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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.
Amenities in flood zones can be dangerous. FEMA/NFIP flood insurance is 250K per unit that association can take out. But note it is only for actual living spaces the units.
Common areas, lobbies, pools, tennis courts, gyms, etc in a flood could get destroyed and a large assessment could happen.
Yes, but I'm not sure what any of that has to do with the point of my post which was that condos without amenities have lower HOA monthly fees that are not a result of deferred maintenance and should not necessarily be avoided because one might be concerned about their financial health.
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?
Taxes and maintenance/repairs can really eat away at a nest egg. Some say that renting is cheaper: not prop'ty tax, no prop'ty insurance (except renter's ins.), no mainenance/repair expenses. HOWEVER, selling your place, and paying rent only works if you live in an area with stable rents. If you're in someplace where business is booming and attracting a lot of newcomers to the area, rents may escalate beyond your budget in short order. Consider, then, as an alternative, keeping the house, but working out some kind of rental space; a basement, a converted garage, a large spare bedroom rigged up to be a studio. That will cover your property taxes, at least, and could make the difference between being able to stay in your home, or selling.
As for the inside, guess it helps that I'm not one for updating, AKA re-decorating.
No, not roofs. A good roof here with architectural shingles or metal will last 30 yrs or more. More like major updates/replacements to the interior, unless one is not at all interested in resale value.
Consider, then, as an alternative, keeping the house, but working out some kind of rental space; a basement, a converted garage, a large spare bedroom rigged up to be a studio. That will cover your property taxes, at least, and could make the difference between being able to stay in your home, or selling.
We have considered that, as we have a well-built large garage attached to our house. The only problem is, as soon as you get a permit at town hall for the renovation to a rentable unit, out come the assessors with dollar signs in their eyes. So a rental, with raised property tax, would have to be evaluated financially, and of course they never tell you what your new tax will be with the addition.
First, condos for seniors are a really bad idea. If you have medical bills don't think for one moment that the HOA will be nice, they will in fact toss you out on the street to get their dues faster than a bank can take your property. My DH was on the board of a 90 unit complex so we saw this up close many times when people have financial problems. Also, an HOA can raise rates and if they spent all your money on golf course you don't use, they can hit you with a special assessment. HOAs only benefit lawyers and management companies. Just Google what your HOA won't tell you. In a SFH you decide when, and what, to repair and no one can tell you what color curtains to hang in your own windows.
Our school district is always crying about needing money for teacher training instead of hiring qualified teachers in the first place. We have paid for the same building repairs over and over so it is clear that the district doesn't respect the average tax payer. For a senior, there are some exemptions available so we don't vote against their monkey business, but I still do. Even with the school exemption, property taxes will always increase so that is a risk we all take. It is important to stay involved and ask questions.
We have concerns about the future also so we live a conservative life style and carry an umbrella insurance policy just to be safe. Having good medical and other policies are really about all one can do. We live in a two story so I'm trying to get DH to sell and move to a place where we can have at least one bedroom on the ground floor so if one has limitations in the future our chances of being able to stay home increase. Getting old is not for the weak.
Not me. Neighbor across the street is in construction, put a light gray metal roof on his gray three-story Victorian about five years ago. Glare from sun bounces off that roof into my living room most of the day, so that I now have to keep picture window shade drawn almost half down all day. Before that d**d roof, I had a very nice view. I HATE them. They are UGLY. This is a very old residential neighborhood with varying architectural styles - Craftsman, bungalow, colonial, Frank Lloyd Wright - most homes valued well over $300k, several close to $400k, one around the corner sold for $650k last year. If this was an historic district, he couldn't have done what he did. He did not make a friend of me when he put on that roof. My next door neighbor snubs him - very obviously.
That said, my property taxes this year actually dropped a teeny bit. City is approving construction of apartment buildings, hotels, business complexes, and other office structures (in areas which don't affect me, thankfully) to broaden the tax base. Before the recession, my taxes were approaching $8k. I got the City Assessor over here three times beginning in 2010 when values were dropping like a stone, and taxes now are just under $6k. Still very high compared to other parts of the country, but it is what it is. No breaks for over-65 in WI.
My budget has a line item allocating 17% of my revenue for property maintenance. What isn't spent ends up as a surplus at year-end to be saved for future major expenses.
We have considered that, as we have a well-built large garage attached to our house. The only problem is, as soon as you get a permit at town hall for the renovation to a rentable unit, out come the assessors with dollar signs in their eyes. So a rental, with raised property tax, would have to be evaluated financially, and of course they never tell you what your new tax will be with the addition.
You'd still come out ahead, though. Think of the monthly income. The tax hike would only take a small part of that, not even 10%, probably.
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