Help with Maths for homeowners. Calling Dr.Ed

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Messages 1 - 18 of total 18 in this topic

Flip Flop

climber

Earth Planet, Universe

Topic Author's Original Post - Sep 23, 2016 - 12:04pm PT

There is a rule-of-thumb that i would like to test and explore.

In a traditional loan, a homeowner can expect to pay 1/3 of their premium in maintenance over the course of the loan.

How can I express that on a chart. It would really help communicate projected and deferred maintenance costs. Thanks in advance.

This includes expected replacement costs of the obsolete building systems such as roofing, decks, siding,and mechanical systems.

As an ecologically minded builder I encourage maintenance-free installations when possible. Longevity, like conservation, is the elephant in the room when it comes to resource management. If you're able to maintain your home, you are putting real dollars in your pocket. If you're not then that may be the hole that empties your bucket.
If you have the goals of ageing at home and 'not being a burden' there are some steps you can take. Add an apartment to your home. Refine your living spaces to the principles of Universal Design/ Inclusive Design/ Barrier Free Design.
Example: If you have door knobs, get levers. Especially in the garage and kitchen. Smoke and burned hands is a killer.

jonnyrig

climber

Sep 23, 2016 - 12:17pm PT

You're welcome.

apogee

climber

Technically expert, safe belayer, can lead if easy

Sep 23, 2016 - 12:23pm PT

I like doggies. Kitties are ok, too.

Bunnies must die, though. Don't like bunnies.

Gnome Ofthe Diabase

climber

Out Of Bed

Sep 23, 2016 - 01:07pm PT

Hossenffer

Trad climber

Calgary

Sep 23, 2016 - 03:31pm PT

Wascally Wabbit

zBrown

Ice climber

Sep 23, 2016 - 03:50pm PT

Not sure what you mean by premium.

If you're referring to the amortized cost of the loan then the rule of thumb (derived from?) is going to vary with the interest rate.

Trashman

Trad climber

SLC

Sep 23, 2016 - 04:58pm PT

Example: If you have door knobs, get levers. Especially in the garage and kitchen. Smoke and burned hands is a killer.

Sure, but what about the increased stress of those f*#kers grabbing strap on every pack you ever carry through the house?

e.g. 100 days/year of climbing*15 yrs*strap short ropes on 70% of those events=likely early coronary ;)

perswig

climber

Sep 23, 2016 - 05:12pm PT

I see massive potential for randomness here...

Dale

Lorenzo

Trad climber

Portland Oregon

Sep 23, 2016 - 07:28pm PT

Maths?

Flip Flop is British?

Duh...

Flip Flop

climber

Earth Planet, Universe

Topic Author's Reply - Sep 24, 2016 - 05:43am PT

Yeah, my German GF asked why we build stick houses. She asked"don't kids read the Three Little Pigs?

Concrete isn't proving to last hundreds of years. I like Autoclaved Concrete Blocks but that's not the question. I seek graphic representation to test the hypothesis across time with variable inputs.

(JohnnyRig: Premium plus 1/3P)

Wood timber ( not stick) can be very long lasting but nothing compares to compressed earth.

Randisi

climber

Sep 23, 2016 - 05:30pm PT
Maths?

Flip Flop is British?

My tribute to the tradition of misspelled threads.
What Z Brown said, I think. Does that also translate to 1/3 of your monthly payment , cause that's the way I learned it.

Apologies for the general ignorance. I ain't go to college.

Gnome Ofthe Diabase

climber

Out Of Bed

Dec 30, 2016 - 07:25pm PT

Well shiver my timbers and such
The season being such
Happy New year!
Now the thing that is amazing to me.
As this is the holiday season and I live in stepfordwife ville
The neighbor's had us in. We all have almost identical slab built ,
hole in the center for stairs, raised ranches. Each with 6 rooms and a bath
That opens to the master & the hall, built 1966. When General Electric paid
To bulldoze up the very rugged hillsides, promising very cheap electric 90%
Of the homes were all electric.
My neighbor has done as you say, planned and changed the layout, and then some.
removed walls gone all open space he was going to re-roof and go solar .
but as work mainly contracted for $$$ ya know. Cost more to get the polish on the finish.
They took out all the walls ' up stairs,not floor to ceiling in some cases, so leaving hip walls.
the bathroom, master and a room.
The open floor plan suits the poor mobility that they anticipate. The had the house clad in white 'product' after having had a dark stained cedar.. .( that I wanted . .. . I mean if only !)
The house sits impossibly at a low point after a steep hill not 400 feet from the street.
They pulled the bushes, treached and water proofed between house and slab foundation, then added bluestone
to the trenches and topped that with cut, beveled slabs,providing a small front patio, w/drainage.

Quite the change, and now the town has notified us all of a coming assessment...
The question will be - will he get the tax break he anticipates?
( hoping that a 2bd, 2.5 bath )will be tax differently? I think that I've heard this but it seems that square footage changes would be what warrents a change.

will be

Reilly

Mountain climber

The Other Monrovia- CA

Dec 30, 2016 - 08:46pm PT

Stick built don't last? I guess they didn't get that memo in Strasbourg or Colmar.

Pardon, non est Strasbourg, c'est Riquewihr.

Srbphoto

climber

Kennewick wa

Dec 30, 2016 - 09:16pm PT

[Click to View YouTube Video]

phylp

Trad climber

Upland, CA

Dec 30, 2016 - 09:51pm PT

If by traditional loan, you mean a 30 year fixed rate loan with 5-20 percent down payment on the cost of purchase;

And if by premium, you really mean the principal of the loan, which is the difference between the purchase price and the down payment;

Then the 1/3 number for maintenance over 30 years may be accurate or wildly wrong, depending on where you live and how handy you are.

As a concept, It seems generally not useful.

rgold

Trad climber

Poughkeepsie, NY

Dec 31, 2016 - 07:48am PT

If we let "premium" denote the purchase price and consider the loan to be a 30-year loan, then the 1/3 number emerges from the rule of thumb suggesting budgeting 1% of purchase price per year for maintenance.

Another rule of thumb is to budget $1 per square foot per year.

The following page https://www.thebalance.com/home-maintenance-budget-453820 recommends averaging the two rules of thumb to get a base figure and then adding 10% of that base figure to the yearly budgeted amount for each of the five conditions age, weather, condition, location, single-family vs attached.

It should be obvious that such estimates can bear very little relation to the actual expenditures required, but they do help to give a potential home-buyer a better idea about whether they can afford the home (in the sense that mortgage payments are not going to be their only expense).

It would be easy to make a spreadsheet incorporating all these factors---the user would have decide whether each factor was important enough to trigger an additional 10% or not. The output would be the monthly set-aside for maintenance.

As for "charts," it seems as if the only thing one could do is to make a graph of the set-asides over time, and since in the above system those set-asides are constant each year, the graph will simply be a straight line. Probably the most useful thing for a prospective home-owner would be the calculated yearly maintenance figure expressed as a monthly amount.

Roger Breedlove

climber

Cleveland Heights, Ohio

Dec 31, 2016 - 10:08am PT

In my neck of the woods, the $ per foot or %1 of the price would be short for a couple of reasons. The houses are 100 years old and were built in a grand style: hardwood floors, fancy plaster trim, leaded glass windows, marble floors, marble walled bathrooms. Because its old when you move in, big expenses come sooner, such as new bathrooms, a new roof, or a $10k new furnace. Also the replacement cost of these old houses are about 2 to 2 1/2 times the purchase price, which partly reflects the additional cost of maintaining them. I would guess that the 1$ per square foot is okay on an annual basis plus 15% of the purchase price every 10 years.

As I think about these numbers, the 1% per of cost per year would be close if replacement value is used instead of cost.