Why owning a home is so pricey ...
- Thread starter GON
- Start date
Sure, go for it if it's true. Never heard of that group and don't know if their facts are correct.
We're paying $3500 a year for taxes/mortgage, I remember when it was half that couple years ago. Our county is horrible, nothing to show for the taxes. At least it's paid off. Might be finding out how lending is these days. Put in application for a land loan this morning, found some acreage we like. But it's a scary process going back into debt and that much. I tell myself not to stress over not like we need it, our county is so bad though we will need to eventually.
It's a long time since I visited the US, perhaps 15 years ago when everything there seemed cheaper than the UK. Since then from what I'm reading here the cost of living in the US has gotten very much more expense.
To give you an idea of UK housing costs I'll show what I pay.
Our single story house is well above average in size at 2000 ft2 and in an expensive area. Value approx $1.05 million. The average house price in England is $386,000
Property tax $4350 per year. The average small house would pay half that and the biggest houses would pay a max. of $5300
Insurance $150 per year which covers building and contents. That's very much lower than average for the size of our house because of our age and because we are in a very safe area.
To give you an idea of UK housing costs I'll show what I pay.
Our single story house is well above average in size at 2000 ft2 and in an expensive area. Value approx $1.05 million. The average house price in England is $386,000
Property tax $4350 per year. The average small house would pay half that and the biggest houses would pay a max. of $5300
Insurance $150 per year which covers building and contents. That's very much lower than average for the size of our house because of our age and because we are in a very safe area.
My taxes initially went up a good bit when they re-assessed the property when I bought it, but seems to be holding steady. Insurance has been on the rise as right now they value it $116,000 more than I payed for it 3 years ago. And that's just for a small rancher. I did convert the carport into a garage and added a half bath, so that added some value. Everything is still cheaper than a townhouse around here; those are in the $1900/mo range and my mortgage is around $700 less.
Also, water/sewer rates in town have skyrocketed. People are paying $500+ a quarter. I initially hated being on septic and well being outside of town, but paying $250 every year and a half for a pump-out is waaaay cheaper. Guess it's now a selling feature.
I'm going to have to take out a HELOC to replace the whole septic system ($30,000+ for complete new system), and STILL going to be cheaper than towns rates.
Also, water/sewer rates in town have skyrocketed. People are paying $500+ a quarter. I initially hated being on septic and well being outside of town, but paying $250 every year and a half for a pump-out is waaaay cheaper. Guess it's now a selling feature.
I'm going to have to take out a HELOC to replace the whole septic system ($30,000+ for complete new system), and STILL going to be cheaper than towns rates.My homeowners insurance is more than my mortgage payment.
Big time!!!!! easily 2-3x what I was paying ~2010 (Same county) and at the time it was 4 of us to include 2 teenagers and I had a house/yard twice the size.
Water bill is insane: Average ~$100/month and its only me + 2 dogs
All the BS add-ons to all these bills is a real killer, plus the minimums like despite the fact I used <$20 worth of natural gas last month, my bill was still the $42 minimum. Lets not forget the almost mandatory luxury items: high speed internet ($92/month) and cell ($70/month)
Patman
Staff member
That is true. My condo is paid off but also my living expenses are super cheap. $1700 a year for property tax, $365 a month maintenance fee (which includes my water and one underground space for my Vette), $100 a month for electricity and that’s basically it.
Some of the issue with taxes is our fellow voters. My fellow voters in my town once again voted to expand funding for our local library. The library is vacant a majority of the time, yet us taxpayers are paying over $200,000/yr to keep a library going in a village of 1,000 people. This is but one example of the disconnect between people complaining about costs but then voting for higher taxes.
I find it questionable interesting that even with the rapid growth in home prices that took place over the last several years, that taxes and insurance would be a steadily growing portion of the payment.
I know real estate is local but I looked back at the records a previous home.
- Taxes was 140% in 2024 of what is was in 2011 (probably more like 130% because of the loss of an exemption moving to a refund)
- Insurance was maybe 150% - 175% in 2024 what is was in 2011 (too lazy to look for the actual number)
- Real home value is easily 300% of what it was in 2011, probably at least 200% of what it was ~2015/2016.
Curious what the new mortgage for purchase versus existing mortgage breakdown in the graph is. Fairly certain if I considered a new mortgage with my own numbers as if I was buying the house, my taxes and insurance would be an underweight versus my mortgage payment, taxes, and insurance circa original purchase in 2011 (because naturally my taxes and insurance increased and my payment on my 30 year fixed rate mortgage stayed the same, and my purchase price would be 3x what I paid 13 years ago).
Seems like there is more going on with the data than meets the eye.
I know real estate is local but I looked back at the records a previous home.
- Taxes was 140% in 2024 of what is was in 2011 (probably more like 130% because of the loss of an exemption moving to a refund)
- Insurance was maybe 150% - 175% in 2024 what is was in 2011 (too lazy to look for the actual number)
- Real home value is easily 300% of what it was in 2011, probably at least 200% of what it was ~2015/2016.
Curious what the new mortgage for purchase versus existing mortgage breakdown in the graph is. Fairly certain if I considered a new mortgage with my own numbers as if I was buying the house, my taxes and insurance would be an underweight versus my mortgage payment, taxes, and insurance circa original purchase in 2011 (because naturally my taxes and insurance increased and my payment on my 30 year fixed rate mortgage stayed the same, and my purchase price would be 3x what I paid 13 years ago).
Seems like there is more going on with the data than meets the eye.
Homeless like to hangout in libraries during the daytime.
No homeless people here.
Taxes are way down in Texas, mine dropped nearly $1000 from $3800 to $2800.
Insurance is around $1000/yr for 1k deductible all perils.
I refinanced into a 25 year fixed when the rates were low. Current mortgage $1290/month cheaper than rent in most situations.
Insurance is around $1000/yr for 1k deductible all perils.
I refinanced into a 25 year fixed when the rates were low. Current mortgage $1290/month cheaper than rent in most situations.
First, we need politicians that can take the long view and make make tough decisions. The solutions will be painful for all Americans. The question that is hard to answer is if Americans will vote for politicians that tell the hard truth rather than those that offer simple and shallow solutions that we like to hear.
Because most people are on a 30 year fixed mortgage, so the P+I is fixed but the Tax and insurance are not.
In some places Insurance is rising much faster than others. The cost to replace a house is going up, so obviously insurance needs to go up.
My taxes are capped - roughly 3% a year. The next person to own this house will pay double what I pay. We also give 65+ an tax break. I personally think that is wrong, but anyone over 65 of course does not
It varies a lot by location. In general its getting much more costly to own a house. The fact that rents are not keeping pace with ownership tells me the market is out of adjustment.
When interest rates are high, home prices are lower, and vice versa. That is because the determining factor is the monthly payment buyers can afford.
So the best long term strategy for a house buyer is to buy when interest rates are high and prices low. Then, when interest rates go lower, refinance your mortgage debt.
Some states have substantially lower taxes. The higher the public education budgets, the higher the taxes will be. You could always move next door to a toxic waste area. Property values, and taxes, would be lower. But you might not live as long.
So the best long term strategy for a house buyer is to buy when interest rates are high and prices low. Then, when interest rates go lower, refinance your mortgage debt.
Some states have substantially lower taxes. The higher the public education budgets, the higher the taxes will be. You could always move next door to a toxic waste area. Property values, and taxes, would be lower. But you might not live as long.
I agree on all counts. I actually got a chuckle seeing the chart because the home and mortgage I referenced (circa 2011 purchase) by 2024 my taxes and and insurance were ~60% of my payment. Went up for sure as a percentage but my principal payment has only been the same/went down when I refinanced.Because most people are on a 30 year fixed mortgage, so the P+I is fixed but the Tax and insurance are not.
In some places Insurance is rising much faster than others. The cost to replace a house is going up, so obviously insurance needs to go up.
My taxes are capped - roughly 3% a year. The next person to own this house will pay double what I pay. We also give 65+ an tax break. I personally think that is wrong, but anyone over 65 of course does not
It varies a lot by location. In general its getting much more costly to own a house. The fact that rents are not keeping pace with ownership tells me the market is out of adjustment.
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That’s about even with many US metro areas. The quoted UK average house cost (sure it’s not median?) is actually lower than the $416,000 in the US.
I'm at $20K/yr for home taxes and insurance. Guess who's dropping home coverage!
My marketplace health plan is a brass tier cheapest plan, $12K/yr. Auto insurance is $8K. Dropping that too.
My wife totaled my truck at the end of May, Allstate has agreed to pay $5K less than it's worth. I still don't have a check. Dropping them once received. With those premiums and terrible treatment, why pay them?
My marketplace health plan is a brass tier cheapest plan, $12K/yr. Auto insurance is $8K. Dropping that too.
My wife totaled my truck at the end of May, Allstate has agreed to pay $5K less than it's worth. I still don't have a check. Dropping them once received. With those premiums and terrible treatment, why pay them?
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