Comparing cost of two homes

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ThankYouJack
Posts: 1823
Joined: Wed Oct 08, 2014 7:27 pm

Comparing cost of two homes

Post by ThankYouJack » Wed Oct 04, 2017 10:05 am

I love the NYT rent vs buy calculator and was wondering if there's anything similar to compare the annual costs of two different homes.

Admiral
Posts: 898
Joined: Mon Oct 27, 2014 12:35 pm

Re: Comparing cost of two homes

Post by Admiral » Wed Oct 04, 2017 10:14 am

What do you mean by "annual cost" and "two different homes"?

Do you mean the carrying costs of two different loan amounts? The annual maintenance costs? I'm not sure there is such a tool for the latter since the costs are unknowable (except for things covered by a condo association which would be paid for by annual fees.)

As for the first, you can just use a mortgage calculator.

ThankYouJack
Posts: 1823
Joined: Wed Oct 08, 2014 7:27 pm

Re: Comparing cost of two homes

Post by ThankYouJack » Wed Oct 04, 2017 10:25 am

Admiral wrote:
Wed Oct 04, 2017 10:14 am
What do you mean by "annual cost" and "two different homes"?

Do you mean the carrying costs of two different loan amounts? The annual maintenance costs? I'm not sure there is such a tool for the latter since the costs are unknowable (except for things covered by a condo association which would be paid for by annual fees.)

As for the first, you can just use a mortgage calculator.
By costs I mean all the costs of living in the homes: mortgage, insurance, taxes, estimated maintenance, HOA fees, possibly estimated appreciated and opportunity cost of investing, etc. Of course it's all an estimate, but something similar to the rent vs buy calculator would be pretty neat.

adamthesmythe
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Joined: Mon Sep 22, 2014 4:47 pm

Re: Comparing cost of two homes

Post by adamthesmythe » Wed Oct 04, 2017 8:53 pm

My thoughts about estimating costs

> mortgage

Easy. You know the interest rates, use on-line calculators.

> insurance

Ask owner. Insert contingency requiring that insurance be available for less than some amount you choose based on owner's answer.

> taxes

Learn about your locality. Often there is a bump (maybe a really big bump) upon sale.

> estimated maintenance

Total crapshoot. Unless there are some clearly immediately needed items. Then there is a floor on this cost.

> HOA fees

Ask. Use your inspection period to ask about HOA health, or put in a contingency.

> possibly estimated appreciated and opportunity cost of investing

Way too many assumptions needed here.

Owning a home is fraught with uncertainties. Only buy if (1) you have little to lose or (2) you have a comfortable cushion.

Oh. You forgot utilities! Possibly huge, especially in the northeast.

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