Backing out of order

[WhiteWi]

Comments from people who dont live anywhere near the area in question about how relatively expensive a home is arent really relevant.

Obviously. We are just comparing what it cost in our neck of woods or used to cost. My house was 320k when I bought 8 years ago, now it’s 600+. Insane

 

[RC81]

That’s the kicker in all this. 1st time home owner are always caught off guard by property taxes and home owner’s insurance. Here’s some cold water on you, those two costs actually go up every year.… it’s a giant scam if you ask me. =P

Interesting on insurance going up. Logically it makes sense as value increases but I’ve never experienced home insurance increase. Also never filed a claim wonder if that’s the reason.

Property taxes do increase but there is a tax grievance process where we are that mitigates some of that and typically property taxes are deductible. Also not another line item when I’m doing my budget cause it gets covered through escrow. Hopefully that $7k includes the both.

 

[J_nobear21]

Interesting on insurance going up. Logically it makes sense as value increases but I’ve never experienced home insurance increase. Also never filed a claim wonder if that’s the reason.

Property taxes do increase but there is a tax grievance process where we are that mitigates some of that and typically property taxes are deductible. Also not another line item when I’m doing my budget cause it gets covered through escrow. Hopefully that $7k includes the both.

Yep. Our home owner insurance has gone up big time. Cost of material is factor in. The prop insurance on my commercial building in downtown orlando went from 3k-ish to 4800 this past year. It probably comes in waves but this is the reality of our current economy.

 

[WhiteWi]

Interesting on insurance going up. Logically it makes sense as value increases but I’ve never experienced home insurance increase. Also never filed a claim wonder if that’s the reason.

Property taxes do increase but there is a tax grievance process where we are that mitigates some of that and typically property taxes are deductible. Also not another line item when I’m doing my budget cause it gets covered through escrow. Hopefully that $7k includes the both.

Insurance goes up just like a car insurance with or without your claims. They look at the amount of claims in your area and how much they had to pay and then spread it around to all of us.

 

[J_nobear21]

Our flood insurance went from 800 a year to 1100. And let’s be real. Once insurance prices goes up are they going to be nice and lower it the following year? I think not. There hasn’t been a flood in my neighborhood since it was built in 1972.

 

[jjrandorin]

Interesting on insurance going up. Logically it makes sense as value increases but I’ve never experienced home insurance increase. Also never filed a claim wonder if that’s the reason.

Property taxes do increase but there is a tax grievance process where we are that mitigates some of that and typically property taxes are deductible. Also not another line item when I’m doing my budget cause it gets covered through escrow. Hopefully that $7k includes the both.

Its just like car insurance. Their models decide whether to raise it in your area, and how much, by cost of goods and services, cost to replace, how many claims, etc.

You also have to sometimes shop around (just like car insurance), as sometimes an insurance company will "boil the frog" by slowly increasing rates every year, banking on loyalty and the fact its generally a PITA to change escrow accounts etc for home insurance or unbundle it from your other insurance products if you have them all bundled together for discounts.

 

[kelpcar]

Don’t get why you’re cancelling a model Y but holding onto an r1t? Your mortgage in a year will still be 7k. It’ll likely be more with insurance and property taxes increasing yearly. 7k house mortgage is a big no no for me no matter how much i love my wife. I rather offload a tesla than hang onto a 7k mortgage. We all have different priorities. But I sleep well at night knowing I don’t have to kill myself to make a mortgage.

Property taxes in CA cannot increase by more than 2% per year, per prop 13. It is not the problem that it is in other states. ~1.2% of assessed value in :LA is a steep bill, but it's a predictable expense determined by the offer price. Insurance can surge as contractor costs rise, and there are a large number of fires, but it's a tiny bill compared to the other 3 components in PITI. It represents 4% of my monthly housing cost.

To your main question - the answer is obvious. That R1T reservation represents a optional liability 1-3 years down the road. The Y would be an actual liability right now. The deposit for the Rivian is refundable, unlike the $250 Tesla order fee. And at the moment, his R1T price is probably 15-20k less than the current order price. In that time, there is the potential to refinance to a lower rate (depending on where in the 4s this one will be), which could cover that car expense. I reduced my monthly interest payments by $1500 between 2018 and 2021. I wouldn't expect to see sub 3s again, but sub 4s are certainly a possibility.

And while the Y has camp mode, most people don't want it to be their primary residence.