Tuesday, February 25, 2020

Eagle Butte

Home improvement tips

Floyd Braun

Greetings everyone, I hope this past week has gone well for you. Thanks again for your continued following and I hope you find this column interesting. This week I will focus on home improvement only, but some things I believe can be helpful for both owners and renters. For those who are considering a purchase at some point in the future, I hope this information is helpful in making that dream come true.

I will start off with the biggest question I have heard come up in the past — what does a home really cost to own? The answer to this question is a four part answer.

1. Your purchase price plus closing

This is the total price you agree to plus fees, taxes and your mortgage payment. Let’s use $150,000 as a purchase price — with closing costs, your payment with property tax and insurance would be about $990.00 per month for 30 years.

2. Annual taxes if off the reservation

Off the reservation you will pay county and city property taxes, and in some states, a state tax as well. These taxes can be figured into your monthly payment if desired, so you never have to worry about missing a payment. Keep in mind that these taxes are deductible on your income tax at the end of the year, so if you get a return, you are actually getting this money back. These can vary by state, and in South Dakota, you pay very little tax — in most cases, under $1800.00 a year, unless you have a mansion. This is about $151.00 a month for one year. If you are paying this in your mortgage payment, a check will be sent to pay your tax automatically.

3. Home maintenance costs minus any lawn services

On the low end, with a new home you can figure 1% of your purchase price of $1500.00 a year for the first 10 years. After ten years, add an additional 0.5% for every 5 years. This is because as your home ages, more expensive updates will be needed. Keep in mind that some of this will be offset by your tax return. Just be diligent in putting money into your home maintenance account.

This is a lot of money but on average, renters pay more. The average homeowner pays about 3% in taxes and money to savings for repairs, while renters pay an average rent increase of 4.9% and get nothing back in return.

Also, keep in mind any work done on your home for a family member who has a disability is tax deductible. Also, a portion of your mortgage interest is tax deductible, again you get some of it back.

Average cost to replace these in your home:

Water heater: The average lifespan of a water heater is 10 years with minimal maintenance. With labor, parts and mileage, the cost to replace one is about $770.00. Most repairs for a water heater will be under $200.00.

Furnace: On average, a furnace will last about 15 years. For a mobile home, to replace a furnace will cost about $2300.00 with labor.

Toilets: You can figure about $325.00 with labor per toilet. Most toilets can be repaired on your own for less than $30.00. Occasionally you have to replace them if they get cracked, this most often happens while trying to remove toys a child has tried to flush.

Washer and dryer: A new basic set will run about 800.00. A front loader set can run as much as $2000.00.

Refrigerator and freezer:  A basic model will cost about $500.00. A larger unit with ice maker and other options up to $2000.00.

Roof: The average cost for a new shingle roof with a full tear off,  new vents and gutters will run between $2000.00 for a two bedroom home, and $9000.00 for a large home with attached garage. These prices vary by year and location. These are the extreme worst-case scenario prices and only for asphalt shingles.

Keep in mind that maintenance will keep your repairs down and make things last longer.