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The Cost of Moving to the Suburbs

The suburbs have always seemed like an extremely affordable place to live, especially when you compare the suburbs to city living.

Suburban houses are generally larger and less expensive, and you can usually expect things like gas to be cheaper as well. However, there are a few things that contribute to some hidden costs of moving to the suburbs.

If you are planning on moving to the suburbs, you are more than likely going to be moving into a larger place than your current abode. The median home in a city center is about 1,238 square feet, and in the suburbs, the median home size is 1,540 square feet or more.

Here are a few extra costs that you will need to keep in mind before selling your current home and moving to the suburbs.

HOA Fees

In most suburbs, you will be required to pay a homeowner’s association (HOA) fee every month. This will cover the costs of neighborhood upkeep and amenities such as a pool or a playground.

If there is an HOA, chances are the home price will be higher as well. Houses in a neighborhood that have an HOA typically sell for 4% more than non-HOA neighborhoods.

Bigger Home, Bigger Yard, Bigger Costs

Even if you are moving from the city and have a yard, chances are it isn’t anywhere near as large as one that is in a suburban community. If you are planning on taking care of the yard by yourself, you will need to invest in the proper equipment to do so.

The proper equipment includes a lawnmower, weed whacker, fertilizer, and more items depending on what you are wanting to do. However, if you are not interested in taking care of the yard yourself, you will need to hire someone else to do it for you. This will be a cost you will need to expect to pay every month.

If you are planning on hiring a cleaning service to maintain your home for you, this will also be more expensive in the suburbs. A bigger house means more to clean, so you will have to consider that as well.

Furniture Shopping

When you move to a house that has more space, you are going to need more furniture to fill the space. This could mean a new bedroom suite for a spare room to be used as a guest room, a bigger couch for your living room, or an entire set of furniture for a basement.

Furniture is not cheap, and these expenses can add up quickly. Typically, a homebuyer will spend more than $8,000 on new furniture and decorations within their first two years of living in a new home. Make sure you have this cost accounted for if you need some new things.

Utilities

A larger home comes with larger bills, and that doesn’t just mean a larger house payment. There is more space and an open area that will need to be heated and cooled.

You will also likely have larger appliances that will need more energy to power. You will be using more electricity, water, and gas than you would in a smaller place.

For example, if your monthly electric bill costs you about $100 in the city, you can expect to pay about $120 in the suburbs. This seems like only a $20 difference, but these costs will add up quickly before you know it. That extra $20 a month adds up to $240 a year.

You will also need to remember that you will likely be paying for trash removal in the suburbs. This service can cost you anywhere from $30 to $50 depending on where you live.

Car Payments

When you live in a city, there are means of public transportation that are easily accessible from just about anywhere you would need. In the suburbs, there are way fewer options for public transportation, meaning you will need to own a car if you don’t already.

Owning a car is not a cheap expense. In 2019, the average car payment for a new car was over $550. You will also need to think about the costs associated with owning a car like insurance, maintenance, and gas prices. Speaking of gas prices, this will also make your commute to and from work more expensive.

Natural Disasters

In the suburbs, especially in a house with a basement, flooding is a massive problem that is experienced. If the area you are moving to has a higher number of trees, you can expect to have debris blown into your home, and you face a higher risk of trees falling on your property. It’s also possible for tree roots to break pipes that are underneath the yard.

Property Taxes

Property taxes are a major cost to consider because they can be wildly more expensive than you would think. Look at Chicago for example, the suburbs have rates of about 2% in the suburbs and 1.74% in the city. This is common because the suburbs have larger lot sizes than in the city, so you will have more space to pay for.

Sticking with the Chicago example, the property taxes in some counties of Illinois can range between $6,000 and $7,000 per year, costing more than $500 per month. In some cases, this could even be as much as your mortgage payment.

Property tax is one of the largest costs you will need to pay for your home, so make sure you are aware of how much it is going to cost you.

Conclusion

Living in the suburbs seems like an extremely ideal situation because you get more bang for your buck. You get more house and more yard than you do in the city at a lower price. Hard to pass up on, right? However, you will need to take into consideration all of the extra costs that living in the suburbs comes with.

Chances are, the suburb you are moving to has an HOA fee that needs to be paid every month. You will also need to prepare for higher utilities and transportation costs as well. There is less public transportation, so you will have to have a car, pay for insurance on it, and pay for gas to get to and from work. Check out even more details at the link below:

https://suburbanfinance.com/costs-of-living-in-the-suburbs/

Moving to the suburbs is a great choice if you are wanting to raise a family in a safe, spacious home. As long as you are aware of the costs and you can afford it, absolutely move to the suburbs.

For more great Suburban Finance articles, consider reading these:

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How Much Does It Cost To Replace Car Keys?

I used to lose my car keys fairly regularly. Even more often, I’d lock them inside the car. It was inconvenient, to say the least. But at the time, it wasn’t too expensive. Wondering how much it cost to replace car keys back in the 90’s? It was only a few dollars if I could get someone to take me to the hardware store where they could copy a spare key for me. If I had to get them to make a brand new key, rather than a copy, it was less than $100.

Replacing Lost Car Keys in the 20th Century

I gave copies of my keys to several friends and family members. That way, they could come help me out. If they weren’t available, then I’d have to get a new key made.

I do recall one awful time when I was out of town and had lost my car keys. I needed to call someone out to my car in the middle of nowhere so he could cut me a new key. It was snowing. The guy didn’t seem to know what he was doing. Therefore, the whole thing took hours.

I was sick, and cold, and frustrated. But, in the end, I got my new key and went on my way. Annoying, but simple enough. I don’t remember how much it cost to replace car keys that time but it was less than $100.

It Costs A Lot More to Replace Car Keys Today

Replacing car keys today isn’t as easy as it was back then. Take a look at your car keys and you’ll notice that they don’t look anything like the kind of key that you can just take to the hardware store and get copied. Instead, they are high-tech electronic keys. If you lose one, it could cost you several hundred dollars to replace it.

You don’t just pay to replace the key. You also have to pay for the electronic key fob. Moreover, you have to pay the dealer to reprogram the car so that it accepts the new key. Of course, all of this is designed to make your car convenient. It also makes it safer from theft. But it means that if you lose your keys, you’ll pay a pretty penny to replace them.

How Much to Replace Car Keys Depends on the Car

Back in 2013, Consumer Reports shared that the cost to replace a Toyota Prius key was about $600. That was the most expensive replacement on their list. BMW key replacement was closer to $500 while Lexus was less than $400 at the time. Meanwhile, the cost to replace a key for a 2005 Honda Accord was about $200. So, how much to replace car keys really depends a lot on the car and the type of key it uses.

Edmunds reported these average prices to replace car keys in 2019:

  • Basic transponder key: $160 (plus fob replacement adds another $75)
  • Switchblade keys: $70 (plus fob replacement adds another $75+)
  • All-in-one laser-cut keys: $150 – $250
  • Smart keys (AKA keyless entry remote): $220 – $500+ depending on vehicle

Notably, you can sometimes get a discount on replacement car keys. Work with your dealer to see if they’ll offer a lower price. Consumer Reports notes that you can get huge discounts if you buy replacement keys online. Of course, as with all shopping on the Internet, you buy at your own risk. Read that fine print before trying to save money that way. And remember that you’ll still need to get a locksmith to program the new key, which adds additional costs.

Read More:

How to Save on Your Auto Insurance

auto insurance

Auto insurance companies constantly battle to claim providing the best deals, but only some actually pull through. There are many areas in your life where you can make cuts, and, believe it or not, your auto insurance is one of them.

A year after I graduated college, I had my first taste in shopping around for new auto insurance companies. I felt I was not receiving the promised rewards of my plan at the time, and despite reaching out to my representative, no changes were made. After doing some extensive shopping around, I cancelled my plan and went with a new company. This reduced my monthly payment by roughly $60. Needless to say, I was very happy I took the time to do some research.

Many individuals tend to forget to reevaluate their car insurance. They are so focused on their car and having this investment protected that savings could be easily missed, which is completely understandable. But, when working on improving your personal finances, leave no stone unturned.

Just because you already have a policy does not mean you can’t still shop around. Finding the best quotes is key to auto insurance savings. These insurance quotes from reliable companies will be the primary tool you need to leverage change in what you pay. Keep in mind that the estimates you choose should be from a comparable plan to your existing one.

So, let’s get started and get you the savings you deserve with these quick tips.

Don’t limit yourself

There is no cost to getting an auto insurance quote, so don’t limit yourself to just one. In fact, get as many as you can to really help you evaluate your options and to present these estimates to your current company. Performing a thorough research is the first step in this process, and a really important one. Ask for referrals from friends and family and consider looking on forums for advice on companies to speak with.

Dig deep and know your auto insurance needs

Referrals are great, but you still need to research the company to make sure it is a good fit for you. Know what you need in a policy. What is the companies’ coverage like? What are their policies on accidents, speeding tickets and so on? Do they offer forgiveness plans? Do they primarily work online or are they very personalized in their customer service? Knowing all the background information and fine details are important in your savings journey.

Raise your deductible and have good credit

You may need to raise your deductible in order to lower your premium. As companies begin to run quotes for you, they will also look into your credit score, so just be prepared for that. If you need to improve your credit standing, this recent article published right here on Suburban Finance may help.

Try to stick to online searches

Although agents will generally always be available to speak with you, you may be presented with additional costs to meet and talk with them. Not to mention, this will also take up a lot of your time. Try to do as many online searches as you can without speaking to an agent. Should you need to speak with someone for more details, there are some companies who do have online chats or will offer a complimentary phone call with a representative.

Bring multiple cars together

If you have more than one vehicle, consider placing them all under the same policy. This will bring you even more savings.

Overall, the goal is to weigh out your options to make sure you are getting the best deal for you and your budget. Customer service is huge for me, so when my previous auto insurance carrier failed to look into my issues with me, I decided to move on. If your company is willing to make changes to better suit your needs, they may be the best option you.

Never be afraid to look into things and ask where you can save. The answers are out there; you just have to look for them.

What tips would you add to the list?