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I think that perhaps you should hold off until at least after grad school. If you want to invest perhaps look into a co-op. Job opportunities may change for you after grad school, perhaps one out of town with a place that has a lower cost of living. Even after paying off a mortgage, property taxes remain and only get higher. Hopefully once your girlfriend gets a job that will alleviate the burden on you. Long Island is a great place to live but extremely costly. Sad to say that is why so many young people have taken jobs elsewhere for a better quality/less costly lifestyle. Good luck!!
I presume though that at 50K, holding off means renting which subsequently means it is eating into his savings and will be unable to save for a downpayment for many many years. Unless he were to rent in a dangerous neighborhood.
I presume though that at 50K, holding off means renting which subsequently means it is eating into his savings and will be unable to save for a downpayment for many many years. Unless he were to rent in a dangerous neighborhood.
Perhaps then no one with a HHI of $50k should buy real estate on Long Island. "Holding off" will allow him to sleep at night knowing he is not handcuffed to a mortgage and tax payment that eats into nearly his entire after-tax income. Owning a house in a decent area on LI has become (I guess, unfortunately) quite an accomplishment--one that is out of reach of many, many adults in their 20's.
The boyfriend and I are looking at houses (might have news on one in the next couple of days). He is having the burden of the mortgage since I am stuck with student loans myself, but I am able to supply the down payment thanks to life insurance money from my mom.
Combined, before taxes, the b/f and I make a little over 100k and that's still low for Long Island, sadly.
As for making 50K a year and owning a home on Long Island, that'll be tough. It also depends on the kind of down payment the OP is looking at. If he has a sizeable one (like more then half the house he is buying), it could be doable. However, 300-400k is rough for that salary. If you were a handy person, you could buy a smaller house, a handy man special for under 200k and put money into it. Maybe look into co-ops too.
It's tough, OP. It saddens and frustrates me how people my age (27) have a difficult time becoming homeowners on Long Island.
The areas you are looking in : Lindenhurst, the Babylons, Deer Park, Mass Park: will make for a very long, and demanding commute to the city (if you wind up working there like you suspect).
I'm sorry i do not think it is possible to afford a house on 50K. Once you factor out about 28% of your salary for taxes, your take home salary will only be around $36,000. Divide that by 12 months and your monthly take home is $3,000 a month. Subtract mortgage (- $1,600), utilities (- $400.00), food (-$500.00), cell phone/tv (-$150), leave you with barely $350 a month.
That $350 a month left over money times 12 months equals $4,200. Not enough money to cover property taxes.
I would suggest both of yous go live with your parents and save your money for a year and a half and then see where you guys are now. Your gf should focus on paying off her own student loans asap before you guys buy a house. End of story. Do not get itno a money pit! good luck!
The boyfriend and I are looking at houses (might have news on one in the next couple of days). He is having the burden of the mortgage since I am stuck with student loans myself, but I am able to supply the down payment thanks to life insurance money from my mom.
Combined, before taxes, the b/f and I make a little over 100k and that's still low for Long Island, sadly.
As for making 50K a year and owning a home on Long Island, that'll be tough. It also depends on the kind of down payment the OP is looking at. If he has a sizeable one (like more then half the house he is buying), it could be doable. However, 300-400k is rough for that salary. If you were a handy person, you could buy a smaller house, a handy man special for under 200k and put money into it. Maybe look into co-ops too.
It's tough, OP. It saddens and frustrates me how people my age (27) have a difficult time becoming homeowners on Long Island.
Why would you not payoff your student loans with the money instead of buying a home with your bf? Your income is currently going towards loans. What if either of you gets laid off? I'd rather have all my bills paid off instead of trying to figure out how to carry a mortgage on top of student loans. Just something to think about. Would paying off your loans take a big chunk out of the down payment? When I bought my house 5 years ago we did it debt free. No credit card, car or student loans to pay off and at the time we were making probably around $80k combined. We have 1 kid but still managed because we didn't have to worry about other debt. It's definitely doable on $100k but if your income has to be split with other loan payments then it can be a struggle. I'd pay off the student loans or at least a good portion of it but that's just me.
Perhaps then no one with a HHI of $50k should buy real estate on Long Island. "Holding off" will allow him to sleep at night knowing he is not handcuffed to a mortgage and tax payment that eats into nearly his entire after-tax income. Owning a house in a decent area on LI has become (I guess, unfortunately) quite an accomplishment--one that is out of reach of many, many adults in their 20's.
That's why I recommend getting a mobile home first as a starter. Maybe this won't be in LI but they can find something in NJ. Then when circumstances change (ie, higher income, more savings), they can go buy a house in LI or somewhere else.
Why would you not payoff your student loans with the money instead of buying a home with your bf? Your income is currently going towards loans. What if either of you gets laid off? I'd rather have all my bills paid off instead of trying to figure out how to carry a mortgage on top of student loans. Just something to think about. Would paying off your loans take a big chunk out of the down payment? When I bought my house 5 years ago we did it debt free. No credit card, car or student loans to pay off and at the time we were making probably around $80k combined. We have 1 kid but still managed because we didn't have to worry about other debt. It's definitely doable on $100k but if your income has to be split with other loan payments then it can be a struggle. I'd pay off the student loans or at least a good portion of it but that's just me.
I'm in a bit of a crazy situation with my loans plus I have bankruptcy on my record currently, so it negates me even going on a loan for a long time. My mother left me money, but its nowhere near what I owe on loans (with all the capitalized interest and crazy fees, I'm in the 100k area. Also thanks to my scam of a school, many other of my classmates are in the same boat. The combination of The Art Institute and Sallie Mae are a lethal mix). I'm pretty much up sh!ts creek with my loans the rest of my life.
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