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Yeah, I'd say that's a big part of it. I've never sat down and figured out exactly what they cost per month- if I did, I'd probably send the little buggers back where they came from
If I had to throw a rough ballpark at it, figure that with two kids, your current food bills would almost double. Add in clothes, as they outgrown them practically every few months, and god forbid that my 4 y/o should wear her sister's hand-me-downs to school....lol. Now, figure on an average of at least one doctors' visit/month/kid, plus a round of antibiotics. Factor in any daycare/aftercare costs if you're both going to work. Set money aside for dance class, drama class (who figured out that a 6 y/o girl needs drama class??? She could teach the class....), guitar/piano/violin lessons, gymnastics, and polo lessons. There's going to be at least one play date and one birthday party a month. Plan on trading in that Accord on a mini-van or SUV unless the kids have no legs (or friends), and forget that new Mustang (I just passed on one, and got a crew-cab pickup instead- dammit!). Put money aside for college (or move to GA where they get a HOPE scholarship to any state school if they get a B-average- had to throw that in.....lol). Then there's the obligatory Hannah Montana concert with t-shirts, swirly light thingees, and $5 popcorn/cotton candies (I did that last night- never again......). See now why I don't want to add it all up- I don't have a vomit bag nearby.....lol.
Now BOb...Nj has the STARS program now...being in the top 20 % of your graduating class...free state college in NJ
Last I heard through my brother (a banker), they wanted prior landlord experience to include any income, to demonstrate that it would actually be income.
Not sure. The last time I looked into it was when I had my house in Las Vegas rented and we applied for a mortgage in NJ. You could be right, given the tighter lending requirements now.
Now BOb...Nj has the STARS program now...being in the top 20 % of your graduating class...free state college in NJ
Where is Ms Snarky aka Tahiti when we need her
Is that something recent? I'd heard something about it, but it sure wasn't available when I needed it....
Tahiti is busy modding now- she's got no time for standard replies.....lol.
ETA- I looked into the STARS program- it looks like it covers up to 5 semesters at an NJ community college, but nothing at say, Rutgers, NJIT, etc.- is that correct?
Last edited by BobKovacs; 11-29-2007 at 03:47 PM..
Is that something recent? I'd heard something about it, but it sure wasn't available when I needed it....
Tahiti is busy modding now- she's got no time for standard replies.....lol.
ETA- I looked into the STARS program- it looks like it covers up to 5 semesters at an NJ community college, but nothing at say, Rutgers, NJIT, etc.- is that correct?
The Stars program applies to county community colleges and it is paid for by the state.
Now with all this talk of how much one can afford, I'd like to pose a question to those of you more experienced in life...(dont mean to hijack a thread, but this is along the same lines I guess...)
I'm young, just started my career, and am in a situation where I have to move out and have 50k to put down on a house or condo, and 10k on the side for other expenses like mortgage fees, furniture, etc. (I am against renting)
I make 40k a year, with my salary on the rise. I started 14 months ago at 30k and have had 3 raises in a year. That probably won't continue, but I'm due my 4th raise in Feb and will probaby end the year making closer to 50k.
I've been looking at condo's but am annoyed at the monthly maintenance fees and not being able to control what is going on there. I also know that I can't afford a decent condo in a nice area. I want to stay as close to Secaucus, NJ as possible and dont want to live in the barrio's of North Bergen, JC, WNY, etc.
So I then had the bright idea of looking into cheaper 2-family houses in Wallington/Kearny/Lodi/Garfield/Lyndhurst/Secaucus/etc. There are listings between 250 and 350.
I figure....if I can get a 2-family, put down almost 20% to avoid the PMI insurance, maybe get on some kind of first-time-home-owner deal....I could actually afford a house in the 300k range. That would be a mortgage of about 240k which would be 6 times my current salary. The income from the monthly rent of 1100-1400 would help pay a large chunk of the mortgage leaving me with paying like 40%.
Would that be wise or should I just stick to a 150k condo in an area that is not the slums, but not great either?
Any opinions?
The 2 family is a risk, but with the risk comes more rewards.
If you find a 300k house and do put 20% down, Monthly mortgage payments: $1,438.92
For now, with interest ($12k per year) and property taxes ($3k, this is probably way way way low even for those towns), your taxable income is going to be more like 25k instead of 40k.
So you are going to owe something like call it $3500 in federal income tax. Plus another $3000 for FICA, you could bring home something like $2600 a month.
That leaves you with 1162 a month for your car, car insurance, gasoline and repairs, gas/electric, water, homeowners, food, and whatever else are your must haves.
It doesn't seem like you could really get by without a tenant, unless you don't have a car payment, then maybe if you are frugal, you could SQUEAK by without a tenant. If you get a tenant, it would seem like you would be reasonably comfortable but don't forget that tenants are NOT easy!!!
I don't know if you would qualify for the loan though...
Wow. That would be something to work for. I cannot understand why more people don't do 2 years at CC and then go on to a 4 year to get your bachelor's. I think at all of our snobby schools this would be frowned upon.
Wow. That would be something to work for. I cannot understand why more people don't do 2 years at CC and then go on to a 4 year to get your bachelor's. I think at all of our snobby schools this would be frowned upon.
That's exactly what I did- I spent two years at Middlesex, and then transfered straight into the 3rd year of the construction management program at NJIT. That particular program was set up to do just that- the first two years of classes were only offered at community colleges. To be honest, I worked harder at Middlesex than I did at NJIT- there may be some "skate" courses/programs there, but the engineering tech program certainly wasn't one of them.
2x income for a typical 300K starter in Northern NJ would mean 150K income. That is Atypically high, even for northern NJ. Note I say uncommon but not rare.
You can run all the hard numbers you want but what people do not factor in is, ***with a family: renting sucks***.
3BR is ***much*** less common. There is a BIG premium for them over 2 BR. You typically move more. Rent increases can be very large lately which often means between rent and the increased health insurance premiums, you lose out most years. You can not modify the rental much to suit your children... etc etc.
BTW I agree with a comment above. How the... er... heck is it I make what most would be considered good income and am yet so freaking strapped? Welcome to NJ.
2x income for a typical 300K starter in Northern NJ would mean 150K income. That is Atypically high, even for northern NJ. Note I say uncommon but not rare.
Sign me,
The depressed renter
2xs income for mortgage, not purchase price. you're expected to have at minimum 10% down. 20% down would be a mortgage of 240K, or 120K income at 2xs.
listen, people can get mortgages for any amount and any multiples of income for all i care. i was simply talking about MY personal comfort zone.
i just have to also say it's not like when i purchased my first house, my husband and i were rolling in the dough, so I don't really buy the "if you got in the market 15 years ago you were ok". we were college graduates working, making slightly above the norm. if i take our salaries from 92, calculate the value of those salaries today -vs- home prices today, we could afford our first home. i think a huge problem today is conspicuous consumption - new cars, expensive clothes, etc (not talking about you personally) and simple lack of savings.
Wow. That would be something to work for. I cannot understand why more people don't do 2 years at CC and then go on to a 4 year to get your bachelor's. I think at all of our snobby schools this would be frowned upon.
it really is a great deal. part of me though wants my kids to have "the college experience" (dorm living, bad food, lol) though, KWIM?
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