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Cost Of Living Based On Real Estate Pricing
There is so much more involved in calculating your cost of living than just how much you're your mortgage payment, taxes and utilities will cost.Depending on what type of lifestyle you prefer or proximity to your work, the city may look better than the suburbs or vice versa. But bear in mind that the cost of living in a city is much higher than in the suburbs.
First, you need to understand what cost of living is and what is included calculating it. It is simply the cost of maintaining a certain standard of living. Obvious things are renting or paying for a residence along with maintaining it, food, utilities, health, transportation, including fuel, insurance and maintenance. Don't forget to include clothing, cost of commuting and tax rates.
If you choose to live in the city, often you trade convenience and a shorter commute for higher tax rates. Suburbanites may take their garbage or have pick-up service that cost very little or is included in homeowner association dues. While in the city, trash services are provided, but the tax rate will be much higher to cover the service.
Beyond taxes and amenities, one important and potentially expensive factor is commuting and the cost of owning a vehicle. It may be worth it to some to live in the city, ditch the car and use public transport. That is if the public transport system is more affordable than paying for the car, buying gas, and paying the insurance and taxes. A big chunk of the money that you think you've saved moving to the suburbs can be taken by the cost and time of a long commute.
Cost of living, luckily, is easy to research with online tools and articles. Just a little time on the internet or talking to a real estate professional can save you a lot of time and money in the long run.
Use a mortgage calculator to figure out the different mortgage payments for a home in a city VS a home in the suburbs. The calculator will show you the monthly payment is much high in the city because the home is worth more. If you can afford it then of course you should do it if that's where you want to live. However, if you just want to pay a lower mortgage payment you should think about living in the suburbs.
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