Had to laugh at, LIVE IN A HIGH RENT CITY....
They all are now, even places like North Platte Nebraska have unaffordable rents by the traditional standards of how much income you should pay for rent. I am buying a house, close first week of April, in Florida, it has more than doubled since last sold in 2012. But, I feel I have no choice since my 2013/14 rent was $725 for a place that is now $1,300 and it is a 40 year old hovel. I turn on the hot water at the kitchen tap, then go do something like use the bathroom or go out to the garage for a couple puffs on a ciggy. By the time I return the water is about getting hot.
I do drive a 7 year old BMW though. But, auto insurance for that car when new in 2013 was $635 per year, now right about $1,200 and when I was in Las Vegas before returning here it was $2,400. At first you might think "well that is just a few bucks shy of double," but you would be wrong. Because that was when the car was new and cost $57,500, now the car is 7 years old and blue book's at about $13,000, and I had better coverage then. So I am paying double, but that premium is BUYING a lot less. By the way, still clean record but 7 years older, so much for it going down when you hit 60.
And shock of all shocks, I had to provide a home owner's insurance quote for the house I am buying, I lived in Tallahassee back in 1997-2001 and I had a comparable house, the insurance was $355 per year. Now, the best quote I could get was $1,575 and I had quotes over $3,400. That is more than the property tax on the house. Most people will opt for the lower rate, but I have to tell you that if anything goes wrong, with the coverages and deductibles, it is a one way ticket to BK. Or at least a heavy hit to any savings accounts. $5k for claims except hurricane, that is 5% of the value of the house, and by that they mean the replacement cost which is set at $367k. So, $18, 350 if there is a hurricane. Meaning if there is a hurricane you better pray the house is destroyed. And it does not cover sinkholes at all. That is separate coverage and can be $2-4 thousand per year, also with massive deductibles.
What good does it do to have a mortgage interest rate of 3.785% if the house price has doubled and insurance is up like 1,000%, on top of said higher property taxes?
The good news is I am a 100% disabled vet (Hmmm that's good news?) so exempt from ad valorum property tax in Florida. And because I have a VA mortgage also do not pay mortgage insurance, those two items save me $430 per month. I will only pay P&I starting January of 2021. Will have to pay tax the remaining months of 2020, you have to be a resident on the first day of the year to qualify for the exemption.
But for sheer ridiculousness I will say that the same house I am paying $257k for there would be at least $650k here in southern Oregon. And if it were in the Portland metro, well I have seen lesser places selling for over a million up there.
The down side of the vet status is that it is a "fixed income" dependent upon federal COLA's to match inflation. And for 15 years I have kept meticulous records, my cost of living, which should bear at least some resemblance to the CPI has been at least 4 or 5 times what the government claims. I estimate that my costs have risen by near 55% in the last ten years while my raises = 13.2% in a decade. So my purchasing power has dropped by about 40% since the depths of the GFC. Really easy to do when rents double and the cost of housing is not even calculated in the CPI.