| Let's use 180K, b/c it is easily divisible by 12. That means 15K per month, in NJ a large majority work in NYC, thus they pay NYC taxes, NY taxes, NJ taxes and FEDERAL. Out of the 15K they will pay @ 40% in withholdings, now they are at 9K per month...commuting will run them at least 1k, that leaves thm at 8000. In a mtg world they would be guaranteed a mtg of 3600/pm, which translates into a@400K mtg. Now you have less than 4000 that must cover utilities, car pmts, car insurance, credit card debt and college loans...oops I forgot food and gas for the car, now add in school supplies, dance lessons/tae kwon do, etc I am not sure there is enough money left to get your hair done.
175K in NJ goes real quick... even today in a downturn real estate market,, a 400K mtg puts you in a 500K area, in the commuting areas with good schools you are not getting a dream home!
175 K in NJ does not equate to a nice lifestyle unless the folks have bought you the car and paid for college...Been there done that and got the patch to prove it |