So, I ABSOLUTELY know there’s massive variation in this. Just want to get ahead of that.
What I’m looking for is…what do finances look like, casually, when you have a 100% paid off small (SMALL!) home. When a mortgage is out of the way, what’s left to eat up your paycheck?
I suppose I’m looking for the sort of casual knowledge of expenses for this sort of life that your kids might pick up if they lived in your area with you in your home. En mass, pulled from multiple lemmy folks, so I can get an idea of general trends. I’m partial for info from the USA, but others reading this might appreciate statistics from other areas. :)
(People mistake how valuable this sort of “general idea” info is, I always see people going into the weeds on how every situation is different without bothering even giving a crappy signpost so I can see if I’m looking at a $5 expense or $500 or $5000. Knowing if something is going to be $5 or $5000 is very valuable, even if it’s not some exact precise number. But I don’t need to know if it’s going to be exactly $392.29 if I wiggle my ears and tug my nose to get the right loophole, I just need to know that closer to $500 is correct, or whatever.)
I don’t have family, so I missed out on “casual learning” opportunities, and don’t have anyone to talk to IRL to get this info, so it’s really hard to apply my city-living experience to try to extrapolate what life might be like if I make a goal to buy a small home in Nowheretown, USA to retire in 20 years down the line.
Anyway. So what do expenses look like if you have a small paid off house? What range do utilities run in for you (in your particular climate), what’s home insurance like, what sort of unexpected expenses pop up when you own instead of rent?
What’s utilities like for sewer and trash, especially? Those have always been rolled into my rent. Is rural internet still limited to DSL or satellite (or Starlink I guess these days), or has better infrastructure been rolled out in places over the past 20 years since I last looked for this info?
Edit: Also…talk to me about well water and well expenses, and septic tanks instead of sewer lines, and oil heating. I promise I’ll listen!
Edit 2: Also talk to me about how propane works.
Thanks everyone. :)
My place isn’t paid off but it is cheap enough that I can say what would change and, importantly, what wouldn’t.
My monthly payment is just under $700 a month. About $400 of that is the actual mortgage. The rest is basically property taxes and insurance. I’d save $400 a month but would still have to pay $300. Assuming I didn’t decide to just earn $400 less a month then that $400 would have to go back into the property. I need a new roof. I need a new HVAC (AC died three years ago). A new roof and AC would cost almost a quarter of my original mortgage. So in the end not much would change financially.
An important thing to remember about home ownership is that on average you are going to spend about 1% to 3% or a dollar a square foot on home maintenance each year. I had to replace my septic system months after buying the place, 7.6% of the home price. I had to replace my water heater a few years ago. Fortunately it’s located outside the building so no water damage and I was able to do that replacement myself so instead of spending $1800 for someone else to do it I did it for $450.
Once I have even a little spare money I need to do some roof repairs, not pay someone else to do it.
That’s a little known fun fact about owning a house when you’re not a millionaire. You need to get handy.