Hey everyone, it’s your friend Kyle Winn. If you’re thinking about moving to Canyon Lake but you’re not sure how much it will really cost to live here, you’re in the right place because I’m going to break it down for you in this video.
Any questions? Reach out to me directly by email at Kyle@SoldByKyleWinn.com or by call or text at 951-852-9980.
Over the past couple years we’ve seen home values jump up quite a bit, and now with all this talk about higher interest rates and inflation people are becoming more aware of their budget and cost of living. So with all this appreciation in home values in recent years, plus the higher interest rates, the cost of owning a home has increased. So in this video I’m going to tell you how much it costs to own a home in Canyon Lake based on sales that have occurred in the last few months. Let’s dive right in.
Over the last few months the value of homes sold here in Canyon Lake ranged from about $500,000 up to about $1.5 million dollars. And quick little side note, that’s one thing that is so unique about Canyon Lake is the variety of custom built homes, many of which are waterfront with their own private boat dock. Anyways we’ll use the average sale price over the last few months of $800,000, which would get you 4 bedrooms, 3 bathrooms and about 2600 square feet..
So what does it cost to own a home in Canyon Lake that you buy for $800,000?
First we’ll talk about your mortgage payment. So let’s say you’ve saved up to make a 20% down payment, and you obtain a 30 year mortgage for $640,000. If we assume your interest rate is 6%, then your monthly payment of just principal and interest, will be about $3840.
Now keep in mind the type of loan you obtain, your interest rate, and other variables may depend on your income, profession, down payment and credit score, and more. To learn more about loan programs and mortgage payments I made other videos about that so be sure to check those out on my YouTube channel.
Then of course you’ll have homeowner’s insurance as well. Now for this example we’re talking about a house that’s 2600 square feet and cost $800,000, so a decent home owner’s insurance policy may run you somewhere around $2000 per year, so let’s call that $160 per month.
Now we can’t forget about your property taxes. Canyon Lake actually has one of the lower property tax rates in the area at about 1.05% of the value of the home per year, plus a special assessment of about $665 dollars. So for this $800,000 house the property taxes might be a little over $9000 per year, so we’ll call that $750 per month.
The last major consideration are the Canyon Lake Property Owners Association dues. This is actually an annual assessment, and many people like myself choose to pay it monthly, and I can tell you that mine is on auto pay and they get $308 per month from me. But honestly I’m happy to pay that considering all the amenities we get here in Canyon Lake, including the actual lake where we can go boating, fishing, wakeboarding, kayaking, paddle boarding, swimming and all that fun stuff! Now the only extras you’ll have to pay for that I can really think of at the moment are your boat registration, the campground, golfing, boarding a horse at the equestrian center, and dining at the lodge or country club. Unless I missed something, all the rest of the amenities are included.
So let’s add up the total monthly cost of a $800,000 house with 20% down, so with a mortgage of $640,000 and a 6% interest rate.
$3840 per month for the mortgage.
$160 per month for homeowner’s insurance
$750 per month for property taxes
$308 per month for HOA dues
Therefore, your monthly cost of owning this house will be $5058 per month.
Now please keep in mind that this is just an example and I guarantee you that your individual scenario will be different, but this should give you an idea of what it costs to own a house in Canyon Lake here at the beginning of 2023. Remember this example was for an $800,000 house, but at the moment home values tend to range from about $500,000 to over $1.5 million so there are options for a wide range of budgets. Of course you can reduce your monthly payment by utilizing the right loan program and by making a larger down payment. Also, when you own a home, be sure to talk to your CPA or financial expert so they can help you take advantage of the tax incentives of owning a home, which will save you more money. Well I hope you found this video helpful, but if you have any questions drop them in the comments below, or just call, text or email me any time.