Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I think 500K is a bit too high even for someone in the 150K range. My family income is a bit above that and I wouldn't consider looking at anything over 450K, and expecting to low ball to around 420-430K, when you factor in an additional $800 a month in taxes. We have $0 debt other than our current mortgage.
Don't forget day care expenses if you have those. I don't want my kid to grow up too fast, but Kindergarten is going to put another 10K back in my pocket.
Not if you plan on saving for your kid's college or technical education. Have you seen what that costs TODAY? Forget about 15 years from now or less.
College costs are the next bubble that has to be addressed. The government is facilitating these exhorbitant annual increases by providing "government guaranteed" financing through loans.
JSHLEE---Don't know if you're still looking in here, but I LOVED your post. I know you were being serious. (Been there myself, especially when we were beginning our family like you are.) But to seasoned homeowner your post was a good chuckle because it's soooooo true!!! Believe me, it's all worth it, though. Keep on keepin on!
ROCAFELLER05---Also LOVED your words in capitals, "KIDS CHANGE EVERYTHING", very cute. So true! You just can't imagine beforehand, can you? Again, it's all worth it, though, isn't it? Enjoy!
TO THE OPer---You seem so levelheaded that I bet you'll do just fine. Best of everything in your new venture!
Thank you. I simply worte down items I know that will shrink my bank account every morning I wake up. We do look forward to become a first time home owner..... and thinking to never have kids.. (having a baby changes everything right?) Maybe we will get a dog first.. wait, mayber we should start with a gold fish.
We do look forward to become a first time home owner..... and thinking to never have kids.. (having a baby changes everything right?) Maybe we will get a dog first.. wait, mayber we should start with a gold fish.
Then you will end up with a dog, a fish, and kids!
College costs are the next bubble that has to be addressed. The government is facilitating these exhorbitant annual increases by providing "government guaranteed" financing through loans.
Agreed. I am floored by what my nephews are paying today for college. For schools that are really nothing special.
To the OP your assesment could be used on this board to answer all the posts relating to Why People are leaving the island. It could also be used to explain why young people don't stay, why buisnesses won't relocate etc....Well Done...
Don't forget updates to rooms every 10-15 years. Electrical useage has leveled off for average families, but the next electro-gizmo may cost more in electrical so get a bigger panel when you can. Save a bit by bringing lunch from home, shopping the bargains for groceries, and buying a quality piece of furniture once instead of hitting up Ikea or other fiberboard-with-veneer junk.
To be fair, skip the 400K home thats listed at 5xx. Sit around, market is dropping slowly but surely. Shopping smart on a home is hundreds of thousands in savings. $650 is high for transportation. We use $100 or so in gas between the two of us, so I don't know where the other 550 is going.
$650 is high for transportation. We use $100 or so in gas between the two of us, so I don't know where the other 550 is going.
If you re-read the post, you will find that he included LIRR, subway, car insuranceand gas in that amount. Cost of gas depends on the model car(s), driving habits, distances travelled and of course the type of gasoline, regular or premium... Between $600-$650 doesn't sound outrageous to me.
If you re-read the post, you will find that he included LIRR, subway, car insuranceand gas in that amount. Cost of gas depends on the model car(s), driving habits, distances travelled and of course the type of gasoline, regular or premium... Between $600-$650 doesn't sound outrageous to me.
No LIRR or subway here, if your a city worker sure. Not sure of anyones personal job location. Car isurance on 3 cars for us in about 150 a month if that. Just seems like a lot in just transportation expenses.
I just checked up on my mint.com trend summary for 12-month periods and it was anywhere between $50k-$60k spent for 12 months so it's about $5k/mo. spent. That includes personal fun stuff, events, and vacations. Our mortgage was $2100, close to yours. We also have 2 newborn/toddlers during this period so we spent plenty there (DIAPERS, daycare @ $1600, misc feed/gear). Our home was 1400sqft so your general utility expenses will be slightly higher. I personally don't have commuting expenses at all but my wife does the LIRR+subway. No car payments (yes on gas and car insurance though). I would wager all-in-all you'd be in the $5500-$6000 range per month.
BTW, we owned that home for 7 years and didn't have such issues as jshlee listed. I'm not saying that's proposterous but we didn't have any landscape, structural issues or boiler issues, etc. and it was a 50-year old home. We cut down 2 trees one time, bought a lawnmower, a snowthrower, furniture (like everyone else) and did very little maintenance throughout for a 3-bedroom. One time we had to pay $450 to troubleshoot/re-fill the freon for the CAC... oh and we bought a new washer halfway through because the old one was just old. The house sold in mint-excellent condition just like we bought it - same kitchen, appliances, hardware, roof, and windows (except 1). Bathroom was slightly upgraded. Not bad for 7 years. We would still be there if not for the school district. Anyway, I would classify upkeep/maintenance as how-lucky-are-you... not something you have to set money aside for since I don't expect you're living paycheck-to-paycheck anyway.
I'm updating this post thinking it could help others who are also looking to buy their first home in 2012. We wanted to buy one last year but for one, we didn't find the one we love and two, we didn't look hard enough. Today we will be out hunting again.
Just to kind of sum of the information in this thread:
One poster replied stating for a $500K home your household income should be around $150K and your monthly expanse could be averaging at $6,000 without kids and living modestly. $8,000 if you are out having some fun without kids. $10,000 to either have some fun or with kids.
Keep in mind your bank will tell you you are qualified for a $400K loan by having $100K gross income to just cover the monthly mortgage, interests and home insurance for arounf $3,000.
An expanse breakdown is in the original post. Other expanses not included are every so often visitis to Home Depot, money spent at family & friends events and several others as you read through this thread.
Wish the best to those out there looking for your new home and may 2012 a better year for everyone.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
(having a baby changes everything right?) Maybe we will get a dog first.. wait, mayber we should start with a gold fish. 
