DD is house hunting with the long term BF (yeah there will be a wedding) . They both are doing well financially but are facing a ‘sellers market’. Last week I was asked to look at a house she liked close to Philly. It was a mid century modern (A.K.A modest, 1960s house) new windows, doors, kitchen , baths. Some walls taken down to make the kitchen, dining/living rooms and open and airy. The bedroom smallish but adequate. The garage was small and untidy and to this old mans eye the older roof had some sags. $368,000. Taxes $8,600.
30 year Mortgage monthly payment on $220,000. (They’ve diligently saved).
4% = $1,050
5% = $1,181
6% = $1,319
So if we take the middle payment $1,181 + $717 taxes +$125 insurance it adds up to a respectable $2,023. Before gas, electric and cable. On Long Island that house would easily fetch $500,000. Insanity.
Repairs don’t scare me -The first house the Mrs and I bought was functional but needed everything.. I mean everything. Doors, windows, roof, boiler, kitchen, bath -oh and the second floor was unfinished. With time, patience and money almost anything can be made nice.
In the end our newbie buyers misunderstood what school district they were in.. it was a deal breaker.
I worked in NYC for roughly 20 years. Our modest cape cod home was a 50 minute LIRR ride to penn station. Add 20 minutes for a subway ride. I am not a city person, I detest the rat race.
DD is a programmer and the BF is an accountant. Knowing what I know now i think I’d take a different route. Find a small town like Lewisburg West Virginia buy a home for $250K, pay a couple grand in taxes and build an online business. No commute, comfy clothes, good food, no car, train or bus expenses. Rat race be dammed.
30 year Mortgage monthly payment on $220,000. (They’ve diligently saved).
4% = $1,050
5% = $1,181
6% = $1,319
So if we take the middle payment $1,181 + $717 taxes +$125 insurance it adds up to a respectable $2,023. Before gas, electric and cable. On Long Island that house would easily fetch $500,000. Insanity.
Repairs don’t scare me -The first house the Mrs and I bought was functional but needed everything.. I mean everything. Doors, windows, roof, boiler, kitchen, bath -oh and the second floor was unfinished. With time, patience and money almost anything can be made nice.
In the end our newbie buyers misunderstood what school district they were in.. it was a deal breaker.
I worked in NYC for roughly 20 years. Our modest cape cod home was a 50 minute LIRR ride to penn station. Add 20 minutes for a subway ride. I am not a city person, I detest the rat race.
DD is a programmer and the BF is an accountant. Knowing what I know now i think I’d take a different route. Find a small town like Lewisburg West Virginia buy a home for $250K, pay a couple grand in taxes and build an online business. No commute, comfy clothes, good food, no car, train or bus expenses. Rat race be dammed.