What is the cost of housing in Laveen Phoenix Arizona?
For this scenario, I am assuming a property that is valued at $250,000 with a $50,000 down payment, 3.25% interest rate, 2 stories, 2400 sq ft and a 4 family household. Here is an EXCEL SPREADSHEET of my analysis. In fairness, the electric and water bill are probably below many households levels but that is because many people have their HVAC blasted 24/7 365 days a year. Property taxes are low compared to many other states but the low property taxes are clearly evident in our poor schooling system. Something always has to give and since property taxes are low, our public educational system is also poor. Areas where property taxes are higher tend to have better public schools due to more funding. However, governments are notorious for mismanaging funds as well. HOA fees are estimated at $75 per month but some communities are less and some are more. HOA fees are also low in Laveen compared to many other cities and states. Electricity is estimated at $200 per month and the water bill is estimated at $75 per month. Homeowners insurance is estimated at $70 per month.
The total yearly housing expenses are nearly $20,000 before factoring in car insurance, car expenses, debt, cell phone, health insurance, food, dental expenses, entertainment, home improvement savings, a 6 month emergency fund, 15% investment savings into an IRA, 401K or rental property and other expenses. To live comfortably in Laveen. a household would need at least 50-60k per year after income taxes and that is with strict budgeting and having no debt besides a mortgage. Someone making minimum wage would not be able to survive without obtaining roommates to share in housing costs.
Housing costs in Laveen Phoenix are still low compared to many other states such as California and New York, however they are higher than many other states as well such as Alabama and Indiana. I would recommend decreasing your liabilities by reducing your debt to near $0, increasing you assets through investing in an IRA index fund and rental properties, reducing your housing costs and other expenses and finding ways to increase your income. One of the ways you can reduce your housing expenses is by house hacking. You should also avoid the habit of taking out credit and going into debt for every single purchase you make such as phones, furniture, appliances, cars, laptops, electronics, home improvements etc. If you don’t have the cash to buy it, then you have to ask yourself if it is worth it. Going into debt to make major renovations to your property just to sell it is also not worth it as long as it is in selling condition. There is a difference between renovations and maintenance and repairs. You should always have a well maintained property.
If you need anything or are looking to buy or sell in the future, you can save my number as ‘Realtor Lasker” at 480-779-8579 and call or text me with any questions. You can also email me at TaxesAndRealty@gmail.com. Good luck.