Pastor Larry wrote:
Pastor Larry said:
I can't imagine a church that won't let the pastor buy his own house if he desires.
I see it all the time, friend.
If the church has to use the house to justify a FT salary package, they're kidding themselves a bit. In terms of real dollar cost, the net to the minister is surprisingly low once you figure in the upkeep, utils, etc. Some areas levy property taxes on residential property owned by churches.
4-8 weeks of salary for property tax? Your tax levies are too high! My annual property tax is about one half of one week's salary for just my income.
I'm glad you're saving to buy a house. At retirement, you'll need substantially more to buy a house than you'll have now because your income could be less and your ratios higher, so you'll need significant liquid just to buy a home.
No church should ever depend on a parsonage sale for operating expenses. Some will use it for campus improvements. Some will use it to retire debt. Some have used it to invest and seed for salary/housing allowance purposes. But some do fritter it away.
I have known churches that did allow a pastor to buy his own home. They then try to go out and use the empty parsonage to lure an associate, youth pastor, etc. 99.9% of the time it never works because churches incorrectly overestimate how much worth the parsonage is in a compensation package. One church had a house literally fall apart because it sat empty too long and was not cared for. Most churches cannot keep a house for occasional activities because it's just too expensive. Two local churches close to my house just found that out. One is in trouble because a family donated a house they wanted rid of...Er....wanted to give to the Kingdom

The house upkeep was too much for the church that sold its parsonage about a decade ago anyway for the same reason, and now that they want to sell or rent the house, the family wants the house back.
Stefan wrote:
I mean that it is preferable to have a housing allowance (no income tax) plus the mortgage interest deduction--the colloquially dubbed "double deduction."
True.
More realistically, if the offer of the parsonage is there, the salary will likely be lower.
I remember seeing a stat that the overwhelming majority of churches w/o parsonages pay more to their pastors than churches with parsonages, including the FRV, etc. figured in as income. And FRV is a high number anyway because that is based on a furnished house, and churches typically don't do this for their pastors. One of the few exceptions where this can be a real financial blessing is if the church picks up the util tab. Still, the net actual benefit is deeply overestimated.
Churches w/parsonages should still let their minister have a housing allowance because he'll have to pay for something (utils, furnishings, etc)and the housing allowance gives him a tax benefit.