Should I move from MO? Should I Buy or Rent? (Somerset: mortgage, hoa)

[indecisive]

Current Scenario:
Live in O'fallon MO
New 2500 sf house cost $200k to build, 1 mile to all major shopping/entertainment
Property tax is just $2800
HOA is just $12/month
Utility just $190/month
Salary $100k

Contemplating an intra-company move to work in Peapack with a $20k pay raise, $60k cost of living bonus (one time) and enhanced potential for carrer growth.

But with all the negatives I see on NJ - with taxes and more taxes and corruption - should I even leave my boring job, peaceful life, very affordable & safe surroundings for NJ? I fear that I would lose money by owning and would lose my quality of life by renting.

What do you guys think?

[juliann1977]

Honestly, if you're happy there, you should probably stay. Your salary is certainly good, but money just doesn't go as far here.

That said, if your career growth will be limited by staying, then that's something to consider...

Now is a good time to buy here though.

[BobKovacs]

The extra $20k/month would equate to $1600/month gross, or probably $1200/month net. The same 2500 SF house in any area within a reasonable commute to Peapack will cost you over $500k, and your taxes would likely be $8k/year or more. Even if you put the whole $60k bonus down on a house, the increase in property tax would take up 1/2 of your raise, and the higher mortgage would consume the other 1/2 plus an extra $600 or so from your current salary.

Unless there's something you really can't stand about MO, and unless you can spend a good couple of weeks here in NJ to really evaluate what you're getting into, I'd stay where you are. People are bailing out of here left and right for a reason.

Bob

[tahiti]

this is ultimately a very personal decision. if your sole motivation in life is a low COL, then don't move. if I were in your situation but asked to move to MO with a 20K pay cut (making $120K and going to $100K) , I wouldn't do it despite the cheap housing. if you feel this is a good stepping stone for your career and wish to "rise through" the ranks so to speak (I'm assuming your oppy is with Pfizer) and Peapack is the place to be for that to happen, then it might be a good thing. you have to find your own motivation and take it from there.

eta - there are very safe and peaceful areas in NJ, and Peapack is an excellent location if that's what you're after. outside the very urban areas, crime is generally not a problem AT ALL.

[mike0421]

Originally Posted by indecisive

Current Scenario:
Live in O'fallon MO
New 2500 sf house cost $200k to build, 1 mile to all major shopping/entertainment
Property tax is just $2800
HOA is just $12/month
Utility just $190/month
Salary $100k

Contemplating an intra-company move to work in Peapack with a $20k pay raise, $60k cost of living bonus (one time) and enhanced potential for carrer growth.

But with all the negatives I see on NJ - with taxes and more taxes and corruption - should I even leave my boring job, peaceful life, very affordable & safe surroundings for NJ? I fear that I would lose money by owning and would lose my quality of life by renting.

What do you guys think?

In a word: no. I think most people prefer to stay where they are, due to familiarity and culture. The ones that don't leave. If you are more comfortable in O'Fallon, you should stay, because you are entering into another universe when you get to Somerset County NJ. Like the past poster said, people are leaving for a reason. The quality of life in NJ is great if you are super-rich, but in midwestern states especially, there seems to be a more vibrant middle class. NJ has a shrinking middle class. I would stay put.

[MPBsr]

Originally Posted by indecisive

Current Scenario:
Live in O'fallon MO
New 2500 sf house cost $200k to build, 1 mile to all major shopping/entertainment
Property tax is just $2800
HOA is just $12/month
Utility just $190/month
Salary $100k

Contemplating an intra-company move to work in Peapack with a $20k pay raise, $60k cost of living bonus (one time) and enhanced potential for carrer growth.

But with all the negatives I see on NJ - with taxes and more taxes and corruption - should I even leave my boring job, peaceful life, very affordable & safe surroundings for NJ? I fear that I would lose money by owning and would lose my quality of life by renting.

What do you guys think?

I would say $$$ wise, stay in MO.

[indecisive]

wow, lots of good feedback! It seems that buying is not advisable, esp as I consider this as a 3 year venture - long enough to jump rank a couple of times - then look around for possible opportunities elsewhere. If I stay here in MO, though it is my comfort zone, I'll be doing the same thing 5 years from now.

That said, are there any good rental properties in good school districts? I figure if I can use my bonus to pay rent for a couple of years i'd come out ahead. What does a nice 3 bed room apartment go for (garage, pool, fitness etc)? We have lived in apartments here for 3 years so its not a huge deal.
Thanks all!

btw, the only motivation for leaving is career growth. My family is willing to sacrifice our comfort zone for 3 years in expectations of future returns - $wise and career growth wise. This is the 3rd offer I have recieved to move up the chain in 12 months and I feel it would be stupid not to accept - esp. with all the lay offs going on ...

[tahiti]

Originally Posted by indecisive

wow, lots of good feedback! It seems that buying is not advisable, esp as I consider this as a 3 year venture - long enough to jump rank a couple of times - then look around for possible opportunities elsewhere. If I stay here in MO, though it is my comfort zone, I'll be doing the same thing 5 years from now.

That said, are there any good rental properties in good school districts? I figure if I can use my bonus to pay rent for a couple of years i'd come out ahead. What does a nice 3 bed room apartment go for (garage, pool, fitness etc)? We have lived in apartments here for 3 years so its not a huge deal.
Thanks all!

btw, the only motivation for leaving is career growth. My family is willing to sacrifice our comfort zone for 3 years in expectations of future returns - $wise and career growth wise. This is the 3rd offer I have recieved to move up the chain in 12 months and I feel it would be stupid not to accept - esp. with all the lay offs going on ...

Look no further than THE HILLS in Bedminster. Condo/townhouse complex, great area, 5-10 min from Peapack, pool, clubhouse, etc. You'd be renting from an owner. Wealthy area, great schools, convenient location. If you sign a 3 yr lease you could probably get a good deal, but look at somewhere around $2200/mo. ETA I lived there with my then 2 year old boys, crime is not a concern, it's quiet and very well kept. Lots of professionals living there.

I have seen some for rent signs on houses in Peapack on Main Street also.

If you want to stay close by, you'll probably have to do a private rental as opposed to an apartment complex, since that area is oozing with $$$, there are no complexes to be found, lol.

[juliann1977]

btw, the only motivation for leaving is career growth. My family is willing to sacrifice our comfort zone for 3 years in expectations of future returns - $wise and career growth wise. This is the 3rd offer I have recieved to move up the chain in 12 months and I feel it would be stupid not to accept - esp. with all the lay offs going on ...

It sounds like you want to do this. The advice you've been given is very accurate regarding NJ, and as long as you go in knowing all the potential costs associated with living here, you should be fine. If you view living here as temporary, then certainly renting would be the way to go.

It just would have been a shame if you, or anyone moving here, thought your salary would go anywhere near as far as it does in the Midwest.

[indecisive]

Thanks again for the input. I'll look into THE HILLS.

In some ways I want to do this. I hope to take the experience I gain and move somewhere more affordable - maybe back to MO. As long as my disposable income doesnt go down from its current level we should be ok. This is just a calculated career move. Kids are young 2 and 5, so I figure now is the time to do it.

Looks like renting is the way to go for now.