written by Bruce Nemovitz/Senior Real Estate Specialist of Realty Executives Integrity
We all dream about the day we make our last mortgage payment and truly own our home – owing the bank nothing. When that day comes, we are ready to fully enjoy our retirement and look forward to our days. However, as the home ages, the cost to live in it accelerates. There are also other costs we must pay to live securely in our homes, which has many asking: What’s the real cost of living in your home?
What’s the real cost of living in your home?
Though you may not have a monthly mortgage expense, you’re not living in your home for free. Based on a $250,000 home in the four-county Metro Milwaukee area, here are some typical monthly costs (which may vary by location):
Maintenance (many economists use a factor of 3%)
Home Owner’s Insurance
Utilities (gas, electric, telephone)
Sanitation (garbage pickup)
Outdoor Maintenance (lawn, snow, landscaping)
TOTAL HOUSING EXPENSE EACH MONTH:
An escalating market
There are other considerations as to the true cost to live in your home. We have been in an escalating market for the last several years. If prices begin to fall due to the aging of your home and our uncertain economy, your most important asset could begin to fall. Timing a move; attempting to time peak pricing is never a good strategy.
Reasons to move
Additionally, there are many reasons that moving may enhance one’s quality of life. These include living in a safe and secure environment which matches your current physical and psychological needs. If needing to relocate to a senior living community, view Laureate Group’s tips on how to choose the right one for you or a loved one.
So, be realistic about the costs of living in your home. You do not live in your home for free, and move to safety and security may cost less than you think! Knowing the current value of your home in today’s market is critical to understanding the true value of living in your home.