Salaries and Housing in NOVA (Alexandria, Reston: apartment, foreclosures, renting)

[radmod]

Originally Posted by tgbwc

Moving like might be nice, but how many people can actually move and keep the same income? If my wife and I moved, in many places (probably most places) our income would be cut probably in half. We'd probably be in the same situation then as far as affordability goes.

Not necessarily. If you have a good company to work for in a new location, they're not going to cut your salary by 50%, because they know that they have to compete with lots of different areas around the country. Even if you had to take a 25% pay cut, in most areas of the country, you'd be able to live in the same kind of housing--but without the ugly commute of the DC area. In fact, because DC housing is typically TWICE as expensive as most parts of the country, you'd be ahead of the game--both in comfort and in cash.

[VEIK]

Not only the commute, but housing will be cheaper too.
Cheaper housing, lower salary.
Expensive housing, higher salary
= it all evens out. Bottom like how much cash you have LEFTOVER after all is paid.

[athousandlogins]

It depends on your field. My husband only makes a *smidge* more here in NOVA than he did in Nebraska. But pay is pretty constant in his field no matter where you go; not all fields are like that.

We lived like kings in Nebraska on his salary. We live like paupers in NOVA on the same damn salary. Go figure.

We still like it better here, though. And the commute is even better here, because he can sit on Metro and read a book whereas in Nebraska there was no public transportation. Not only did we have the expense of a second car there, but my husband had to drive in all sorts of bad weather. He never has to drive to work here. But for those that do, obviously commute it a big, major, terrible issue when you live here.

So it all depends.

[tgbwc]

Originally Posted by athousandlogins

It depends on your field.

Right, I was referencing the position of a public school teacher. I had considered moving to SW VA a few years ago. If we moved now, and they placed me on a step with all my years of service, by salary would be about $31,000 less. Our combined income would be about $59,000 less. The benefits are not as good either. In many districts, we would be paying between $300 and $400 more per month for healthcare for the family.

[vlh71]

Wow! You have received a lot of advice! It is true, you cannot look at income alone. Someone making $200K/year may have other issues which would keep them from qualifying for a mortgage and/or getting a good rate. You can have the income, but also have debt, lower credit score, etc. A lender will look at your income and compare it to your obligations (revolving credit, car payment, mortage, etc.) to get your DTI (debt-to-income) ratios. Your credit score also plays a factor as well as the amount you are borrowing. Amounts over $625K borrowed have much higher interest rates. Really, it all depends on your particular situation. It's like a puzzle, where all the pieces work together to form a picture. Respond back if you would like to discuss further - I am a GREAT resource!

[Nancy in Nokomis]

You can get a smaller, older but remodled home in Fairfax for $400k in a good neighborhood with a highly rated school - also a nice big lot with trees - I know since I live there. Prices have gone way down lately.

[tgbwc]

Originally Posted by Fairfax Mom

You can get a smaller, older but remodled home in Fairfax for $400k in a good neighborhood with a highly rated school - also a nice big lot with trees - I know since I live there. Prices have gone way down lately.

Remodeled? Really? Not debating here, I would love to see a link to an example if you have it.

[Skapov]

Originally Posted by Fairfax Mom

You can get a smaller, older but remodled home in Fairfax for $400k in a good neighborhood with a highly rated school - also a nice big lot with trees - I know since I live there. Prices have gone way down lately.

Nope, it won't be "remodeled" but more like outdated 1970s split-level with 15-20 y/o kitchen appliances. Once you get above about $450 then the homes become slightly better, but the good homes go quick so you have to be on top of things and put in an offer right away when you spot a gem.

[tgbwc]

Originally Posted by Skapov

Nope, it won't be "remodeled" but more like outdated 1970s split-level with 15-20 y/o kitchen appliances. Once you get above about $450 then the homes become slightly better, but the good homes go quick so you have to be on top of things and put in an offer right away when you spot a gem.

That is pretty much what we have seen in the Burke and W. Springfield areas. $499k (really pushing our budget) is about as low as we have seen for something updated, but 2 had unfinished basements and no egress, so you couldn't finish them anyhow.

[SlimmyT]

So...I want to add my little 2 cents to this topic. We have rented in Reston for 2 years as transplants from Florida and are closing soon on a 3/2 TH for $340,000 in North Reston. Our income together is about $150k. We are young professionals and anticipate our salary to rise. But, if this economy has taught me anything...it is to LIVE WITHIN YOUR MEANS.

You could take advantage of the "bottoming" market and buy as much house as you could afford, but financial analysts are saying you will most likely need to stay put 5-7 years for that little investment idea to pay off.

We were approved for 425k from a conservative credit union and are buying in the mid 300s. There are nice townhomes with good schools in Reston to be had for that. 3/2 and 4/2 or even crunchy SFH in some nicer areas of 20165 that just need a little TLC. If we were making 200k, I would still probably stay in the 400-425k range. Why go into so much debt?

Areas I'd look at: Potomac Falls and Fox Mill...Franklin Farm....

Good Luck! (and don't buy into the NOVA-yuppie hype)