S/O Making it on $150k

amother

Thu, Mar 28 2024, 2:13 pm

I think that the biggest class divide in the coming years, even more than salary, will be what year your purchased your home. Because you can have 2 families with the same income, same non-housingexpenses, living on the same block. On bought their home in 2019 and one bought in 2023. And the one who bought in 2023 will be drowning while the one who bought in 2019 will be just fine.

I dont think people who bought years ago can really understand what frum homebuyers are facing now.

mig100

Thu, Mar 28 2024, 2:20 pm

amother OP wrote:

I agree. those writing they have 6 kids- very possibly bought before covid

watergirl

Thu, Mar 28 2024, 2:39 pm

amother OP wrote:

I honestly dont think $500k can get you anything livable in any of the major frum cities.

500k can get you a beautiful livable home in MANY frum cities. I'm thinking your standards are very high if you think otherwise. My home was under 200k (6 years ago) and if I sold it today I could sell it for 250k, and it's beautiful and livable. At your standards? No idea. Many would be thrilled with it.

amother

Thu, Mar 28 2024, 2:50 pm

watergirl wrote:

You’re probably right, although I’m not familiar with more out of town communities. I’m referring specifically to the main NY/NJ frum communities, and even the west coast communities, in which the majority of frum fmailies in the US live. For a couple who was raised in the tri state and has all their extended family in the tri state, and are settled with schools and jobs, moving out of town is HUGE and not a simple solution. I still don’t think families should take on irresponsible debt to buy a home they can’t afford. But to say I have high standards just because I don’t want to move away from everything familiar is not fair.

amother

Lotus

Thu, Mar 28 2024, 3:17 pm

amother OP wrote:

And certainly once your kids are older moving OOT is complex.
House prices have almost doubled in many tristate areas the past few years.
Also, moving OOT with older children brings additional expenses.
Tuition is higher.
Wedding costs are significantly higher.
Food is higher.
My friends are paying less than I am in mortgage, but it evens out with the high tuitions and food prices they’re paying.

amother

Petunia

Thu, Mar 28 2024, 3:22 pm

amother OP wrote:

Wow can you share the costs of your house, what your down payment was and what your property taxes are?? $2,500 mortgage for a house bought last year is amazing! What sort of house is it and what condition? Is it in a large frum community?

In Manchester NJ! Wonderful frum community.
3 bed 2 bath ranch great condition
With a pool
in the 400k range
We got a first time home buyer mortgage and put down 10%

Edited to add: property tax apx 6k a year

amother

Crimson

Thu, Mar 28 2024, 3:23 pm

amother OP wrote:

I bought before covid somewhere way out that is now frum and houses doubled in price and I am super grateful BH that we bought. But when I bought then, I looked around at people who had bought new construction in an established frum neighborhood 5 years before me for significantly less and thought I was the one who was in a terrible state.
It feels like housing is always just out of reach and in retrospect was so affordable a few years back, but that's not how it was.

amother

Oxfordblue

Thu, Mar 28 2024, 3:57 pm

Rappel wrote:

I feel silly after everyone complaining about comparing the USA vs Israel, but...we make it because we live in Israel.

Free tuition, socialized healthcare, and price controlled food staples count for a lot. We were fortunate enough to buy a house where our mortgage and our monthly rent matched almost to the shekel.

What more is there to say?

Insane taxes if you make over a certain amount...my husband was getting close to 50% of his paycheck taken out
Subpar schooling in many areas (and yes sent my kids to school there and worked in schools) (and most places you have to pay at least something)
25-30% down-payment minimum with anything decent in good areas with good schools at around 2.5-3 mil
Non fixed mortgage rates linked to the prime
Expensive clothes, shoes and toys

It's not all milk and honey Smile

amother

Thu, Mar 28 2024, 5:01 pm

amother Petunia wrote:

Wow that’s amazing I’m so happy for you!!! I had no idea you can get still houses in the $400k range around Lakewood. Have houses in your area gone up a lot since you bought?

Rappel

Thu, Mar 28 2024, 5:04 pm

amother Oxfordblue wrote:

I assume his work was based overseas, and that's why he got double taxed?

Schools, I can't agree with you more. My aunt, an educator, and she always wonders how Jews can be so smart and yet not figure out their own education system.

The minimum 30 percent is in place to prevent people from trying to buy when they can't. Foreclosure is low in Israel. That can be good or bad, depending on your perspective, but that's the reality.

Clothes, shoes, toys -- I don't find them to be expensive, but it took me a few years to find my shopping groove here. And what can I say? No one moves to Israel for the gashmiyut. That's America's domain. XD

Long story short: bH, we can live on 12k net (16k gross) shekels per month with no complaints. This thread was questioning lifestyles of 150k dollars. Even with the foreign tax problem, israel is still coming out cheaper.

amother

Oxfordblue

Thu, Mar 28 2024, 5:18 pm

Rappel wrote:

Nope Israeli job. 47% taxes taken out. It wasn't even worth getting a higher paying job because more taxes. Seriously. He did better when he was in an American job than in an Israeli one. It was crazy. And if he ever got a bonus or additional income, even higher tax rate.

So many ppl want to buy and can't. Consider yourself blessed. In my age range, the only ppl buying were with help from parents or got an inheritance. It's a big issue for many and it's kind of silly to diminish it. Not sure where you live in Israel but the mortgage payment isn't the concern for most people. It's the 600k down-payment or more. Most ppl don't have it just plain and simple and won't be able to save up enough to do it (not to mention if you buy on paper you get nothing except four walls and need to spend even more to finish it)

We have done the math and it all evens out. In America you make more, but you spend on school and healthcare. In Israel you make less but you don't pay for those two expenses. You could only compare the two if you made 150k in America and kept that American salary in Israel. Then you can really compare (but even then you're getting killed on taxes)

amother

Oxfordblue

Thu, Mar 28 2024, 5:21 pm

Rappel wrote:

The Israeli school system has nothing to do with being Jewish. It's not western. It's not updated. It's based on really out of date information and practices. It's also inherently ran in a socialist mindset. I know it sounds crazy but it's really true! So little focus on work ethic and achievement much more focus on what's best for the classroom and a one size fits all approach. I always tell ppl making aliyah, please lower your expectations for school. It doesn't mean it's worse or wrong, but people who think the schools in Israel are the equivalent of yeshivas or even a good public school are in for a rude surprise (or don't even chap how bad it is bc they can't understand what's going on lol)