What household income is needed for a reasonable life in north chicago land? (Gurnee: real estate, rental homes)

[flo12345]

Hi all,

we'll move to norch Chicago land in summer (from Germany) for roughly 3-4 years in order to build up a know production faciltiy.
The compnay I'm working for wants me to be there at the beginning.
We're a family of four (wife and 2 girls - 10 and 5) and I would really need to know what annual salary is needed to have a reasonable life?
I've already had a look on pricing for rental homes and experianced a range of $1800 - 2000/month as a realistic number (Gurnee, Grayslake, ...).
As you may know, my wife will not be allowed to work in the US, becasue of visa reasons.

I know that everybody has a differnt life style, but I hope for some indication.
My guessing is that we need to purchase two cars. We've planned that the kids will attand a public school.

My question is: What salary/income is needed / anno?

Alll your comments are highly appreciated!

Regards,
Florian

[chet everett]

So many variable...

The good hosts here at City Data do maintain a fair bit of information on "median houshold incomes" but those numbers get a skewed by the fact that folks that owned homes in a town looooong before the run up in real estate prices might be paying only a tiny mortgage if not owning home outright. www.city-data.com/city/Grayslake-Illinois.htm

Depending on how your compensation is structured (few US workers that work in the private sector have defined benefit pension plans and most are expected to contribute a signficant of their income toward healthcare) you might be able live a comfortable life with a household income far below the median.

If you have to furnish all the good you need for a household AND get new cars AND plan for incidental expenses / future needs of your children you might earn far more than the median and STILL feel very constrained.

I would caution that housing costs are, on average higher to rent than own in most desirable suburbs. You may very well havve to DOUBLE the amount you budgeted...

[linicx]

In US the cost to buy -- using rough basic math -- the monthly payment should not be more than 1/4 of your net monthly income.. Thus a montly payment of $2000 without home insurance of real estate tax your income should be $8.000 per month or $96,000 US anno before tax. .

IL real estate taxes are high because it is this tax dollar that supports public schools. Depending upon the area where you live and the transportation available you may only need one car.

As a non-citizen, I do not know what your tax obligation to the state and federal government might be.

[1ceing0ntheCake]

Look at the cost of living index and compare it to your current city. Calculate the difference and account for what you would have to earn to live the same as you do currently.

Chicago has a higher cost of living than average. Closer to city more expensive. I've heard closer to the metra line the more expensive too, but not sure. I found the father out I went I found I could get more house for my money. I've heard northern 'burbs are nice. Didn't look cause too far from new job.

[Hatchetman]

Roughly I would say $100,000. Maybe $80,000 if you are very thrifty.

[Nicol_77]

Originally Posted by linicx

In US the cost to buy -- using rough basic math -- the monthly payment should not be more than 1/4 of your net monthly income.. Thus a montly payment of $2000 without home insurance of real estate tax your income should be $8.000 per month or $96,000 US anno before tax. .

IL real estate taxes are high because it is this tax dollar that supports public schools. Depending upon the area where you live and the transportation available you may only need one car.

As a non-citizen, I do not know what your tax obligation to the state and federal government might be.

So, based on this, how comfortable are we going to be in Arlington Hts with $5,000 monthly net income with around 1,000 in monthly mortgage payments and $5,000 in property tax per year?

We think we will be fine, but as potential first time homeowners not pretty sure what to expect.
The ideal house we want to buy will be single family ranch not more than 1500 sq/ft, so what can we expect to pay for gas and electricity for a house that big/small ?

[Vlajos]

Originally Posted by 1ceing0ntheCake

Look at the cost of living index and compare it to your current city. Calculate the difference and account for what you would have to earn to live the same as you do currently.

Chicago has a higher cost of living than average. Closer to city more expensive. I've heard closer to the metra line the more expensive too, but not sure. I found the father out I went I found I could get more house for my money. I've heard northern 'burbs are nice. Didn't look cause too far from new job.

Most indices I've seen have Chicago COL at about 8% higher than the US average.

[CUBS07]

Originally Posted by Nicol_77

So, based on this, how comfortable are we going to be in Arlington Hts with $5,000 monthly net income with around 1,000 in monthly mortgage payments and $5,000 in property tax per year?

We think we will be fine, but as potential first time homeowners not pretty sure what to expect.
The ideal house we want to buy will be single family ranch not more than 1500 sq/ft, so what can we expect to pay for gas and electricity for a house that big/small ?

This is very do able as long as you're not paying high car payments. My wife and I have been living on 3500 a month for the last 2 yrs (wife stayed home after our first child) in the NW burbs. Mort and taxes comes to around 1600 a month

[Nicol_77]

Originally Posted by CUBS07

This is very do able as long as you're not paying high car payments. My wife and I have been living on 3500 a month for the last 2 yrs (wife stayed home after our first child) in the NW burbs. Mort and taxes comes to around 1600 a month

Well, car payments are prety high.
$400 and $280 respectively.
And as we both work, our child will soon have to go to daycare. That is at least another $1,000 there.

[CUBS07]

It doesn't really matter where you live as long as mortgage is reasonable. 5000 for taxes seem low for Arlington hts. But stores and restaurants aren't going to charge more because of your zipcode. AH is a very nice place to live you are close to everything.