Fwd: 20 year total owning costs for buying $400k home - $880,000!!!

[Alfred Roy]

Forwarding to this Forum

---------- Forwarded message ---------
From: Alfred Roy <alin...@gmail.com>
Date: Wed, May 14, 2025 at 9:50 AM
Subject: 20 year total owning costs for buying $400k home - $880,000!!!
To: Jay Moynihan <jay.mo...@oldlymeshores.org>, PAUL YELLEN <pye...@snet.net>
Cc: John Cunningham <john.j.c...@gmail.com>, Dede DeRosa <ddero...@gmail.com>, PAUL GRAML <paul...@comcast.net>

Jay/Paul-

My suggestion is to tighten-up on the proposed cost analysis before the meeting on May 20.  There are huge discrepancies when compared to DEEP's and the other beach's analysis. John has prepared and shared an excellent and professional analysis which must be considered.

Also, if the current estimates will be used on May 20, I strongly urge the WPCA board to:

1. Clearly articulate the differences between "Economically Feasible" (legal term) and "Economically Affordable" (personal circumstances)
2. Vote to approve and completely endorse the analysis, label the analysis as WPCA authorized
3. Present the analysis as an informed, authorized WPCA position
4. Identify logical outcomes and cost exposures if the current estimated costs, extraneous to core capital obligations, will remain included and precipitate a no vote:
1. Replacement costs for failed systems
2. Remediation/replacement costs for known (self-identified) inadequate systems and/or as identified by  Ledge Light
3. Likelihood of increased oversight from DEEP and Ledge Light
4. Costs for routine inspection and pump out (likely to ramp up compliance)
5. Loss of incremental increase in property valuation
6. Legal costs - DEEP, beaches
7. Projected additional costs for delayed construction start 4 years out after litigation
8. Improvements to current stormwater management (BOG due diligence requirement)

In my personal view, the currently proposed "project" cost analysis is highly suspect and intended to drive a no vote.

Here's a simplistic and completely wild guess (yet conservative) scenario using criteria similar to the current project cost estimate.

Let's say a young couple is ready to buy a modest home costing $400k and is able to scrape up $100K in savings and family support.

So, the $300k mortgage payment at current rates could be:  $2,000/month 

Add in taxes and insurance in escrow: $1,200/month

Total annual obligation (P&I, Taxes, Insurance): $38,400

The couple is happy that this fits their budget!

Then, they meet this guy who says, whoa, you can't afford this!

• you need to include utilities, a rainy day fund for repairs/replacements, and a fund for future renovations
• utilities (average monthly for electricity, heat/AC, water/sewer):  ($120, $200, $50) = $370/month or $4,400/year
• rainy day fund:  $50/month or $600/year
• future renovations: $50/month or $600/year

So, according to this guy's analysis this house will actually cost $880,000 over twenty years!  You can't afford this!

So, under his advice, they stay in their $2,500/month apartment with $400/month average utilities and insurance costs.