We saw a condo in Jersey City today - 20 minute ferry ride from Manhattan. It is in a good location (most of the Jersey City is not so good).
It is lovely - a balcony with a great view, spacious, lots of light, 1.5 baths, washer/dryer, huge living room.
1.5 bedrooms. I could really see living there, waking up, there... getting ready for work... It can be home.
It reminds me of my childhood apartment - european style building, windows, lobby, grounds...
It is, however, quite expensive:
$1,850 monthly mortgage payment (430K mortgage with 20% down at 5% interest)
$878 monthly maintenance
$645 monthly taxes
$3,373 house payment
than there is commute. DH commutes to a job 47 miles away. (it should not really change much - the place is a little further but he won't have to go through Staten Island and its traffic).
I'll have to also get a ferry pass - $290 a month.
We will have to cut down on a lot of expenses - really count everything we spend on, including groceries, including every purchase. We'd be living like poor people but in a lovely place. Can I handle such simplicity? What matters to me more?
This is the best place I have seen since starting to look at the apartments over 2 years ago.
I really really want it. But DH has concerns regarding high cost and I understand him. It is a huge decision and we want to make a right one. But it is beautiful. I'd feel like going home to a resort every day.
I love this condo!!! - but we'll have to live like on minimum wage.
March 15th, 2009 at 01:15 am
March 15th, 2009 at 02:01 am 1237082515
March 15th, 2009 at 02:08 am 1237082933
What if you guys decided to "play make-believe" and pretend you did buy the condo? Live on what would be left over after the mortgage payment & ferry pass (excluding rent of course) for a year or so. See how you like the lifestyle, and if it's something you would be willing to live with. Might help you make a more informed decision about the next condo that comes a long, and in the meantime you'll be saving towards perhaps an even larger down payment (and therefore reduced expenses ... and the need to give up less).
That's what we did when my husband wanted to quit his job and start his own business. We lived on just my salary for awhile ... Decided we could hack it ... And took the plunge. (And in the meantime, we were saving the business start-up funds and a cushy EF.)
March 15th, 2009 at 02:59 am 1237085985
What would you do if a major repair needed to be done? Would you have money set aside for it? Would you be able to replace that money in prep for another future big expense?
March 15th, 2009 at 12:56 pm 1237121789
When i grew up in NJ, Jersey City was not considered "desirable." I know that's changing now, but what i can't get over are the prices for purchase, monthly maintenance and taxes., all much higher than what i'm paying in Fairfield County for a house with 1.5 acres. Wow...is that the going rate in that area?
there are so many properties available now and should be able to get a real bargain in this market.
March 15th, 2009 at 03:41 pm 1237131717
If we base a purchase on half of our income, we will never be able to buy anything.
Fern, most of Jersey City is not desirable still. This condo is in a gated community overlooking Manhattan skyline, with a high-speed ferry 2 minute walk away.
It is considered a bargain, and there are not many properties with canal views. It was in 500's before.
The taxes are what is driving me crazy. Taxes are not from the community - they are Jersey City taxes and they are so high!
What is the commute from your house on 1.5 acres to Manhattan? If you can do it every day than we can consider your house for price comparison. If not, it may as well be in China.
March 15th, 2009 at 07:08 pm 1237144119
if you have to change your lifestyle so dramatically it may not be a very ideal transition. it is a good idea as suggested to 'pretend' to do it for a while.
theres also a good chance prices will drop even further.
March 16th, 2009 at 04:27 pm 1237220843
I do think you have to consider what you would do if one of you were to lose your job. If you have an EF to live on for a while, it would give you peace of mind. You don't want to stretch it so thin that you'd risk losing what you have invested in your house due to an emergency or disaster.
March 16th, 2009 at 11:45 pm 1237247116
And???
Having come from an extreme HCOLA (second to only Manhattan, of course) I know a few too many people who took that train of thinking right to foreclosure. You could be much better off never buying.
I just know too many people who got in WAY over their head out of desparation.