Costs of Owning a House vs. a Life Plan Community
If you’re on the fence about the costs of Independent Living at Smith Village, it can be helpful to compare it to what you’re spending now. When you add in everything that our community offers, you’ll most likely find the costs of living at home and joining us at Smith Village are comparable — and that’s not even including other advantages of living at Smith Village.
Do you know much you are really spending living at home?
When many people sit down to figure out how much they’re paying monthly to live at home, they tend to focus first on their mortgage payments. Actually, it’s not the mortgage; it’s the other costs of homeownership that really hit you in the pocketbook. Some are unavoidable — taxes and utilities. Some can take your breath away, like replacing a roof or repairing a foundation. Others are seasonal or sneak up on you, such as landscaping or termite treatments.
|Description||Average costs (Yearly)|
|Property taxes (Beverly Chicago)||$5,250|
Property taxes (Morgan Park Chicago)
Seasonal and Regular Maintenance (per year/season)*
|Description||Price Range (Yearly)|
|Furnace inspection and maintenance||$75 – $450|
|Central air inspection & service||$75 – $200|
|If your property has landscaping, average costs for
|Snow removal (4 heavy snowfalls)||$400|
*Sources: homeadvisor.com, fixr.com, manta.com.
Goods / Service Taxes
Don’t forget to factor in Illinois, Cook County and Chicago sales taxes. They add up!
|At 10.25% (most non-restaurant food at 1% &hdash; 6.25%)||$1,400|
Don’t forget quality of life
Since we’re comparing maintaining a house to Smith Village, let’s also add in lifestyle expenses — such as meals, entertainment, fitness programs, continuing education and social activities — that don’t cost extra in our Life Plan Community.
|Description||Average price (Yearly)|
|Internet & Basic Cable||$1,440|
|Fitness (gym, classes, personal trainer)||$1,800|
|Entertainment (meals, performances, etc.)||$2,600 ($50/week)|
*Sources: homeadvisor.com, sofi.com.
You may also need to retrofit your home for safety and accessibility
Of the 25 million homeowners who are 65 years and older today, the Joint Center for Housing Studies estimates that 44%have some need for home accessibility features due to disability or difficulty using parts of the home, such as the kitchen or bathroom. We’ll look at some of those retrofits, which can be very expensive.
Cost of Retrofitting a Home for Accessibility*
All Smith Village residences are designed from the ground up for the needs of older adults. Is your home?
Widen Hallways w/out Structural Changes$1,100
|Project||Average Cost to Install|
|Walk-in Tub or Shower||$5,000|
|Ramp Installation at Entrance||$1,113|
|Widen an Entry Door||$800|
|Stair Lift Installation||$8,000|
* Source: homes.com
Major Maintenance and Repair*
The average homeowner sets aside 1%–4% of their home’s value every year for maintenance and repairs. We’ll use 2% for this scenario, which is $5,000/year. Some examples of common household repairs are:
- Roof Repair / Replacement
- Air Conditioning / Heating
- Window Repair / Replacement
A recent survey found that 88% of homeowners who’ve lived in their homes for more than 10 years had to replace or repair one or more major appliances. We’ll assume $425/year (based on $4,250 amortized over 10 years). These could be any of the following:
- Water Heater
- Sump Pump
Smith Village delivers even more!
With your entrance fee (which is up to 80 percent refundable), you’re guaranteed access to all of our award-winning care services: Assisted Living, Memory Support, Skilled Nursing Care and Rehabilitation. — even if you outspend your assets, our Emilie Fund ensures you will be cared for throughout your life continuum.
For most of our residents, the monthly costs of owning a home and maintaining their lifestyles turned out to be similar to their monthly fees at Smith Village. Of course, you may be spending a bit less now if you’re doing your own housekeeping, repairs and yard work. But is that really how you should be spending your time? It’s time to live the life you’ve earned. You’ll have it all at Smith Village.
Every one of the costs listed above is included in your monthly fee at Smith Village. Other than adding some premium channels to your cable, everything is taken care of. All you have to do is relax and enjoy life.
You can determine your own costs of owning a home with this Home Ownership Calculator.