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So, I am 32, born and raised in Ronkonkoma earning $45,000/yr and after 5 years of renting apartments I have come to the realization years ago I will not be able to afford to purchase a home here. I am out as of November 2010. Any other Generation Xers in the same boat as me?
A decent apartment on Long Island is now in the >$1500 range. How can anyone save for a down payment on a decent home with prices like we are seeing? I figure with my salary of $45,000 with 30% going to taxes gives me $31,500/yr take-home or about $2,625/mo.
$2,625(pay)-$1,500(rent)=$1,125.
Average first home L.I. home price: $300,000
Down payment (20%): $60,000
So if I was to not eat, not pay gas, not purchase utilities, etc. I can save $1,125/mo.
Year to accumulate down payment with savings: 4.4 years
That would be the best case scenario. We all know one must eat, pay car loan, student loan, buy clothes, etc. So that number drastically increases. So what is everyone else doing? What will happen to L.I. after we all leave as prices continue to escalate?
Yes, yes, yes, and yes. All have significantly lower COL. Between inflated home prices and high property taxes we have the perfect storm of problems.
With lower cost of living, comes lower annual salaries. Take a flight out to Phoenix or Tucson, unless you are a skilled engineer or have some desirable skills, chances are you will not make anything close to what you are making now. Don't forget, those states also have super high unemployment - much higher than NYS, CT or NJ. Also, with lower taxes, come less government provided services. You will have to drive 20 miles for a gallon of milk, there is no nightlife, everything is dead after 8:30 pm - except in Vegas or the Mojave (then the bats come alive along with the snakes).
20 miles for a gallon of milk, there is no nightlife, everything is dead after 8:30 pm - except in Vegas or the Mojave (then the bats come alive along with the snakes).
Having been to Phoenix, NC, and FL I think this is a bit overdramatic.
Having been to Phoenix, NC, and FL I think this is a bit overdramatic.
20 miles for a gallon of milk? Ummm....OK.
That was my thought as well...even down here in Birmingham, Alabama I can get milk from 5 different places all within 3-4 miles of my house!
I moved from LI 16 years ago for my career, with the intent of returning someday. Last year, I finally made a full concerted effort to return. After weighing all the pros and cons, it just wasn't financially feasible. I would have traded my 3500 sq. ft all brick house with annual property taxes of $2800, and the national Blue Ribbon School that my kids attend for a 2000 sq ft house with property taxes 3-4x as much.
Before I get flamed, don't get me wrong, I love and miss LI, especially the cuisine, pro sports, and the joys of the north shore, but wouldn't be able to really enjoy many of those things simply because we wouldn't be able to afford them. Agreed, there's not much "going on" after 8:30pm here, but I'd rather be at home with my family anyway at that time (besides, when I return to LI for vacation during the holidays and summer, there isn't exactly much going on up there either on the island that those of us past the age of 30 would care to do).
So in response to the OP, I agree 100% with you. If I could enjoy a decent quality of life and not stress about finances, I'd be back in a heartbeat. It is a shame that it is so difficult for younger couples to stay there.
So, I am 32, born and raised in Ronkonkoma earning $45,000/yr and after 5 years of renting apartments I have come to the realization years ago I will not be able to afford to purchase a home here. I am out as of November 2010. Any other Generation Xers in the same boat as me?
A decent apartment on Long Island is now in the >$1500 range. How can anyone save for a down payment on a decent home with prices like we are seeing? I figure with my salary of $45,000 with 30% going to taxes gives me $31,500/yr take-home or about $2,625/mo.
$2,625(pay)-$1,500(rent)=$1,125.
Average first home L.I. home price: $300,000
Down payment (20%): $60,000
So if I was to not eat, not pay gas, not purchase utilities, etc. I can save $1,125/mo.
Year to accumulate down payment with savings: 4.4 years
That would be the best case scenario. We all know one must eat, pay car loan, student loan, buy clothes, etc. So that number drastically increases. So what is everyone else doing? What will happen to L.I. after we all leave as prices continue to escalate?
Rant over.
Whatever you do, don't move to a place just because it's cheap. Move to a place that you love, that happens to be cheap.
You could not pay me to live in that desert hell-hole of Arizona. But if you like it out there, go for it. Houses are on sale at 60% off their 2006 prices. You could probably pick up a condo for 50K. You could live OK on a 30K salary.
If you are single and making $45k, it is going to take a long time to get into a house. You'll have to start "small" with a starter home. If you are married and have a second income, the possibilities are better. I was personally lucky to get a good job out of college and my salary increased pretty quickly, plus my wife was doing fairly well too. So we were able to get a decent house - not my dream house by any means, but it's not too shabby either. If there was nothing holding me to Long Island, I'd move in a heartbeat. We have seen a number of friends move away and they have purchased magnificent homes for about 300k and their takes are 4k or less. Very frustrating living here...
With lower cost of living, comes lower annual salaries. Take a flight out to Phoenix or Tucson, unless you are a skilled engineer or have some desirable skills, chances are you will not make anything close to what you are making now. Don't forget, those states also have super high unemployment - much higher than NYS, CT or NJ. Also, with lower taxes, come less government provided services. You will have to drive 20 miles for a gallon of milk, there is no nightlife, everything is dead after 8:30 pm - except in Vegas or the Mojave (then the bats come alive along with the snakes).
Yep, there are usually lower salaries but the lower taxes and costs more then make up for it in more areas. LI has an extremely low value-per-dollar.
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