Vacation property annual costs

[accountingsucks]

For those with a second home, what are you annual costs? I mean HOA, taxes, utilities, supervision, mtce, garbage collection etc.

I am from Alberta, Canada and eying the Arizona market....something like Surprise, AZ. I would get something with no pool and no mtce yard as we would be there during winter months only. Eyeing a home in the $500K range. Is $20k per year reasonable? I do not think we would deal with the hassle of renting it out when we weren't there.

From what I have heard we should avoid Florida as prop taxes for foreign owners is very high.

 

[yhoomajor]

....something like Surprise, AZ. I would get something with no pool and no mtce yard as we would be there during winter months only. Eyeing a home in the $500K range. Is $20k per year reasonable?.

Answer is Yes. I am not too far from Surprise, AZ. Annual expenses for a house in this range would be around 15K. You can add another 4k to 5K as a buffer for random home repairs that may pop-up from time to time.

 

[Happyras]

Legally don’t forget the state income tax they text you on your total income provided on the time you live in Arizona. I would doubt that people actually pay it but legally you’re supposed to teach anyone have experience I have no idea.

 

[Ronstar]

We had a small $298k condo in Scottsdale that we paid about $7500 annual expenses when we sold it in 2019. This did not include furniture and the +/- $10k that I paid for improvements over the 17 years that we owned it.

 

[Happyras]

Sorry I’m on airplane and texting using voice trying to blow the dough. I meant to say they tax you and prorate you.

 

[Sunset]

Sorry I’m on airplane and texting using voice trying to blow the dough. I meant to say they tax you and prorate you.

Aren't you talking about State income tax ?

If OP spends less than 6 months (180 days) there, OP would only owe income tax to Canada.

AZ will tax OP for the full year of property tax even if the place is used 5.5 months of the year.

 

[Bamaman]

I have a $500K lake house, and my homeowners' insurance is $1,100 per year. Property taxes are $1,200 per year. Utilities average $95 a month. And that's about it other than accruing funds to pay for a roof every 12 years and a little painting. I do my own yard work--cutting grass.

If you're wanting property in Florida, consider Gulf Shores or Orange Beach, Alabama. Alabama's property taxes are the cheapest in the country. And it's a very active lifestyle with the best beaches there are--anywhere.

State income taxes are not charged on Social Security or Defined Pensions. They get you for 5% on RMD's though--at age 72. My wife is disabled, and therefore we have no property taxes on our main residence. Cannot beat that.

 

[old medic]

Our vacation residence, about $500 year tax/tag insurance on the truck and camper, 11 MPG x gas prices, camp site fees range from free to $35 night.

 

[donheff]

I had a weekend house on the water in Virginia for 25 years. It had a pool and 2 acres of property. When I retired I budgeted costs at about $20K/yr all in, including maintenance. I sold it a few years ago ($600K) but the $20K estimate was about right.