Friday, November 22, 2019

US Living Costs


The goal is to become self-supporting and that requires a plan to earn and save.

Single Family Home Ownership allows owners to invest in an asset that appreciates in value. Renting is a bad idea.  Substituting a monthly rent payment with a monthly mortgage payment requires saving a down-payment.

The US is affordable for individuals who can earn $40,000 per year with a net pay of $36,000 or $3000 per month. Monthly expenses might include the following:
Rent $1500 - $1900
Electric $100
Phone $50
Internet $50
Water $50
Gas Heat $50

Car Payment $300
Car Ins $100
Food $400
Maintenance Savings $400
Total Monthly Expenses $3000

A one-bedroom apartment in Atlanta costs $1500 per month.
A two-bedroom apartment in Atlanta costs $1900 per month.
If two income earners can share the basic costs, things get a little easier. Two earner renters whose total net incomes total $3000 per month, can use the same budget model, but can share the cost of rent, electric, phone, internet, water and gas heat that totals $2200 per month. This cuts those expenses to $1100 for each room-mate.

Single Family Homes are available in Atlanta GA from $50,000 to $100,000.

Mobile Homes cost $50,000 to $80,000 plus Trailer Park lot fees of $100 to $300 per month.
Trailer Parks are located in Marietta, Acworth and Kennesaw.

Monthly mortgage costs for buying a low-cost Single Family or Mobile Home
Home Price $100,000
Down-Payment $10,000
15 year fixed 3.7% Loan
Monthly Payment $739 per month
Source: mortgage calculator

Mortgage payment on a $100,000 home with a 15-year 3.7% loan is $739 per month. Renting a 2 bed-room apartment costs $1900 per month. Buying is $1161 per month cheaper and you get your money back as the home appreciates in value.

Norb Leahy, Dunwoody GA Tea Party Leader

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