How to afford a single family house with 4 kids in Loudoun? (Chantilly: credit, townhouses)

[spencgr]

Can I summarize?

"We are a family of six that currently lives in a 2,600 sf (3 bed, 3.5 bath) home that is already substantially larger than most households in America can afford. But......we want more. So, how do we get more?"


my only answer is to make more money, or move elsewhere.

[just_sayin']

Just stumbled upon this thread while browsing....but I am trying to figure out how the costs for childcare "wipes out" the OP's wife's salary? It says she makes $70k per year and that child care costs $4k/month. That's $48k per year for child care. Hefty price for sure ...but that still leaves the wife's job netting the couple another $22k per year.

[FCNova]

After taxes her take home pay will be far less than 70k though. My wife is in the 80s and her monthly take home pay is like $3700 a month but she has alot of deductions like insurance, 401k, employee stock, etc. So the OP's claim sounds about right

[ChristineVA]

OP, if your wife has a decent career and you can see some mobility, I would say you should have her stick it out. It's been awhile, but I was making $40,000 at one time with two kids in daycare. I didn't see much of my salary. But I was in it for the long haul and after they got into school, there were still costs, but they definitely did reduce. With both of them in college now, MAN, I am glad I still have a job and one that I was able to progress in. I don't know how my kids would have gone to college without this--I am very debt adverse and I am not cool with all this student loan business. I see what it's done to young adults.

I know it feels like "forever" right now but as they say in parenting--the days are long and the years are short!! Just stay where you are right now and get through this time where you've got 4 little ones in daycare. It will get better. Both of your salaries will gradually climb. I never, ever, in that time thought mine would, but it did.

Just realize now that you will have to put off some of those things you think you need (larger home) until later.

I didn't have 4 kids but only 2. I live in a 2500 square foot home (with extra space in the basement) and it wasn't until they were in middle school and become "big people" themselves, that I felt squeezed for room. Their stuff was just everywhere. Now they are in college, and my house is too big!!.

Anyway, hang in there!

[snowdenscold]

Originally Posted by just_sayin'

Just stumbled upon this thread while browsing....but I am trying to figure out how the costs for childcare "wipes out" the OP's wife's salary? It says she makes $70k per year and that child care costs $4k/month. That's $48k per year for child care. Hefty price for sure ...but that still leaves the wife's job netting the couple another $22k per year.

Originally Posted by FCNova

After taxes her take home pay will be far less than 70k though. My wife is in the 80s and her monthly take home pay is like $3700 a month but she has alot of deductions like insurance, 401k, employee stock, etc. So the OP's claim sounds about right

Exactly - how could one forget about taxes??

Since husband will work no matter what, might as well figure wife will hit at full marginal amount (probably all in 25% range after exemptions/deductions/adjustments)

Federal: 70K * .25 = 17,500
State: 70K * .0575 = 4,025
FICA: 70K * .062 = 4,340
Medicare: 70K * .0145 = 1,015

Net = $43,120, or less than the 48K childcare would cost.


[Or perhaps she put $10K into a 401k first, and thus after taxes nets $36,195. Which, added to the 10K she saved and some employer match, is still only about break-even]


Edit: I guess there's also the $1,200 childcare tax credit (20% * $6,000 cap), but that's negligible to the discussion above.

[Flyers5150]

We actually have ALOT of tax deductions so the $70k comes to about $48k give or take after taxes and retirement contributions. She tried being a stay at home mom but it was too much at this point with 3 young toddlers + 1 young child and we have very little outside help (ie. friends and family). We are content to give her a better life balance even if she is working for free basically. She continues to grow her career and both our paychecks will get bigger and daycare will get smaller.

Back to my original post, I think were in survival mode at this point even though I am somewhat greedy about wanting a single family home.

[shamrock847]

If you were to purchase a larger SFH now, what kind of down payment would you have?

If you can put 20% down, you could probably afford something in the low-600s now, although it would be tight. If not, maybe that is another reason to wait...

[michgc]

OP,

I didn't think you are greedy for asking about how to get more house. The fact that you are living in a 2600 sq. ft townhouse doesn't mean you can't hope to move to a bigger or unattached home just because others live in smaller places. If that were the case, then we could never ask about anything on here. I mean there are families in Africa who live in tents, does that mean I can't ask about moving to a luxury 3 BR apartment? Or can I not ask about a 5-star restaurant because others cannot afford to eat out at all?

[spencgr]

Originally Posted by michgc

OP,

I didn't think you are greedy for asking about how to get more house. The fact that you are living in a 2600 sq. ft townhouse doesn't mean you can't hope to move to a bigger or unattached home just because others live in smaller places. If that were the case, then we could never ask about anything on here. I mean there are families in Africa who live in tents, does that mean I can't ask about moving to a luxury 3 BR apartment? Or can I not ask about a 5-star restaurant because others cannot afford to eat out at all?

Anyone can ask about anything. But the original question was "how to afford it". Simple answer is to make more money. Wouldn't you think it odd if someone started a thread asking "How do I afford The Inn at Little Washington"?

The reason I mentioned how other people couldn't afford the size of his home was not to call him greedy, per se. It was to draw attention to the fact that most people in this country raise children in houses much smaller. (The average home size in the US is 2,150 SF). I have three siblings and never was our house over 2,500 SF. I have no memory of feeling crowded or out of space.

Raising four children in a home 2,600 (3 bed, 3 bath) home in this area is not "survival mode". In my opinion, this is a family that is thriving.

[FCNova]

Who cares if the answer is fairly obvious. The guy started the thread for discussion purposes. That's what these boards are for. Making more money is the obvious answer but it doesn't mean the grown ups can't have a meaningful discussion about it.