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PurpleVermont t1_iybj8y8 wrote

Houses cost more than your mortgage payment. Even assuming your including property tax and insurance in the payment. Remember that all maintenance is now on you. Furnace goes on Thanksgiving? Take out your credit card...

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SmarterShelter OP t1_iybjre1 wrote

How much extra would you budget for general expenses per month? I should figure that out.

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fawningandconning t1_iybk9tv wrote

Most "rules" suggest you should expect to spend 1-4% of the home's value a year in upkeep costs. So on a 200K house, that would be $2K a year. That doesn't mean you shouldn't have a larger reserve, especially for a fixer upper. Large repairs like a boiler, HVAC, roof, foundation, etc. can set you back thousands or tens of thousands.

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SmarterShelter OP t1_iybkkjv wrote

That's super helpful - thank you! I'll make a spreadsheet...

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Werewolfdad t1_iybk31r wrote

1% of home price per year, except it all happens in one year and costs at least $10k each time it does (not really, but close)

(maybe 2-3% if its an older home)

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SmarterShelter OP t1_iybkl90 wrote

That's super helpful - thank you! I'll make a spreadsheet...

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cookiemountain18 t1_iybkntw wrote

It’s not just about monthly expenses, It’s high cost repairs that pop up every couple years.

Your rent is probably covering these things but in a house you have to pay for your electricity/heating/gas, house insurance, and property taxes.

I didn’t buy a fixer upper, but the handful of projects I’ve done over the last couple years require tools which are expensive. Which I assume, if you’re renting, do not have.

It’s better than renting but it’s not cheaper. You also can’t just walk away like you could with a rental.

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SmarterShelter OP t1_iybl42b wrote

That's a good point. I think I'm going to make a spreadsheet and I'll add repairs in against my current rent.

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