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There is a reason that prices in westchester are going down and have not found a bottom yet.
Prices in Westchester are actually up according to the latest report. The number of sales has increased by a huge percentage--prices have lagged behind that, but have increased too. Just so you know...
An income of 120K is above the median westchester income 96K for a family of 4. This means that in principle you can afford something better than the median house in westchester.
Unfortunately, that's not the way the math works. Remember, the median family income is not just the middle point of families living in single family homes in Scarsdale. It includes families scraping by in apartments in Mount Vernon. Median income in total, includes retirees whose only "income" is social security. It includes 23 year-olds renting their first apartment. Even assuming the stats you found were exclusively for families of 4, you still must remember that Westchester has a huge number of poor families in Yonkers, Mount Vernon, White Plains, Peekskill, etc. Furthermore, it can include families that bought 20 years ago, when many Westchester neighborhoods were more affordable.
Just to illustrate-- Imagine Westchester had only 100 households. Imagine 45 of the families make under 50k, and live in the county's poor areas, etc. Imagine 10 of the families make 96k, and live in the smallest possible houses in the county's more upscale neighborhoods. And then imagine the remaining 45 families make 300k-300 million, living in the remaining houses in the upscale parts of the county. The "median family income" would be 96k.
[quote=ordinar;15210434]Well someone with a median household income of today (100K) who bought a house 1997 and carries a mortgage of $800, pays $1200 for taxes, and $500-1000 for maintenance, utilities and repairs. This is half of the take home salary JUST for home expenses.
That's what home ownership has always been in America. Historically, home ownership is by far, the biggest chunk on the family budget.
The old rule of thumb, is to expect to pay 1/3rd of your pre-tax dollars on mortgage+taxes.
So that $800 mortgage, plus $1200 in taxes, would be making out very well by historical standards. 24k per year for basic housing, A mere 24% of their income. Throw in an average of $750 per month for maintenance, utilities, etc -- That's 33k -- A mere third of total income. Again, quite normal by historical standards.
The very rough rule of thumb has typically been --- 1/3rd for taxes, 1/3rd for housing, and 1/3rd for other.
Well someone with a median household income of today (100K) who bought a house 1997 and carries a mortgage of $800, pays $1200 for taxes, and $500-1000 for maintenance, utilities and repairs. This is half of the take home salary JUST for home expenses. It's not a life of a prince. Also no savings means no retirement.
There is a reason that prices in westchester are going down and have not found a bottom yet.
I agree. The taxes seem unsustainable. Even after fully paying off your house, you are paying "rent" of $2,000 a month between property taxes, insurance, gas, maintenance, renovations and repairs.
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