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Old 09-23-2018, 09:26 AM
 
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it does not even mean a paid off house many times . it just means keeping expenses lower so cash flow is improved .

a home here would cost us far more than our rent . don't forget someone who was renting a 3 bedroom apartment when the kids were home and now rents a 1 bedroom will likely see much better cash flow than someone with an entire home and all the associated costs .

we rarely rent as much home as we buy so it is rarely a apple to apple comparison .

don't forget most of the population live in cities. cities tend to have apartment houses which can be far cheaper to rent then the up keep and taxes on a home .

so the important thing is keep expenses as low as you can and grow income as best as you can .

like i said a paid off home that was 30-35k 30 years ago has 10-15k taxes a year today so the fact they are paid adds little to affordability many times .
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Old 09-23-2018, 11:20 AM
 
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Originally Posted by mathjak107 View Post
it does not even mean a paid off house many times . it just means keeping expenses lower so cash flow is improved .

a home here would cost us far more than our rent . don't forget someone who was renting a 3 bedroom apartment when the kids were home and now rents a 1 bedroom will likely see much better cash flow than someone with an entire home and all the associated costs .

we rarely rent as much home as we buy so it is rarely a apple to apple comparison .

don't forget most of the population live in cities. cities tend to have apartment houses which can be far cheaper to rent then the up keep and taxes on a home .

so the important thing is keep expenses as low as you can and grow income as best as you can .

like i said a paid off home that was 30-35k 30 years ago has 10-15k taxes a year today so the fact they are paid adds little to affordability many times .
Except the taxes in NYC itself are very low. I’ve been looking at co-ops in Park Slope and the property taxes on places valued around 1M seem to be in the 6-8k range.
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Old 09-23-2018, 11:22 AM
 
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yes , but we have a city income tax .

that income tax cost me more then they pay in real estate taxes in parts of long island . however much in retirement income is not taxed by our state and city so i do very well state and local tax wise now . not so well when we both were working and selling our real estate assets
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Old 09-23-2018, 11:24 AM
 
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Originally Posted by Cabound1 View Post
Except the taxes in NYC itself are very low. Iíve been looking at co-ops in Park Slope and the property taxes on places valued around 1M seem to be in the 6-8k range.
my son just bought a house in westchster . it was 1.10 million and taxes are 25k . compared to what he would pay in city income tax on their incomes the taxes on the house are less .
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Old 09-23-2018, 11:42 AM
 
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Originally Posted by mathjak107 View Post
my son just bought a house in westchster . it was 1.10 million and taxes are 25k . compared to what he would pay in city income tax on their incomes the taxes on the house are less .
Yeah, that is why NYC is a great retirement destination. I have no real income....managed it to be low for ACA purposes. Trading in my 1M+ home in the Bay Area suburbs for a co-op in Park Slope would reduce my tax burden.

Moving to a similarly priced home in the tri-state suburbs would probably triple my tax burden. Moving there makes no sense for me, financially, and probably most retirees.
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Old 09-23-2018, 11:50 AM
 
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well we are still costly compared to down south and out west . even things like medicare supplements are very very high in comparison .

i spend a few thousand just on tolls going to see the kids . the george washington bridge is 14.75 cash or 11.75 with sleazy pass . then we have the throgs neck which is 17 round trip or 11.50 with sleazy pass . so with one in new jersey and one in westchester , coupled with frequent trips to the bronx zoo and ny botanical for our photography hobby it is a lot in tolls to leave the city .

almost everything requires an expensive membership if you do it often . things like the zoo or botanical are insanely expensive without a membership . each membership can run 150-200 bucks for just 2 ..

there are parking meters everywhere that require 1 buck an hour .

food is very high , we spend an easy 200 a week for the two of us on groceries not counting eating out , insurances are high .

so while tax wise nyc is reasonable the cost of daily life is expensive . a movie around her is about 28 bucks for a couple just to get in .

everything has a cost attached . if you were in to hunting and wanted a handgun permit here for a couple, it is 750.00 every 3 years plus 160 every few years for a rifle shot gun permit . other places get 50 bucks a person .and no rifle shotgun permit needed .

i took the kids for ice cream and it was like 35 bucks ha ha ha . it is a lot of what i call soft costs . you almost can't walk out the door without it costing you something somewhere .

but with 5 grand kids here this is where we are .

Last edited by mathjak107; 09-23-2018 at 12:04 PM..
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Old 09-23-2018, 12:02 PM
 
1,089 posts, read 526,180 times
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Quote:
Originally Posted by mathjak107 View Post
well we are still costly compared to down south and out west . even things like medicare supplements are very very high in comparison .

i spend a few thousand just on tolls going to see the kids . the george washington bridge is 14.75 cash or 11.75 with sleazy pass . then we have the throgs neck which is 17 round trip or 11.50 with sleazy pass . so with one in new jersey and one in westchester , coupled with frequent trips to the bronx zoo and ny botanical for our photography hobby it is a lot in tolls to leave the city

there are parking meters everywhere that require 1 buck an hour .

food is very high , we spend an easy 200 a week for the two of us on groceries not counting eating out , insurances are high .

so while tax wise nyc is reasonable the cost of daily life is expensive . a movie around her is about 28 bucks for a couple just to get in .

everything has a cost attached . if you were in to hunting and wanted a handgun permit here for a couple, it is 750.00 every 3 years plus 160 every few years for a rifle shot gun permit . other places get 50 bucks a person .and no rifle shotgun permit needed .

i took the kids for ice cream and it was like 35 bucks ha ha ha . it is a lot of what i call soft costs . you almost can't walk out the door without it costing you something somewhere .
Yes, any car related expenses are insane in NYC. But if you live in Manhattan or western Brooklyn, having a car is generally not needed. I’ve lived in Brooklyn Heights and Park Slope, and having the car for the occasional trip was a pain. I got rid of it.

There’s also so much to do in the city that is free or cheap. When I lived there in my twenties, most of my money was spent on night life activities. These days, hanging out in Prospect Park or the botanical gardens is more my speed.

I realize your situation is different with extended family all over the area.
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Old 09-23-2018, 12:07 PM
 
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brooklyn botanical is free maybe on saturday . otherwise you pay . ny botanical i think always cost and parking there ain't cheap . we get a membership for about 160 bucks which gets us free parking and in at 6am before they open in the ny botanical .

we get in free at brooklyn and queens ones with it .

but the bottom line is all these costs of living here and especially having time in retirement can really add up . our non discretionary budget is as much as our basic bills
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Old 09-23-2018, 12:33 PM
 
Location: Loudon, TN
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To the original question...Nope. We have a mortgage on our primary home, and probably always will. We are fortunate to have a pension which will cover that. We keep the bulk of our savings, which might otherwise be used to pay down the mortgage, invested in mutual funds which earn, on average, about twice what we pay out in interest on the primary home. We paid cash for our rental income property. We don't want interest to be an additional chunk of the overhead on that.
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Old 09-23-2018, 12:40 PM
 
Location: Las Vegas
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I paid off my last mortgage at 52. Being debt free let me retire at 53. I am not rich and a lot of skullduggery happened to leave me with less than I thought I had. But I still get by OK and it let me leave the rat race before I was all used up!
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