“I Live in My Home for Free!” Are You Sure?
All too often I hear the phrase, “I live in my home for free so why would I want to move to a senior community or apartment!”
This statement could not be farther from the truth! We all dream about the day we make our last payment on our mortgage and then we truly own our home and owe the bank nothing. When that day comes we are ready to fully enjoy our retirement and coast to our last days. However, as the home ages, cost to live in our homes accelerates. There are other costs we must pay to live securely in our homes.
Based on a 200,000 home, here are typical costs which vary by location:
Per Month
Maintenance: (Most economists use a factor of 3%) $500 Homeowner’s Insurance $50 Property Taxes (vary by community) $400 Utilities (gas, electric, telephone) $150 Water/Sewer (vary by community) $75 Sanitation (garbage pickup) $10 Loss of Investment (3.25% per year) $541 If $200,000 were invested today ------ Total Monthly Expense Each Month $1,726
If you think you live in your home for free, click here to see the true cost of living in your home
There are also other considerations as to the true cost to live in your home. If prices fall due to the aging of your home or the economy, your home asset is actually shrinking.
Of course, there are the reasons moving may enhance one’s quality of life by living in a safe and secure environment which matches current physical and psychological needs.
So, be realistic about the costs of living in your home. You do not live in your home for free, and a move to safety and security may cost less than you think!
Please call if you need a market update as to the current value of your property. Knowing the current value of your home in today’s market is critical to understanding the true value of living in your home. You can call anytime to schedule an appointment at 262-242-6177.
All the best,
Bruce Nemovitz CRS, CSA, ABR, SRES