Is $55000 enugh for a family of four? (Chicago, Hoffman Estates: best towns, credit)

[George_Sully]

Hi all,
Thanks for the continued support/postings;

For a minute let's assume I accept the offer... and as I menotioned I will be happy to travel 45 minutes ( 1 hour with a push) each way to work; that’s two hours of travel. If you were in my shoes which area would you pick to buy a house in, considering I need good schools for kids and I rather have a little nice house in a good area than a huge house in a rough neighbourhood.

And my second question for you all, Could you please let me know what is your monthly spend on following please? (other info such as your area, number of cars, number of people in your house hold would be very useful)

Health Insurance =
Property Taxes =
Going out =
Home Maintenance/improvements=
Food (=
Car costs (Gas, insurance, maintenance,..) =
Utilities Bills (Gas, Electric & Water) =
Phone (home and mobile) =
TV (Satelite) =
Life Insurance =
Kid activities =
.....=
.....=
and any other outgoing that i haven't thought of; apart from mortgage that depends on individuals.

If you wish you can PM me.

Many thanks,

George.

[chet everett]

I can appreciate your desire to get this info, but I know that even things that seemingly should be very similar can differ a lot. I know that there are MANY "property tax bargain winners" in the region -- a big factor is how frequently the home has been sold as the various Township Assessors use the data when a home sells much more than anything else. SO you have situations all over where IDENTICAL homes might have tax bills literally 3x different -- home lived in by original 20 + residents $2000, right around the corner the same home has changed hands every few years and taxes are $6000. You would have to budget on the high side...

Similar situation for things like auto & home owners insurance -- I pay about $1100/yr for my combined two cars and mid-sized home. I know folks with much crummier driving record paying twice that, and my in-laws who drive very little but have cars very similar in value pay about $800/yr. My full time job has pretty good health insurance coverage and I am happy to have a relatively modest $6000 or so out of pocket to cover me and the family under 21 -- all the routine stuff like dentistry, eye care, routine sick days and major hospital . I understand some places have lower rates for less coverage, but I also see many people that have far higher out of pocket costs.

I have two older cars that are from Japanese nameplates known for reliability. I pay about $40 every few months to do routine maintenance and about $600 every few years to have more serious maintenance/part replacement. The damned things are costing me over $70 a week to keep 'em fueled up and I don't drive all that damned much. One car rarely sees more than 50 miles a week, the other about a triple that. There are folks that are spending $100/wk/car on gas now...

I try and budget about half of my property tax into a savings account so that I can pay the fertilizer man to kill my dandelions, get my lawn mower and snowblower tuned up annually, have someone paint my house every few years and build a bit of reserve to re-roof/update a bathroom/ get new carpet, and cope with the odd unexpected dead appliance. This is my "household slush fund" that ranges from ZERO after a re-roof costs as much property tax, but might actually have two years worth of no withdrawals if the storm gods all smile on me.

I spend about $150 every month on satellite TV, high speed internet, cell phones, land line(s). I have tried going to combo packs that on paper say they'll save me $50 or so, but in practice if I rely on one "pipe" for everything that comes to me digitally I have found that neither the copper DSL line that ATT has nor the copper lines that Comcast runs into my neighborhood can be counted on. In east coast or California area with Fiber Optic that might not be case.

I was doing some post income tax reconciliation/planning for next year so I have good data to show that on household utilities in 2007 I spent right around $2700 for my mid sized house with midsized efficiency and 4 normal sized people living their pretty much full time. Last winter was not very cold until after Jan '08 and last summer was not too hot so things sorta balanced out, but i suspect I could easily see costs rise 10% for this calendar year.

Beyond the life insurance that I have from my employer I spend about $400/yr in case I die before I'd be retired. It'd be a lot more to have insurance that lasts forever, but my wife is OK with knowledge of what I have in my retirement fund.

During a normal work week I spend about $25 on lunches for myself, my wife spends a little bit less for herself. We average about $140/wk when there are four at home. I build in some "household entertaining" of about $200/month but often go over if there is any hope that I can use that time toward increasing my income, as I sort of have a second stream of potential income with my property and ability to profit from real estate.

I spend about $500/yr on things from socks & underwear to shirts that don't have holes in the sleeves. My wife spends at least 50% more than that because her shoes match. My kids would routinely cost $500/each year in "go to school" clothes and my wife and I are not the type to let the kids pick anything expensive. Hand me downs were a big money saver, but after about second grade there was not much life left in the clothes.

I do not currently have kids that are costing me out of pocket for things like sports and school. When I did I would estimate that the expenditure were quite varied. Park District fees of maybe $100 would pay for a season of soccer or baseball, but if they wanted to travel that might be $200 for one weekend. I'll say maybe $1000/yr/kid...'

I didn't break out my calculator but I gotta think that I have easily accounted for almost $30K in "routine" living expenses...

[STL Mom]

Please remember moving expenses and home buying expenses, which may be higher here in the U.S. than in the U.K.
We are moving to Wilmette from another state. After making an offer for our house, we paid about $500 for a home inspection, which is essential. Before closing, we had to pay a "real estate transfer tax" of $3.00 for every $1,000 we paid for the home. Not every community has that kind of tax, but many do. I don't have my paperwork handy, but I'm sure our real estate attorney cost at least $500 also, which was paid at closing. If you require a mortgage, there will be additional fees, such as application fees (at least $50) and an appraisal (another $500). If your house doesn't come with all the appliances, most cost at least $400 each. In Wilmette, classes for kids through the park district run about $60-$80 for an 8-week session. But a family beach/pool pass for the summer is $200, so I figure that's cheap entertainment if we go nearly every day.
It's going to cost us $65 per car to get titled in IL, and $78 per car in annual license plate fees. Remember if you choose to drive an hour to work, you'll be buying a lot of gas and it will probably be over $4.00/gallon soon.
I can't advise you on neighborhoods as I am just moving to the area myself, but I thought I'd list some of the moving expenses that I have already encountered. If you are willing to be frugal, I think you can certainly live on $55,000, but you might have to give up on some things to get your U.S. experience. Would you pay more to live close to work and give up one car? Can you do without cable TV? Are you willing to keep the heat low in the winter to save on fuel? Would you live in an apartment so you could be closer to work? If you are willing to make compromises, anything is possible. Good luck!

[Sailaway50]

Originally Posted by LIS123

I highly doubt you'll be able to put two children in Private school on an income of $55K. Two children in Private school will cost several thousand dollars per year. Prices vary, but it could be anywhere from $15-$30K.

As the previous poster mentioned, it would be great if your wife could find employment. That would make a big difference.

You might try renting in the Western suburbs. Oak Park or River Forest come to mind. Also perhaps a bit West of there. You could contact a real estate agent via the internet re renting. There is a surplus of homes, condos and townhomes that the owners can't sell in a tight real estate market; some might be interesting in renting.

Evanston has rentals also, and I've been told there are unsold homes available for rent there also. Proximity to Northwestern University and the city and good public transportation for a suburb are pluses. North of Evanston, I think you're priced out of the market ("North Shore", along the lake). Depending on the area of Evanston, the grade schools are good. The high school, very large and diverse, can be challenging depending on the student. It can work, it just has to be a good fit.

Also, there is financial aid available at private schools (you don't have to be "destitute") and they look kindly upon children from other countries to round out the student body. If not entire tuition, then perhaps half. I do know private schools like students from other countries to "diversify" their student body.

[cubssoxfan]

Originally Posted by chet everett

A single family detached home anywhere in any sort of safe neighborhood around Prospect Heights under $200 would still be as scarce as hen's teeth...
Prospect Heights is considerably less desirable than Mt. Prospect, where you could raise the floor by $50K or more.

I do agree that the traditional level of an overseas transfer is at the "senior manager / jr. executive" level -- a salary level that corresponds to something a good 50% more than the salary that is being offered to the OP. While it may be a very handsome salary for a new college graduate, to support two the typical two vehicle lifestyle needed in suburban Chicago it is not much at all, even if the house is free & clear. There will still be property taxes and utilities and medical costs and unexpected maintenance needs. What about furniture? Company is going to move all that?

Believe me the people living AT the median income in Grayslake or Mundelein are not living the high life.

Most parts of Prospect Heights are beautiful and excellent neighborhoods. Stay in Prospect Heights district 23 avoid River Trails school district. It is still too expensive on $55K with most homes selling above $400K. Can you negotiate a higher salary? IMO you need $80-$100K to live modestly and have some money for kids programs going out to dinner occasionally and maybe going on holiday once a year if you want to live in the north/northwest suburbs without going to far into Lake county. Look into a town house or duplex in Buffalo Grove, Deerfield or Morton Grove. Taxes are higher in BG or Deerfield, schools have better reputation, but Parkview and Golf school districts in Morton Grove are good. Morton Grove goes to Niles Township or Maine Township high schools which are still very good. BE CAREFUL of Round Lake area. Round Lake school district has been on the state's financial watch list. Some parts are OK, some parts are rough. Your commute would be pretty rough also.
Just my two cents worth. Warning: This is your Mum talking: If you are not sure if you are going to live here for more than 3-5 years, be careful about buying. The housing market is still in a downward market correction and some people feel that it will take several years before houses start appreciating decently again. You may be money ahead renting and putting the proceeds from the sale of your current house into savings.

[InformedConsent]

Originally Posted by cubssoxfan

Look into a town house or duplex in Buffalo Grove, Deerfield or Morton Grove. ...Morton Grove goes to Niles Township or Maine Township high schools which are still very good.

Out of those suggestions, I would look for a home within the following schools' residential boundaries: Deerfield HS, Buffalo Grove HS, Maine South HS, and Niles North HS. All four are US News Silver Medal high schools.
Best High Schools Search - US News and World Report

I wouldn't rely solely on school districts' *meets or exceeds standards* percentages because Illinois state standards are ridiculously low.

[cubssoxfan]

Hey Informed,
How about Stevenson HS which covers all of Buffalo Grove in Lake county?
I know it's large and seems uber-competitive but has outstanding academic reputation.

[cubssoxfan]

Informed,
My bad- Stevenson has gold medal rating. I guess sequence, my, out of order

[JerichoHW]

Have you considered Pleasant Prarie, Wisconsin it seems you might be pushing it in the northern burbs, Pleasaant prarie is about 50 minutes from Northfield, and the homes are supprisingly affordable along with the rentals.

I reccomend Digital Cable, you save some money compared to sattilite TV but same channels. I like that if its windy I don't ose the signal. I pay about $400 a month on food. in a family of 4

[cubssoxfan]

Jericho-
Isn't that a 50-60 minute commute each way and about 35 miles each way? Would not be pleasant in the winter during snow-storm traffic.