Renting and budgeting (Arlington, Alexandria, Herndon: apartment, rental market, condos)

[joiseygirl732]

Given the housing/rental market in NoVA, cost of living in Arlington, Fairfax, and Alexandria, rent costs are going to be a real factor in what I negotiate as far as salary. For my next job, I want to ensure that I make enough to live comfortably in a one-bedrooom apartment in a decent area and secured building. Some areas I've been looking at are Falls Church and South Arlington. I'm currently in Ballston living with a roommate and paying over 1300/month in a 2br high rise with flat-rate utilities and underground parking. I'm not an entry-level professional, and I've been working in the area for almost 4 years.

Can anyone with experience living in high-rent areas provide some example budgets of what you think is reasonable for living? When I research craigslist, its really discouraging and makes me want to stay put in my roommate situation (even though i'm not happy with it).

Of course, I could move 15 miles west and deal with traffic and fuel prices...but it seems that would just offset whatever I might be saving in rent.

What insight/tips would you provide for someone deciding where they're going to live and how they can afford to live there?

[CaliTerp07]

4 years of work puts you at 25-27 years old. That's generally still roommate range in this area. Or, you get married and have a built in roommate.

(I'm in your same age bracket and work experience level, and all my friends still have roommates.)

I would look at what you're spending now, and calculate the cost of going solo. You already know what rent would be in the areas you're looking at. What else would increase though? Electricity and cable/internet would be all yours, which could add $100/month easily depending what services you want.

If you run the calculations, my guess is you'll find it's $4-500 more per month to live solo. If you have an extra $6k per year to spend on that, go for it.

[Middlin]

You would have to gross more than 6k to net $500 more a month.

I assume you know where you would want to live and how much it costs. A good rule of thumb is not to exceed 25% of salary for housing. This is conservative and you will hear many arguments to push that number as much as 10%.

Re new salary - Estimate 28% for taxes from your gross. (assumed 15% federal tax bracket, 5.75% Virginia and 7.65% for SS and medicare - rate is 5.65% for 2011 but will go up again 2012)

My two cents is get the raise and live like your monthly expenses have increased and see how it goes after 6 months. Sometimes the grass isn't greener.

[CaliTerp07]

Originally Posted by Middlin

You would have to gross more than 6k to net $500 more a month.

Right--my comment should have been clearer. She needs to currently have an extra $500/month in savings that she's comfortable letting go to higher rent costs.

The salary increase would need to be more like $10k, likely.

[saganista]

Originally Posted by Middlin

Re new salary - Estimate 28% for taxes from your gross. (assumed 15% federal tax bracket, 5.75% Virginia and 7.65% for SS and medicare - rate is 5.65% for 2011 but will go up again 2012)

Marginal rates are not the same as effective (or average) rates, the latter being what you actually pay. For a single person at the top of the 15% federal tax bracket, the effective rate for federal income taxes would be in the neighborhood of 10.9% and for the state about 3.9%.

[shamrock847]

I think where he was going was that any raise they get from a new job (not their whole income) would be taxed at their marginal rate. So an $8 or $9k raise from a new job might only net them $6k ($500/mo).

[sjankis630]

Sorry for the clarification but are you saying that you are currently paying $1,300 for yourself and your roommate pays his part also, or is that $1,300 combined for the apartment?
Just curious, because i have not been to Balston in 6-7 years and was thinking that $2,600 was a lot to pay for renting a 2 bedroom apartment. But maybe I don't know.
Just as an example here in Herndon you can get a 3 level townhouse rented for about $1,500 if you look.

[Snd485]

Great question. I've been thinking about the same thing. I like living with roommates, but I'd like to get my own place in a couple of years. I did some searching on Craiglist and asked my friends who live alone about how much they pay for rent and it looks like it'll cost at least $1600/mo for a one bedroom in a nice area near a metro stop. I'm considering using the next couple of years to save some more money for a downpayment and then buy my own place. I've found a number of condos that would cost about the same as rent, including taxes and condo fees. It all depends on what the market looks like a couple of years from now.

[joiseygirl732]

Thanks for the replies. With what I pay in rent, I KNOW I could afford a nice-sized house or condo SOMEWHERE in the US lol.

But yes I pay in the high 1300s for my half of rent, utilities, parking. Plus half the cable bill.

It seems that I would have to get at least a 8 or 9K increase to considering moving on my own. And I may have to figure out other ways to save, like opting out of cable.

I'm not opposed to living in DC, its just that I would want a new building in a clean area because I do not do well with insects and especially mice (eww). I would freak out if that became an issue. DC doesn't have a lot of high-rises, meaning that could be an issue (like in any city).

Any other pointers would be helpful.

[breakingfree]

Originally Posted by joiseygirl732

I'm not opposed to living in DC, its just that I would want a new building in a clean area because I do not do well with insects and especially mice (eww). I would freak out if that became an issue. DC doesn't have a lot of high-rises, meaning that could be an issue (like in any city).

Usually, the newer the building, the more expensive it is. And there's the risk of pests anywhere, regardless of the age of the building.

Are there things you're willing to give up, such as maybe looking for a studio instead of a one-bedroom?