MD/Gaithersburg/Bethesda area: Is a $130k salary enough?

[DragonFly757]

We made due with 120K but both of us worked and we had to pay for childcare. We were in Germantown and commuted to DC. We didn't live extravagantly at all.

[macroy]

I would assume that would be based on your equity? I was fine living on 80K in Potomac (no kids) - but I also had 75% equity in my TH. I then moved to Howard County and make twice as much (now with kid).. but actually live "less well" as my equity is now less and my mortgage more.

Just for comparison - I was paying ~7K property tax at the time (just over 1% in MC I believe). You can get more tax info at: Maryland State Department of Assessments and Taxation

Originally Posted by ep1234

snip/ .... Also, Montgomery County has the highest property taxes in the nation.

Is that still true? I know I definitely pay a heck of a lot more here in Howard compared to when I was in MC. But that may also not be comparing apples to apples (i.e. HC may add other 'charges' in there).

[itlchick]

I think 130k will be fine. You will go into major "sticker shock" moving to Montgomery County but you'll adjust!

I personally don't mind Bethesda but you have to ... how to I say ... want to live around a certain "type" of person. Some people can't stand the snobby thing.

Rockville is more down to earth.

[sotodog]

It all depends on what your idea of a home is. SF or TH? Sq Ft? How much time are you willing to commute? How much can you put down? Income taxes in MD are pretty high too. My gut says that living in the Montgomery County area with an income of $130k is not doable. It wouldn't be for us. We live in north of Baltimore in Harford County on a little more than $130k with 2 kids (no daycare costs) with a middle class life and it's tight. We bought our home 8 years ago (before the bubble) with 2800 sq ft on 1/5 acre and have since refi'd to 15 yr at 4.25%. Only other debt is HELOC for business at $1,000 per month. This is tight and would never move to the DC suburbs for the same salary that we make now. I would need at least $200k or $250k to even consider a move to DC. Also the traffic is a bear even in the suburbs. I love visiting DC but wouldn't move back because my lifestyle would be severely reduced.

[Ben Key]

Don't buy into the line that Bethesda or Potomac are the only places in Maryland. We live near the University of Maryland and beautiful, older (i.e., all brick) SFHs can be found for around $500k.

[Doorway]

OP are you out there? What do you think of all these suggestions? Are you moving to Md? We want to know how your doing.

[sharonhu]

I'm sure you've made your decision by now but here's my two cents... While it's true that if you want to live by Metro you're likely to pay top dollar and there are plenty of homes in the 1.4 mil range, you can get a very decent sized single family home for under $700K. And I'd pick Bethesda over Rockville anyday, just for convenience, especially to DC. You'll still feel bigtime sticker shock over Arkansas, either way.

[myselfdotcom]

Originally Posted by sotodog

It all depends on what your idea of a home is. SF or TH? Sq Ft? How much time are you willing to commute? How much can you put down? Income taxes in MD are pretty high too. My gut says that living in the Montgomery County area with an income of $130k is not doable. It wouldn't be for us. We live in north of Baltimore in Harford County on a little more than $130k with 2 kids (no daycare costs) with a middle class life and it's tight. We bought our home 8 years ago (before the bubble) with 2800 sq ft on 1/5 acre and have since refi'd to 15 yr at 4.25%. Only other debt is HELOC for business at $1,000 per month. This is tight and would never move to the DC suburbs for the same salary that we make now. I would need at least $200k or $250k to even consider a move to DC. Also the traffic is a bear even in the suburbs. I love visiting DC but wouldn't move back because my lifestyle would be severely reduced.

Completely nuts! I don't buy it for a sec
Either you are living a million dollar home and have a lot other debts - major credit cards, major car payments..$130k/yr in Harford County is tight? You seriously need to reexamine your financial there

[kinkytoes]

Originally Posted by myselfdotcom

Completely nuts! I don't buy it for a sec
Either you are living a million dollar home and have a lot other debts - major credit cards, major car payments..$130k/yr in Harford County is tight? You seriously need to reexamine your financial there

My husband and I make about 140K per year together and we live in an APARTMENT and we have no kids. I don't know how people do it. I have two rental properties, but they pay for themselves. I can't even imagine buying a 500K house. . . On second thought, now that congress has passed that homeowner bailout package, maybe I will. . .

Right now we save $$$ and don't shop, have fun or go out nearly as much as I would like to. . . If we had a 500K house, that would be 5000 a month with taxes and insurance. That's crazy. Can anyone afford that on 130K? The most you can afford with that salary is a house under 300K.

A new house in a place we would like to live for several years costs WAY more than that. We personally can't afford it. I went house shopping with my responsible 295K budget, and I felt like crying at the end because there was nothing I wanted in that price range. I don't want a MC mansion, I just wanted a house with a nice sized yard that was within 30 minutes of work and not too old. . .

On the other hand, if you're renting, that salary probably will allow you to afford an apartment almost anywhere in MD, I would think. Buying a house is definitely another story.

For people living well with purchased houses in really nice areas, how did you do it? Did your parents help you financially? Are you managing to save money? Do you have a lot of credit card debt? Did you buy your property with an ARM? What am I doing wrong?

[myselfdotcom]

Originally Posted by kinkytoes

My husband and I make about 140K per year together and we live in an APARTMENT and we have no kids. I don't know how people do it. I have two rental properties, but they pay for themselves. I can't even imagine buying a 500K house. . . On second thought, now that congress has passed that homeowner bailout package, maybe I will. . .

Right now we save $$$ and don't shop, have fun or go out nearly as much as I would like to. . . If we had a 500K house, that would be 5000 a month with taxes and insurance. That's crazy. Can anyone afford that on 130K? The most you can afford with that salary is a house under 300K.

A new house in a place we would like to live for several years costs WAY more than that. We personally can't afford it. I went house shopping with my responsible 295K budget, and I felt like crying at the end because there was nothing I wanted in that price range. I don't want a MC mansion, I just wanted a house with a nice sized yard that was within 30 minutes of work and not too old. . .

On the other hand, if you're renting, that salary probably will allow you to afford an apartment almost anywhere in MD, I would think. Buying a house is definitely another story.

For people living well with purchased houses in really nice areas, how did you do it? Did your parents help you financially? Are you managing to save money? Do you have a lot of credit card debt? Did you buy your property with an ARM? What am I doing wrong?

Saving up is a definitely a must when come to buying a house regardless if you are buying a $100k home or $500k one.

You said you both making a total of $140k/year..after taxes and such you are looking at around $100k (30% bracket for sake of argument)

Rent = $20k
Utilities-Bills $5000
car payment = $10k

You will have about $65k left over before gas/food/spending/maybe insurance etc. You can easily put away $15k-$20k a year towards home down payment since you guys have no kid yet. Like everyone said before regardless how much you made...it's like a human nature that the more you make the more you spend on crap.

Also I did a quick search on Ziprealty of Bethesda/Getty/Rockville, I found 127 SFH for sale under $300k