Are young white people still moving to PG county?

[lookingbutnotlost]

Originally Posted by adelphi_sky

It's very easy. A couple in their mid-thirties are considered young and in the prime of their careers. If both make $75k, that's $150k household. That means they are pulling in at least 8500 - 9500 a month in after-tax disposable income depending on healthcare expenses, 401k contirbutions, etc. The house would be a third of the household income which is right in the sweet spot where financial advisers say housing expenses should be.

There are a lot of sources to get the down payment for a home. I'm not saying most people can swing 20% even on a $200,000 home. But some people have wealth in the family to do it. No one is saying this house will be sold in 90 days. It may sit for a few years.

Years? No way. Inventory doesn't last that long in that area. Well priced homes sell w/in a week. 90 days is a long time. They might have a few price drops.

[momanager]

Originally Posted by adelphi_sky

It's very easy. A couple in their mid-thirties are considered young and in the prime of their careers. If both make $75k, that's $150k household. That means they are pulling in at least 8500 - 9500 a month in after-tax disposable income depending on healthcare expenses, 401k contirbutions, etc. The house would be a third of the household income which is right in the sweet spot where financial advisers say housing expenses should be.

There are a lot of sources to get the down payment for a home. I'm not saying most people can swing 20% even on a $200,000 home. But some people have wealth in the family to do it. No one is saying this house will be sold in 90 days. It may sit for a few years.

are $3,000 mortgages common in this area (N. VA, PG, Moco, and HoCo)?

[G1..]

Originally Posted by adelphi_sky

It's very easy. A couple in their mid-thirties are considered young and in the prime of their careers. If both make $75k, that's $150k household. That means they are pulling in at least 8500 - 9500 a month in after-tax disposable income depending on healthcare expenses, 401k contirbutions, etc. The house would be a third of the household income which is right in the sweet spot where financial advisers say housing expenses should be.

There are a lot of sources to get the down payment for a home. I'm not saying most people can swing 20% even on a $200,000 home. But some people have wealth in the family to do it. No one is saying this house will be sold in 90 days. It may sit for a few years.

While I don't agree with your math you aren't far off I add stupid things like car payments and Obamacare so money even in that class is still tight and if a child comes along,your budget is gone. Now I do have a disagreement over your " A couple in their mid-thirties are considered young and in the prime of their careers. "Very few,very few, people are in the prime of their careers in their "mid thirties".
On a different note many house's are on the ,market for a while .It is homes that are in foreclosure or being flipped that are making up most of the quick sales.

[bufflove]

Originally Posted by momanager

are $3,000 mortgages common in this area (N. VA, PG, Moco, and HoCo)?

$3K in carrying costs (mortgage+prop tax+insurance) is only about a $500K home, if someone uses FHA (3.5% down). $500K is roughly average for the DC area, e.g. MoCo's median home value - according to the Census - is $450K, but those are 2010-14 figures, which are obviously pretty severely out of date at this point. Closer to accurate may be recent median home sale price (about $530K in MoCo).

If someone puts the standard 20% down, by comparison, that $3K a month stretches into about a $600K home.

[adelphi_sky]

Originally Posted by G1..

While I don't agree with your math you aren't far off

I wasn't trying to be exact because we all know there are other variables. My household income is pretty close to $150k per year and that was the model I was going off of.

I add stupid things like car payments and Obamacare so money even in that class is still tight and if a child comes along,your budget is gone.

I have all those things and I still have discretionary income. A budget determines what people choose to spend their money on and how much debt in other areas they take on. We shouldn't spend time on what those other variables are because everyone is different. Point being, a $3000 mortgage is not so far out of reach for a professional couple of two in their mid-thirties.

Now I do have a disagreement over your " A couple in their mid-thirties are considered young and in the prime of their careers. "Very few,very few, people are in the prime of their careers in their "mid thirties".

Source? Stats? Are you saying it takes a majority of the people 20 years to be in the prime of their career? ANd what would you consider prime? Salary? Tenure? Skills?

[momanager]

30% (and $3000 mortgage even with 150k income) still seems like a lot, 10% to 20% of your income going towards housing sounds more "comfortable"

[adelphi_sky]

Originally Posted by momanager

30% (and $3000 mortgage even with 150k income) still seems like a lot, 10% to 20% of your income going towards housing sounds more "comfortable"

In an ideal world, sure, 10% is awesome. But income suppression over the past 20 years has left people with higher housing costs compared to the lackluster income gains. The recommended percentage of income is generally 28%.

Now, using our couple as an example, being only in their mid-thirties, their salaries should naturally increase over time. And if they have a fixed mortgage, their housing expense compared to income should see a downward trend. Assuming property taxes don't outpace their income gains of course.

I think a realistic number to shoot for is 24%. At least in this area.

[lookingbutnotlost]

Originally Posted by momanager

are $3,000 mortgages common in this area (N. VA, PG, Moco, and HoCo)?

Yes, very common. And it's not uncommon by 35-40 for people break the 6 figure salary mark in DC and to hit their stride.

Many of the 'young' ppl that are moving to the county are among this demographic. So they're either priced out of DC where the average price is about 500k so a 3k or less mortgage and they come over to PG where they can buy a home for less than 500k and have smaller mortgages.

There are no starter homes in DC really, but there are starter homes in PG. 10% of your income is not realistic in this area.

[momanager]

thanks for the replies!!!!!