How is everyone affording a house on LI?

It is possible! But you have to want it enough to give a lot up.

We decided 3 years ago that we NEEDED to have a home of our own. We have 2 little boys and it was really important for us to move to a family friendly neighborhood in a good school district... it turned out that this meant that we would have to pay a little bit more for the area we wanted.

So we saved a lot - every chance we had. We did without eating out and ordering in every week. I still grocery shop with coupons and watch for sales. We eat leftovers. We bring lunches to work. We don't buy $5 lattes. I don't have designer bags or $300 hair cuts. We each drive older cars that we OWN rather than having payments on brand new cars. We don't have the biggest plasma TV on the block. We don't go on high end vacations. Even our wedding is on a budget - because we are paying for it on our own. The only time we use credit is once or twice a month to keep our credit open, active and in good standing. We only buy on credit if we have the money in the bank to back up the purchase... and then we pay it off that month. The exception is the wedding. We took out a HELOC and will probably wind up using about $2000-$3000 dollars just so we don't cut into our savings too deeply.

But after 3 years of solid saving we were able to put in a good offer on a house that we love. We had saved enough to put over 25% down in cash -which makes our mortgage payments ALMOST reasonable.

Sometimes it makes me feel a little resentful because we will have a friend who is able to spend $100,000 on a wedding, or buy a new $500 power suit. Sometimes I get wistful thinking about the days when going out for drinks and dinner after work on Fridays was not considered a luxury. And I really miss being able to take a trip to Europe just 'because'.

But those are things that I was willing to give up in order to own a nice home in a beautiful town on a cul de sac close to the water. I can't eat steak and crab legs every day - but I don't have credit card debt. I'm not able to take in a broadway play once a month ... but I was able to buy a brand new stove! I don't drive a hot new 2007 hybrid - but I have a fireplace. I work 45 hours a week.. but my kids go to great schools!

It is all about recognizing what YOU want and what is important to you and then working to achieve it!

You can do it!!

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Posted by rojerono

It is possible! But you have to want it enough to give a lot up.

We decided 3 years ago that we NEEDED to have a home of our own. We have 2 little boys and it was really important for us to move to a family friendly neighborhood in a good school district... it turned out that this meant that we would have to pay a little bit more for the area we wanted.

So we saved a lot - every chance we had. We did without eating out and ordering in every week. I still grocery shop with coupons and watch for sales. We eat leftovers. We bring lunches to work. We don't buy $5 lattes. I don't have designer bags or $300 hair cuts. We each drive older cars that we OWN rather than having payments on brand new cars. We don't have the biggest plasma TV on the block. We don't go on high end vacations. Even our wedding is on a budget - because we are paying for it on our own. The only time we use credit is once or twice a month to keep our credit open, active and in good standing. We only buy on credit if we have the money in the bank to back up the purchase... and then we pay it off that month. The exception is the wedding. We took out a HELOC and will probably wind up using about $2000-$3000 dollars just so we don't cut into our savings too deeply.

But after 3 years of solid saving we were able to put in a good offer on a house that we love. We had saved enough to put over 25% down in cash -which makes our mortgage payments ALMOST reasonable.

Sometimes it makes me feel a little resentful because we will have a friend who is able to spend $100,000 on a wedding, or buy a new $500 power suit. Sometimes I get wistful thinking about the days when going out for drinks and dinner after work on Fridays was not considered a luxury. And I really miss being able to take a trip to Europe just 'because'.

But those are things that I was willing to give up in order to own a nice home in a beautiful town on a cul de sac close to the water. I can't eat steak and crab legs every day - but I don't have credit card debt. I'm not able to take in a broadway play once a month ... but I was able to buy a brand new stove! I don't drive a hot new 2007 hybrid - but I have a fireplace. I work 45 hours a week.. but my kids go to great schools!

It is all about recognizing what YOU want and what is important to you and then working to achieve it!

You can do it!!

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Very well said!!!

FH have been in the house for 1 year this September. I have to be honest that after we got engaged thats when we started to notice how difficult it would be (mortgage payments AND saving for the wedding). Im looking for a second job ( FH says I dont have to but I feel bad if he has a 2nd job and I dont). We manage but I had to disipline myself and I cant go on random shopping trips to the mall and buy a ton of clothes or a new pocketbook just because It was onsale. We both took some money out of our 401K for the downpayment and we are managing....I wont say we're doing great but we're making it :)
It is hard but you will learn to make it work.

fh and i own a home in long island. we closed on the house in nov of 2005. we bought a house that needed alot of work because thats what we coild afford. its been tons of fun fixing it up. we don't own the biggest home its actualy kinda small. only 2 bedroom. we do live closeto the water out east. it was very hard to find home owners insurance with flood being we are 2 blocks from the beach. ever since the hurricanes last year its was almost impossible.

its not easy but we do it. my fh and i both work full time. he works for the lirr and i am a hairstylist. we are finding it kind ttuff now since we are planning our wedding for next oct 07. we did own the home togehter before he proposed to me. so we did alot of major work to the inside when we first moved in. the biggest ting was anew kitchen. my fh did the entire kitchen himself. took longer but also saved in our pockets. now we are done with the house until we have our wedding then we are hoping to build up and have bigger home. but fornow this will have to do. its not easy but some how you make it work.



my fh does do alot of overtime also thats does help and i do hair at home which helps too.

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Posted by rojerono

It is possible! But you have to want it enough to give a lot up.

We decided 3 years ago that we NEEDED to have a home of our own. We have 2 little boys and it was really important for us to move to a family friendly neighborhood in a good school district... it turned out that this meant that we would have to pay a little bit more for the area we wanted.

So we saved a lot - every chance we had. We did without eating out and ordering in every week. I still grocery shop with coupons and watch for sales. We eat leftovers. We bring lunches to work. We don't buy $5 lattes. I don't have designer bags or $300 hair cuts. We each drive older cars that we OWN rather than having payments on brand new cars. We don't have the biggest plasma TV on the block. We don't go on high end vacations. Even our wedding is on a budget - because we are paying for it on our own. The only time we use credit is once or twice a month to keep our credit open, active and in good standing. We only buy on credit if we have the money in the bank to back up the purchase... and then we pay it off that month. The exception is the wedding. We took out a HELOC and will probably wind up using about $2000-$3000 dollars just so we don't cut into our savings too deeply.

But after 3 years of solid saving we were able to put in a good offer on a house that we love. We had saved enough to put over 25% down in cash -which makes our mortgage payments ALMOST reasonable.

Sometimes it makes me feel a little resentful because we will have a friend who is able to spend $100,000 on a wedding, or buy a new $500 power suit. Sometimes I get wistful thinking about the days when going out for drinks and dinner after work on Fridays was not considered a luxury. And I really miss being able to take a trip to Europe just 'because'.

But those are things that I was willing to give up in order to own a nice home in a beautiful town on a cul de sac close to the water. I can't eat steak and crab legs every day - but I don't have credit card debt. I'm not able to take in a broadway play once a month ... but I was able to buy a brand new stove! I don't drive a hot new 2007 hybrid - but I have a fireplace. I work 45 hours a week.. but my kids go to great schools!

It is all about recognizing what YOU want and what is important to you and then working to achieve it!

You can do it!!

---

i agree with this. fh and i also gave up alot of things to own our home. i wanted to kill him this summer when he came home with a 'free boat' free winded up costing us 3,000 dollars. but its done we had tons of fun on the boat and now he works alot of overtime for it. so you can own a home on li just need to make wiser chices when it comes to spending. good luck likewas said above you can do it

Prices have come down in areas I am looking in.

The bubble will be bursting, dont worry! just look at how many people our age (20s) can't afford homes and are moving out of state! LI population is decreasing, there is high supply and fewer buyers.

FH and I both still live at home, and have good jobs. We have student loans though - but other than that and my car loan (his is paid off) we have no debt. we go out to dinner only a few times a month - bring lunch to work every day - hes a teacher and he will be teaching night school to make extra $$..

its a lot easier to buy a house out of state bc its so much cheaper- but idk if I could leave my family and friends!

FH and I talk about it all time and get really excited and then come to the realization that it's not happening anytime soon. Many of our friends have moved to NC in huge houses and are living off of one income and raising a family. It really makes us think about going and getting alot more for the money but we're just not ready to leave NY. It just really, really *****

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Posted by snowflake

Sacrifice everything! We're putting over 75% of our combined income into our house!

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Unless I'm misunderstanding you, I don't get this. Financial advisors recommend only spending 30-35% max of your gross monthly income towards mortgage payments.

FH (LUCKILY!!!) has money that was left to him when his grandmother and grandfather passed away and on top of that his parents are selling their house in the hamptons and they plan on giving us money from that to help us put a down payment on a house as well. In addition to that we will have about $10,000 saved up from our own money. Hopefully that will be enough to buy a fixer-upper house in a decent area.

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Posted by afrodyt2000

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Posted by snowflake

Sacrifice everything! We're putting over 75% of our combined income into our house!

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Unless I'm misunderstanding you, I don't get this. Financial advisors recommend only spending 30-35% max of your gross monthly income towards mortgage payments.

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the rule of thumb is 28%, and thats on your GROSS income. your net income could be very different, depending on retirement, health, etc.

but I still can't imagine paying 75% of your income on your house!

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Posted by afrodyt2000

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Posted by snowflake

Sacrifice everything! We're putting over 75% of our combined income into our house!

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Unless I'm misunderstanding you, I don't get this. Financial advisors recommend only spending 30-35% max of your gross monthly income towards mortgage payments.

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I am thinking that snowflake probably meant 75% including all the other little things BEYOND the mortgage...

If I take my mortgage, my utilities (electric, gas, oil & water), my groceries, my cable, my internet, my phone and any of the varied and sundry things that we need during the course of the month - paper towels, laundry soap, dishwasher liquid, chimney sweep, tp, propane...all the little things that pop up in order to make the house run smoothly... then I am definitely going over 30% of our salary!

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Posted by rojerono

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Posted by afrodyt2000

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Posted by snowflake

Sacrifice everything! We're putting over 75% of our combined income into our house!

---

Unless I'm misunderstanding you, I don't get this. Financial advisors recommend only spending 30-35% max of your gross monthly income towards mortgage payments.

---

I am thinking that snowflake probably meant 75% including all the other little things BEYOND the mortgage...

If I take my mortgage, my utilities (electric, gas, oil & water), my groceries, my cable, my internet, my phone and any of the varied and sundry things that we need during the course of the month - paper towels, laundry soap, dishwasher liquid, chimney sweep, tp, propane...all the little things that pop up in order to make the house run smoothly... then I am definitely going over 30% of our salary!

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yes but the 30% is supposed to be for the MORTGAGE payment not your total costs associated with the home.

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Posted by afrodyt2000

yes but the 30% is supposed to be for the MORTGAGE payment not your total costs associated with the home.

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I understand that. I don't think snowflake said that her mortgage payment was 75% of her salary. She said the house eats up more than 75%... I am assuming that she means mortgage PLUS everything else. Actually I am HOPING she means mortgage PLUS everything else... otherwise 75% on a mortgage alone is nearly impossible!

I understand you now. I hope you're right about snowflake also. That 30% gross income will keep us out of a house for a few years at least.