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9/22/2017 12:11:25 AM
Posted: 3/7/2006 3:28:42 AM EDT
So my sister goes down to Virginia.
She does this because she was offered a job as a Deputy Sherrif.
I guess starting pay was $40K, a little better than you could do here.

Yeah, that was my first surprise... now since I grew up with this kid, and I am a shitbag, I did a fair share of torturing. I don't see her being cut out for cophood, but whatever...

So first thing she did down there was buy a new Chevy Cobalt.
This kid has a real car problem, she dumps good cars as soon as they're paid off, and buys new again. First she bought a Saturn, dumped it for a Cougar I think? And now this? I'da kept the Cougar or whatever it was till at least 100K but I digress...

Now she tells me the following:

"We are looking for a place to buy, the only thing that sucks down here is the cost of living, the state gives you money for owning something like a townhouse or condo or house, but it's like you can't win. You build a brand new house for like 560,000. but if you try to buy an older home, they are selling for the same price. So it's like well why not buy brand new then right?

Townhomes are like 100,000 less than a single family. but they are three floors and that sucks. Then we have condos, which are about 400,000 and are very big, like 2600 sq feet on 2 floors. It's unreal but you average 800$ more in your paycheck for owning. So there is a chunk of the mortgage.

Our mortgage for the condo would be at worse case 2500 a month, which isn't bad considering rent for apartments down here is 1500-2000 a month, depending where the apartment is. It's a no win housing situation. but if were going to pay that much i would rather own something than rent it. At least we'd get equity. What are your thoughts on this."

So her "boyfriend" works for the Fire Department, I reckon thats $30K.
He probably bought a new car too. She's makin' $40K

How the fuck do they think they're buying a $500K house?

She asked what I thought, I said I suspect bankruptcy is in your near future.
Is Northern Virginia really this outta control for housing?
Or is she just looking in the wrong hood?
Link Posted: 3/7/2006 3:33:08 AM EDT
[Last Edit: 3/7/2006 3:36:20 AM EDT by krpind]
She needs to get a grip.

You should just put it on paper for her.

ETA.....I just did the math on a commercial building @ 15 years for $540,000. The payment was over $5000/ month.

There is no way she could get a payment that was only $2500/month.....I don't think you could do it with interest only. Let me see what the payment would be......

Link Posted: 3/7/2006 3:34:52 AM EDT
[Last Edit: 3/7/2006 3:36:49 AM EDT by tyman]
So.....$800 for each a month for owning.

$1600

Mortgage = $2500

2500-1600 = $900/mo

Thats $450/mo per each of them.


Making $40k = about $3500/mo before tax, about $2300 after or so.
About $3000 and 2000 for him.


That's $4300 after tax, per month they will make.

Figure $600/mo for car payments.

$3700 per month after tax.

So then, $3700 minus the $900 = $2800/mo after tax take home.




tyman fails to see a problem here.



ETA: They should be fine in the short term, considering they dont go out and blow their money on other things. However, long term, it will fail.
Link Posted: 3/7/2006 3:39:01 AM EDT

Originally Posted By krpind:
She needs to get a grip.
You should just put it on paper for her.



I'm not a homeowner myself so it's still unchartered territory for me. I've been seriously looking into ownership, but I'm looking for a farmhouse to rehab, and even still... it's not so much the price of the home, it's the taxes that kill my budget. I'm willing to rent longer to stay comfortable, but then, my rent ain't no $2000!!!


She's still got an assload of private college school loans to pay off too.
Jeez, I told her THAT was a bad idea. I also told her, well stay in school until you get a Masters at least, so that your income would be more than worth the private school tuition... but, nope!
Link Posted: 3/7/2006 3:40:26 AM EDT

Originally Posted By tyman:
So.....$800 for each a month for owning.

$1600

Mortgage = $2500

2500-1600 = $900/mo

Thats $450/mo per each of them.


Making $40k = about $3500/mo before tax, about $2300 after or so.
About $3000 and 2000 for him.


That's $4300 after tax, per month they will make.

Figure $600/mo for car payments.

$3700 per month after tax.

So then, $3700 minus the $900 = $2800/mo after tax take home.




tyman fails to see a problem here.



ETA: They should be fine in the short term, considering they dont go out and blow their money on other things. However, long term, it will fail.



Tyman isn't thinking about property taxes and insurance.

And the payment would be 3400 @ 6.5% for 30 years.

Link Posted: 3/7/2006 3:41:06 AM EDT
Unless there's some way they can come up with an enormous down-payment, I don't think they'll qualify for a mortgage on a half-million-dollar house with a combined income of $70,000.

And they should be glad - I have yet to see a dating couple share a mortgage without a disaster.
Link Posted: 3/7/2006 3:41:52 AM EDT

Originally Posted By tyman:
So.....$800 for each a month for owning.


tyman fails to see a problem here.



ETA: They should be fine in the short term, considering they dont go out and blow their money on other things. However, long term, it will fail.



I don't know if they'd get $800 each. I have no clue if this is valid, I know VA is a commonwealth but thats all I know and the first I've heard of VA handing out $800/mo.

Don't forget utilities, taxes, school loans, insurance house and car, and whatever else life tosses up. And what if she gets pregnant? Or otherwise ends up on a single income for awhile.
Link Posted: 3/7/2006 3:42:23 AM EDT
Link Posted: 3/7/2006 3:45:19 AM EDT

Originally Posted By Rodent:
Unless there's some way they can come up with an enormous down-payment, I don't think they'll qualify for a mortgage on a half-million-dollar house with a combined income of $70,000.

And they should be glad - I have yet to see a dating couple share a mortgage without a disaster.



Thank GOD for SENSIBLE people!

My sister has good credit though, therefore, I am scared.
I feel these lenders are always looking for the sucker, ya know.

I halfway expect her to write to me tomorrow and say she got some kind of ARM with deferments etc...

I'll be showing her this thread. I know she won't listen to me, but maybe she'll heed a bunch of other people.
Link Posted: 3/7/2006 3:47:40 AM EDT
[Last Edit: 3/7/2006 3:51:23 AM EDT by Adam_White]
oh, never mind - too early.
Link Posted: 3/7/2006 3:49:35 AM EDT

Originally Posted By Adam_White:

Originally Posted By tyman:
So.....$800 for each a month for owning.



You forgot one pther thing:
If both she and boyfiren ge that, their effective available monthly payment could be as much a $3,000 or more a month.



Nope, he sure did factor that in.
Link Posted: 3/7/2006 3:54:10 AM EDT
Hey, another question...

Am I the only one thinking that with condos and townhouses running $400K and up... she just might find herself with negative equity? The housing market is slowing down alot of places, I can't speculate too much, but I'm seeing prices dropping in serveral areas, including mine. We just had a thread about that here.
Link Posted: 3/7/2006 3:54:42 AM EDT
I woul dbe more worried abotu her buying a house with her boyfriend. I would never buy a house with someone I am dating. (besides my wife might mind ) Relationships break up so easy. And if he leaves and she is the only one on the title, she will be screwed over making the payment without him.
Link Posted: 3/7/2006 3:55:12 AM EDT

Originally Posted By Adam_White:

Originally Posted By tyman:
So.....$800 for each a month for owning.

$1600

Mortgage = $2500

2500-1600 = $900/mo

Thats $450/mo per each of them.


Making $40k = about $3500/mo before tax, about $2300 after or so.
About $3000 and 2000 for him.


That's $4300 after tax, per month they will make.

Figure $600/mo for car payments.

$3700 per month after tax.

So then, $3700 minus the $900 = $2800/mo after tax take home.




tyman fails to see a problem here.



ETA: They should be fine in the short term, considering they dont go out and blow their money on other things. However, long term, it will fail.



You forgot one other thing:

"the state gives you money for owning something like a townhouse or condo or house" - sounds like a housing allowance ON TOP OF her pay.

If both she and boyfriend get that, their effective available monthly income might be as much a $3,000 or more extra a month.



I'm moving....

i'm going to buy houses in Virginia and retire.

Do you honestly believe that the state can give individuals $800/ month for owning a home?

Do you have any idea how much a program like that would cost?

Do you have any idea where that money would come from?

Anybody got a link for this giveaway?
Link Posted: 3/7/2006 4:01:33 AM EDT
I was only half-serious.


And I was just doing the basics, krpind. I know insurance and taxes will also take up some.
That's why I said in the short term, they would probably be ok. But longer-term, they would suffer.
Link Posted: 3/7/2006 4:03:44 AM EDT

Originally Posted By krpind:
Do you honestly believe that the state can give individuals $800/ month for owning a home?

Do you have any idea how much a program like that would cost?

Do you have any idea where that money would come from?

Anybody got a link for this giveaway?



Sorry bro, I have no clue where she got this idea from. I was hoping a Virginny forumite might be able to chime in with more detail.

I know Alaska pays dividends to it's citizens, but lets face it, living in the dark half the time with the Eskimos kinda deserves some compensation.
Link Posted: 3/7/2006 4:05:48 AM EDT

Originally Posted By tyman:
I was only half-serious.

And I was just doing the basics, krpind. I know insurance and taxes will also take up some.
That's why I said in the short term, they would probably be ok. But longer-term, they would suffer.



Imagine a long term of FIFTY freakin' years!
Link Posted: 3/7/2006 4:05:51 AM EDT

Originally Posted By Rodent:
Unless there's some way they can come up with an enormous down-payment, I don't think they'll qualify for a mortgage on a half-million-dollar house with a combined income of $70,000.

And they should be glad - I have yet to see a dating couple share a mortgage without a disaster.



+1


It'd probably be a little closer to 200-25k.

My friend makes about $40k and his bank said they would give up to 100k. Credit score of about 720'ish.

On the good side, I checked my score the other day. A 751.
Link Posted: 3/7/2006 4:06:53 AM EDT

Originally Posted By gonzo_beyondo:

Originally Posted By tyman:
I was only half-serious.

And I was just doing the basics, krpind. I know insurance and taxes will also take up some.
That's why I said in the short term, they would probably be ok. But longer-term, they would suffer.



Imagine a long term of FIFTY freakin' years!




Huh? :unsure: :confused:


When I said long-term, I was meaning like past 5 years.
Link Posted: 3/7/2006 4:10:06 AM EDT

Originally Posted By krpind:

Originally Posted By Adam_White:

Originally Posted By tyman:
So.....$800 for each a month for owning.

$1600

Mortgage = $2500

2500-1600 = $900/mo

Thats $450/mo per each of them.


Making $40k = about $3500/mo before tax, about $2300 after or so.
About $3000 and 2000 for him.


That's $4300 after tax, per month they will make.

Figure $600/mo for car payments.

$3700 per month after tax.

So then, $3700 minus the $900 = $2800/mo after tax take home.




tyman fails to see a problem here.



ETA: They should be fine in the short term, considering they dont go out and blow their money on other things. However, long term, it will fail.



You forgot one other thing:

"the state gives you money for owning something like a townhouse or condo or house" - sounds like a housing allowance ON TOP OF her pay.

If both she and boyfriend get that, their effective available monthly income might be as much a $3,000 or more extra a month.



I'm moving....

i'm going to buy houses in Virginia and retire.

Do you honestly believe that the state can give individuals $800/ month for owning a home?

Do you have any idea how much a program like that would cost?

Do you have any idea where that money would come from?

Anybody got a link for this giveaway?



I believe the $800 they are referring to is for Gov't workers so that they don't live out of state. I don't know if Firemen qualify for that but I know of a couple of people that get that as LEO.

Even so, If I were making $70K per year I would be looking at $250K mortgage and no more.

Just my 2 cents.
Link Posted: 3/7/2006 4:10:50 AM EDT
[Last Edit: 3/7/2006 4:15:26 AM EDT by SouthHoof]
Rule of thumb taught to me by high school civics & personal finance teacher in 1977 and it still holds true to this day.

Your price range for housing should be NO MORE than 1.5x your total gross income.

Gonz your sister is fuckedup in the head if she thinks there is ANY WAY she can afford a house that is priced in the $200k range.

[geezer rant mode] These young people these days think they HAVE to have the 3000sq ft McMansion for their first home. WHAT THE FUCK EVER HAPPENED TO THE IDEA OF AN AFFORDABLE "STARTER HOME"? [/geezer rant mode]


eta: I was asked for the same brotherly advice from my younger sister when she wanted to build a huge expensive house. She ignored what I had to say & is struggling to keep up the payments, taxes & insurance. I suspect your sister will ignore you too
Link Posted: 3/7/2006 4:16:13 AM EDT

Originally Posted By gonzo_beyondo:

Originally Posted By krpind:
Do you honestly believe that the state can give individuals $800/ month for owning a home?

Do you have any idea how much a program like that would cost?

Do you have any idea where that money would come from?

Anybody got a link for this giveaway?



Sorry bro, I have no clue where she got this idea from. I was hoping a Virginny forumite might be able to chime in with more detail.

I know Alaska pays dividends to it's citizens, but lets face it, living in the dark half the time with the Eskimos kinda deserves some compensation.



WTF? I've lived in VA my whole life and I've never heard of anything like that. Maybe that's something she can get from her Dept. to offset the high cost of living in NOVA, but I really don't think it's any kind of state program.
Link Posted: 3/7/2006 4:17:59 AM EDT

Originally Posted By SouthHoof:
Rule of thumb taught to me by high school civics & personal finance teacher in 1977 and it still holds true to this day.

Your price range for housing should be NO MORE than 1.5x your total gross income.

Gonz your sister is fuckedup in the head if she thinks there is ANY WAY she can afford a house that is priced in the $200k range.

[geezer rant mode] These young people these days think they HAVE to have the 3000sq ft McMansion for their first home. WHAT THE FUCK EVER HAPPENED TO THE IDEA OF AN AFFORDABLE "STARTER HOME"? [/geezer rant mode]



You are 100% spot on in your assessment bro.
Thats why I'm not owning yet, and the reason I have a FEW toys.
Once I buy a home, even a cheap shit home, I'll be in ALOT of debt... and I'm only looking at houses in the $60K range! Its the costs of ownership that will hurt me.

There are apparently no "starter homes" down there! Condos or townhouses are "starters" for most folks... but at $400K I say again, WTF Over!!

I'm advising she resorts to plan Z otherwise known as: "when all else fails"...
Find a hunk of land or a trailer park, find yourself a used double-wide...
Park that sumbitch and save up like crazy! Hey, it's still ownership, right?
Collect them dividends or whatever they are for $800/mo and live happy.
Link Posted: 3/7/2006 4:23:53 AM EDT

Originally Posted By VA-gunnut:
They aren't going to get a loan on a house that size with the salaries they're making.

That said, the housing market in NOVA is that out of control.



Isn't that the truth!? I mean a house that anywhere else would only run you $130,000-$150,000 cost between $375,000-$540,000 here. I don't know where you are in VA Gunnut but if your in Fairfax, Alexandria, Arlington, or the city of Falls Church you know the prices are the worst there. A freaking efficiancy near the Arlington Courthouse will run you $1090 a month.
Link Posted: 3/7/2006 4:25:50 AM EDT
Just tell her to move to Kansas.

She will start out with Sheriff's office @ $32k a year. She can buy a 2100sq ft house for $95k, if not a little bigger.


My parents went and looked at a 2500'ish sqft house, with a huge barn and morton building, a mile outside of town. $180k with like 10acres of land I believe.
Link Posted: 3/7/2006 4:26:21 AM EDT
[Last Edit: 3/7/2006 4:28:08 AM EDT by gonzo_beyondo]

Originally Posted By SouthHoof:
eta: I was asked for the same brotherly advice from my younger sister when she wanted to build a huge expensive house. She ignored what I had to say & is struggling to keep up the payments, taxes & insurance. I suspect your sister will ignore you too




Dammit, thats what I'm afraid of.

My sister has done so good with her life. She's excelled at school, and easily coulda achieved a Masters degree, just took patience. Seems like in the last couple years she just got too cocky and in my estimation, is really setting herself up more and more, for a huge fall.

She has'nt even lived with this boyfriend for two years yet, thats a HUGE VIOLATION of my law!
Forgive me if I don't believe for one minute this relationship will last, but theres simply nothing to it yet. I have BEEN THERE AND DONE THAT!

I know people have to learn for themselves and make their own mistakes, but to have done everything right up to this point, and then put yourself in a position facing bankruptcy? To even let yourself get into so much debt, I mean her school loans alone are a giant debt, and the interest on school loans is supposed to increase quite a bit on July 1st.

Added to that, her new car payment for five years, and if I was in that position, I'd already be pretty damn uncomfortable having all that hanging over me. Taking on a giant mortgage on top of it all, is just financial suicide.
Link Posted: 3/7/2006 4:38:22 AM EDT

Originally Posted By tyman:
Just tell her to move to Kansas.

She will start out with Sheriff's office @ $32k a year. She can buy a 2100sq ft house for $95k, if not a little bigger.


My parents went and looked at a 2500'ish sqft house, with a huge barn and morton building, a mile outside of town. $180k with like 10acres of land I believe.



Thats it?! God that makes me sick to my stomach.
Link Posted: 3/7/2006 4:45:45 AM EDT
[Last Edit: 3/7/2006 4:50:37 AM EDT by tyman]

Originally Posted By -M60_Gunner-:

Originally Posted By tyman:
Just tell her to move to Kansas.

She will start out with Sheriff's office @ $32k a year. She can buy a 2100sq ft house for $95k, if not a little bigger.


My parents went and looked at a 2500'ish sqft house, with a huge barn and morton building, a mile outside of town. $180k with like 10acres of land I believe.



Thats it?! God that makes me sick to my stomach.






I think....it may have been closer to $200k though. Maybe 195k. I dont really remember. Awesome looking house too.....very nice and open.


ETA: Our current house is like 2200sqft, IIRC, on a corner lot with side yard of like 40ydsx10x on the side, and like 30x15 in the front with 2 car concrete parking going into 1.5car garage.
Main floor and basement with huge deck out back with a little shed for mower and stuff.
$130k'ish when we bought it, and its in town in the "richer/richest" part of town.
Link Posted: 3/7/2006 4:50:15 AM EDT
At least she has more sense than my wife's sister. She was convinced that she was going to buy a $200K house while working part-time at McDonalds.
Link Posted: 3/7/2006 4:58:02 AM EDT
Welcome to the days of "free money" and rampantly out of control credit and debt. One day soon the house of cards is going to come crashing down...
Link Posted: 3/7/2006 5:07:56 AM EDT

Originally Posted By gonzo_beyondo:
So my sister goes down to Virginia.
She does this because she was offered a job as a Deputy Sherrif.
I guess starting pay was $40K, a little better than you could do here.

Yeah, that was my first surprise... now since I grew up with this kid, and I am a shitbag, I did a fair share of torturing. I don't see her being cut out for cophood, but whatever...

So first thing she did down there was buy a new Chevy Cobalt.
This kid has a real car problem, she dumps good cars as soon as they're paid off, and buys new again. First she bought a Saturn, dumped it for a Cougar I think? And now this? I'da kept the Cougar or whatever it was till at least 100K but I digress...

Now she tells me the following:

"We are looking for a place to buy, the only thing that sucks down here is the cost of living, the state gives you money for owning something like a townhouse or condo or house, but it's like you can't win. You build a brand new house for like 560,000. but if you try to buy an older home, they are selling for the same price. So it's like well why not buy brand new then right?

Townhomes are like 100,000 less than a single family. but they are three floors and that sucks. Then we have condos, which are about 400,000 and are very big, like 2600 sq feet on 2 floors. It's unreal but you average 800$ more in your paycheck for owning. So there is a chunk of the mortgage.

Our mortgage for the condo would be at worse case 2500 a month, which isn't bad considering rent for apartments down here is 1500-2000 a month, depending where the apartment is. It's a no win housing situation. but if were going to pay that much i would rather own something than rent it. At least we'd get equity. What are your thoughts on this."

So her "boyfriend" works for the Fire Department, I reckon thats $30K.
He probably bought a new car too. She's makin' $40K

How the fuck do they think they're buying a $500K house?

She asked what I thought, I said I suspect bankruptcy is in your near future.
Is Northern Virginia really this outta control for housing?
Or is she just looking in the wrong hood?



It is like this all over the place. I could not buy the house I am living in right now that I bought less than 5 years ago--and I make the same amount of $$$ then as now.

When it crashes, it will not be pretty.

GR
Link Posted: 3/7/2006 5:16:09 AM EDT

Originally Posted By NewbHunter:
Welcome to the days of "free money" and rampantly out of control credit and debt. One day soon the house of cards is going to come crashing down...



Its bad enough I have to take on a car loan here shortly... thats the only debt I want to deal with for quite awhile. Which is why all of my current debt will be paid this month, in full.

When I go get financing, there won't be anything over my head aside from cheap-ass rent. Once the car is paid, hopefully early, I'll see what I can do about home buying. A paid off car oughta cover me for another 12-13 years like my current car has. (with payments only for a maximum of 4 of those years)

I figure when the house of cards does come crashing down, and I firmly believe it will, I should be on the correct side of the situation. I'd probably have a nervous breakdown if I found myself over my head in debt, with negative equity, rising taxes, and increasing interest rates

Its hard enough to stay afloat and live comfortably, without debt!
Link Posted: 3/7/2006 5:19:43 AM EDT
[rant] Houses anywhere near a big city in MD and NVA prices are nuts. If, and I mean if you can find a house for less then 200k its usly a dump townhouse. I'm seeing houses going up right down the road from my parents house (vauled at $350k, land and house cost 75k back in 85) going for 800k+, and thats the norm.[/rant]

I agree with you, your sister is nuts to buy a house at those prices on the money she makes, and with a boyfriend owning the house also.
Link Posted: 3/7/2006 5:25:00 AM EDT

Originally Posted By greenranger:
It is like this all over the place. I could not buy the house I am living in right now that I bought less than 5 years ago--and I make the same amount of $$$ then as now.

When it crashes, it will not be pretty.

GR



I know, I see it happening... I'm trying my hardest to stay my ass out of it.

Consider yourself lucky, we actually make less money now than we did 5yrs ago. Meanwhile all of our unavoidable expenses, such as heating costs and fuel for essential driving, have come close to doubling in that same amount of time.

We've resorted to using alot more electricity for heat and cooking instead of natural gas... we have two comforters on the bed. Gas furnace is set to 62* We don't go out for leisure rides anymore, now it's a direct route to do what we've gotta and then back home. No evenings out for a beer, no movies, no eating out... with the exception of occasional pizza or subs, but we make that from scratch at home most of the time now too.

One of the biggest factors in house buying for me, is going to be the amount of money I'll have to invest to make the home energy efficient... insulation, windows and doors, furnace, water heater, appliances, etc.. Otherwise, an old farmouse would'nt even be viable. I can't afford a $600 gas bill for heat.
Link Posted: 3/7/2006 5:28:00 AM EDT
Yup housing prices are that nuts around here, you may be able to fine some old , run down house in a crappy neigborhood on the RT. 1 corridor in eastern Fairfax County for like $250K . Lot of people commute around here as much a 90 minutes (70+ miles) to their jobs every day since they can't afford a house close in. I am lucky to of bought my house when I did, because I could not afford it now.
Link Posted: 3/7/2006 5:34:35 AM EDT
We're having the same problem here in FL. Houses where I'm currently living (I rent) are running something like $300/square foot for homes built in the 40s and 50s. I rent a 1200 square foot home built in 1942 that would probably sell for something like $350K. The lot is not much bigger than 1200 sq ft. And just let me tell you, this place would need some work if you wanted to live here long term.

With the money my wife and I make, it's sad that we are struggling to find a home to buy. We can afford a $500K home, but I am not willing to pay that in order to get an old 1800 sq/ft home. And oh by the way - the property taxes would be about $10-$12K per year. Plus insurance isn't exactly cheap around here at 3ft above sea level.

For now, we're going to continue to rent and hope that the bubble does burst or at least there is some correction in the market. If not, I don't know what we'll do.
Link Posted: 3/7/2006 5:38:34 AM EDT
She needs to stay in the 200 range.
Link Posted: 3/7/2006 6:17:57 AM EDT

Originally Posted By gonzo_beyondo:
So my sister goes down to Virginia.
She does this because she was offered a job as a Deputy Sherrif.
I guess starting pay was $40K, a little better than you could do here.




Where is here? I hate when people don't post what state they are from on their profiles, and expect people to know where they are talking about.
Link Posted: 3/7/2006 6:31:13 AM EDT
If she and her boyfriend are in NoVA then her salary might be $60k before overtime and the fireman's salary will be similar.

GunLvr
Link Posted: 3/7/2006 6:43:42 AM EDT
Although many mortgage brokers will find you a mortgage that is 4 times the size of your annual income (in the case of your sister and boyfriend, we're talking less than $300k).

However, if you want any hope of having a financial cushion, looking for a mortgage of twice your annual income is much more prudent.

I see two very serious potential problems in the case of your sister:

1. She's not in a commited relationship. If she's knows and loves the guy well enough to take out a 30 year mortgage with him, then she might as well get married. When you are "dating" it's too easy for one party to walk out. If her boyfriend were to leave, how long could she continue to make payments? With a $300k mortgage, it wouldn't be for very long. She'd be forced to immediately put the house on the market, she'd lose the 6% that a realtor takes, and may still have to wait 6 months before it sells.

2. Maybe she does get married. Sure, they aren't planning kids now, but what happens in 5 years? As firefighter/police, their salaries aren't going to change dramatically in that time. Suddenly, she's going to be faced with a choice of daycare (which will be horrifically expensive for a couple who work police and firefighter schedules) or staying home to raise the baby. If she stays home to raise the baby, suddenly their income drops in half, and we're back to the scenario in point 1.

They need to look into cheaper housing that is farther from where they work. I can't believe that all housing within a 1 hour commute of their work is priced over $300k...
Link Posted: 3/7/2006 7:31:48 AM EDT

Originally Posted By guardian855:
Where is here? I hate when people don't post what state they are from on their profiles, and expect people to know where they are talking about.



I'm in Buffalo, NY... but I fail to see why where I am would matter. I simply pointed out that the wage potential in NoVA, the job opportunity in general, was better there. Hence the reason she moved to VA.

I questioned whether the cost of living would make it a wise move... i.e. Buffalo wages (30-40K) combined with Florida housing costs (560K) would make it a very bad move. Seems like I was correct on that point.


Originally Posted By pliftkl:
Although many mortgage brokers will find you a mortgage that is 4 times the size of your annual income (in the case of your sister and boyfriend, we're talking less than $300k).

However, if you want any hope of having a financial cushion, looking for a mortgage of twice your annual income is much more prudent.



Twice annual combined income I *estimate at $70K yearly would equal $140K
This does not seem like even a remote possibility in Northern Virginia.
Some folks here are saying, possible delapitated properties for $250K
Yikes!

*Estimate based on her telling me wages were $40k to start, and I cannot imagine Firefighting paying at the same rate, $10K less, thats feasible. I was a firefighter, and it don't pay shit.


I see two very serious potential problems in the case of your sister:

1. She's not in a commited relationship.

2. Maybe she does get married. Sure, they aren't planning kids now, but what happens in 5 years?

They need to look into cheaper housing that is farther from where they work. I can't believe that all housing within a 1 hour commute of their work is priced over $300k...



Yeah, I agree wholeheartedly. And try as you might, pregnancies happen, no matter what, if you're having sex, period. Its just a matter of rolling the dice and hoping you don't get lucky.

A one hour commute to me, seems unreasonable. Your 8 hour day turns into 10hrs by default. Now I realize alot of people do this, but I could'nt.

And one hour from Northern Virginia still gets you much of no place good. That's not to say theres nothing nice there, but rather, nothing cheap! You're playing in a very high priced and competitive housing market. Nothing good can come of that.

A whole lotta bad can result if a housing price correction takes place after you've purchased though!
Link Posted: 3/7/2006 8:33:14 AM EDT
Well, I am a cop in northern Virginia as well. And those numbers are about right. Its really crazy. Many drive an hour or more to get in to work these days. Public servants cant afford the prices in this area. I am looking into moving out myself. I will never be able to pay the morgage on a single family home, and thats not acceptable.
Link Posted: 3/7/2006 10:15:59 AM EDT
[Last Edit: 3/7/2006 10:19:35 AM EDT by gonzo_beyondo]

Originally Posted By JUSTACOP:
I will never be able to pay the morgage on a single family home, and thats not acceptable.



I'm really sorry to hear that, and I agree that it isn't acceptable. Its a sad state of affairs when the market shuts out good people, especially those who protect and serve.

I have serious doubts that my sister would relocate again. I think she'll end up struggling with, $1500+ in rent, or God only knows how much for a mortgage. I still pray that she'll go back to school and get a serious degree. Lets face it, criminal justice just isn't enough to make a decent living anymore. According to that link, you're better off teaching it, than actually doing it.

I hope you find a better situation, good luck.


ETA: I remember not so long ago, when you could get a mortgage on a nice house, for about the same money as you pay in rent. WTF happened? Then you pay out as much in taxes per year, as you pay on the house itself!
Link Posted: 3/7/2006 8:03:44 PM EDT
A few things:

1. Yes, the housing market is that out of control here in northern VA and it's not going to get better any time soon. My 18 year old, 3 story 1500 sq ft condo in an 'ethnically diverse' neighborhood is currently valued at more than $300k.

2. I don't know anything about what local or state police and fire offer for paychecks, but when I moved here back in '93 I was given $750 a month extra for housing as a USAF E4 so it is possible that in today's market they could be given that much.

3. I don't know your sister or her boyfriend, but I've known 30-something year old, mature acting people who'd been in relationships for several years who thought that sharing a mortgage would be no problem and were proven wrong. Dividing up property is bad enough when there's a marriage license involved.
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