October 23, 2009

Running the numbers

Sat down to go over the numbers in terms of my new condo, as compared to my present living and working situation.

My mortgage, taxes, and condo fees combined add up to $140 less that what I presently pay for my office and to Zippy for rent & utilities. Picking up a Comcast bundle for the new place is about the same as whT I pay for office phones and internet, combined. The only new expense at that point is electricity. Which will be higher than present (since I'm heating with electrics) - but Zippy's bill is around $100 / month - I have to imagine I'll be around $150 a month, on average (lower in summer, higher in winter). So pretty much the new place will be a wash, financially.

Of course, this ignores two tax issues - my office expense and utilities are presently 100% deductible on Schedule C. The new place will be partially deductible (Schedule C, home office) and also partially deductible as homeowner mortgage interest and taxes. Might actually be a bit higher overall deduction, although pulling income out of Schedule C saves FICA and Medicare taxes....and I trade the already pretty decent standard deduction for the mortage deduction - so will have to look for other itemized deductions (health care, donations, etc.) to leverage.

Intangibles will be interesting to watch. I presently eat my lunch out a lot and grab coffee on the go - and I expect that to change significantly. Maybe $50 a week, $200 a month, let's say I cut that in half (probably more). Saves another $100. Groceries will probably be higher (at least until the larder is stocked). Gas a bit higher (further to drive to yoga).

Bottom line - I'm not looking for too much to change, financially, once I am in the new place. Which is a good thing.

1 comment:

Kerri said...

congrats!

I have been back and forth about whether or not I should be blogging about my house-buying. I'm grateful for being able to read about you going through some of the same stuff about the same time.