Help me budget for NOVA? Ohio girl needs help. - Northern Virginia - Virginia - Page 2 - City-Data Forum

CanestoPats · 06-24-2016, 10:40 AM

Quote:

Originally Posted by pumpkintrina

I'll try to answer some of the questions...

No college savings. We already have three in college and they know they need to rely on financial aid. Our daughter will be the same. Some have scholarships. One is in community college, paid with a grant.

My husband will be bringing in some additional funds -- we just don't know what yet. That will help.

Honestly, I'd prefer to rent and leave our money from the sale of our home in the bank, but he won't hear of it. He thinks we will have instant equity putting 10% down and could sell in three years when our daughter graduates and come out OK.

He's also worried about the dogs in a rental.

I'm moving for work. New job, new city. New house. New everything...eep.

Thanks for all the advice, and it's OK to give me a reality check.

And go Cavs -- yes! What a great game.

I have two recommendations:

1. Rent for your first year here to give yourselves time to really become more fully acquainted with the area. It is better to be able to take your time to look for a home when you really know where you'd like to live based on your own preferences and not as the result of recommendations of a forum like this (as well-intentioned as those recommendations might be).
2. Once you are here, find a good fee-based financial advisor to run over your entire financial picture with you so that you have a much better idea of what you can realistically and responsibly afford to do vis-a-vis a home purchase, etc. I can make a couple of good recommendations for you with regard to a planners that I have used if you want to send me a message (assuming there is a private message feature on this board).

Good luck!

Ffxdata · 06-24-2016, 03:38 PM

There is almost no way that you will be able to sell a house for profit in this area after 3 years.

IMO The market is likely at a peak at the moment. I'm not saying that it's about to crash, but I think it will be stable for a while. We bought in 2012 and have seen the value increase by $80k. Even with that crazy increase, we would not be looking too rosy on the other side of closing. $48k would go towards closing costs alone. That doesn't count preparing a house for sale or moving.

phoenixmike11 · 06-29-2016, 02:43 PM

renting sounds like the way to go if u are going to be here for a few years (like others have said) I think i read in a newsmagazine that unless u are going to be in a place for 5 years or more renting is usually the thing to do-

to help ease your transition to DC you might want to get advice and socialize with others from where u are from so maybe attending some events like
https://www.facebook.com/osudc/ i am guessing non alumni can go as well
https://www.facebook.com/groups/WDCABBC/?fref=nf
The Bottom Line DC | Est 1979 bengals bar in DC

good luck in your move

wumarshall82 · 07-10-2016, 06:55 PM

Quote:

Originally Posted by pumpkintrina

I'll try to answer some of the questions...

No college savings. We already have three in college and they know they need to rely on financial aid. Our daughter will be the same. Some have scholarships. One is in community college, paid with a grant.

My husband will be bringing in some additional funds -- we just don't know what yet. That will help.

Honestly, I'd prefer to rent and leave our money from the sale of our home in the bank, but he won't hear of it. He thinks we will have instant equity putting 10% down and could sell in three years when our daughter graduates and come out OK.

He's also worried about the dogs in a rental.

I'm moving for work. New job, new city. New house. New everything...eep.

Thanks for all the advice, and it's OK to give me a reality check.

And go Cavs -- yes! What a great game.

My financial advisor told us when we moved here (ashburn) that unless we are planning on staying 5+ years, then renting is much better. Plus, you don't know the area so what if you buy and hate it? It'll take a bit to get your money back out. We have planned to rent for a few years to make sure we are going to stick here.. Going on 1 and 1/2 years now.

$3k per month all in is going to be tight finding a SFH. You would be much better considering a townhouse somewhere.

jef3r · 07-12-2016, 08:48 PM

I think a 500k home on your income is insane. We are around 170k HHI and the MOST I am willing to spend on a home is $600k with 20% down (so, financing $480k). I couldn't even imagine doing that on 110k/year. I know your DH is going to be bringing in some income but you haven't even ballparked how much that might be so I have no idea if it's 10k/year or 50k/year. But without knowing, the 110k figure is all we have to go on.

Also, avoid Mt. Vernon like the plague.

If I were you, I'd rent for at least a year.

But since your DH is set on buying, you should look for a townhouse in a decent school district.

RandomNovaGuy · 07-13-2016, 09:54 AM

If you're working near Ballston metro, you can also consider looking for homes along WMATA bus lines. There are affordable single family homes along the 1A, 2A, 10, 22, and 25 bus lines (Neighborhoods: West Falls Church, Shirlington, Landmark).

jillybean720 · 07-13-2016, 11:12 AM

I'll echo what many others have said. You should absolutely consider renting, and, if he's truly dead set on buying, you should definitely consider cheaper townhouses. We lived in a SFH that we bought for I believe $318k (out in Sterling). I was earning $115k salary. We had two small dogs and two very young kids. My husband was a SAHD. It was pretty tight, financially. Our only other debt was one car payment ($200/month) and my student loan ($111/month). We did not have cable or home phone service - ditched both for internet only with Ooma for phone and Hulu, Amazon Prime, and Netflix for tv. I did contribute to my 401(k), so that decreased my take-home pay as compared to yours.

RandomNovaGuy · 07-13-2016, 12:09 PM

I actually think that buying a 500K house on a 110K/year salary is do-able.
Just like what the other posters have pointed out, her estimate is a bit off though. Utilities should be at around $200, not $500. Water is around $50, not $100.
Her after tax monthly income is probably at around $5,000/month, which includes modest 401k contribution. With that said, she would end up with at least $1,000 for food/groceries (after factoring the tax savings from mortgage interest).
That's not a lot of money for a family of three, but is plenty if they dine-in.

As far as location is concerned, it may be cheaper to buy in outer-burbs, but she would end up paying for it in gas, auto depreciation, toll..etc.

The issue with renting is that the rent for a 2BR is at least $2,000/month. That is before any "facility fees" that most of the new apartments charge. Also, a lot of apartments tend to over-charge when it comes to utilities. At the end of the day, she would end up paying about the same amount of money as buying.

NOVA_guy · 07-13-2016, 12:37 PM

It's doable but as suggested, you need to look further out. You're kind of priced out of Fairfax County. I'd suggest you look at Loudoun or Prince William Counties. Then you won't be maxing yourself out at the top of your budget.

RandomNovaGuy · 07-13-2016, 07:34 PM

Quote:

Originally Posted by NOVA_guy

It's doable but as suggested, you need to look further out. You're kind of priced out of Fairfax County. I'd suggest you look at Loudoun or Prince William Counties. Then you won't be maxing yourself out at the top of your budget.

It depends, if she doesn't mind older properties, I listed three neighborhoods that are just a short bus ride away that she could consider. There are also plenty of neighborhoods in the southern or western part of Fairfax that are within her price range. Springfield and Centreville are both affordable too.