I keep having this fantasy of someday in retirement paying cash for a house, as opposed to renting my entire retired life. Not interested in any mortgage, but I am an extremist. I like the idea of finding a sub $150k house in rural Texas, and paying cash for it. These exist now, don't know about future cost.
I am 59 now. Projecting I am 68 years old, net worth of about 700k, and annual retirement pension is $45k, SS 8k. Assume I die at age 83 and receive an inheritance of $300k at age 72. Predict cost at age 68 to be $200k. What am I looking at in additional costs? 2-3% total added on to the price for closing costs?
Guess 206k, all in. Rent for 15 years- assume 20k per year = 300k. 206k looking pretty good, plus heirs can sell house when I am gone.
Assume annual maintenance of house $2000 and insurance of $1000. Owned a home years ago and spent nowhere close to that number, much lower. Property taxes have been "reformed" in Texas, so assume $2k per year.
So math is 206k plus 30k maintenance plus 15k insurance plus 30k property taxes = 281k. Compared to rent of 300k? With those numbers renting still comes out ahead, except for at death someone gets to sell the property and do pretty well.
I am 59 now. Projecting I am 68 years old, net worth of about 700k, and annual retirement pension is $45k, SS 8k. Assume I die at age 83 and receive an inheritance of $300k at age 72. Predict cost at age 68 to be $200k. What am I looking at in additional costs? 2-3% total added on to the price for closing costs?
Guess 206k, all in. Rent for 15 years- assume 20k per year = 300k. 206k looking pretty good, plus heirs can sell house when I am gone.
Assume annual maintenance of house $2000 and insurance of $1000. Owned a home years ago and spent nowhere close to that number, much lower. Property taxes have been "reformed" in Texas, so assume $2k per year.
So math is 206k plus 30k maintenance plus 15k insurance plus 30k property taxes = 281k. Compared to rent of 300k? With those numbers renting still comes out ahead, except for at death someone gets to sell the property and do pretty well.
Statistics: Posted by AlaskaTeach — Fri May 10, 2024 12:47 am — Replies 3 — Views 101