Quote:
Originally Posted by atxgt3
Look at statistics for the highest average and median incomes in the nation by city and you'll see how not average $400k is.
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Not here to troll...
In response to the $1.25M home being average in LA...which it is. It's a decently-sized home but definitely not MTV Cribs worthy. In fact, it looks like an average house.
I realize the stats indicate much lower. Then my question becomes where and how do people live on 1/2 that income or less in NY, North Jersey, LA, SF, Chicago and Boston?
Live in an apartment with 2 kids? Drive 1 car? Have no savings? Eat frugally? Before the torches and pitchforks come out...realize that in NY, to buy a 700 sq ft apartment in Manhattan is $1M. The mortgage on that home, assuming 20% down, is $3800. Add in maintenance, you're at $5000 easy. You're not leaving much to spend on anything else. But let's go through the exercise:
Mortgage $3800
Condo maintenance fees: $1000
Utilities: $400
Garage rental (1 car): $500-$600+
Daycare (1 kid, assume 1 kid in school): $2000
Car payment (1 car, incl insurance): $750 ($500 lease/finance payment, $250/mo insurance)
This doesn't include food, health insurance, savings, entertainment, vacations, etc.
You're already at an annual gross of $225k.