I publish my monthly income updates the first Friday of each month in my weekly newsletter. If you’d like, you can subscribe by clicking here. Anyway, Vicky at Funny About Money noticed my statement about spending $1250 a month on property taxes and insurances on our two homes. She emailed me since she was really surprised by that number. In Arizona, she’s paying less than $2200 a year for her property taxes.
Being the personal finance blogger that I am, I figured it would be fun to have a show and tell day about housing costs. PLEASE COMMENT BELOW! This will be awesome!!!
Our Houston, TX Housing Cost Breakdown
That budgeted $1250 number for us comes from multiple things as you’ll see below. For comparison purposes, our rent house is a 3 bed, 2.5 bath 1750 sq. ft. home that was built in 2004 and was purchased in April 2007 for $114,000. Our home is a 5 bedroom, 4 bathroom, 3750 sq. ft. home built in 2012 and was purchased in October 2012 for $259,500.
Here is our personal breakdown of monthly housing costs in our suburb outside of Houston, TX:
- Mortgage on Our Home – $990
- Mortgage on Our Rental Home – $0 (paid it off in early 2013…for peeking purposes, it was $730 in the beginning)
- Estimated Property Taxes on Our Home – $650
- Estimated Property Taxes on Our Rental Home – $250
- Our Home Property Insurance – $125
- Rent Home Property Insurance – $100
- Our Flood Insurance – $30
- Rent Home Flood Insurance – $30
- Our Home Owner’s Association – $60
- Total for Our Home – $1855
- Total for Rent House – $380
- TOTAL = $2235
So, yes, property is comparably affordable here, but property taxes are around 3% per year. I think we are doing pretty good to be spending $2235 a month plus maintenance in order to eventually own two properties completely. Especially since the rental income from our first home and from the friends we rent to in our current home comes to $2350 per month. We also have home maintenance funds for each house as separate CapitalOne360 accounts so pop up expenses and maintenance won’t hit us too hard unexpectedly.
Your turn! What’s your home’s general location, size, price, and what is your monthly housing cost? Please share as I think this will be a truly awesome day to everyone!!!