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Otherwise, we basically all have fixed monthly expenses such as auto insurance, electric bill, oil/gas bill, cell cable/internet bill, phone bill, ect.......
Spending 50% of gross? That’s a great number if you want to slip down a financial vortex. How quickly do you think you and your spouse will get increases and what’s you near term salary cap. Do you have 6 months worth of cash on hand to cover expenses if things go into the toilet?
Personally I’d wait, save up more money (and not just for a down payment), see if you make more money and wait for it...look to move off of the Island.
We are looking in Centerport, Northport, Greenlawn area.
do you need to commute to Manhattan?
that area is very nice and those homes on average are a bit expensive, but not crazy like some other areas and some can be found that are affordable if you make a decent amount of money.
do you make a decent amount of money? because 40% gross in those areas seems like you might be really stretching it.
in your initial post you mentioned the possibility of keeping on renting to save up more. if you are young at the start of your career, I would advise against pushing yourself financially just to own a house. LI is very expensive, as you know. that doesn't mean you just make bad financial decisions.
Quote:
Originally Posted by beachbum2000
Debating looking a little further out east to Hauppauge for some more affordable homes.
this is a still nice but more affordable area, so it sounds like you are thinking more responsibly and/or just coming to terms with reality. but it is a tough train trip into the city every day, if you work there.
I make 120k (105k plus bonus 15k), my wife makes 40k. We are pretty young in our careers too. I do not work in the city. And yes I agree we are coming to terms with maybe finding a more affordable area! lol
One thing to note, we saw a few homes that had legal accessory apartments. This could be an option, to get into an area we really like, and rent the apartment for a few years with the expectation our salaries increase. We can always then convert the apartment back to our own space. Or is this just a recipe for disaster lol. We don't mind having a tenant. We lived in apartment buildings in NYC for awhile so we are used to living in buildings with many people. This way that 40% number gets knocked way down.
Quote:
Originally Posted by CJim3
do you need to commute to Manhattan?
that area is very nice and those homes on average are a bit expensive, but not crazy like some other areas and some can be found that are affordable if you make a decent amount of money.
do you make a decent amount of money? because 40% gross in those areas seems like you might be really stretching it.
in your initial post you mentioned the possibility of keeping on renting to save up more. if you are young at the start of your career, I would advise against pushing yourself financially just to own a house. LI is very expensive, as you know. that doesn't mean you just make bad financial decisions.
this is a still nice but more affordable area, so it sounds like you are thinking more responsibly and/or just coming to terms with reality. but it is a tough train trip into the city every day, if you work there.
Nothing is crazy if it works for you. It really depends on what is most important to you and if you expect your income to rise in the future.
If home ownership is that important to you - as it is to a lot of people - and you aren't the type that will resent not traveling, going to expensive restaurants often etc - I say go for it.
You will be living on a tight budget until your income rises but if you enjoy your home - entertaining at home, gardening, puttering, reading etc - then you probably won't be missing much else.
Renting is throwing money away but enabling a more active lifestyle but mortgage payments are adding to your future security. You can always re-finance later too after you gain some equity.
Frankly, I see some people paying rent that is almost the equivalent of what they'd pay for mortgages - and sometimes even more - because they can't qualify for a mortgage. Buying with a LEGAL accessory apartment is a great idea, but those properties will probably sell for much higher prices.
Given the choice, if you are living on long island - I think most people would rather own if they can swing it.
Something to factor in, can you make it on one salary? If not hen make sure to have a rainy day fund to get you at least a month or three or better six.
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