In MN, I will pay $2,395.78 in 2016 for a property assessed at $228,300.

Your property tax is high, because you do not have income taxes. The revenue has to come from somewhere, income, property or sales taxes.

Taxes (2016)	($200)
Insuranceroperty	($110)
Utilities:Gas	($132)
Utilities:Electricty	($175)
Utilities:Garbage	($30)
Utilities:Water	($25)
Total	($671)

 

[NYEXPAT]

I'll play as well.

Miraflores district of Lima, Peru
1700 sq ft Oceanview Penthouse (approx $360,000). Doorman building.
Taxes = $39
Maintenance = $175.00
cable,smartphone,internet=$66
Insurance = $0 , no weather,concrete does not burn, earthquakes, I laugh in the face of danger.
Utilities = $38.00
Maid = $267.00 for 6 days a week

Total $585.00

 

[Floridatennisplayer]

I'll join in. I have 2 homes. Ohio and Florida. No mortgages.

Ohio
3,100 sq ft 325k
6500 yr taxes

Florida
1,328 sq ft condo
210k
9,000 yr taxes and club fees, condo fees, Internet

 

[papadad111]

Was just looking at this recently.

Midwest home. 9 acres. No mortgage. No landline. No cable tv or satellite. Annual:

Property tax. 1800
Insurance . 1100

Electric. 1800.
Propane. 1800.
Internet. 200.
Water. 500.
Trash. 350.
Cellphone. 1200.

Home maint. 2500.Contingency fund

Total annual: 11200

approx $950 per month.

 

[Danmar]

Really not sure what use this disparate data could possibly be? Real estate expense is so location specific. Not to mention type and size of dwelling. Peru vs Alabama vs New York? Really? I guess we just like to share?

 

[Corporateburnout]

Really not sure what use this disparate data could possibly be? Real estate expense is so location specific. Not to mention type and size of dwelling. Peru vs Alabama vs New York? Really? I guess we just like to share?

Few people including myself felt the same but shared our info for the sake of sharing.

After seeing some of the low housing cost figures it makes me reevaluate our location but only for a brief moment as DW will not consider relocation due to close proximity to family and friends.

 

[Danmar]

Few people including myself felt the same but shared our info for the sake of sharing.

After seeing some of the low housing cost figures it makes me reevaluate our location but only for a brief moment as DW will not consider relocation due to close proximity to family and friends.

Agree. Amazed at how low some of these costs are. Good for you. No plans on moving either though.

 

[shotgunner]

I find the cost of one's housing interesting if only to see what early retiree's are paying to keep a roof over their head that includes a few amenities like cable. I suspect most ER's try to keep their costs down. Interestingly enough I posted a similar thread in 2008 when moved from FT work to PT work and my monthly cost for the same place was $792. Seven years later it is $880 and if I have done my math right that is annual inflation rate of 1.5% a year. Thanks to those who took time to share their info.

 

[kneehigh]

Agree. Amazed at how low some of these costs are. Good for you. No plans on moving either though.

I think a few people move because it's cheaper to live in the next town or state. I had a friend who moved out of the area only to realize later that he would like to move back to the old neighborhood but can't afford it. Some move to wherever they want because they can afford it. Most, I think, have acclimated to their surrounding and say, "This is a pretty good place to spend the rest of my life." Got my friends, weather I like, view of the mountains or beaches, etc... "I'll visit other places, but this is home to me."

Instead of moving to a new place, why not have a new attitude. Jane Fonda was asked how she stays so youthful (other than physical stuff) to which she answered, "I keep being curious..."

 

[athena53]

I
Instead of moving to a new place, why not have a new attitude.

In our case, we wanted to get out of the McMansion with the pool. DH has a balance problem and had had a previous subdural hematoma after a fall down the stairs and we wanted most of the living to be on one level. The old place was way too big to keep clean without a lot of work, and I wanted to get into a smaller place before all the Baby Boomers in the neighborhood realized their McMansions were too big for them and the market got flooded.

It became clear as we put the house on the market and looked at places to buy that my idea of being able to buy a new place with just the equity in our old place was a fantasy unless we significantly lowered our expectations. We realized, though, that the logistical reasons we wanted to buy another place were real. I'm happy to say we found a great house about 15 miles from the old one, a bit smaller, less trouble to keep clean, on two floors instead of 3. The staircase to the lower level is wide, open to natural light and has a landing in the middle- much safer for DH.

Anyway- to get back to the OP- our monthly expenses are about $1500. That's $700 for the mortgage, $450 for utilities (including $130 for cable), $360 property taxes and the rest property insurance, HOA and lawn care (chemicals only- I mow it). That excludes $400/month I accrue for repairs and maintenance. Expenses are down about $400/month from the old place.

 

[dunkelblau]

Wow, before I retired in 2007, I was renting a decent 650-700 square foot one bedroom apartment in a great location in downtown San Jose and I was paying "only" $1000/month -- it was already getting under market rent by then. I left that place a couple of months after retiring. But rents exploded after I left.

Back then I was renting a very small studio near Good Sam for $700/mon. Rent had actually dropped slightly for a few years, but then they regularly pegged the 8% per year limit after 2008.

I remember wandering around the houses near my apartment seeing reminders of growing up in Chicagoland. Houses there are the same age, size, and lot density, so the neighborhood has the same look and feel, only here they're built of wood instead of brick and don't have basements. Cost is a huge difference, Zillow says the house I grew up in is a hair over 100K while a basically identical home in south San Jose sells for ten times that. An old friend of my Dad's once told me how he and my Dad both purchased their first homes in the same year and for the same price, only his was in Palo Alto, so he got 20x the appreciation.

 

[youbet]

After seeing some of the low housing cost figures it makes me reevaluate our location but only for a brief moment as DW will not consider relocation due to close proximity to family and friends.

+1

It's pricey here in the Chicago suburbs. My RE taxes alone, on a very modest six room ranch, exceed what many say their total housing costs are........ Sigh.....

But DW (and I to a lesser extent) are anchored to grand kids, kids, extended family, friends and the entertainment and cultural attractions. I wouldn't mind moving to a location with top notch natural beauty and superb outdoor recreational opportunities, especially fishing and paddling. And with those attractions not just "nearby." For example, if we moved someplace to enjoy easy access to great fishing, I'd want to live on the water not just with easy access from a nearby location.

IOW, the only places we'd be interested in moving to might also be expensive places to live. So, here we are!

 

[Danmar]

+1
IOW, the only places we'd be interested in moving to might also be expensive places to live. So, here we are!

Agree. Places that are desireable tend to be expensive. At least relating to purchase prices. Also, places near high paying jobs as well. Compromises are usually required. But different strokes for different folks so there is room for lots of different approaches I think.

Incidentally our home in Canmore Alberta would appeal to you, I think. Outstanding, world class fishing, hiking, skiing, scenery. As you would expect, not cheap.

 

[Corporateburnout]

IOW, the only places we'd be interested in moving to might also be expensive places to live. So, here we are!

I agree. Other than living close to family and friends which is high on DW's priority list we live 30 minutes drive from Boston and Providence with all they offer from dining options, sports teams and cultural events. We also live 45 minutes away from some of the most beautiful beaches of Cape Cod which is important to DW. Since we value these amenities and lifestyle and we can afford the housing cost we may downsize our current residence in the next couple of years but we will stay in the area for sure.

 

[youbet]

Agree. Places that are desireable tend to be expensive.

Especially at our age where putting in years of sweat equity isn't an option. If and when we move, we'll be looking for a close-to-turn key situation. And that usually means paying a premium.

Getting old and running out of time and energy isn't cheap!

 

[NW-Bound]

... Most, I think, have acclimated to their surrounding and say, "This is a pretty good place to spend the rest of my life." Got my friends, weather I like, view of the mountains or beaches, etc... "I'll visit other places, but this is home to me."...

Yes, that's my attitude now. If we happen to stumble across a big sack falling off an armored truck, I will again think seriously about getting my own waterfront property in the Puget Sound (see my screen name). But even then, I would use it only for summer escapes from the brutal heat of the Southwest. Right now, it is so darn nice with sunny and clear blue sky, low of 40F and high of 60F.

Just finished off my onion soup, and will go out to the yard to do some more gardening. There are people suffering the weather in other places now, so what is bad with where I am? Comes the summer in 6 more months, I will be again on the road, or retreating to my high-country place.

Life is still good, although the past dream of having my boat tied in the back to go crabbing each day for dinner is now impossible.

 

[RAE]

We've pretty much ruled out moving from where we are (Michigan), for many of the reasons others have cited (friends and family here, close to many recreational opportunities, etc.). Plus, we're basically done with major upgrades to the house, yard, garden, pond, etc, and I don't want to start over with all that stuff in a new place. Taxes are relatively modest in our rural location, also. The only drawback for me are the winters - I love it here from spring through fall, but I've grown tired of the winters. So, the solution for us is to go south for a few of the coldest months (we rent a house on the water in south Texas). That works well for us.......when we get back home, spring is on the way, and I am looking forward to all of the things I enjoy doing as it starts to warm up.

 

[Koolau]

1100 SqFT "apartment" - Don't know how to figure opportunity costs directly, so I would estimate it this way:

Paradise Rent: $2600/mo (We own, but our bldg. is right in this rent range.)
Prairie apt. Rent: $ 600/mo
HOA dues: $ 600/mo (with hot/cold water/trash/cable/Bldg. insurance
RE Taxes: $ 100/mo
Elec: $ 80/mo
Personal INs. $ 15/mo
INternet $ 60/mo
Phone(s) $ 60/mo

Total/mo $ 4115 (Round it to $4000/mo)

I know this isn't a contest, but I'm guessing that's close to a record among our players on this thread. The good news: We could move to the Prairie and it would be $750/mo. (incl. phone/internet/cable, with all utilities). So why paradise? Come on over and see. Of course, YMMV as my mom hated it.