Are you Smarter than your Parents or Grandparents?

General Discussion
63

The median home price in New Hampshire is approximately $528,667 to $550,000,

The average property taxes on a $535,000 home in New Hampshire typically range from $8,025 to $9,149 per year

$535000 $430,000

What is the average home loan payment on a loan of $430,000 in New Hampshire

The average home loan payment on a $430,000 loan amount in New Hampshire is approximately $2,718 per month for baseline principal and interest. However, because New Hampshire has the highest average property tax rate in the country at 2.18%, your total escrowed monthly payment (PITI) will be significantly higher, bringing your true out-of-pocket cost to roughly $3,803 per month.

What is the average home owners insurance on a home worth $540,000 in New Hampshire

The average homeowners insurance cost for a $600,000 dwelling coverage limit in New Hampshire is approximately $2,210 per year (or about $184 per month)

What is the average HOA fees for a $5400,000 home in the average neighborhood that has hoa fees

single-family home will generally see average HOA fees ranging from $200 to $400 per month

What is the average yearly maintenance for a $540,000 home in new Hampshire

The 1% Rule (Newer Homes): $5,400 annually ($450/month). Ideal for brand-new construction or homes under 5 years old where major appliances, roofing, and structural elements are still covered under active builder warranties.

he average age of homes in New Hampshire is 44-years, but we’ll split the to 20-years and

A Fraction of the mortgage you say… Since you live in New Hampshire, it is New Hampshire where I ran the numbers…

The median home price in New Hampshire is approximately $528,667 to $550,000, so lets’ say it’s $535,000…

The average home loan payment on a $430,000 loan amount ($535,000 minus the a 20% down payment…) in New Hampshire is approximately $2,718 per month for baseline principal and interest. However, because New Hampshire has the highest average property tax rate in the country at 2.18%, your total escrowed monthly payment (PITI) will be significantly higher, bringing your true out-of-pocket cost to roughly $3,803 per month. WOW!!!

The average property taxes on a $535,000 home in New Hampshire typically range from $8,025 to $9,149 per year, so lets say it’s $8,500 or $708 a month…

The average homeowners insurance cost for a $600,000 dwelling coverage limit in New Hampshire is approximately $2,210 per year or $184 a month…

The average HOA fees for a $5400,000 home in the average neighborhood in New Hampshire ranges from $200 to $400 per month, so lets say $300 a month.

The average yearly maintenance for a $540,000 home in New Hampshire that is 20-years old is at what is called a critical structural milestone where major systems (such as the roof and HVAC) are nearing the end of their first natural lifespans and require replacement. So on average (big expenditures one year, low expenditures on other years…) the average yearly maintenance is $10,800 per year or $900 a month…

So, when all the “fractional costs” are added up… $708 (Taxes) + $184 (insurance) + $300 (HOA) + $900 (maintenance), that “Fractional Part” comes to…. Drum Roll Please…

$2,092 a month in incidental non-equinity expenditures and as you say this is “just a fraction” so lets look at this Fraction 2092 divided by 3803 equals just over 55%… That’s right, that fraction is over half the house payment,

But you are an Engineer, perhaps 55% is consider low by your standards but this Home Ownership is costing, on average $5,900 on month just to walk in the door, none of this includes the utilities (electric, gas, water, sewage, etc…), food, clothing, car payments (plus the cost of fuel, insurance, maintenance, etc…), health care, etc…

Your Department of Human Resources and Urban Development indicated that to successfully live in this lifestyle, one needs to be earning a minimum of $175,000 a year.

Your Daughter and her fiancé are lucky and not the norm… I dare say that many of the members do not seen that level of income.

64

When a household commands an annual income of $200,000 yet liquidates it entirely to finance a lifestyle of luxury—subsisting on premier estates, flagship vehicles, and credit-extended indulgence—they fundamentally mistake a failure of discipline for a state of destitution.

To see such affluence compete for scholarship capital designated for families living at, near, or even double the poverty line is a profound distortion of equity. True financial need is defined by an absolute inability to acquire essential resources, not by a habitual failure to retained them. Educational stewardship must prioritize those constrained by systemic scarcity, rather than subsidizing the collateral damage of elective extravagance.

65

A certain amount of misinformation and “In my experience” has crept into the discussion

First, let me address the “Cost” of a College or Skilled Trade education program.

Higher Education in the form of a college degree or skilled training that allows you to secure a higher income and greater job stability is NOT A COST, IT’S AN INVESTMENT and should be evaluated as such. Simple calculation, what is the earning potential over the next 40 years of a General HS degree vs a person with a college degree or skilled training?

Next, since money isn’t growing on trees and quality post HS education / training is costly, how do you pay for it?

For those students in a HS Skilled Trade program, Community Colleges, Union certification programs and even the military provide a low cost entry to the high paying certification programs and many actually pay the students while their earning their certification through apprenticeships. .

For those HS students pursuing an Undergraduate education, there are the Community Colleges and State Colleges which offer what is essentially a discounted degree supported by Taxpayer subsidies. Obviously there can be significant quality differences between the States and individual Colleges but for a hard working talented student, admission to a school like UCLA, Berkley or Michigan can be the equal of an Ivy degree at half the price.

For those HS students pursuing an Undergraduate education, and have already demonstrated an exceptional work ethic there are the Private Elites, which all post a Sticker Price of about $100,000 / year but the reality is that most of their students don’t actually pay anything like that. In fact, thanks to Endowments many students pay less that a State College or sometimes nothing at all.

These colleges are typically small, under 10,000 Undergraduates and are therefore extremely selective but they’ve made the calculation that if you can get admitted you will graduate, in the future you will have substantial earnings and remember your college with substantial contributions (Endowments) that allow others to have the same opportunity. An example is Michael Bloomberg’s contribution to Hopkins which pays the entire tuition of all Hopkins Med School tuition for all students.

A brief digression on the use of the SAT or ACT in admissions to the Elites is that because they typically have 10 applications from well qualified applicants, all of who could easily graduate, these test scores hardly matter. When all the seriously considered applicants all have scores in the upper 10%, all near perfect HS GPAs and all have taken the toughest classes they could, picking that 1 out of 10 accepted comes down to “what else have you done?” or the Whole Student Evaluation. For example at my daughter’s college you couldn’t swing a dead cat without hitting a student who wasn’t an All State athlete in something, performed in a symphony or ballet, started a charity or business or won a science award and all while being in the top of their HS class so the final decision came down to “Who would be the best fit and who would most benefit?”

Of course there were also few “Academic Consideration” exceptions for kids whose Dad was a US Senator, had their name on a campus building, were a Hollywood or Sports A lister, were a billionaire or a foreign potentate but that’s just reality.

Endowments can make the difference between a “simple education” and an “exceptional” experience. Like the poster whose child went to MIT, my child also had a choice between the affordable State Flagship and an unaffordable Elite where they were involved in the cutting edge in medical technology. Let’s just say that the next time that you need brain surgery or a vet needs a workable prostecis, they should thank a “poor boy” who got the opportunity.

66

Here’s my problem with college education in the US. A big contributor has been the availability of loans, putting a huge burden on many students who can’t afford the payments:

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67

Thank you for raising the point regarding college as an investment rather than a cost. Data from the Federal Reserve Bank of New York and career tracking benchmarks show that post-graduation underemployment and career alignment vary substantially by major.

An assessment of direct field alignment reveals that only 27% to 40% of college graduates secure employment directly related to their major a decade after graduation. This alignment rate hinges heavily on the discipline.

For instance, STEM fields maintain a robust direct-match rate of 60% to 90%, whereas disciplines such as the Liberal Arts, Political Science, Communications, Journalism, and the Fine Arts see alignment rates drop significantly—ranging from 30% down to 5%. Consequently, a vast majority of graduates in these fields find themselves underemployed, working in roles that do not fundamentally require a college degree.

68

There are so many, many reasons that college tuition has increased at rate significantly higher than inflation would indicate…

But I subscribe to the “Bennett Hypothesis” on Student Loans: This dictates that the widespread availability of federal student loans, grants, and income-driven repayment programs gave institutions confidence that students could raise the capital to pay higher sticker prices, sometimes referred to by economists as the “Bennett Hypothesis” (where easy credit drives up price tags).

This phenomenon reflects standard market equilibrium within the supply (the number of seats in a college…) and demand (students wanting an education…) framework, wherein tuition rates adjust upward to maximize institutional revenue without precipitating a contraction in student demand.

And you might wonder why the colleges keep economists on staff (non-teaching positions…).

69

I keep trying to reach Car Talk and end up at this nonsense site.

70

Where are you pulling those numbers from. Property taxes on our home is less than $16,000 for a house accessed at over $1,000,000. That’s less than $1,300 per month. When we bought our home in the 90’s our property taxes was under $6,000 ($500/mo). Mortgage was $1,800/mo (Interest rates were higher then).

Why would you live in an area with an HOA. HOA’s only account for 14% of all home ownership in NH.

Yes. And I’ve stated several times here…Home prices have outpaced wage growth significantly.

I know they’re not the norm. But they’re not far out of line with many of the high-tech engineers that life in New England. I was director of software engineering and chief Architect for a small telecom company. Average salary for the engineers that worked for me was north of $150,000. The few fresh-outs we hired the salary was north of $100,000.

71

You mean predatory loans. REAL student loans wen bye-bye decades ago.

Have you looked at tuition costs across the country. The East and West coast have significantly higher college tuition/room and board costs over the mid-west. My middle son spent his first 2 years at a college in the Mid-west before returning to the east. Tuition literally 1/3rd then the college he finished.

72

I feel for you, but I can’t quite reach… since you ae having problems with your computer and unable to reach the web site you want, perhaps you can try:

They are dedicated to teaching basic computer skills to beginners and adult learners. They use very simple language, video tutorials, and interactive exercises. Just right for you… Bless your soul!

73

You’re wondering where these numbers came from, but you’re the one who brought Boston into this. As the director of software engineering and chief architect for a telecom company, you have access to the exact same resources and tools that I do.

In Boston:… the Boston Housing Authority (BHA), Inspectional Services Department (ISD), Department of Innovation and Technology (DoIT)…

and at the state level:… Executive Office of Housing and Livable Communities (EOHLC), Metropolitan Area Planning Council (MAPC), and the Massachusetts Housing Partnership (MHP)…

Back when you bought your home in the '90s, HOAs were rare. It took years for developers to figure out the perfect loophole: by setting up a commercially run HOA, they could essentially guarantee lifelong employment and steady income for their family members.

When it comes to HOAs, new construction is the main culprit. Boston is a prime example: almost every fresh development brings an association with it. If you’re lucky enough to live in an older, established neighborhood, count your blessings—because these newer areas aren’t quite as fortunate. If you want to steer clear of HOAs, you’ll definitely want to avoid East Boston’s Jeffries Point, Eagle Hill, and the Waterfront, as well as Fisher Hill near the Brookline Reservoir. You should also skip the Boston Seaport, Fan Pier, the South End, Jamaica Plain, and pretty much all of the Greater Boston suburbs.

74

Your numbers are WRONG. That’s why I asked.

They still are rare. As stated only 14% are HOA’s and the vast majority them are Condo’s.

Condo’s…maybe…Not single family homes.

75

Student loans are a product of modern capitalism, and every college operates like a business. Whether elite or public, the financial model is the same—only the price tag changes. For instance, a freshman year at MIT runs about $66,000, while Purdue University costs roughly half that at $31,000.

76

Colleges don’t initiate student loans. Banks do. They are NOT connected.

77

Yes, I perfectly understand all of that. I also understand that when I’m paying rent I’m paying those property taxes, maintenance costs, etc. indirectly. But I’m still paying them. Property tax goes up, so does rent. House gets new appliances, rent goes up. But I don’t get the mortgage interest or property tax deduction. It’s a great argument that many people don’t want to or aren’t ready to take on the “bane” of home ownership. I’m a mechanic, so I’m pretty handy and can install a new toilet or fix a leaky skylight or broken furnace. And if you choose not to be responsible for those things, that’s great and that’s your choice. The problem is that choice is being taken away from most young folks these days, and that’s a big problem.

Yeah, that’s not gonna happen at my house. I’m not keeping them around for 10 years after high school. My wife and I have more to do with our lives than run an extended stay. When I was nearing the end of HS, my folks told me: If you want to go to college and get an education, we will help you do that. If you want to get a job and start living on your own, we will help you do that. If you want to join the military, do that. But you will start making your own way in the world.

Both my kids are proving to be quite adept at managing money, a habit that started early in high school. My son is as cheap as the day is long (sometimes I think he would give @bcohen2010 a run for the money) and at 19 is already managing his brokerage account quite well. If my wife and I were able to easily procure a reasonable rate at that age, why shouldn’t they be able to as well?

My home in Country Club Estates has HOA dues of $175 per year. Meh. Someone has to maintain the mailboxes and pay the landscaper to rake up the leaves on the main drag.

Well that’s just dumb and there’s no other way to say that. Some people just have no sense. I told the story here once about a guy who financed $30K of negative equity into the purchase of a $70K car. So now he owes $100K on a $70K car. What do you think happened when the new car had a lemon law issue and he wanted a buyback?

Back to the original point of being smarter than you parents or grandparents. Each generation has to do better, make more, go farther than the last. I see that as becoming increasingly difficult to impossible.

78

While it is true that colleges are not banks and do not physically hand over their own money as loans, colleges and student loans are deeply connected. Colleges actively “initiate” the process. They control how much you can borrow, and they are the entities that actually receive the loan money first.

Furthermore, the vast majority of student loans do not come from private banks at all; they come directly from the federal government.

It is naive to assume colleges won’t optimize their pricing strategy. Naturally, an institution will raise tuition rates to the absolute limit that the market will bear, maximizing revenue right up to the point where it threatens enrollment capacity.

79

It is late and just to address the HOA fees… here in my area, in Williamsburg, VA…

Governor’s Landing, the Quarterly HOA fees are $822 (approx. $274 per month), plus a $1,945 transfer fee and a mandatory country club membership (Social at $499.34/mo, Associate Golf at $1,085.98/mo, or Full Golf at $1,200.11/mo).

Kingmill, Quarterly HOA fees are $585 (approx. $195 per month) with a $1,170 capital contribution at purchase, plus club tiers ranging from $279 to $430 per month.

80

Where is the phantom phlager? How is college&home ownership costs has to do with vehicle maintenance and/or repair?

81

You just got done listing the costs of homeownership in New Hampshire with a WOW! and turn around and proclaim a life of luxury when those salaries are needed to live here. BTW- when you quote averages for New Hampshire, you might want to look at the entire state. The highest population, cost of living and property values are clustered around the border with MA. The average is seriously skewed by the remainder of the state.

Property taxes are extremely high because there is no sales or income tax to speak of for the vast majority of residents.

82

No they don’t. The initiation process is started from the student/parents. My kids were lucky because I was able to pay for their college (except my daughter because she had a full ride). But I have nephews and nieces that had to take out loans. My wife had to take out a college loan.

Again - NO. The cap is set by Federal law for any federal school loan programs. Obviously no bank is going to give you a loan more than the cost of tuition room and board. If tuition is $50,000 and you receive $25,000 in scholarship - you are prohibited from getting a loan more then ($50,000 - $25,000 = $25,000). That’s NOT the college…that’s the Federal Loan programs.

Nice strawman argument.