What does it mean to be house poor?

Dated: March 9 2022

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What does it mean to be house poor? The HR Team discusses what it means and how we may be able to help if you have more questions. Don't be house poor! Plan ahead for the biggest purchase of your life!

If you don't want to read this post, you can always go straight to the YouTube Video Here

House poor can mean many different things.

A definition From rocket mortgage When someone is house poor, it means that an individual is spending a large portion of their total monthly income on homeownership expenses such as monthly mortgage payments, property taxes, maintenance, utilities and insurance. This excess spending is making it difficult or impossible for them to achieve their other financial or personal goals. You may be making your house payment and paying for life’s necessities, but there’s not much left over at the end of the month.

For some that may mean 20% of total income or more.  30% is a number that is often found in this discussion. 

Things that you should consider other than mortgage payment. 

1. What are the utility costs?

2. Do I need any new equipment?  Lawn mower, tractor, snow plow etc. 

3. Do I need new furniture? 

4.  I just built a home, now I need gutters and window shades. This adds up in new constructions. 

5. Painting new colors?  Average cost to paint an interior of a home can range in the lower 1,000's of dollars.

6. Replacing carpet?  This could also be a few thousand dollars for an average sized home. 

7. Keeping up with the Jones'-  Avoid this at all costs!   Just because you moved, does not mean you need to buy a new car too. 

The HR Team with Edina Realty are leading real estate agents in the surrounding area of Buffalo MN. Serving the west metro area of Minneapolis, The HR Team prides themselves on using the latest technology, impeccable service to all their clients, and a down to earth experience for their buying and selling clients. The HR Team, formerly known as Hoekstra & Reiss has extensive knowledge about the buying and selling process. Former (now retired) Team leader Al Hoesktra started his career in 1983 and has sold 1000’s of homes throughout his career. The HR Team founded in 2013 is partnered with Edina Realty and is consistently the top producing agent in Buffalo MN. 1000’s of clients have entrusted the HR Team with the sale and purchases of their real estate. Specializing in residential real estate in Buffalo MN and surrounding areas, lake shore properties, single family homes, condos, townhomes, vacant land, and light commercial sales. If you are searching for your real estate agent visit www.WorkWithHRTeam.com and get started today. Work with Tyler Reiss : Work with Erik Olson Work with Jeremy Welter Work with Tom Olson Service areas: Homes for Sale in Buffalo mn Monticello Homes for Sale

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Tyler Reiss

Tyler Reiss is the team lead at the HR Team since 2016. Previously the Hoekstra & Reiss team, the HR team has added top service agents that have elevated the team to be the #1 agents in Buffalo, M....

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