Housing is cheaper. Prices are cheaper. You can buy a house outright and be a king of the hill.
Is there anything wrong with this suggestion?
Why does it not appeal to everybody and specifically, to your family? If you do not want to quit your job and move there away from your family and friends, into a completely unappealing for you lifestyle, than your standards are too high and you are not flexible enough.
Imagine getting this advice over and over and over again, that you are choosing to have all your financial concerns by wanting to stay where you live.
That is how I feel when people suggest that the answer to my housing aspirations is to move out of NYC.
I'm not dreaming of a house somewhere. I want one where I live. There is a difference. I know people think they are well meaning when they suggest it, but that'be because they hear the word NYC, that's their immediate reaction.
They are not applying the same considerations as they would to a suggestion to move from where they live to a far away cheaper place with less career options, less food options, less access to every service imaginable, including medical care, and where your extended family would not be in your and your child's life.
Answer to all your financial concerns - move to rural Appalachia.
July 3rd, 2014 at 02:53 pm
July 3rd, 2014 at 03:05 pm 1404399936
July 3rd, 2014 at 03:10 pm 1404400228
Then I'd stop having those conversations with people.
If you want a house and can't afford one where you live, I do see the wisdom in telling someone to find a house where they can afford it. However, if you do want to live in a house where you currently are, then you probably need to make more money.
Sometimes it is all about economic choices. Sometimes you just have to make the best of your situation.
July 3rd, 2014 at 03:14 pm 1404400483
July 3rd, 2014 at 03:17 pm 1404400661
Now I'm looking for property in NY. Ok let me stop. lol
July 3rd, 2014 at 03:19 pm 1404400786
And it would be the exact same advice to give to a person from Colorado to move to Eastern Kentucky, but people don't come up with that as a first solution/suggestion. Same principal, yet this does not come up as the first logical answer in blog comments. That's why I find it a bit annoying.
July 3rd, 2014 at 03:29 pm 1404401393
I know all the neighborhoods and their issues, problems, pluses and minuses. Plus, there are specific considerations of our personal commutes and schools to consider.
When houses are this dirt cheap, they are dirt cheap for a reason. With masses of professionals looking for houses at affordable level, there are not really pricing mistakes.
July 3rd, 2014 at 03:31 pm 1404401473
July 3rd, 2014 at 03:37 pm 1404401856
July 3rd, 2014 at 04:22 pm 1404404524
Plan of action is the same as for people living anywhere who can't quite afford the house. Build equity while living where they can, invest in other things with a hope of eventually saving a big enough down payment where a mortgage is doable. I don't know if I will ever get to that point, but if I don't, at least I will have some investments.
July 3rd, 2014 at 05:23 pm 1404408200
A lot of those middle income families that cannot afford what you choose to buy would be very happy to move somewhere they could afford a house and good schools. Some will eventually do that, others will accept an inferior lifestyle to stay in NYC.
If you choose to stay there, yes, your financial concerns will be the same. You will have made a conscious decision to accept the trade-off. Griping about the consequences of your choice is pointless complaining, because you aren't going to make any changes.
And not everywhere outside NYC is Appalachia.
July 3rd, 2014 at 07:41 pm 1404416506
July 5th, 2014 at 01:52 pm 1404568335
Do you want to get 10 years down the line and realize all the money you spent on high end restaurant food, but no ability to buy a home? We all have to make trade offs; what are you willing to trade for what you want?
July 5th, 2014 at 05:04 pm 1404579883
I could cut it out for a year if this would enable us to reach an important goal. But for 10 years? That makes no sense. Plus, it would be like paying to be in the Disney world and never going on any of the rides. What would be the point? (I hate Disney World btw, this is just an analogy.)
July 5th, 2014 at 05:23 pm 1404581005
I do get that moving if you don't want to or wouldn't like the area makes no sense.
July 5th, 2014 at 06:52 pm 1404586377
And that's not a fast process, and no way to do it in time. And just to sell our apartment now, and uproot our life in just a hope that a house like that will show up on the market... that is a big bet in a situation full of uncertainty. At least now we are living in a nice area and are building equity in our little apartment thats on a biweekly 15 year mortgage.
July 7th, 2014 at 12:07 am 1404691668
CCF, I agree cutting expenses would help if she wanted to stay where she is. Then she could direct that $1k/month to retirement or something. But she really can't afford the houses where she is. More income is the only answer.
July 7th, 2014 at 06:18 pm 1404757128
I don't need to do anything if I just want to stay where I am. We are maxing out retirement already.
July 8th, 2014 at 05:26 pm 1404840392
Entertainment budget was at $1636.
Groceries/Household/Life was at $2044.
Total $3680*12=$44,160/yr. and $220K in 5 years.
That would be a 20% down payment on a $1mil house. Sale your house and then use that money to get a $1.5mil.
Of course you'd have to back out ...groceries/laundry and a little blow money. You would have to go without a trainer, saving for vacations, eating out a lot, dry cleaning and cut down on purchasing clothes. You could save even more if you put your retirement on hold.