U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
 
Old 01-21-2015, 02:50 PM
 
Location: Near a river
16,042 posts, read 18,997,544 times
Reputation: 15649

Advertisements

One big area of financial concern for some (many?) retirees, looking ahead 5 to 10 to 20 years down the road, is around housing:

1. Property tax (actual) rise year to year, and % of rate hike year to year

2. The cost of replacements and repairs, even if today our home is newer, but especially if older (roof, furnace, plumbing, kitchen and bath updates, etc.)

3. If we live or go into a condo, not only the property tax but rising monthly condo fees

Retirees can be frugal if need be in most other areas (food, clothing, travel, use of car, etc) but these housing costs seem to be the wild card in long-term planning.

Personal perspective: The year-to-year % rate climb here where I am is something to ponder in our planning. And yet I see tax histories in online home listings in other areas of the country and notice not only hugely less amounts in prop taxes, but also very small rise in tax (and % rate of hike) year to year, and in some instances the prop tax even dips a bit!

General discussion?
Quick reply to this message

 
Old 01-21-2015, 03:10 PM
 
12,825 posts, read 20,163,751 times
Reputation: 10910
I think deflation is here. It is only a matter of time before the wildly irrational asset bubble bursts, plunging all those prices and bringing them in line with the already plummeting commodities. Next after that will be labor rates. It will actually be smart to defer work as long as you can stand it, since it will get cheaper and cheaper over time.

As a side note, for a few years now I have been highlighting a harsh reality that is driving the deflationary spiral. It is not a mystery. The markets are starting to price in the flat-lining of world population and subsequent steep decline. On top of this is a double whammy factor, namely, automation. Automation is "the killer ap" in terms of labor arbitrage. Decreasing wages = downward trend in mean purchasing power. It all leads to a stalling consumer demand curve and eventual crash in demand. There is overcapacity and oversupply of nearly everything. The next shoe to drop is inevitable now.
Quick reply to this message
 
Old 01-21-2015, 06:12 PM
 
10,819 posts, read 8,075,211 times
Reputation: 17034
Here in Texas school taxes in most municipalities are frozen when you turn 65. Seniors can also opt to defer payment of all property taxes until the home is sold. If they defer taxes, there's an 8% interest charge tacked on each year but it's simple and not compound interest.
Quick reply to this message
 
Old 01-21-2015, 06:44 PM
 
Location: Verde Valley AZ
8,624 posts, read 9,698,602 times
Reputation: 11007
Quote:
Originally Posted by biscuitmom View Post
Here in Texas school taxes in most municipalities are frozen when you turn 65. Seniors can also opt to defer payment of all property taxes until the home is sold. If they defer taxes, there's an 8% interest charge tacked on each year but it's simple and not compound interest.
In Arizona, at age 70 and with $10,000...or less...income, we can get deferred property tax. As in Texas, when the person passes, and/or the house is sold, back taxes plus interest, etc. has to be paid. I tried to explain this to my brother the other day concerning my mom's house but he didn't seem to want to hear it. Also I found out that this had to be applied for every year or they will bill you.
Quick reply to this message
 
Old 01-21-2015, 07:05 PM
 
Location: Los Angeles area
14,018 posts, read 17,759,876 times
Reputation: 32309
As for housing costs, people can't even escape the uncertainty by renting, as the yearly increases cannot be known in advance. Of course the huge surprises can be avoided (new roof, new heating/air-conditioning unit, etc.), as the landlord has to absorb them more or less and his rental increases are limited by what the local market will bear.

As for condos/townhouses, the monthly fees will be greater the older the buildings, other things being equal. I am president of a 26-unit townhouse owners' association. Our buildings are 34 years old, and I have come to hate wood, which is subject to deterioration and rot, not to mention termites. Fortunately the sides of the building are stucco with some brick, but we have lots of wood trim as well as a wood perimeter fence.

As board members, we struggle continuously with the balance between keeping the fees as low as we can (if we vote to raise them, we are raising our own as well) and maintaining the property. Letting the property go to pot is definitely a false economy.

People considering purchasing a condo or a townhouse should beware of units where the fees seem unusually low, unless the property is almost new. Why do I say that? Because the low fees may be a result of the board deferring lots of maintenance, and sooner or later those low fees may have to be raised dramatically. Prospective buyers should look into the state of the reserves as well as the state of general maintenance.

In California the laws protecting owners in an HOA are quite strict, ranging from procedures to guarantee the transparency of the annual election of board members to provisions limiting the percent increase in monthly fees which a board can vote in without holding an election of all owners. In other states the protections may be less, I don't really know.
Quick reply to this message
 
Old 01-21-2015, 08:32 PM
 
Location: Near a river
16,042 posts, read 18,997,544 times
Reputation: 15649
Quote:
Originally Posted by Escort Rider View Post
People considering purchasing a condo or a townhouse should beware of units where the fees seem unusually low, unless the property is almost new. Why do I say that? Because the low fees may be a result of the board deferring lots of maintenance, and sooner or later those low fees may have to be raised dramatically. Prospective buyers should look into the state of the reserves as well as the state of general maintenance.
Excellent advice regarding the whole housing cost projection.
Quick reply to this message
 
Old 01-21-2015, 10:52 PM
 
48,516 posts, read 84,010,700 times
Reputation: 18050
Quote:
Originally Posted by biscuitmom View Post
Here in Texas school taxes in most municipalities are frozen when you turn 65. Seniors can also opt to defer payment of all property taxes until the home is sold. If they defer taxes, there's an 8% interest charge tacked on each year but it's simple and not compound interest.
Plus county and cities often do same as far as frozen taxes at 65.
Quick reply to this message
 
Old 01-22-2015, 06:08 AM
 
Location: ☀️ SWFL ⛱ 🌴
2,441 posts, read 1,676,474 times
Reputation: 8726
Replacing our roof will likely need to happen in the next year or so. Do we want to spend more money now and get a metal roof that will last our lifetime or get another asphalt shingle that will have a lifetime of 15 years in FL even when touted as a 25 year roof? We decided to go with a metal roof, it will lower insurance costs and we don't want to do this again at age 76. I'm not going to count on costs going down over the years.

DH is ordering a new company car this month, he usually hits the maximum allowed mileage in four years time with each car. The cars are available for purchase at the end of that time period. He is carefully comparing all the features, reliability etc. and will probably go with the one with more reliability and better mileage even though a different model appeals to him more. This one wiil be ready to be purchased right before his retirement date if he decides he still wants to keep it. This is a major shift in his thinking and behavior, retirement planning does that.
Quick reply to this message
 
Old 01-22-2015, 07:03 AM
 
4,490 posts, read 4,752,310 times
Reputation: 9972
Quote:
Originally Posted by jean_ji View Post
Replacing our roof will likely need to happen in the next year or so. Do we want to spend more money now and get a metal roof that will last our lifetime or get another asphalt shingle that will have a lifetime of 15 years in FL even when touted as a 25 year roof? We decided to go with a metal roof, it will lower insurance costs and we don't want to do this again at age 76. I'm not going to count on costs going down over the years.

DH is ordering a new company car this month, he usually hits the maximum allowed mileage in four years time with each car. The cars are available for purchase at the end of that time period. He is carefully comparing all the features, reliability etc. and will probably go with the one with more reliability and better mileage even though a different model appeals to him more. This one wiil be ready to be purchased right before his retirement date if he decides he still wants to keep it. This is a major shift in his thinking and behavior, retirement planning does that.


I LOVE metal roofs!! I live near Georgetown, DC and love walking the little side streets and seeing all the older houses with all the metal roofs. I am planning to moving to an area around Charlottesville Va. and would love to have a metal roof house. sorry to go on about them
Quick reply to this message
 
Old 01-22-2015, 07:21 AM
 
Location: Hiding from Antifa?
6,429 posts, read 4,189,383 times
Reputation: 5727
Quote:
Originally Posted by Escort Rider View Post
As for housing costs, people can't even escape the uncertainty by renting, as the yearly increases cannot be known in advance. Of course the huge surprises can be avoided (new roof, new heating/air-conditioning unit, etc.), as the landlord has to absorb them more or less and his rental increases are limited by what the local market will bear.

As for condos/townhouses, the monthly fees will be greater the older the buildings, other things being equal. I am president of a 26-unit townhouse owners' association. Our buildings are 34 years old, and I have come to hate wood, which is subject to deterioration and rot, not to mention termites. Fortunately the sides of the building are stucco with some brick, but we have lots of wood trim as well as a wood perimeter fence.

As board members, we struggle continuously with the balance between keeping the fees as low as we can (if we vote to raise them, we are raising our own as well) and maintaining the property. Letting the property go to pot is definitely a false economy.

People considering purchasing a condo or a townhouse should beware of units where the fees seem unusually low, unless the property is almost new. Why do I say that? Because the low fees may be a result of the board deferring lots of maintenance, and sooner or later those low fees may have to be raised dramatically. Prospective buyers should look into the state of the reserves as well as the state of general maintenance.

In California the laws protecting owners in an HOA are quite strict, ranging from procedures to guarantee the transparency of the annual election of board members to provisions limiting the percent increase in monthly fees which a board can vote in without holding an election of all owners. In other states the protections may be less, I don't really know.
But, as long as they keep money held back for moving expenses, they have that option without having to wait for a real estate agent to sell their apartment. Renting gives them other freedoms.
Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


 
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:
Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top