Young professional making $50k a year.. (Baltimore, Bethesda: real estate, apartment, insurance)
Washington, DC suburbs in MarylandCalvert County, Charles County, Montgomery County, and Prince George's County
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I don't get it. How can making six figures, even in DC, cause a married couple to choke financially? Here in Raleigh (where I'm moving from), mortgage + taxes + insurance are only 900, but rent isn't more than 1000 more per month, no? Car insurance might add 1000/year also, but still not getting it. Too many expenses like a car, etc? We get by just fine on half that (50K), and still get to save for retirement and extra savings. NC income taxes are just about as high as MD too. We cook our own meals, have a cheap mobile plan, and only have internet/basic cable. Are you folks going out to eat a lot? Right there can cause you to dump 5-10K/year extra. Might also be gas prices taking a bit out of the budget. I did the numbers and it seems like we'd do fine with that amount you two are making.
Hahahaha... I don't think you know the numbers, much less did them.
In the nicer suburbs of dc, a mortgage or rent in a nice townhouse would probably be 2000, maybe even more than $3k/month. Car insurance is also a *lot* more expensive (I'm thinking at least double?), as are property taxes, than NC. Even grocery store food is more expensive, as I've noticed. Counties in MD also add in their own taxes- we pay more in Montgomery county (or PG) than any other county in MD. Plus the more you make, the more you pay in taxes. Commuting can be more expensive, as you probably have to live farther from work, might have two cars to pay for, and even the metro is expensive. Daycare? Also extremely expensive in this area. Add in student loan payments, other debt you may have and choking with a 6-figure income is depressingly plausible.
Hahahaha... I don't think you know the numbers, much less did them.
In the nicer suburbs of dc, a mortgage or rent in a nice townhouse would probably be 2000, maybe even more than $3k/month. Car insurance is also a *lot* more expensive (I'm thinking at least double?), as are property taxes, than NC. Even grocery store food is more expensive, as I've noticed. Counties in MD also add in their own taxes- we pay more in Montgomery county (or PG) than any other county in MD. Plus the more you make, the more you pay in taxes. Commuting can be more expensive, as you probably have to live farther from work, might have two cars to pay for, and even the metro is expensive. Daycare? Also extremely expensive in this area. Add in student loan payments, other debt you may have and choking with a 6-figure income is depressingly plausible.
NC state income taxes top out at 7.x%. For those at six figures there are equivalent to MD even when you include PG or Mont county. Rent seems to be 1800-2000 for a nice place in a nice walkable neighborhood, about 1000/month here for something similar. No property taxes as the landlord is passing that cost along to you as a renter. I'm not talking about homeownership, but on that note I believe DC's bubble is finally about to burst very soon with imminent FedGov cuts, just a prediction though but I was right back when I called for a national bubble burst in 2005. Energy costs might be a tad higher, although we have a pretty leaky house down here so it might even out. Car insurance, well I don't know yet but we're at $1,200/year for 2 compact cars. Even in NJ (highest in country) it was kept well under 3K. Not sure about MD. Cars are paid for already because we didn't buy yuppie-mobiles with all the bells & whistles. Yeah, I didn't consider student debt. $200/month here. Perhaps it all depends on your overall revolving debt levels, but that is the same no matter where you're at. Did I miss out on anything? In our case, that would be the approximate income (minus about 10K) as a one-income family so daycare is not a consideration and commuting is only with one car, approximately 30 miles each way, so $8/day (about). Employer offers a 4 day 10 hour week also so that can cut down over time.
In conclusion, I just can't believe the cost difference is over 30K for just rent and car insurance. Every other cost is about the same between the Triangle area and DC. Even the sales and liquor tax is higher here than up there. Did I miss anything?
Ok, well let's see. At 50k a year, let's assume 7.5% local/state income tax and 20% federal tax (factoring in deductions, unless you're one of those folks who gets to pay no income taxes). So at 50k gross, you're at ~36k net.
Let's low ball a few estimates:
ins/year: $1500/yr (for 2 cars... yea....)
rent/month: $1500/yr (for a 600 sqft 1BR apt with no utilities included)
utils/month: $120 (low ball... but hey)
student loan/month: $200
Just those alone come out to ~23k/year. So 36-23 = 13k. Start factoring in groceries (at least 100 week unless you're eating ramen mostly), gas (30 miles a day means you prob buy a tank of gas each week unless you never drive anywhere except home and work, so let's say $50/week in gas... $200/month). So $600/month on gas and groceries or roughly $7k/year. You said you save for retirement and "save extra", so depending on how much you're stocking away, you've got whatever left of that 6k you haven't already budgeted in your living expenses.
Ok, well let's see. At 50k a year, let's assume 7.5% local/state income tax and 20% federal tax (factoring in deductions, unless you're one of those folks who gets to pay no income taxes). So at 50k gross, you're at ~36k net.
Let's low ball a few estimates:
ins/year: $1500/yr (for 2 cars... yea....)
rent/month: $1500/yr (for a 600 sqft 1BR apt with no utilities included)
utils/month: $120 (low ball... but hey)
student loan/month: $200
Just those alone come out to ~23k/year. So 36-23 = 13k. Start factoring in groceries (at least 100 week unless you're eating ramen mostly), gas (30 miles a day means you prob buy a tank of gas each week unless you never drive anywhere except home and work, so let's say $50/week in gas... $200/month). So $600/month on gas and groceries or roughly $7k/year. You said you save for retirement and "save extra", so depending on how much you're stocking away, you've got whatever left of that 6k you haven't already budgeted in your living expenses.
Sounds...depressing.
Based on what we've seen in the MD area, $1500/month seems a bit high for a 1BR. We've seen 2/2 condos for less in nice walkable areas around Bowie, Laurel, etc. Our current tax rate is much much lower than 20% after deductions.
Again, most of these costs like student loans etc are fixed no matter where you live. What I find interesting is the idea that with earning 30k more (net, after taxes) it would still be a "depressing" lifestyle. What am I missing?
We do a lot of free things like museums, hikes, etc. so I don't consider the situation depressing. If we had to eat out once a week, then perhaps I'd consider it a bit of a problem.
Based on what we've seen in the MD area, $1500/month seems a bit high for a 1BR. We've seen 2/2 condos for less in nice walkable areas around Bowie, Laurel, etc. Our current tax rate is much much lower than 20% after deductions.
Again, most of these costs like student loans etc are fixed no matter where you live. What I find interesting is the idea that with earning 30k more (net, after taxes) it would still be a "depressing" lifestyle. What am I missing?
We do a lot of free things like museums, hikes, etc. so I don't consider the situation depressing. If we had to eat out once a week, then perhaps I'd consider it a bit of a problem.
The biggest expense in this area is housing, and housing varies wildly. Even though they probably are pretty nice, Bowie and Laurel are not considered "nice" suburbs by most people around here because they are in Prince George's county, and are therefore quite a bit cheaper. If you live modestly, it's possible to get by on 50k, but I can totally believe that people making 6 figures are having a hard time, particularly if they are paying a mortgage and maintaining a home, have to pay for daycare, and have student loans or other debt
The biggest expense in this area is housing, and housing varies wildly. Even though they probably are pretty nice, Bowie and Laurel are not considered "nice" suburbs by most people around here because they are in Prince George's county, and are therefore quite a bit cheaper. If you live modestly, it's possible to get by on 50k, but I can totally believe that people making 6 figures are having a hard time, particularly if they are paying a mortgage and maintaining a home, have to pay for daycare, and have student loans or other debt
I would agree if you're paying on a mortgage and you bought not too long ago with the overinflated prices, and paying the high property taxes on top of that. I'm noticing quite a nice dip in prices around the Adelphi area in the past couple of years according to the aggregate, but I'm guessing that discount hasn't taken hold in outside areas just yet.
I would agree if you're paying on a mortgage and you bought not too long ago with the overinflated prices, and paying the high property taxes on top of that. I'm noticing quite a nice dip in prices around the Adelphi area in the past couple of years according to the aggregate, but I'm guessing that discount hasn't taken hold in outside areas just yet.
Adelphi=not so nice parts of Durham, in my opinion; PG county prices are still going down and have not hit bottom yet. Prices in the "nicer / safer / better schools" areas of Montgomery County seem to have stabilized. Prices in Bethesda/Chevy Chase seem to be up from peak (i.e. I can no longer find single family homes in our price range there .
We moved here from the Raleigh area a couple of years ago and the same _exact_ house by the same builder (1990s era) in a less-nice area is 500K here(house in NC sold for 230K). In theory the prices are 30% higher, but reality is that if you want a single family home in a comparable area with comparable amenities/crime rate/schools I have found the price to be at least 50% more and usually more like 100% more than in Raleigh. But, I wanted a condo in a higher crime area, I would be able to find a deal.
Rent for 3 bedroom townhome in decent area with so-so schools=currently paying 2000 per month
Insurance for 2 cars over 8 years old: 1300 per year (I have shopped around, threatened to cancel, etc... but can not find a lower rate; we have not had an accident or ticket in 15 years. But, people here drive like they are insane, so I understand the increase.)
The original poster could definitely live here on 50K, but would need to have roommates or rent a basement to save anything.
we are a family of 4 living on close to $50K. I stay home also. We live in a great town home neighborhood 3 bedroom 2 1/2 bath in Chantilly. It is do able, but very tight
Yes, fml.....I have debt.
I have a car note of $370/month
student loans of about $150/month
Car note will be paid in 2013...so a little less than a year left.
dang, this is kind of disappointing. I felt that at 28, I would be done with the whole "roommate thing" ....I did the roommate thing since I was 18.....now 10 years on, im so ready for a place of my own, but it doesn't sound likely in the DC area. . .. I can afford about $1100/month, but literally everything im seeing in that price range is borderline delapidated.... or in some crap area or some 300 ft studio.
ugh!!!! I need like $90k a year just to get by danng.
That's not really too bad, especially if you pay off that car note next year. I really don't understand what people are talking about, $50k is doable but you will have to make some sacrifices. Depending on what type of job you have, you may have transportation benefits, that can cut down on your expenses a lot.
Also, I would highly recommend rent from a reputable private owner. In PG, as mentioned by another poster, the housing value is pretty low now, so it is a renters market. You can probably find a one bedroom in a decent area in your price range, but it probably won't have a 'nightlife'. Going to an apartment complex can be costly. They generally will often charge you more for a place of a lesser quality.
It would honestly help you to get a roommate though. It may not be necessary, but you can stretch your money if you do get one and possibly put yourself in a position to save money.
It isn't all bad to move here, but you have to be realistic. You will have a tough road for the first few years, but you will make more money as you go along. I have co-workers that have made about $40k and live in Alexandria (Fairfax County, VA). It just depends on what you can live without, at least for a year or two.
I'm not talking about homeownership, but on that note I believe DC's bubble is finally about to burst very soon with imminent FedGov cuts, just a prediction though but I was right back when I called for a national bubble burst in 2005.
I hope you're right!
In most other areas, the cost of housing was way above people's income levels. So, they absolutely had to come down.
With higher wages in DC, and the housing prices still not coming down, I've been wondering about that issue.
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