would you say now is a bad time to buy? (Quincy: foreclosure, house)

[Parsec]

I agree with Penny. Boston seemed like a very hard place to live when I first started working here, but now about 10 years into my career I don't find the high COL to be an obstacle. Families with 2 solid incomes in the $200-250k range can live a very comfortable life here without strict budgeting constraints. A $700k house (or a $400k house in Quincy and a $300k cottage on the Cape) and 2 German cars is very attainable once you hit the age where daycare bills drop off your household P&L.

[bohemka]

Aside from the fact that she never claimed to be rich (just a good money-manager), rich people live wherever they want. Contrary to what you might believe, or hope for, they aren't kept in pens in Beacon Hill and Wellesley.

Seems hypocritical to complain about people not wanting to live in certain parts of town because of those area's reputations, and then turn around and criticize someone's town as being second-class. You're obviously more concerned with image than you care to admit.

[Dm84]

I agree with Penny. Boston seemed like a very hard place to live when I first started working here, but now about 10 years into my career I don't find the high COL to be an obstacle. Families with 2 solid incomes in the $200-250k range can live a very comfortable life here without strict budgeting constraints. A $700k house (or a $400k house in Quincy and a $300k cottage on the Cape) and 2 German cars is very attainable once you hit the age where daycare bills drop off your household P&L.[/quote]Except most people don't make $100k/year.

[Parsec]

Originally Posted by Dm84

A $200k household maybe walks way with half that in take home pay by the time taxes, 401k, health insurance etc is factored in. $100k sounds like a lot of money until you start adding up what it actually costs to live here.

$100k divided by 12 is $8,333/mo

Rent/mortgage - $2,000+ (I have no idea how $200k earners are buying $700k+ houses!)
Utilities $500+ (depends on whether you have gas, oil etc)
Transportation - cars can easily run you $500/mo once you factor in payment, gas, insurance etc.
Groceries - $400/month (varies wildly)

So already almost half your take home pay is eaten up by some of the basic essentials. Throw student loans and/or a kid in the mix and you'll see a LOT of people in MA live paycheck to paycheck.

So that still leaves $5000/mo. I can't spend that much on non-essentials even if I wanted to. The payment on a $700k house is around $3500-4000/mo depending on down payment and taxes. Plus $1500/mo for daycare. That still leaves you with around $1500/mo of discretionary income if you buy a $700k house and have 1 daycare bill on a $200k income. That's plenty for someone like me.

[Parsec]

Originally Posted by Dm84

Except most people don't make $100k/year.

Most people don't, but I thought this discussion was assuming a $200k household income which everyone who buys a $700k house should have.

[Steephill2]

Originally Posted by Dm84

Except most people don't make $100k/year.

200k puts you in the top 5%er in the usa and 250k puts you in the top 3%er in terms of where your income ranks to your fellow citizens. 400k would seem to be the exclusive 1% club. I believe this would be as of 2012.

[Dm84]

Originally Posted by Parsec

So that still leaves $5000/mo. I can't spend that much on non-essentials even if I wanted to. The payment on a $700k house is around $3500-4000/mo depending on down payment and taxes. Plus $1500/mo for daycare. That still leaves you with around $1500/mo of discretionary income if you buy a $700k house and have 1 daycare bill on a $200k income. That's plenty for someone like me.

I was giving very rough estimates but the point is that unexpected large expenses can be challenging even for people who make a lot of money here. Obviously everyone's individual circumstances vary.

[Parsec]

Originally Posted by Steephill2

200k puts you in the top 5%er in the usa and 250k puts you in the top 3%er in terms of where your income ranks to your fellow citizens. 400k would seem to be the exclusive 1% club. I believe this would be as of 2012.

This comment is posted out of context. In context, we are talking about a $200k income in MA in a town where someone can buy a $700k house. That puts you in towns like Sudbury, Medfield and Hopkinton where a $200k household income would maybe put you in the top 33%. Now if you take out the residents who put bought their homes 15 years ago, that $200k income makes you solidly average.

[pennyone]

Originally Posted by mmyk72

The tone of this conversation is going downhill and I can't seem to remember what the point is. Maybe it has become a place to rant.... I'm not getting it.

That's usually how it goes with people and their rant. I still like the advice from MMK that basically implies that if you're unhappy, or feel like it's all a rat race then move. No one is holding you back.

[Steephill2]

Originally Posted by Parsec

This comment is posted out of context. In context, we are talking about a $200k income in MA in a town where someone can buy a $700k house. That puts you in towns like Sudbury, Medfield and Hopkinton where a $200k household income would maybe put you in the top 33%. Now if you take out the residents who put bought their homes 15 years ago, that $200k income makes you solidly average.

yep i just posted national average to put things in perspective. additionally 200k looks to put you in top 10% in boston metro area and 250k puts you in the top 6%.(date unknown) this area looks to cover most of eastern third of ma except the cape, brockton, newbedford, lawrence and lowell(not sure why they have their own set of percentages). for ma as a whole 200k puts you solidly in 5% column and 250k into the 3%. but yes, it definitely different town by town and house by house so these nunbers should be taken with a grain of salt.