bostonbubble.com Forum Index bostonbubble.com
Boston Bubble - Boston Real Estate Analysis
 
 FAQFAQ   SearchSearch   MemberlistMemberlist   UsergroupsUsergroups   RegisterRegister 
 ProfileProfile   Log in to check your private messagesLog in to check your private messages   Log inLog in 

SPONSORED LINKS

Advertise on Boston Bubble
Buyer brokers and motivated
sellers, reach potential buyers.
www.bostonbubble.com

YOUR AD HERE

 
Go to: Boston real estate bubble fact list with references
More Boston Bubble News...
DISCLAIMER: The information provided on this website and in the associated forums comes with ABSOLUTELY NO WARRANTY, expressed or implied. You assume all risk for your own use of the information provided as the accuracy of the information is in no way guaranteed. As always, cross check information that you would deem useful against multiple, reliable, independent resources. The opinions expressed belong to the individual authors and not necessarily to other parties.

Potential purchase scenario - comments?
Goto page Previous  1, 2
 
Post new topic   Reply to topic    bostonbubble.com Forum Index -> Greater Boston Real Estate & Beyond
View previous topic :: View next topic  
Author Message
kdog



Joined: 03 Jan 2007
Posts: 7

PostPosted: Tue Jan 23, 2007 9:59 pm GMT    Post subject: Reply with quote

AgentGrn wrote:
It may sound old fashioned, but the process my wife and I are going through is to find out what it is we really need and separating that from the wants. The second part is finding out what we can reasonably afford and making a means to save up for as much of a downpayment as possible.

To take advantage of the market, I'd definitely wait. $475k is roughly affordable to a couple which makes around $160k. It's also wise to consider if you could get by if one of you lost your job. Let's face it, there are very few fields where there is any employer loyalty left ... and if your skill set is very specific, finding an equivalent job may be difficult and time consuming at best.


Agreed... waiting makes a lot of sense for us since our income is significanly outpacing our expenses at the moment. We can grow our downpayment while waiting for the market to settle down. In the end we'll be looking at smaller mortgage payments and if the market continues to slide, more house for the money. Flipside could be rising interest rates, but If my undertanding of the economics involved is any good, that would drive prices down even faster. Affordability is a key issue in the Boston market.
Back to top
View user's profile Send private message
gadgetmaniac
Guest





PostPosted: Sun Jan 28, 2007 8:26 pm GMT    Post subject: affordable cost for housing Reply with quote

As a father of a two-year old, I wanted to make sure that working couples who are thinking of starting a family dont underestimate the costs of childcare.

A full-time nanny in Boston will cost anywhere upward of $500/week. A responsible nanny who speaks good english will cost $650/week and up. There are no bargains. The nannies meet each other at parks and know the market rate for the area. Daycare can be cheaper ($250-500/week) for one child, especially in a home daycare setting, but still a considerable expense. If both people have jobs where they might need to work late on any given day and there is no family in the immediate area, a nanny is the only option.

Now, consider a scenario where one child goes to preschool and another is home with a nanny (or two children are in daycare) and it is easy to spend $50,000+ a year on childcare. Obviously, most people will never need to spend this much, but I know lots of people who do. Factor in taxes and the second person working needs to make a lot of money at work just to break even with childcare costs.

Keep this in mind when you think you can afford a property worth almost 3x your annual income. This is going to be a lot harder when you start a family.

Why go through the stress of worrying about your finances that much? Right now most people can save at least $1000/month by renting. It will probably be at least a few years before the housing market recovers enough so that property appreciation will offset the additional cost of home ownership. If you have a few kids and are in over your head, it is a lot easier to get out of a rental.
Back to top
AgentGrn



Joined: 28 Sep 2006
Posts: 82

PostPosted: Mon Jan 29, 2007 3:18 pm GMT    Post subject: Reply with quote

Quote:
Daycare can be cheaper ($250-500/week) for one child

The key being that it's just one. While I do miss my wife's income, anything she'd bring home would be instantly eaten up mostly in child care expenses, and that's not considering any of the intangibles of having a parent stay home with the kid.
Back to top
View user's profile Send private message
Display posts from previous:   
Post new topic   Reply to topic    bostonbubble.com Forum Index -> Greater Boston Real Estate & Beyond All times are GMT
Goto page Previous  1, 2
Page 2 of 2

 
Jump to:  
You can post new topics in this forum
You can reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum


Forum posts are owned by the original posters.
Forum boards are Copyright 2005 - present, bostonbubble.com.
Privacy policy in effect.
Powered by phpBB © 2001, 2005 phpBB Group