How much income do you think it´s needed for a young couple with 1 year son in Bucks County (Newtown)... (Bristol: to rent, mortgage)

[enwalker]

Hi,

How much income do you think it´s needed for a couple with a 3 year son that wish to relocate to US from other country.
I want to live in a good new townhouse in Newtown and own one new not too expensive car.

I´ll have a initial anual income of U$ 75k. Do you thinks that´s enough to live well on this city? The idea it´s rase that income when my wife start working (as pastry chef) and my US business start earning money.

Here in my country I have a good life but I´m not happy here. My father is US citizen and I want to imigrate back to his country. Please give me your opinions about how much is needed to have a good life in that region of PA!

Thanks a lot!

[enwalker]

PS.: My son will go to public pre-school (if there are schools for 3 year children) and my wife will attend to Bucks Community College.

[toobusytoday]

I can't answer your first question about income needed but can tell you that there is no public schooling offered for children under the age of 5.

[rainrock]

The general rule of thumb when buying a house is multiplying your salary by 1.5 to max 2.5 and that is your limit what you will be able to safely afford.

With that parameter you are looking at a house in the $112k to 187K range with your $75 K salary. That will be tough to find in Newtown but in ths crazy housing market you never know. More likely though you will probably have to look in the more modest towns nearby Newtown such as Bensalem,Bristol Township,Falls Township etc.

Good luck

[Dawne]

Originally Posted by rainrock

The general rule of thumb when buying a house is multiplying your salary by 1.5 to max 2.5 and that is your limit what you will be able to safely afford.

Well, that's depressing! So someone who makes $50,000 should start looking at houses priced at $75,000? That's practically a trailer park any more!

[enwalker]

Originally Posted by rainrock

The general rule of thumb when buying a house is multiplying your salary by 1.5 to max 2.5 and that is your limit what you will be able to safely afford.

With that parameter you are looking at a house in the $112k to 187K range with your $75 K salary. That will be tough to find in Newtown but in ths crazy housing market you never know. More likely though you will probably have to look in the more modest towns nearby Newtown such as Bensalem,Bristol Township,Falls Township etc.

Good luck

Hi, I don´t want to buy a house, but rent first. I see that a good 2 bdr/2bth it´s 1.6k range.

[toobusytoday]

I think many twenty-something people don't realize that their parents didn't start off with big houses or big salaries. It's OKAY to rent for a few years or buy a small house while building your equity. Our first house was a tiny rancher, second was a still small Cape Cod.

[GiantRutgersfan]

yea 75k is more then fine. you should be living great off that money assuming you dont bite off more then you can chew in terms of a house.

spend up to like 230k for a house. which is definitely doable for a pretty good one.

[enwalker]

Thanks for the answers! But I´ll definitely rent for at least 1 year before thinking about buying a house.

[ShannonMilligan]

Originally Posted by rainrock

The general rule of thumb when buying a house is multiplying your salary by 1.5 to max 2.5 and that is your limit what you will be able to safely afford.

With that parameter you are looking at a house in the $112k to 187K range with your $75 K salary. That will be tough to find in Newtown but in ths crazy housing market you never know. More likely though you will probably have to look in the more modest towns nearby Newtown such as Bensalem,Bristol Township,Falls Township etc.

Good luck

I hear that formula from time to time and I don't get it. We make about $100K and we were pre-approved for $525K. NOW we didn't think that was a good idea-that is to borrow that much but our home did cost $525K and we put about $150K down...Leaving us with a mortgage of $375K. Our monthly mortgage is about $2800 and we have never had a problem paying our bills and such. Never. According to this formula we should only be able to afford about $200K mortgage...So that often confuses me. After paying our mortgage and car payments and other monthly expenses we still have plenty left over every month for savings, spending and what have you. So, why is this formula so popular when it doesn't seem right? Now, we don't live beyond our means and we never have...just not that kind of people BUT a lot of people can and do manage their money very well, so...