Do you think we can make it on this income? Trying to form a plan to move (Miami: to rent)

[Nemoralis]

Fiance and I are planning on moving at the end of this year. We have looked at several different places, all contingent on what schools I can get into to finish my undergrad and start working on my doctorate. Top choices on the list are: Miami area (this includes MDC, PBC, and Broward), Austin TX, and Nashville TN.

Here are our "stats":

He's a computer networking technician
I'm going to school for wildlife research
Current combined income is about $50k
We have about $30-40k to put down on a home
House price max is about $200k

We know how to budget and live within our means. We own two vehicles and two motorcycles which are all paid off, have zero debt, no kids (and don't plan on any for about 10 years). He is looking to work on a Master's after a couple years. When we are both done with school, our potential income will be around $100k or more but that will be a long time from now.

Reasons for moving to Miami area: we love to scuba dive, and moving here would cut down on the thousands per year we spend on scuba diving vacations. The area is good for me job wise, as the everglades and ocean provide lots of research-related jobs. We love the warm weather, etc. etc. all the usual reasons after that. Right now we pay $850 per month for an 1100 square foot duplex with a decent backyard and one car garage. Would like something a little bigger, with a fenced yard (even if it's tiny) when we move.

I've seen a lot of good info about Delray Beach, which is convenient because I plan on attending Florida Atlantic.

Do you think we are crazy for thinking we could survive here?

[ssclulow]

You don't say where you are moving from. The lifestyle you want to live would seem to play a big part in your ultimate decision. Florida is a great place to scuba dive. If I were you, I would have jobs in hand before moving and that won't be easy, no matter what your experience is. Unemployment in Florida is the third highest in the nation at 12%. People are shocked when they move without job in hand to find out that they cannot find fulltime employment even though they have much experience in their field. Finding jobs here is all about networking and knowing local people who can "get you in" for the interview before a position is even posted. Also, you wil have to adjust your budget for housing costs & gasoline expenses if you have your heart set on the Delray Beach area and find employment in Miami. Congratulations on being frugal and having savings put aside. Best Wishes in planning for your future. Hope it all works out for you.

[Nemoralis]

Thanks for the reply! We are moving from Mississippi. Here, housing is cheap, but the jobs pay very low wages and there is nothing here worth staying for really - we spend so much money every month going out of state that it would be worth it to move to a place where we don't feel the need to do that. We like bigger cities with a good nightlife and dance clubs, plus lots of outdoor activities. South Florida has all of it.

I'm confident I could find the same type of part-time work I do here in MS, but I'm worried about him finding a job. He is a 23 year old in the IT field, with two years of work experience. He would get a great recommendation from his current employers and we aren't looking for a high paying job YET (he makes 26k plus benefits now). How common are jobs of this type in South Florida?

And do you think we could get a house/townhouse in a decent neighborhood with a small yard for 200k?

[Pimpy]

I don't know anything about the IT job market in South Florida, but I do know this: $200K is way too much house for a $50K combined income unless you are getting additional income elsewhere or help from family. Especially in Florida, where property taxes and insurance will be much higher than what you're used to in Mississippi.

Buying houses that cost 4-5 times one's annual income was commonplace in 2003-2006... and look what that did to the housing market. On a $50K income, you should be looking at stuff in the low $100's tops.

[tjarado]

Bad news: Pimpy is right about the inadvisability of purchasing 4x your income.
Good news: You can get some unbelievable buys right now for ~120k.
E.G. I got a 1200 sf (under air) villa 4 miles from the beach in Delray for 90k in early 2010 Even now w/o homebuyer credit you can do VERY well with $120-140k depending on location.
Bad news: You MUST have steady incomes and good credit to make this work.
Good news: You both live w/in your means.
Bad news: Plan for gas and food prices to go up so don't buy far from work or play.

Good luck.

[Nemoralis]

Thanks for all the advice! I should say that our income is about 50k take home. Before taxes I think that makes it about 70k. Don't know if that makes a difference. We do have good credit. Also, my sister will probably be coming to live with us, so she will be helping with the mortgage. But we don't know how long she'll be there (or even if she will come) so we are still not going to have a mortgage that we can't afford by ourselves. But that is good information, thank you. From reading some of these posts on here, it seems like you can't buy a good house for less than $350k.

I save on gas my riding a motorcycle all summer, which in Florida, means all year long. So not too terribly worried about gas since I get about 80 mpg. I've definitely heard a lot of bad stuff about property tax and insurance, but then again FL has no state income tax. Does that make up for added property tax and insurance?

[FloridaHawkeye]

Your takehome is roughly 4.1 k a month. Your mortage would be for 160k 810.00 with 4.5% interest on a 30 year fixed. This is assuming you put 20% down on a 200k house. Add 2k a year for insurance and 2k for taxes ..the total monthly payment would be 1144k. Electric varies but for a well built newer home would be avg 150 to 200..for not so well built then 400. I would say HOA fees avg 200 to 300 a month.

Say you wait 4 years for more money down or for better income..well gee the price of houses will hopefully be up as well as interest rates. I guess I am failing to see why it would be a bad idea.

[skylinet]

You can find a decent home for under 150k some with no hoas. First thing is to find jobs obviously and then figure out which area you want to live in. you may want to rent for a year to get to know the area. With rates as low as they are is put a little less down on your home so you have more in reserves in case of an emergency.

[dive77mmwet]

Man your going to move from a laid back life style to a ant hill?

one thing its a buyers market so no problem with that,

as said work is nill and pay is way less!! less than or equal to were your now with out the headaches! Trust me.

Traffic its insane if your going to computer learn at home ok but try to travel too and from school nut's drive down and visit for a week get up at 7:00 A.M. get on I95 same at 4-5P.M. its it's a raceway with a demo derby throw in for laughs!

OK now for the brass tac's most folks don't even think about,you buy that 200k dream home with the pool,patio,and 1 & 1/2 spot's to park,think storage shed for the toys,Sell the bikes you have a death wish keep em! Insurance have you found out what SE Florida gets in home owners Insurance?? personal property? car? Bike?
it adds up fast!
And then you try to go diving you cant afford the dive boat trip at $75 a pop for a two tanker and it grows old fast! get a boat,more storage,the problems with salt water repairs all the money you could fly down get the old man to pop for the Ritz or Breakers- a lobster cocktail and spa treatment and wow you will have fun then!

[FloridaHawkeye]

Originally Posted by dive77mmwet

Man your going to move from a laid back life style to a ant hill?

one thing its a buyers market so no problem with that,

as said work is nill and pay is way less!! less than or equal to were your now with out the headaches! Trust me.

Traffic its insane if your going to computer learn at home ok but try to travel too and from school nut's drive down and visit for a week get up at 7:00 A.M. get on I95 same at 4-5P.M. its it's a raceway with a demo derby throw in for laughs!

OK now for the brass tac's most folks don't even think about,you buy that 200k dream home with the pool,patio,and 1 & 1/2 spot's to park,think storage shed for the toys,Sell the bikes you have a death wish keep em! Insurance have you found out what SE Florida gets in home owners Insurance?? personal property? car? Bike?
it adds up fast!
And then you try to go diving you cant afford the dive boat trip at $75 a pop for a two tanker and it grows old fast! get a boat,more storage,the problems with salt water repairs all the money you could fly down get the old man to pop for the Ritz or Breakers- a lobster cocktail and spa treatment and wow you will have fun then!

Uggh talk about a skewed opinion.