- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: For you youngsters; The truth about owning a home
Posted on 12/20/22 at 10:18 am to Eli Goldfinger
Posted on 12/20/22 at 10:18 am to Eli Goldfinger
quote:
you should expect to drop another $5K/yr average on upkeep & maintenance.
I bought a shack so this has been pretty accurate for me. A lot of it is improvement expense though I reckon.
0
Posted on 12/20/22 at 10:19 am to Salmon
quote:
what are you people doing to your homes?
Not performing every-so-often low-cost preventative maintenance
Posted on 12/20/22 at 10:19 am to Salmon
Idk, I would say it depends on some different variables.
I think saving 1% of the home’s price per year is a good rule of thumb. In other words, a $300k house could expect an average of $3000 per year in maintenance costs over time.
Many years you will be under that, but when it’s time to get a new roof or a major appliance breaks, or HVAC needs replacement your savings will be used quickly.
You also can’t really use homeowners insurance to cover the costs either. Most home warranties will leave you wondering why you wasted money on it.
The main advantages of home ownership is as a bit of a forced savings vehicle since many people don’t save money. This only helps you if you stay in a house for a minimum 7 years, but I would think more like 10 years.
You start losing gains quickly when you buy and sell too soon or too often due to realtor fees, real estate market fluctuations, and unfavorable interest rates.
I think saving 1% of the home’s price per year is a good rule of thumb. In other words, a $300k house could expect an average of $3000 per year in maintenance costs over time.
Many years you will be under that, but when it’s time to get a new roof or a major appliance breaks, or HVAC needs replacement your savings will be used quickly.
You also can’t really use homeowners insurance to cover the costs either. Most home warranties will leave you wondering why you wasted money on it.
The main advantages of home ownership is as a bit of a forced savings vehicle since many people don’t save money. This only helps you if you stay in a house for a minimum 7 years, but I would think more like 10 years.
You start losing gains quickly when you buy and sell too soon or too often due to realtor fees, real estate market fluctuations, and unfavorable interest rates.
Posted on 12/20/22 at 10:20 am to Salmon
quote:
I've been in my house 12 years and yet to replace a single appliance
If you built new, get ready. Disposal & microwave in year 10, Fridge in year 13, roof & A/C in year 15. Dishwasher racks are starting to show rust, but I need another year or so out of it.
ETA: but I'm nowhere near $75K spent in maintenance and upkeep. $300/year for A/C service contract, maybe $1k - 1500 total on a couple of maintenance issues on oven, A/C and washer/dryer over 15 years.
I've probably spend $4-5K on flowerbeds over the years, most recently $2K on a total redo, but now it's got rubber mulch and river rocks, so the maintenance should be lower moving forward.
This post was edited on 12/20/22 at 10:25 am
Posted on 12/20/22 at 10:21 am to Eli Goldfinger
quote:
Besides your mortgage & escrow,
My favorite is how the escrow can creep up as you own the home. We purchased in November 2020 and had a $1150/month payment. Government said they need more of my money so in December 2022, I have a $1275/month payment.
I guess I’ll owe $3000/month at the end of the loan at this rate.
This post was edited on 12/20/22 at 10:22 am
Posted on 12/20/22 at 10:21 am to Eli Goldfinger
Very, very subtle "I live in a DR Horton development" brag.
Posted on 12/20/22 at 10:21 am to Eli Goldfinger
I just spent $400 to repair the igniter on my oven this morning.
I can attest that what you say is true.
I can attest that what you say is true.
Posted on 12/20/22 at 10:21 am to Eli Goldfinger
Closing on my home in 45 days hopefully. I like to think it’ll be apart of my children’s inheritance. Sell it or keep it to live in but you don’t get that with renting
Posted on 12/20/22 at 10:21 am to Salmon
quote:Same here. Built in 1918. Maybe if you average it out you spend that much. I’ve repainted the exterior one year and then nothing for a few years and then a new furnace…..and then nothing for a few.
My house is almost 100 years old and I don't pay $5k per year in upkeep and maintenance
Posted on 12/20/22 at 10:22 am to Eli Goldfinger
Do you live on a clay pit that’s a flood zone with high winds and a large termite infestation?
How the hell do you come to the conclusion ownership is a scam? $5k per year = $417 per month. Which is probably less than what the increase would be under rent. So you want to pay more overall for rent ( because it’s ya know a business and you’ve also got to cover expenses) without the benefit of owning a home.
You’re a complete fricking moron and I hope no one heeds your terrible advice.
How the hell do you come to the conclusion ownership is a scam? $5k per year = $417 per month. Which is probably less than what the increase would be under rent. So you want to pay more overall for rent ( because it’s ya know a business and you’ve also got to cover expenses) without the benefit of owning a home.
You’re a complete fricking moron and I hope no one heeds your terrible advice.
Posted on 12/20/22 at 10:22 am to Eli Goldfinger
quote:Ok, let’s do some math.
Renting sucks for the lifestyle compromises, but it’s probably more cost effective.
You drop $5k per year, which comes out to $416.67 per month on repairs and maintenance.
Let’s just go with $1000 per month rent, which is WAY lower than most places, and you already double your yearly maintenance costs before you even get to other aspects (water, electricity, etc.).
Yes, you have the mortgage, but you own the home and all of the potential long term benefits.
So, your yearly costs are >2x when you rent without any of the benefits of home owning.
Wow.
How you oldies have survived this long is astonishing.
This post was edited on 12/20/22 at 10:24 am
Posted on 12/20/22 at 10:23 am to Eli Goldfinger
quote:No
you should expect to drop another $5K/yr average on upkeep & maintenance
quote:
Renting sucks for the lifestyle compromises, but it’s probably more cost effective.
Posted on 12/20/22 at 10:23 am to GetCocky11
quote:
Not performing every-so-often low-cost preventative maintenance
True
and I guess if you are the type to pay for a handyman for everything it can add up
I've probably saved myself thousands of dollars by watching a few YT videos
Posted on 12/20/22 at 10:23 am to Eli Goldfinger
How old is your home that you're continually dropping 5k a year on maintenance?
Posted on 12/20/22 at 10:23 am to Sterling Archer
tax advantages of ownership are pretty much gone but you can’t beat the equity that you can quickly build by owning
Posted on 12/20/22 at 10:24 am to Scruffy
quote:
How you oldies have survived this long is astonishing.
I know it. So bizarre how people who learned to do things manually and instinctively have survived 60 years. Its mind blowing.
I'm sure the Zoomers will take over the world.
This post was edited on 12/20/22 at 10:25 am
Posted on 12/20/22 at 10:24 am to Eli Goldfinger
Is this about the ac unit? Divide that 9k over the 10-12 mostly maintenance free years you should get out of it.
Unless you remodel something every year no way you should be spending that much.
Unless you remodel something every year no way you should be spending that much.
Posted on 12/20/22 at 10:25 am to Scruffy
watch it shorty!
Posted on 12/20/22 at 10:25 am to Tyga Woods
quote:
Unless you remodel something every year
I suspect this is his problem. Its an internal affair.
Posted on 12/20/22 at 10:26 am to Eli Goldfinger
quote:
Eli Goldfinger
replace your unit and move on with your drama
Page 2 of 10
Back to top
Follow TigerDroppings for LSU Football News