• qjkxbmwvz@lemmy.sdf.org
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    9 months ago

    Curious where you are getting 25%?

    At least this amount will, assuming it’s just taxes and insurance, be due every month for as long as it’s owned. Property taxes in California for example are around 1%/year (so a $377k home would be around $4k/year).

    If you own the home outright you may not need insurance, but of course, that’s a risk.

    Taxes may be severely limited in how much they increase (see: California prop 13), so while they will likely increase it may not match e.g. rental increases.

    • solrize@lemmy.world
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      9 months ago

      Curious where you are getting 25%?

      Oh hmm, 18%. $377/m for 30 years discounted at the interest rate mentioned gives $58K which is around 18% of the house price of $323K. My mental math was a bit off.

      • qjkxbmwvz@lemmy.sdf.org
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        9 months ago

        I see. In this case the 30 years is irrelevant I think.

        This is probably PITI cost — principal, interest, taxes, insurance. Principal and interest are zero here, but the other two continue for as long as you own the home (property tax is annual like income tax — it’s not a one-time-deal like sales tax).