[quote=CA renter]You can’t compare these fixed monthly costs with rents because you have to figure the $570,000 cash into the equation (or more, if you get a mortgage and have to pay interest and fees on top of that).
IMHO, for a retired couple in our income/retirement situation, the max they should be paying for housing costs is around $500/month…preferably less.[/quote]
I already did a calculation if you would mortgage it. I’m aware of the $570k in cash if you pay in cash. How much can you get in interest for that $570k right now or even the next 2 years when the fed say they’re keeping the rates at 0% for the next 2 years?
$500/month would mean there’s no way they could afford to retire in this/similar house, even if they bought in 2000. I did a rough tax + MR if they bought in 2000 AND assuming no appreciation (we all know the assessed value is higher than the original 2000 purchased price) and it comes out to be ~$587 + $100 for HOA and you have $687/month. So yeah, even if you get your 2000 nominal price today, you’d still be ~$200/month above your desired $500/month level.
