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We've looked at Rochester, and were impressed with the affordable, new construction homes that seem to be available there. Not sure if I want to be a full 90 miles from the TC, though. We would prefer to live within 30 to 45 minutes of MSP so we could take advantage of the town routinely without having to plan a trip around it, which is what we do now when we want to go to Detroit, Grand Rapids or Chicago. I want to be able to take my kids to a ballgame or my wife to a show on a whim whenever I want to. Plus, isn't Olmsted County the only county in MN without a natural lake? We don't have to live on one, but certainly want as many as possible within easy reach for recreational purposes.
I don't know about the lake situation but there is plenty of water to be found in the Rochester area (and MN for that matter). It's an easy hop up to the cities from Rochester, easy to take in a twins came and be home in the same day. You could live closer to the cities and commute to Rochester if you wanted too. Just a suggestion.
Just plugging in numbers, you could probably comfortable afford $150K house on your salary-that is REALLY going to limit what you can buy here unless you have a large down payment. To get newer construction with 4 bedrooms, MINIMUM will be $200K in a nicer area with good schools. To find a house in that range you are going to be 30-40 minutes from downtown Minneapolis to start. Another 30-40 minutes isn't going to be all that much more.
Having lived 3 hours from the metro or more most of my adult life, we never seemed to lack for time to get to the cities to do what we wanted. We just did it. You get used to it.
I don't know about the lake situation but there is plenty of water to be found in the Rochester area (and MN for that matter). It's an easy hop up to the cities from Rochester, easy to take in a twins came and be home in the same day. You could live closer to the cities and commute to Rochester if you wanted too. Just a suggestion.
Just plugging in numbers, you could probably comfortable afford $150K house on your salary-that is REALLY going to limit what you can buy here unless you have a large down payment. To get newer construction with 4 bedrooms, MINIMUM will be $200K in a nicer area with good schools. To find a house in that range you are going to be 30-40 minutes from downtown Minneapolis to start. Another 30-40 minutes isn't going to be all that much more.
Having lived 3 hours from the metro or more most of my adult life, we never seemed to lack for time to get to the cities to do what we wanted. We just did it. You get used to it.
All good points, golfgal. As I said in my OP, I was concerned about the housing prices in the TC metro from the get go. Rochester definitely seemed more in our range, and your suggestion of commuting to Rochester is also worth thinking about. We definitely haven't written it off.
It's somewhat ironic that I came within an eyelash of working at Mayo back in '06. I had been through 2 interviews and was convinced they were gonna offer me the gig, when I decided to move to Boston instead, which didn't really work out. Eh, but everything happens for a reason, right?
I don't know about the lake situation but there is plenty of water to be found in the Rochester area (and MN for that matter). It's an easy hop up to the cities from Rochester, easy to take in a twins came and be home in the same day. You could live closer to the cities and commute to Rochester if you wanted too. Just a suggestion.
Just plugging in numbers, you could probably comfortable afford $150K house on your salary-that is REALLY going to limit what you can buy here unless you have a large down payment. To get newer construction with 4 bedrooms, MINIMUM will be $200K in a nicer area with good schools. To find a house in that range you are going to be 30-40 minutes from downtown Minneapolis to start. Another 30-40 minutes isn't going to be all that much more.
Having lived 3 hours from the metro or more most of my adult life, we never seemed to lack for time to get to the cities to do what we wanted. We just did it. You get used to it.
Golfgal, I'm curious on what you're basing your estimation of a $150K price range. I'm not trying to pick a fight, but sincerely curious. I did an estimation of a $70,000 annual salary, took 40% of that (which I believe is the top preferred ratio for banks to be comfortable with a loan) and divided by 12. I come up with a maximum payment of $2333. Take $500 off that for insurance and taxes and it would seem a mortgage payment only would fall around $1800. Using my favorite calculator at homefair.com, it seems you could do a $200K loan at 15 years and 7% interest and get a payment just under $1800.00 (and then $2333 with tax/insurance).
Admittedly, there are a lot of factors that are variable depending on our friend's own preferences (not the least of which being if you do a lower interest rate or longer term loan), but it seems perhaps a $150K loan is a little low. Of course, if our friend can do a down payment that is larger, than obviously opens additional options.
Assuming we were looking at $200K, Coldwell Banker Burnet site is showing 4BR/2BA in Apple Valley or Eagan (which other threads seem to say are good schools) in the $200K range. Of course, those areas also will tend to have newer builds. Minneapolis proper would have houses in the price range, but older stock and possible additional repairs that the OP was not keen upon...
This all said, mid-way between Minneapolis and Rochester might be an option to consider as Golfgal suggested if you don't mind the commute. Small town feel but you're then within the 45 minutes of Minneapolis for ballgames or more hospitals such as the University hospitals (or, of course, Mayo in the other direction).
By the way, If we throw out some numbers of a $70K salary and take home 75% after taxes, deductions, we're obviously at $4375/month take-home. Even at the maximum $2300 payment, that leaves one with $2075.00. My guess is you won't be going crazy on lifestyle (which doesn't sound like a problem anyway), but assuming no dramatic changes to the economy, should let you get by...
We're pretty reserved....don't go out partying or anything like that. Give me a beer and a ballgame on TV and I'm good to go. Ironically, I had many more problems with money when I was single than we do as a family now. I spent excessively to keep myself entertained. Married life agrees with me.
You're like me.
Daycare is expensive so keep that in mind. Minnesota is one of the most expensive states for childcare it seems. Housing is also higher, if you spend $200 or so on a house I think you could find what you want.
On the plus side there's an insane amount of free or low cost family things to do. The park system is amazing here. We were at Elm Creek park yesterday and it has a huge new play area. It also has a manmade swimming pond with an annual membership of $5.00 person. There's a lot of little deals like that around town that give you options for both summer and winter fun.
Golfgal, I'm curious on what you're basing your estimation of a $150K price range. I'm not trying to pick a fight, but sincerely curious. I did an estimation of a $70,000 annual salary, took 40% of that (which I believe is the top preferred ratio for banks to be comfortable with a loan) and divided by 12. I come up with a maximum payment of $2333. Take $500 off that for insurance and taxes and it would seem a mortgage payment only would fall around $1800. Using my favorite calculator at homefair.com, it seems you could do a $200K loan at 15 years and 7% interest and get a payment just under $1800.00 (and then $2333 with tax/insurance).
Admittedly, there are a lot of factors that are variable depending on our friend's own preferences (not the least of which being if you do a lower interest rate or longer term loan), but it seems perhaps a $150K loan is a little low. Of course, if our friend can do a down payment that is larger, than obviously opens additional options.
Assuming we were looking at $200K, Coldwell Banker Burnet site is showing 4BR/2BA in Apple Valley or Eagan (which other threads seem to say are good schools) in the $200K range. Of course, those areas also will tend to have newer builds. Minneapolis proper would have houses in the price range, but older stock and possible additional repairs that the OP was not keen upon...
This all said, mid-way between Minneapolis and Rochester might be an option to consider as Golfgal suggested if you don't mind the commute. Small town feel but you're then within the 45 minutes of Minneapolis for ballgames or more hospitals such as the University hospitals (or, of course, Mayo in the other direction).
By the way, If we throw out some numbers of a $70K salary and take home 75% after taxes, deductions, we're obviously at $4375/month take-home. Even at the maximum $2300 payment, that leaves one with $2075.00. My guess is you won't be going crazy on lifestyle (which doesn't sound like a problem anyway), but assuming no dramatic changes to the economy, should let you get by...
A good rule of thumb for a COMFORTABLE mortgage is 25% of your TAKE HOME pay, which works out to about double your salary. It isn't a "set in stone" rule but it is generally one where people can live a comfortable lifestyle, not have to live paycheck to paycheck. You have really not taken into consideration investments, insurance, groceries, etc. Banks generally qualify you for WAY more than most people can comfortably afford, I think anyway. I would NEVER want to spend close to half of my income on a house payment. Add in a car payment, kids' activities and that $2000 is GONE in no time-then what do you do for fun??
Daycare is expensive so keep that in mind. Minnesota is one of the most expensive states for childcare it seems. Housing is also higher, if you spend $200 or so on a house I think you could find what you want.
On the plus side there's an insane amount of free or low cost family things to do. The park system is amazing here. We were at Elm Creek park yesterday and it has a huge new play area. It also has a manmade swimming pond with an annual membership of $5.00 person. There's a lot of little deals like that around town that give you options for both summer and winter fun.
Yeah, we do daycare now, and it's a big chunk o' change. We'll both have our vehicles paid off within the next 2 years, so that'll help a lot. We don't want to have a mortgage payment of $1,800 a month, I can tell you that. More like $1,100 max.
There are many amazing things about the TC metro, Keb, which is why it's at the top of our list. It has a bit of everything we want........4 seasons, great culture, substantial outdoor beauty and recreation, great sports climate, great shopping , good schools........it's a real nice area that I've been fortunate enough to experience first hand in the past.
Golfgal probably makes something of a point is what you'll qualify for and what you actually want to pay, and I'll confess I didn't really think about childcare. In any case, Northman, if you're looking for $1100/month, than yes it would seem you'll be looking around $150K (probably on the higher end) and more likely a 30 year loan. Those houses can still be found, but my guess is either you'll have to look to another neighborhood/school district, or give on the newer house hopes (possibly look to either fixing or remodeling). Conversely, that leaves more money for unexpected expenses or wishes.
So, to answer the question from my opinion - it is still possible to do $70K, with some tradeoffs.
There's some nice houses in Woodbury thats around 70k. great city very suburban and low crime. Woodbury also has ALOT of shopping and its a great place for children.
A good rule of thumb for a COMFORTABLE mortgage is 25% of your TAKE HOME pay, which works out to about double your salary. It isn't a "set in stone" rule but it is generally one where people can live a comfortable lifestyle, not have to live paycheck to paycheck. You have really not taken into consideration investments, insurance, groceries, etc. Banks generally qualify you for WAY more than most people can comfortably afford, I think anyway. I would NEVER want to spend close to half of my income on a house payment. Add in a car payment, kids' activities and that $2000 is GONE in no time-then what do you do for fun??
I agree with this. 40% is way too high. A bank might approve that, but that's stupid (barring unusual circumstances).
There's some nice houses in Woodbury thats around 70k. great city very suburban and low crime. Woodbury also has ALOT of shopping and its a great place for children.
Glad you chose to live in Minnesota! I know you will have a amazing life here this is a great state with alot to offer. and Welcome to MN!!!
Thanks, friend, although we haven't actually decided on Minnesota just yet. We're also considering Seattle, Olympia, Denver, Colorado Springs, and Pittsburgh at this present time. Seattle is gonna be tough because of the COL there, but it's too soon to rule it out. Minnesota is definitely on top of our list, though. It makes sense on just about every level for us.
As for Eden Prairie, isn't that the most expensive suburb of MSP? We probably couldn't afford it on our income.
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