One would think that a guy with his MBA from a Top 25 school working at a Fortune 500 company could afford to live in a suburb of Chicago.....WRONG. I ran the numbers last night and I am officially baffled how any young person fresh out of college affords to buy a house in this city. Let me lay out the details so you can understand my issue. First, the location of the house: approximately 1 1/2 hour from downtown Chicago and approx 30 minutes away from my office. Next the quality of the house: The houses we are looking at are the cheapest in the neighborhoods so don't think its some palatial estate. Simple 3 bedroom 2 bath with 2 car garage....that's our search criteria. And lastly...onto the financials: If you take my net monthly salary and subtract the following:
Monthly Mortgage Payment
Real Estate Property Taxes
Home Owners Insurance
then my bills...
Avg bills when we lived in the condo (incl gas, elec, phone, water, cable, visa, etc)
Derek student loans
Mel student loans
Car Insurance
The costs are split 40% come from house (the first 3) and then 60% (from the living expenses).
Do all that math and we are negative $1,100 for the month. That assumes we take all non retirement savings and put down a 20% down payment. Another assumption is that Melissa isn't working and therefore no childcare cost (if she was working, childcare is $850/month) but it would be offset by her wage (sub or fulltime? unknown now).
What gets us... is knowing how much we could buy a house for in other markets...
Thats it from "Depressed in the Midwest"
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5 comments:
all the reasons we moved away!!! the thought of 3 hours commuting to/from work, away from delaney and melissa....so glad we moved. sorry bud
Dear Depressed
Upon pondering your situation we (I) have come up with the following solution. You can either
a. have Delaney move out
b. have Melissa move out with Delaney -- and get a 1 Bedroom 1 Bath
c. get a fancy double wide trailer d. get a RV trailer and move it around "THE FORTUNE 500 COMPANY" grounds until you get caught.
e. Live in a POD
Hopefully this has been helpful in your areas of concern.
respectfully submitted
i feel your pain!!!!!
bills and student loans are the bain of my existence...
we should take the "Office Space" approach to life... what about bills? yeah, i don't think i'm going to pay those anymore...
Yup. Living near any major city in the US is fairly expensive these days. If you want to make yourself feel better, just think how much it would cost to live in New York or LA. Then your situation in Chicago will seem much more managable.
p.s. not that it makes a difference, but what poll has your school in the top 25?
Dear Andrew in IL~
To answer your question about the Top 25 ranking please see the attached ranking:
http://www.usnews.com/usnews/edu/grad/rankings/mba/brief/mbarank_brief.php
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