Tuesday, February 21, 2012 at 8:14PM Moving to Key West I - The Savings
No pix - just words today.
When we did our due diligence on KW, we realized life would be fundamentally different down heah. There are significant savings involved with living at the end of the line, including, but not limited to:
1) Income Tax. Florida has none; where we used to live there was a 3.9% levy on every dollar we made. 3.9% may not seem like much, but that's two years worth of pay raises in the brave new world we live in.
2) Heating bills. With the exception of the occasional cold front (typically counted on one hand with fingers left over), there are none. I had $500 heating bills up north; they have pretty much gone away.
3) Fuel expense. With gas at $3.00 a gallon, we were spending $300/month on fuel for our cars. In Key West, fuel economy is measured in months per tank of fuel - we're averaging one month per tank these days, up from three months per tank. On a 2X4 island, it's possible to walk/bike most everywhere one needs to go, resulting in a 90% reduction in fuel expense.
4) Property Taxes. They're a fraction of their Midwest equivalent; I pay 60% on double the value.
When we analyzed this over four years ago, the resultant savings was equivalent to a $20,000/year raise. No, you don't live like you do on the mainland, but...you don't miss it, either.
There are incremental savings on things like boots, gloves, hats, coats, snowblowers, etc, but that's just the icing on the cake. After four years here, I can tell you this - we're never going back.
Reader Comments (9)
Thanks for your due diligence info. With the exception of housing, all other expenses relevant to me are in line with my Dallas life. Although property values are higher in KW, the prop tax rate is only 1/3! I've read posts that cited high water and electric rates, but discovered that those too are less than in Big D. I haven't researched car insurance yet, but I expect it to be much lower; your thoughts? Via careful planning and simple living I was able to ensure that my housing expense will be limited to HOA dues and prop taxes; everything else is variable and controllable. Fear is the only thing preventing me from pulling the trigger now rather than in December, but each day I wonder if the Universe is saying "Do it!"
Sounds so inviting especially as I watch the snow come down! Rent in Livingston is $900/month minimum, rent in Bozeman is over $1200/month and in Helena where I live and work it's over $1000/month, so the $1100/month rent in KW seems reasonable. I'm saving my money so I can move to your paradise. .
I don't mean to be a killjoy, but could you now give us an estimate of what it
costs to fully insure a home compariable to yours against hurricanes, wind,
flooding, etc.
I was wondering about the hurricane and flood insurance as well. Also, what about air conditioning? I'm sure even the hardiest people in Key West need a little AC in the heart of summer. Does extra AC cancel out the savings of not using heat? Are garbage and recycling pick up provided via municipal services and included in taxes or do you have to hire private companies?
Just a few things that came to my mind. In no way I am trying to criticize your post.
Love your blog, keep up the great work!
Chuck,
Where are you? Come back and post!!!
Ditto Cave's comment!
Hope everything is ok with Chuck and he is just busy with the new business! But, we sure do miss his posts here!!
All -
I'm back. Sorry for the hiatus; it is a story of sorts, involving karma, circumstance and a swinger's cruise. Yes, you read that right; fodder for a post later.
As for insurance -
if one rents - not an issue. If one owns - then you do what just about everyone who owns their house outright does - you look at cost/benefit and go sans insurance. The level of reimbursement vs actual cost is insane, even though our little house has been flood free and damage-free (save for a broken windopane or two) in recorded history. Since it's been here since 1899 and has had only one insurance claim, this is a pretty damned good track record. To have to pay nearly 10% of allowable claim cost anually is crazy.
If you're going to live here - rent. Nothing ventured, nothing lost. Yes, we own our home, but we could afford to - although if I had to do it all over again, I'd rent. Living here is not about what you have - it's about the expericence, and owning stuff just ties you down.
If that sounds alien, then consider the mainland as a viable place to live.
I'm not going back.
Found you thru Key West Diary- looking forward to reading your posts