How is everyone doing it? (Kinnelon: sales, townhouse, to buy)

[njguy]

I don't know how much longer my Mom and Step Dad (who are retired) will be able to do it.

They just received their new property tax bill today for the 3rd and 4th quarter payments and in essence it went upwards of about $1800.00 more per year here in a town in southeastern Bergen County located in Northern NJ.

[CT Bound]

Originally Posted by JayCT

A family would need to make about $150k per year to afford a $500k home. That is not that difficult for two working professionals in a state with incomes like NJ. Jay

Actually $150k is not enough to buy a $500k home. $500k is half a million dollars!!! When did half a million and a million dollars become chump change? So many people are overextended with their housing costs. I just got back from looking at houses in New Jerey and could not believe the property taxes. A $500k house would have a $15,000 property tax bill - which is another $1250/month! In Califiornia our property taxes are 1.1%.

[Ellwood]

If your children are grown, you've put them through college and they're on their own, two professionals can easily make $200K year and afford a $500K house.

[kort677]

Originally Posted by BobKovacs

Bear in mind that alot of the people who bought those $500k houses can't afford them- they've got interest-only ARM loans that have come due now,
Bob

give it a rest, there won't be too many forclosures in rumson or colts neck, believe or not there are many very successful people who can afford what they have.
Most people who are getting in forclosure troubles are in the lower end of the pool.

another way these people are affording these homes are by trading up to them, the price increases of the past 10 years was wild, my home went up 400%

[INeedAChange]

a better question is why would anyone pay that much to live in a place like the Garbage State

[dataman1]

I'll tell you how I do it. I'm in debt up to my eyeballs....please help me..

That commercial cracked me up, anyone seen that one? The guys is riding
around on a riding lawn mower talking about all that he has etc..it's for refi's or something, and it's true in alot of cases.

But the poster did call it, there are those few who have made good decisions in life and/or had some good luck and they actually can easily afford it and still save some. There are many many very rich developers and many many
poorly built McMansions out there to prove it.

[milliebfit]

Originally Posted by INeedAChange

a better question is why would anyone pay that much to live in a place like the Garbage State

I would not call it a garbage state, but I do wonder why people buy homes and pay these crazy property taxes.

[DodgeViper01]

Originally Posted by BobKovacs

Bear in mind that alot of the people who bought those $500k houses can't afford them- they've got interest-only ARM loans that have come due now, or are coming due shortly, and many of these folks are now facing foreclosure. That's why the mortgage companies have tightened the lending requirements again, and you're starting to see "normal" loans and interest rates again.

For the people who "sorta" can afford them, they spend an excessive percentage of their net incomes on their mortgage payments and property taxes, and have very little money left over for savings, 401k's, or anything else. It's truly a sad state of affairs that many people in this area have put themselves in.

Bob

Could not be said better. Many people now a days are living outside their means especially over the last few years. With the great market people started to stretch themselves and looked at the cheapest way possible to own that large home that was 25% less two years prior. That is the reason that you are seeing so many forclosures and defaults today.

[AnesthesiaMD]

I just want to know where in North Jersey one can get a McMansion for $500,000. At least what SAFE suburb? If you can tell me that, I will move there.

Around here, that gets you a run down, 50 yr old, 3 bedroom cape on a quarter acre.

[kort677]

Originally Posted by eskmd

I just want to know where in North Jersey one can get a McMansion for $500,000. At least what SAFE suburb? If you can tell me that, I will move there.

Around here, that gets you a run down, 50 yr old, 3 bedroom cape on a quarter acre.

what is your definition of a mcmansion? what do you define as north jersey?