Why owning a home is so pricey ...

[SC Maintenance]

Also if the HOA is paying property taxes and Florida CDD fees

Yes, exactly. People look at the fees and seem to think that is for the pool. But its for everything. Anything that can render a problem for other occupants is usually paid by the HOA. So

- Insurance, for everything outside your own unit, including all liability
- taxes
- maintenance, including any deferred maintenance or maintenance fund (however as @Dave Hess mentioned, one time costs could come as an assessment
- Amenities.
- May also include some utilities - for example water and sewer if each unit is not metered separately. Also utilities for all the common areas - community rooms, pools, external lighting, etc.


The amenities piece is often the smallest piece, dependent on the building and location.

 

[alarmguy]

My concern with this is are losses up in places like the Midwest, South West, or the North East? Excluding Sandy, nothing major has happened IIRC. It’s not fair that underwriting is raising rates in states without major losses. Homeowners insurance and underwriting is not my specialty though.

Agree but national flood insurance is a government run non profit federal program designed to make flood insurance affordable to the masses. It’s a big pool of money, non profit and a losing proposition.

It’s also a good example why regular insurance companies are abandoning high risk areas. They are not supported by the US taxpayer like the Federal Flood insurance program is after a huge weather event.

Non profit federal flood insurance literally ran out of money at times and the US taxpayer through an act of Congress were lent billions of dollars. The taxpayer is paid back but that means on a national level all homeowners with flood insurance had to pay an increase in premiums in order to do so.

People who choose to live in flood prone areas have to pay, it’s not up to the people who do not need it to pay.

Same goes for regular homeowners insurance, they do not want the financial exposure to storm areas. The costs are enormous and they don’t have Congress and the USA taxpayers looking out for their profits or survival as a company.
They are also in business to make money not a non profit charity like the Federal program.

BTW I’m concerned to. I’m not in a flood zone but (guessing) 4 miles if that from the ocean. No flood insurance needed but regular homeowners, not all companies want to insure here anymore. It’s not the flood threat it’s the storm hurricane wind threat. Right now $1,500 a year is a bargain in another month or so I will find out my new premium. Good news is NC limits insurance rate increases on an annual basis. Insurers wanted a 70% increase for my county And settled for less than 10% I think

 

[SC Maintenance]

I have FEMA flood. I have had the max you can get for more than a decade - which is $250K for structure and $100K for contents. FEMA isn't paying for these ocean front mcmansions that wash away - well not for all of it at least.

My flood premium has doubled in the last decade but the coverage has stayed the same. I really don't know why I keep it - I am not required, and we have never flooded. When I started it was pretty cheap, like $350 a year. Every year I convince myself it worth paying for.

 

[RhondaHonda]

I have FEMA flood. I have had the max you can get for more than a decade - which is $250K for structure and $100K for contents. FEMA isn't paying for these ocean front mcmansions that wash away - well not for all of it at least.

My flood premium has doubled in the last decade but the coverage has stayed the same. I really don't know why I keep it - I am not required, and we have never flooded. When I started it was pretty cheap, like $350 a year. Every year I convince myself it worth paying for.

My buddy’s place in St Pete Beach is $8,500 now for that FEMA coverage. He’s not doing it anymore for such low coverage.

My in-laws are in Naples and at 11 feet above sea level. They’ve never flooded and only had minor wind damage to landscaping and the pool cage. The land is now worth much more than the house so I believe they are going to self insure or just have fire/liability going forward.

I have family in some older beachfront condo buildings. I’m curious what happens to the value of their places with these new inspections. I believe they recently spent something like a million or more on new windows for the building and that was before this inspection law went into place. Big assessments all around coming for Florida condo owners.

 

[Mainia]

This to me just means if the public cant afford it, home prices will come down. But that isnt mentioned in this story above ^^.
It cant be that hard to own a home, there is no glut of homes in reasonable cost areas. Most of this talk is media generating stories.
More people own homes now than the 1960s. Think about that, at time in the current generation that people are staying single putting off getting married and raising families. I would suggest homeownership rate is the highest in history for married couples planning families.

https://dqydj.com/historical-homeownership-rate-united-states/

"They don't want you in a home". "They" want you in a "more sustainable" communistic style housing complex, "they" will RENT it to you. Everything will be 3X the cost to run since it MUST be electric. And be on a 1950 style electric grid that is maxed out because "they" don't want nuclear. Natural gas will be banned of course, as "they" are trying to ban all use of it now.

I don't like "they". Why does "they" get to dictate so much of how we live?

 

[alarmguy]

"They don't want you in a home". "They" want you in a "more sustainable" communistic style housing complex, "they" will RENT it to you. Everything will be 3X the cost to run since it MUST be electric. And be on a 1950 style electric grid that is maxed out because "they" don't want nuclear. Natural gas will be banned of course, as "they" are trying to ban all use of it now.

I don't like "they". Why does "they" get to dictate so much of how we live?

We live in a free country as far as I am concerned. Most free of all. I dont know anyone struggling to buy a home. I dont know anyone looking for work. That goes for my kids, my siblings kids = quite a lot of young families I know doing very well, oh heck almost all of them living FAR, FAR better in modern large new homes, then was available to me in the 1980s.
Almost every single one of them out of the NY Metro area triangle moved to another state and made it happen, some REALLY big time, the others big time and the others still doing quite well.
I always suggest, if you are struggling, move to a place where there are good jobs and buy a home if you wish. Cant except handouts, its not fair to those who work hard and make it happen to take their money and give it to those who do not.

 

[Mainia]

We live in a free country as far as I am concerned. Most free of all. I dont know anyone struggling to buy a home. I dont know anyone looking for work. That goes for my kids, my siblings kids = quite a lot of young families I know doing very well, oh heck almost all of them living FAR, FAR better in modern large new homes, then was available to me in the 1980s.
Almost every single one of them out of the NY Metro area triangle moved to another state and made it happen, some REALLY big time, the others big time and the others still doing quite well.
I always suggest, if you are struggling, move to a place where there are good jobs and buy a home if you wish. Cant except handouts, its not fair to those who work hard and make it happen to take their money and give it to those who do not.

I guess I don't have my rose colored glasses on like you do. 15 years ago I was wearing them and had your opinion.

 

[Donald]

Living in a high property tax state, this is nothing new/very obvious - tax and insurance erodes your buying power and keeps pricing down.

At least taxes keep others employed, and schools good. Insurance has become ridiculous in some areas - often related to roof coverage and the actions of thieving roofers after small storms.

I am not sure who was kept employed by my $16K in NY property taxes. Teachers were a part I guess. The local town roads guy would plow the snow once and awhile and grade the ruts (dirt road) once or twice year.

 

[alarmguy]

I guess I don't have my rose colored glasses on like you do. 15 years ago I was wearing them and had your opinion.

No roses, just fact of my family circle and life long friends kids circle.

 

[alarmguy]

I am not sure who was kept employed by my $16K in NY property taxes. Teachers were a part I guess. The local town roads guy would plow the snow once and awhile and grade the ruts (dirt road) once or twice year.

Teachers and on Long Island, the police force which eats up a HUGE portion of the property tax bills.
Example 9 year Nassua county police officer salary without overtime base pay is $115,000 a year.
A detective makes $120,000 after 9 years and total pay package of $161,000 with overtime, this is just one officer. 9 years on the force.

Source (you can look up any salaries of public employees here)
https://openpayrolls.com/rank/highest-paid-employees/nassau-county-ny

 

[Donald]

Teachers and on Long Island, the police force which eats up a HUGE portion of the property tax bills.
Example 9 year Nassua county police officer salary without overtime base pay is $115,000 a year.
A detective makes $120,000 after 9 years and total pay package of $161,000 with overtime, this is just one officer. 9 years on the force.
View attachment 257500
Source (you can look up any salaries of public employees here)
https://openpayrolls.com/county/nassau-county-ny/page-3

I think police might be a little overpaid and teachers underpaid. But being a policeman can be a tough job. Dangerous and probably PTSD if you have to use deadly force. I have posted about my son-in-law previously.

 

[andrew_j]

Living in a high property tax state, this is nothing new/very obvious - tax and insurance erodes your buying power and keeps pricing down.

At least taxes keep others employed, and schools good. Insurance has become ridiculous in some areas - often related to roof coverage and the actions of thieving roofers after small storms.

Roofers is supply and demand. Roofers can get premium rates for moving up queue.

I only expect the pricing to fly thru the roof for roofs as best labor force is going to start to be severely cramped post Jan 20. Seems like what people wanted and all deserve it.

 

[alarmguy]

I think police might be a little overpaid and teachers underpaid. But being a policeman can be a tough job. Dangerous and probably PTSD if you have to use deadly force. I have posted about my son-in-law previously.

Many teachers make more than police officers and they have the summer off, as well as holidays and weekends and nights.This is one middle range good school district in Nassau County
https://openpayrolls.com/rank/highest-paid-employees/new-york-massapequa-public-schools

Anyway, explains the high taxes

 

[Dave Hess]

I think police might be a little overpaid and teachers underpaid. But being a policeman can be a tough job. Dangerous and probably PTSD if you have to use deadly force. I have posted about my son-in-law previously.

Police have one of the highest suicide rates of all professions.

Very difficult job.

Cops TV show makes it look easy…..

 

[LDB]

Police, other than maybe the chief in major departments, are not overpaid considering the job. Teachers overall may be underpaid and a bit of that could be rectified by cutting the extreme overpayment of administration positions and overstaffing. Our high school had a principal and an assistant principal. Now they have an overall principal, a principal for each grade, and who knows what else. Eliminate the Department of Education and return schools to how they were 60 years ago when we were number one in the world education wise and use all the relieved funds to increase teacher pay. Oh, and stop building professional team level stadiums for school level sports. LOTS of extra money for teacher pay.

 

[alarmguy]

I wonder how we got into who is over paid or not. I posted the salaries of public employees to Donald in order to explain high taxes in the Long Island area which also involves I suspect the area where he came from being his home taxes were 16k a year. I say pay them all the same as the President of the USA! Just dont complain about high taxes and HOA fees and cost of owning a home which is what this thread is about.

 

[JHZR2]

I am not sure who was kept employed by my $16K in NY property taxes. Teachers were a part I guess. The local town roads guy would plow the snow once and awhile and grade the ruts (dirt road) once or twice year.

Well it didn’t evaporate, did it? And last I checked, there may be issues with the education system, unions, etc, but the run of the mill teacher isn’t exactly lining their pockets with dough.

Maybe it was the contracts paid to private industry who can do things “more efficiently”? The only thing I’ve seen that’s more efficient is the ability for the owners to buy boats and beach houses…

 

[JHZR2]

Many teachers make more than police officers and they have the summer off, as well as holidays and weekends and nights.This is one middle range good school district in Nassau County
https://openpayrolls.com/rank/highest-paid-employees/new-york-massapequa-public-schools

Anyway, explains the high taxes

Did you verify those folks’ jobs? The highest paid one is the school superintendent. I bet the rest at the top are admin. Did you verify the teachers’ pay table to see their actual take home versus just posting a link?

That is an insane amount of pay for one district superintendent though.

 

[SC Maintenance]

Many teachers make more than police officers and they have the summer off, as well as holidays and weekends and nights.This is one middle range good school district in Nassau County
https://openpayrolls.com/rank/highest-paid-employees/new-york-massapequa-public-schools

Anyway, explains the high taxes

Bologny.

The nice thing about all things govco is the records are public. https://govsalaries.com/salaries/NY/massapequa-public-schools

"Highest salary at Massapequa Public Schools in year 2024 was $312,718. Number of employees at Massapequa Public Schools in year 2024 was 1,651. Average annual salary was $69,354 and median salary was $53,261. Massapequa Public Schools average salary is 48 percent higher than USA average and median salary is 22 percent higher than USA median salary.

Realize of course this is Long Island, where you likely can't even live on $69K.

If the residents don't like the people making all the big bucks they should run for school board and fire them. The teachers will thank them because those people add zero value - they actually make their life harder with all their special programs and rules.

 

[johnachak]

My concern with this is are losses up in places like the Midwest, South West, or the North East? Excluding Sandy, nothing major has happened IIRC. It’s not fair that underwriting is raising rates in states without major losses. Homeowners insurance and underwriting is not my specialty though.

North Carolina just got partly wiped out and 2 severe storms destroyed a bunch of Florida and some of Georgia.