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Say if the home was passed down to you, how much would you have to make a year to keep that house.. Property tax is like 9k a year on it, electric gas cable phone?

1 Thought on Salary to keep a 500k home?
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    Rush is a band
    May 22, 2013 at 6:14 am

    Some things to consider. You are right that you’d have to pay property taxes. $ 9k/year is not unreasonable on that price of a house. General expectations are that upkeep is between 1-2% of a house’s value every year. So, that’s somewhere between $ 5k and $ 10k. So you have between $ 14k and $ 19k per year so far. Homeowner’s insurance is based on replacement cost (or should be) and will run somwhere around $ 800 a year if not in a flood zone or hurricane prone area and might be 4x that in a hurricane zone. Let’s assume no hurricanes for now. We are at a minimum of $ 820 a month (taxes and insurance) and more likely near $ 1233 to $ 1650 a month based on upkeep costs.

    Consumable utilities are usually proportional to it’s size (think heating, cooling, lighting, water) while things like phone/internet/cable are not. I’d expect heating/cooling to run around $ 300 a month with another $ 100 a month for water/sewer.

    Now we are at $ 1600 a month to $ 2000 a month. The funny part of upkeep is that it doesn’t show up evenly in a per month way. You might replace the heating/ac one year (for $ 10k) or a roof for $ 20k and then do anything for quite some time…

    To comfortably afford $ 1600/mo., you’d want that to be <35% of your gross monthly income or a gross monthly income of $ 4571 or an annual income of ~$ 55,000 to really feel affordable.

    good luck!

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