If you love to live in regions where you experience hot sunny weather and a beautiful landscape, then the thought of buying a home in Arizona is one you need to consider. Arizona features a diverse population and has plenty of natural attractions. If you are considering buying a house in Arizona, the cost of living along with the cost of owning a home will be among the first considerations to make. In this post, we look at different factors affecting the cost of living in Arizona. The factors we look at here are important in determining the cost of owning a house in the state of Arizona.
1. The Cost of Transportation
One of the components adding up to the overall cost of living in Arizona relates to transportation. How you choose to move around will have an impact on the cost of living in that region. Consider that for many Americans, the cost of commuting is mostly a necessity and not a choice. To that end, if you choose to use a motor vehicle for your daily commute to work, you need to be ready to pay a high cost of living, compared to how much a person who uses a motorcycle or a bicycle pays as the total daily commuting cost. If you are not big on driving, you can choose to use public transportation options. This will save the cost of transportation significantly.
2. Cost of food
Another important component adding to the cost of living in Arizona is the cost of food. Statistics by the Bureau of Labor Statistics shows that Arizona residents spend an average of 11% of their annual income on food alone. This is compared to the national average, which is approximately 12.6%. However, the cost of food further depends on whether you choose to prepare your own food at home or eat at the restaurants.
3. Utility Bills
Further, the total cost of living depends on how much you are paying as the utility bills. This includes the average cost of electricity bill, the cost of cooking fuel, telephone bills, and other essential utilities.
Data by the U.S. Energy Information Administration shows that the average monthly electricity bill in Arizona is about $128.40, placing the state of Arizona in the sixth position nationally. The high cost of electricity is attributed to the need to use air conditioning equipment.
4. The Tax Rates
In Arizona, the income tax rates range from 2.59% to around 4.54%. This is also dependent on the salary bracket. Ideally, the more money you are earning the more that you will pay in taxation. On a more positive note, the state of Arizona has an average effective positive tax rate of about 0.77%, lower compared to the national average rate.
5. The Cost of Healthcare
We cannot afford to ignore the cost of healthcare, as an important component contributing to the overall cost of living. The cost of healthcare depends on whether one is living with any underlying conditions. To that effect, a person living with conditions that require regular attention or checkups by the medical professionals, the cost of healthcare is high. This is relative to a healthy person.
6. Cost of Owning a Home in Arizona
Now that we have looked at various components contributing to the cost of living in Arizona, we now shift our attention to the cost of housing. Generally, the cost of housing takes a huge percent of one’s income. Different factors determine the average cost of housing. Let us now begin to look at the different aspects affecting the cost of housing in Arizona, or what you may call the cost of owning a home in Arizona.
- The Neighborhood Comps
When it comes to setting the value of a property, the sale price of similar properties in the neighborhood is an important factor to consider. Therefore, if planning to buy a home in Arizona, you will want to consider different neighborhoods, and most importantly looking at the value of a property in those neighborhoods.
When buying a house in Arizona, you want to consider a location that is ideal for you. This can be a location close to your job, family, friends. However, for the property sellers and the real estate appraisers, they want to look at how close the property is to the important amenities like schools, hospitals, and shopping malls. Further, they look at the state of roads connecting the particular neighborhoods to the different amenities and main roads.
- Property Size and the Usable Space
Further, when appraising property to determine the total value, you want to look at the property size, and the available usable space. The bigger the home, the more positively it will impact on the valuation.
We have mentioned the factors that collectively determine the cost of owning a home in Arizona. While the cost of purchasing a home in Arizona may seem high, different Arizona home buying programs can help you attain the dream of owning a home. Talk to a trusted mortgage broker to discover different Arizona homebuying programs.