Reply to Curious: where do the $$ come from??

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Haven't you noticed that many people that live in expensive neighborhoods are house poor. They are spending their entire imcome on housing and feeding their kids WHOLE FOODS boxed mac and cheese. [/quote]

You have some weird ideas. I consider myself fairly average by the standards of this board at least -- GS-15, 150K. My wife is a 14, 130K. On our measley 280,000 a year, we live (comfortably I might add) in a 1.2 Million house in Arlington. Not the biggest or best house, but not bad either.

We are both in our 30s, saved enough to put 20% down, and even continue to hold our initial property, a small townhouse in Bethesda.

We make it work. And we're not "house poor" either. But our expectations for what we want are decidedly middle class.

A lot of our neighbors are Feds, 250K to 320K households as well as private sector Lawyers and two doctors who may (or in some cases may not) make more. They all seem to still be able to take vacations and not eat mac and cheese.[/quote]

we make a little less than you, don't have debt, and don't feel comfortablr purchasing over 700k.  i would be curious to know how you do it, unless you got an awesome rate.  for example, what percentage of your net goes to your mortgage?[/quote]

I am curious too. Take home prob around 16k, PITI around 6k (40%), child care two kids (3k), food (1k - both work so hard to scrimp. I'd say 1k utilities internet phone, and you are at 11k. Almost 70% fixed expenses.  What happens if someone gets sick, child needs extra help , or furloughs? Do you have a lot of cash reserves or family nearby?  There seems to be little margin for disruption. I guess as a Fed you assume neither will be laid off? I would not make that assumption with sequester still on books for 8 more years. [/quote]

Your numbers are pretty accurate, except PITI. (I'm not the PP, but my HH is also around 280k and we have a 1.1-1.2 house.) I don't feel house-poor one bit.

Take home is about 16k. 
PITI is 4700 (900k 30-year at 3.5%). 
Child care two kids is more like 3600.
Utilities about 500. 
Food is probably about 1k.

Note that some Feds are not subject to furloughs or sequester. This applies to many of the higher-paid agencies. Second, my agency puts in 10% (plus FERS) for my retirement. My wife's employer puts in the same. Our work-funded (both by us and by our employers) retirement accounts are well-funded, so our "personal" retirement accounts (basically, our investment portfolio) isn't so important. We have a bunch of money in there, but it's earmarked for putting an addition onto our house. [/quote]

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