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Spare a dollar? (sh.itjust.works)
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[-] solrize@lemmy.world 3 points 10 months ago

Thanks. But do those costs really add up to around 25% of the house cost? That's more than I would have expected.

[-] HobbitFoot@thelemmy.club 4 points 10 months ago* (last edited 10 months ago)

It depends on the area. Both Texas and New Jersey have very high property taxes, so it wouldn't be that surprising. Or it could be expected insurance costs like in Florida, which could be very high.

[-] Pyr_Pressure@lemmy.ca 4 points 10 months ago

I've seen condos where the Strata/HOA fee alone would have been around 25% of the monthly mortgage.

$400 / month strata on a $1600 / month condo. It's practically thievery, no idea how maintaining and apartment is supposed to cost $4800 a year per person. Can't remember how many unit but even assuming a low count of 10 units that's $48,000 a year in maintenance. Seems pretty excessive.

[-] qjkxbmwvz@lemmy.sdf.org 2 points 10 months ago

Curious where you are getting 25%?

At least this amount will, assuming it's just taxes and insurance, be due every month for as long as it's owned. Property taxes in California for example are around 1%/year (so a $377k home would be around $4k/year).

If you own the home outright you may not need insurance, but of course, that's a risk.

Taxes may be severely limited in how much they increase (see: California prop 13), so while they will likely increase it may not match e.g. rental increases.

[-] solrize@lemmy.world 2 points 10 months ago

Curious where you are getting 25%?

Oh hmm, 18%. $377/m for 30 years discounted at the interest rate mentioned gives $58K which is around 18% of the house price of $323K. My mental math was a bit off.

[-] qjkxbmwvz@lemmy.sdf.org 1 points 10 months ago

I see. In this case the 30 years is irrelevant I think.

This is probably PITI cost


principal, interest, taxes, insurance. Principal and interest are zero here, but the other two continue for as long as you own the home (property tax is annual like income tax


it's not a one-time-deal like sales tax).

this post was submitted on 28 Dec 2023
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