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We live in a suburb of Los Angeles which is fairly high scale but we order all our things off Amazon including food so it can be delivered to us--we haven't stepped into a Whole Foods for 9 months. Our groceries run about $1k/mo for 2. Add another $1k. mo. for miscellaneous and then another $1k/mo for utilities and we are barely at $36k and still lots of wiggle room. No rent--we own. But if a person is in NYC or thereabouts and renting then you're right--$60K annually just won't cut it when the LL is raising his rents by $1k ever six months.
$60k doesn't cut it even if you own your home outright. This has nothing to do with renting and LL.
You missed the point about the impact of real estate taxes in NY. Even if your house is fully paid off, you still have to pay the mind-numbing property taxes, which are among the highest in the nation.
Many people are paying $12k - $20k in property taxes in NY (and NJ).
Add on the state income taxes, if your income is $60k, you pay an additional $7k - $8k of income tax. At $100k of income, you pay $15k to the state.
So, we started with $60k. We subtract about $7k for FIT, $15k for RE taxes, and $7k for state income taxes. That leaves you with about half your gross income. And you haven't bought anything or eaten anything yet. You haven't insured your home or auto (deduct about another $4k here) or signed up for health insurance.
We live in a suburb of Los Angeles which is fairly high scale but we order all our things off Amazon including food so it can be delivered to us--we haven't stepped into a Whole Foods for 9 months. Our groceries run about $1k/mo for 2. Add another $1k. mo. for miscellaneous and then another $1k/mo for utilities and we are barely at $36k and still lots of wiggle room. No rent--we own. But if a person is in NYC or thereabouts and renting then you're right--$60K annually just won't cut it when the LL is raising his rents by $1k ever six months.
Actually rent increases for at least half the rentals in all of nyc are on the low side ….that is because half of all rentals in nyc and the boroughs fall under stabilization….anything 5 family or over today is generally going to be stabilized.
Developers came back to the rental market to take part in the lucrative stabilized programs which lets them keep more of their profits through tax and financing perks .
Plus we have guaranteed renewals…I am amazed at how small the rent increases have been .
On the other hand you got to be nuts to rent in a private house with an amateur landlord wanna bee and no protections nor rent caps
$60k doesn't cut it even if you own your home outright. This has nothing to do with renting and LL.
You missed the point about the impact of real estate taxes in NY. Even if your house is fully paid off, you still have to pay the mind-numbing property taxes, which are among the highest in the nation.
Many people are paying $12k - $20k in property taxes in NY (and NJ).
Add on the state income taxes, if your income is $60k, you pay an additional $7k - $8k of income tax. At $100k of income, you pay $15k to the state.
So, we started with $60k. We subtract about $7k for FIT, $15k for RE taxes, and $7k for state income taxes. That leaves you with about half your gross income. And you haven't bought anything or eaten anything yet. You haven't insured your home or auto (deduct about another $4k here) or signed up for health insurance.
Of course $60K is not going to cut it in parts of NY, NJ and Cali and HI but remember there are 46 other states where $60K will pay everything you mention with some left over. And growing your passive income is a kind of zero-sum game in that the more you earn the more you pay in unavoidable expenses. My goal is not to make more money than what I have (1.6M) but to get only enough passive income as I need to keep my principle preserved and the bills paid so that when I kick the bucket in 4-5 years I will leave a tidy nest egg for my wife (who has money of her own).
$60k doesn't cut it even if you own your home outright. This has nothing to do with renting and LL.
You missed the point about the impact of real estate taxes in NY. Even if your house is fully paid off, you still have to pay the mind-numbing property taxes, which are among the highest in the nation.
Many people are paying $12k - $20k in property taxes in NY (and NJ).
Add on the state income taxes, if your income is $60k, you pay an additional $7k - $8k of income tax. At $100k of income, you pay $15k to the state.
So, we started with $60k. We subtract about $7k for FIT, $15k for RE taxes, and $7k for state income taxes. That leaves you with about half your gross income. And you haven't bought anything or eaten anything yet. You haven't insured your home or auto (deduct about another $4k here) or signed up for health insurance.
My son is in westchester and his real estate taxes are 31k a year .
They are looking at a bigger house and taxes on the one they are looking at are 41k .
We looked at a two bedroom condo in a high rise in westchester …the condo was 425k and taxes were 9k a year while hoa costs were 880 a month.
On paper you're correct, jak. But many seniors don't have house payments so cost of habitation is not a concern. My wife and I eat well and don't go without, even though our organic food choices cost-wise are higher than they were pre-pandemic. We live comfortably on my interest payments--FINALLY--along with my SS. The income totals around $60K annually and gets all our expenses paid. We don't feel this 2% gap and of course each family's situation is different, but I think $50K plus SS would be enough for most seniors to live comfortably on. Or am I wrong? Are seniors still having difficulties getting the bills paid on $60,000?
Recently, someone showed all their expenses and to me, it was very helpful. Some things you just forget about.
Not retired yet but I don't want to be one of those worrying about my next meal. I know some do.
Even though you may not have house payments, if you own, you may have insurance, taxes and HOA fees.
If you rent, that could go up.
I had a dear client, age 78 (veteran BTW) who planned carefully. They had rented since 2014.
Their daughter came down with pancreatic cancer 1 year after that and they had to help her. She had 3 young daughters. What they did gave their daughter 7 more years. She passed this year.
Their rent this year went from $1450 monthly to $2250 monthly. There was no way. Their realtor found them a place; then it was on me. Thank God he was a vet. Their payment with everything is $1308 monthly and the condo was $152,000 (no money down and we covered all the closing costs). Nicest people ever.
In my own situation, I worry about going blind and the fear of having to be in a place $10K plus monthly is scary at best.
I just keep plugging away but the fear is with me every day and has been most of my life. You don't know until you are there and fortunately, most will never know it.
Here in nyc if you live in a stabilized building , of which half of all rentals are , if you are a senior and the rent takes more then 35% of your income , you are exempt from rent hikes .
The votes increase this year was :
For renewal leases beginning between October 1, 2021 and September 30, 2022, the rent increase for rent stabilized apartment and loft renewals is:
For a one-year lease commencing on or after October 1, 2021 and on or before September 30, 2022:
0% for the first 6 months of the lease and
1.5% for the remaining 6 months of the lease
On June 21, 2022, the NYC Rent Guidelines Board adopted guidelines applicable to leases commencing between October 1, 2022 and September 30, 2023.
For a one-year lease commencing on or after October 1, 2022 and on or before September 30, 2023: 3.25%
You can live fairly well anywhere if you are not sick,own your own home and car with no monthly payments on $60k a year for two.
$5000 a month should cover your utilities,medicare premium,medigap,food,gas ,haircut etc for two.
Oldies have plenty of cloths and shoes in closet,take a look,you dont need dishes and glassware,kitchen ware,bath towels last a long time.
Such a proposal in the OP contemplates being on Medicare so medical costs are kept at a minimum (Advantage) My BS Advantage had a total annual max out of pocket of $900 plus coverage of most all the meds that weren't extraordinary. And best when you're in a low cost property tax state. Fortunately the interest rates are not determined by state so a person living in for example Michigan, the most low-cost state in the nation for retirees can still get a 4% rate on their CD's. One note of caution: I took several penalties on early withdrawals to get my CD's out of 1-1.5% and into 3.5-4%. One bank, US has a penalty of 1% so at $250K I took a $2500 hit but I always made it up and then some.
We live in a suburb of Los Angeles which is fairly high scale but we order all our things off Amazon including food so it can be delivered to us--we haven't stepped into a Whole Foods for 9 months. Our groceries run about $1k/mo for 2. Add another $1k. mo. for miscellaneous and then another $1k/mo for utilities and we are barely at $36k and still lots of wiggle room. No rent--we own. But if a person is in NYC or thereabouts and renting then you're right--$60K annually just won't cut it when the LL is raising his rents by $1k ever six months.
Yeah renters, no matter the age, would have a harder time and obviously MUCH harder in a high COL. But a senior that owns their home has a major advantage there. My house will be paid off in just over a year, and my car in less than that. I'll be very comfortable, and I'm looking forward to it.
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Recently - someone showed expenses
