Think I am just thinking.

Words are but thoughts made visible.

Own you home? Do we ever?

  I was having a little conversation about homes and ownership the other day.    For those who are lucky enough to be making payments on what they hope to be their home, free and clear some day.  So we take out a bank loan for a mere 30 or so years and then after a selling and buying a couple other new homes do to relocation, up-sizing, or what ever reason, they find it really takes more like 40 years to pay off the loan. 

   So, the bottom line is it takes the average person 30 plus years, if they are lucky, to pay off the original loan on their home.  Then, they find out they need a new roof, the siding needs to be replaced and the deck has become a hazard in own rights.  So, now there’s another 5-10 years paying off the home improvement loan, and then the house is free and clear, or is it?

   So after 40 years you own your home and have no loans.  But, you still have payments to make.  If you check around the country, you will find that if you look at a an average home worth lets say $200,000, the local taxes on that home will run somewhere in the range of $4,000.  You will also find that you need to have insurance on the home, not just for fire, storms and the like, but liability insurance, should someone trip walking on your sidewalk and get injured.  So, what you will end up with by the time you add-on some routine maintenance is that your free and clear home should only cost you about $450 per month.  Ok, still cheaper than the $750 you would pay for a small apartment. 

   So as we all try to plan ahead for what we hope will be the good retirement years, these are all costs that will remain on our free and clear home.   And yet in spite of all this, if you are one of those people who ends up owning your home free and clear, you still are luckier in terms of expenses, as compared to the person who is renting.  If you haven’t checked lately, a small apartment in the midwest goes for anywhere from $650 to $900 per month.  For something the size of the typical house, the rent easily jumps upward of $1,600 for a 2-3 bedroom house. 

   But, if you are like me and working on trying to some day own your home without the bank sharing ownership, there is the yard to mow, the deck to clean, the trees to trim, the exterior to maintain.  And oh yes, the Taxes to pay.


October 24, 2010 - Posted by | Things at Home, thinking

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