Cost of Living

It’s out of control. Almost every day I’m hearing statistics about how much more we are paying for groceries, utilities, and insurance than we were even a few years ago. Inflation. I won’t get into the political side of things, but I will just say, this is what happens when the government gives away money that it doesn’t really have to begin with. I don’t know who in our history ever decided that was a good idea, but honestly it needs to stop. Our country needs to learn to live on a budget just like you and I need to live on a budget in order to be wise and healthy financial consumers.

Anyway, I digress. Back to the cost of living. It’s out of control. Real estate prices are insane and add in the crazy high interest rates right now, homeownership can seem pretty unaffordable to many.

A year ago, my ex-husband and I decided to buy property together and convert the daylight basement to a separate apartment. That way the kids could see more of each of us, not have to split their time, and not have to pack up and go back and forth. 

It has worked out great so far, and one of the huge benefits for our family is the cost savings. I had outgrown my two bedroom townhouse a few years ago, and had originally rented an apartment in Gladstone to position myself to be able to purchase another property while still keeping my townhouse as a rental. 

This is what I was looking at being able to purchase on my own in Oregon City.

These are the townhouse being built on Holmes, right next to Gardiner. I think they are starting around $450,000, + HOA Dues. I would have been looking at a P & I mortgage payment (principal and interest) of about $3300 per month. That doesn’t include property taxes, insurance, or the dreaded HOA dues. Add those in and the payment would have been over $4k easily.

(Since writing this post, I’ve heard rumors that the townhouses I referred to above have now been pulled off the market and are being rented instead. This makes me sad to hear, but not nearly as sad and disappointed as I would have been if I was planning to buy one and now the option had been taken away in leu of more rentals. When we talk about “affordable housing” I think that should include homes to purchase, not just rentals.)

The home I split with my ex-husband cost $760,000, so by splitting it we each spent $380,000. Either of us would have been hard pressed to find something livable at that price point, let alone property with almost 5 acres.

By splitting the mortgage, my 1/2 of the payment (which includes taxes and insurance) is about $2700 per month. We have a well, so no water bill. We split the electric and gas and I definitely spend a lot less than I would be if I was paying the whole electric bill at a 3 bedroom townhouse.

Additional cost savings comes from not having to drive kids back and forth, not having to furnish bedrooms for them at two separate houses, we even split the cost of housecleaning and what I pay for my half, I couldn’t find someone to drive out and clean for that price, so I would be paying more for that living on my own also.

I have a garage that my car fits in (most townhouse garages won’t fit a large SUV,) lots of room for storage, chickens for eggs, a big back yard for the kids to play in, trampoline, hot tub. 

Yes, I do have to share some of those things with the ex-husband but the trade off is worth it. For the kids, and for our finances, it really is a win/win.

So I guess I just want to encourage you to get creative if homeownership is a goal of yours. I have done some pretty creative and practical things with real estate investing to get where I am today (about $600,000 in real estate equity - not counting my dad’s Airbnb property in North Idaho) and I would love to share that knowledge and experience with you.

I offer virtual tax consultations and advisory sessions via Zoom through my business that you can self-schedule online. We can talk about all the advantages of owning real estate, including the tax savings and income potential.

https://www.caslerfinancial.com/scheduling

I believe that everyone can find a way to home ownership if that is their hearts desire. If you are home shopping, thinking of selling, or just have questions, the realtor we bought this home from is an excellent resource here in the local community and would love the opportunity to help you achieve your homeownership dreams. She specializes in small hobby farms like ours but has a team of people that can help you find the perfect property for YOU, and walk beside you in all stages of the home buying journey.

Stephanie Peck
🏡Your Real Estate Specialist
PEX Realty Group
eXp Realty
503-343-4100
www.PEXRealtyGroup.com
Do you have a fun or interesting story of how you creatively achieved homeownership? I would love to hear about it in the comments!