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If your property taxes and insurance are high it’s because your house is worth a lot of money. If your house’s value constitutes a large share of your net worth
by throwaway894345 5y ago
If your property taxes and insurance are high it’s because your house is worth a lot of money. If your house’s value constitutes a large share of your net worth such that taxes and insurance are a burden then it indicates that too much of your equity is in your house and you should downsize.
- ghaff 5y agoI never said they were a "burden." I was indicating that just because you've paid off your mortgage doesn't mean living in a house is free. I think you'll find those numbers are not especially high for a house. (As opposed to a condo which have their own fees.) My house is not especially large--but it is about 200 years old although renovated so budgeting a few hundred dollars per month for maintenance seems reasonable. I honestly doubt that most people could get the cost associated with maintaining a house below $500/month or so.
- throwaway894345 5y ago> I never said they were a "burden." I was indicating that just because you've paid off your mortgage doesn't mean living in a house is free. No one claimed it was free, and if it’s not a burden then what’s the problem? My point is that $80K without a mortgage or retirement allocation leaves significantly more money left over than $80K with those expenses. Where is the problem?
- ghaff 5y agoOf course. But my point was that your "spending money" may still need to budget $10+K/year to keep a roof over your head. (Of course, you can downsize and move someplace cheaper.)