Cost Of Living?

[ammayernyc]

I live in NYC and everything is super expensive here.

I don''t usualy go to grocery stores -- I order online. Wonder bread there costs $1.59. I usually go to this specialty store a block from my house for any produce. Super duper expensive but so worth it. Nothing worse than buying blueberries and then having to throw most of them out because they''re sour or rotten.

Housing prices are crazy and it seems that there is no stopping them. I sold my parents apartment in 2003 and it sold for over 20 times what they bought it at in 1976.

 

[jaysonsmom]

I am kind of careless with spending, so I don''t look at prices at all when I shop. This is the information that I gathered from my co-workers who live in my area:

Gas: Regular around $2.30-2.45 I have to use premium, and that''s over $2.75/gallon.

Bread: Average about $2.50-$3.50 a loaf....but these are not wonderbread. Most of my coworkers are heathnuts, so they are talking about seven-grain, whole wheat stuff

 

[ursulawrite]

I have no idea how much an average loaf of bread costs in Manhattan; I only ever buy the millet/spelt breads from Whole Foods. And I don''t own a car.

One thing I do know is that we paid a stupid amount of money for our 1300 sq ft. loft!

 

[jorman]

Well, I am trying to get over sticker shock. We are moving to the San Jose, Bay Area in late July from Texas and HOLY GUACAMOLE BATMAN! It is so expensive here. I don''t feel like it is reality.
Where I come from $500K buys you a 5 bedroom, 3 bathroom estate in 2 acres with a private gated drive, swimming pool, basement with entertainment package, and lots of beautiful grass for fluffy dogs such as ours to run around and chase birds in...

Here $500K buys you a 2 bedroom 2 bathroom apartment with a balcony.

Poor Boomer will have no yard...

in Lubbock, a loaf of bread is anywhere from $0.99- $2.00 depending on what you want and when I filled up my car last week gas was $1.96 for regular.

 

[njc]

Add me to the list with AGBF, momoftwo and abradabra... i live in alexandria, va

We finally bought a townhouse after being priced out of 2 neighborhoods. Everytime one went on sale it was $10K more than the last, so it didnt take long. The only way we got ours was we were able to put a bid on it right before it went on the market. Had we not been able to do that, we would have gotten priced out of there. When we closed a month later, houses were *listing* for $25K more than what we paid and selling for $20K over the list price. We got 1850 sq ft for $400K!

AGBF - I never thought i would say, "I want to buy gas in NJ" either! FI is from there and on recent trips its always been cheaper!

Ive seen gas around here for anything from $2.05-$2.25
No clue what bread costs (on Peapod/Giant what we usually get goes for $2.99)
The only reciept i had in my purse has Oreo selling for $3.99 and 5lb bag of red potatos going for $3.99

 

[cflutist]

Jorman, welcome to California.

 

[jorman]

Thanks!
We won''t officially move here until late July. We are here for the week trying to find a home and trying to find a job for me. I am hopeful on both accounts!

Things are so SO different here, but I am flexible!

 

[jaysonsmom]

$500K for a 2 bedroom/2 bath condo sounds about right in our neighborhood (RSM, CA) too. My SIL and her husband just bought one last Oct for $430K, and they got DEAL! The owner had already moved out of state, and was deperate to sell. We have a 3 bedroom/2 bath duplex type townhome, and it''s appraised at about $600K. My brother live in Austin Tx, and his single family house on a huge lot is about the same size as mine (1800 sq. ft) and it''s only $150K!

 

[Mara]

Date: 6/8/2005 1:37:47 PM
Author: jorman

Here $500K buys you a 2 bedroom 2 bathroom apartment with a balcony.

Even this statement is turning into a maybe!! Insanity.

 

[ammayernyc]

$500K buys you a studio or tiny one bedroom in Manhattan. So sad...

 

[lost on 5th]

Date: 6/8/2005 3:11:57 PM
Author: AmandaPanda
$500K buys you a studio or tiny one bedroom in Manhattan. So sad...

and its in a bad part of town too... with rusted pipes im sure

oh... with a view of a brick wall...

 

[lost on 5th]

in NYC

bread = 1.99 for store brand white.
2.19 whole wheat (home pride)
3.29 for a short loaf of good 7-grain..
4.50 ~ for elies fresh baked

gas = whats that for again????

i have no idea. 1 month transit pass is $76 know that.

oh.. and.....

360 gross SF studio ... in an area you still might get stabbed in. rent = $1250/mo and climbing back up fast

 

[ursulawrite]

Date: 6/8/2005 4:52:40 PM
Author: lost on 5th
in NYC

bread = 1.99 for store brand white.
2.19 whole wheat (home pride)
3.29 for a short loaf of good 7-grain..
4.50 ~ for elies fresh baked

gas = whats that for again????

i have no idea. 1 month transit pass is $76 know that.

oh.. and.....

360 gross SF studio ... in an area you still might get stabbed in. rent = $1250/mo and climbing back up fast

Too true! You should have seen some of the hovels we looked at. There was one loft, on Prince St, priced at $1.3m, that had a kitchen from the ''60s and a bedroom you could only stand up in if you were less than 5''6.

 

[ammayernyc]

Date: 6/8/2005 4:52:40 PM
Author: lost on 5th
in NYC

bread = 1.99 for store brand white.
2.19 whole wheat (home pride)
3.29 for a short loaf of good 7-grain..
4.50 ~ for elies fresh baked

gas = whats that for again????

i have no idea. 1 month transit pass is $76 know that.

oh.. and.....

360 gross SF studio ... in an area you still might get stabbed in. rent = $1250/mo and climbing back up fast

Oh, I love Eli''s so, so much!
However, my bank account is slowly dwindling by shopping there often. Unfortunately, it''s the best market near me! Most everything I don''t buy from there I buy from Fresh Direct.

 

[MissAva]

The condo in the same building I live in now just sold for....185,000$ We are talking 600sqft. The whole world has lost its mind.

 

[Erin]

Right now we are renting a 1500ft2 apartment that is two years old (brand new) for $575mo
Loaf of bread $2
Gas as of this afternoon $1.97
Three bedroom, two full bath, double garage, fenced in yard, 1800ft2, 10 yrs old = $140,000

Central IL

 

[codex57]

Date: 6/8/2005 6:17:48 PM
Author: Erin
Right now we are renting a 1500ft2 apartment that is two years old (brand new) for $575mo

Loaf of bread $2

Gas as of this afternoon $1.97

Three bedroom, two full bath, double garage, fenced in yard, 1800ft2, 10 yrs old = $140,000

Argh! We live in a studio apartment and rent next month will be $1300. Gas the day after I last posted was $2.47. 1 bedroom condo goes for $350-450K.

 

[Dancing Fire]

i know the housing bubble will burst very soon but,i''m still worry about

how will my kids able to save enough money for the down payment.

 

[ForteKitty]

Date: 6/8/2005 6:03:02 PM
Author: Matatora
The condo in the same building I live in now just sold for....185,000$ We are talking 600sqft. The whole world has lost its mind.

An old fixer-upper, 2 bd/1bth, 600sqft house on a 800sqf lot, right next to the freeway just sold for $497,000. Pasadena, CA.

 

[Blue824]

Date: 6/8/2005 6:45:39 PM
Author: Dancing Fire
i know the housing bubble will burst very soon but,i''m still worry about

how will my kids able to save enough money for the down payment.

Stated before, I''m only 22, but I will probably buy a condo with in the next 2 years so I was speaking to a real estate agent at a party....they said they have a lot of allowances that make it slightly easier for first time buyers. I am hoping prices cool off just a bit...

I''ve heard about the interest only loans and how they are supposed to make it easier for first time buyers. I always thought there had to be a catch...nothing is ever that simple. This article was up on yahoo today: http://news.yahoo.com/s/ap/20050606/ap_on_bi_ge/risky_mortgages

 

[cflutist]

Gas 2.19/gal today (websailor just filled up)

Homes in my neighborhood are greater than $ 1 million (the last 5 that sold were that). Its difficult to tell what my neighbor''s homes are worth since they are all custom, are all different, are all ridgetop with panoramic views, and range in sq ft from 3000 to 12,000 (this guy had his house built so I don''t know what its worth). Let''s just say we are probably the poorest in the neighborhood.

 

[Dancing Fire]

Date: 6/8/2005 11:40:46 PM
Author: Blue824

Date: 6/8/2005 6:45:39 PM
Author: Dancing Fire
i know the housing bubble will burst very soon but,i''m still worry about

how will my kids able to save enough money for the down payment.

Stated before, I''m only 22, but I will probably buy a condo with in the next 2 years so I was speaking to a real estate agent at a party....they said they have a lot of allowances that make it slightly easier for first time buyers. I am hoping prices cool off just a bit...

I''ve heard about the interest only loans and how they are supposed to make it easier for first time buyers. I always thought there had to be a catch...nothing is ever that simple. This article was up on yahoo today: http://news.yahoo.com/s/ap/20050606/ap_on_bi_ge/risky_mortgages

Blue824
i always say and i''ll say it again,interest only loan are for "suckers only" don''t do it.

those people will be out on the street,when the bubble burst.the people who goes for that kind of loan shouldn''t be buying a house.they can''t afford it at this time.

 

[Dancing Fire]

Date: 6/8/2005 11:48:49 PM
Author: cflutist
Gas 2.19/gal today (websailor just filled up)

Homes in my neighborhood are greater than $ 1 million (the last 5 that sold were that). Its difficult to tell what my neighbor''s homes are worth since they are all custom, are all different, are all ridgetop with panoramic views, and range in sq ft from 3000 to 12,000 (this guy had his house built so I don''t know what its worth). Let''s just say we are probably the poorest in the neighborhood.

cflutist
i don''t mind being the poorest in your neighborhood.

btw; i''ll be driving by your neighborhood tomorrow, on the way to pick my daughter up from U.C.Santa Cruz. she''s comming home for the summer.

 

[Blue824]

Date: 6/9/2005 12:58:45 AM
Author: Dancing Fire

Date: 6/8/2005 11:40:46 PM
Author: Blue824

.

Stated before, I''m only 22, but I will probably buy a condo with in the next 2 years so I was speaking to a real estate agent at a party....they said they have a lot of allowances that make it slightly easier for first time buyers. I am hoping prices cool off just a bit...

I''ve heard about the interest only loans and how they are supposed to make it easier for first time buyers. I always thought there had to be a catch...nothing is ever that simple. This article was up on yahoo today: http://news.yahoo.com/s/ap/20050606/ap_on_bi_ge/risky_mortgages

Blue824
i always say and i''ll say it again,interest only loan are for ''suckers only'' don''t do it.

those people will be out on the street,when the bubble burst.the people who goes for that kind of loan shouldn''t be buying a house.they can''t afford it at this time.

I know....I had heard about them and just knew there had to be a ''catch'' to them. Its not something I"d plan on doing, just feel bad for the people who may have been excited to buy and not really understood what they were getting into

 

[movie zombie]

today in santa cruz, california:

loaf of bread: $3.99 [very very good bread]
$/gallon of gas: $2.36 for rotten robbie 87 octane about as low a grade as you can get
matinee movie: $6.75

median house price: $725K

California Association of Realtors article: http://orangecoastrealestate.com/news_car.htm

bubbles always burst....as witness the stock market ''adjustment'' of 2000.

peace, movie zombie

 

[Mara]

Date: 6/9/2005 12:58:45 AM
Author: Dancing Fire

Date: 6/8/2005 11:40:46 PM
Author: Blue824

Date: 6/8/2005 6:45:39 PM
Author: Dancing Fire
i know the housing bubble will burst very soon but,i'm still worry about

how will my kids able to save enough money for the down payment.

I've heard about the interest only loans and how they are supposed to make it easier for first time buyers. I always thought there had to be a catch...nothing is ever that simple. This article was up on yahoo today: http://news.yahoo.com/s/ap/20050606/ap_on_bi_ge/risky_mortgages

Blue824
i always say and i'll say it again,interest only loan are for 'suckers only' don't do it.

those people will be out on the street,when the bubble burst.the people who goes for that kind of loan shouldn't be buying a house.they can't afford it at this time.

I hate to see Interest Only get such a bad rap...yes it can be a fiasco when used unwisely. Yes there are people out there who are overextending themselves and using IO to get a more expensive house that they could not otherwise afford. Yes there are people who are getting 30 year loans IO which is frightening.

However, we did IO for a reason. We only intend to be in this townhouse for 5 years. We could have done Interest+Principal for a 5/1 ARM, the amount really was not that much more than IO, maybe a few hundred a month extra, but what is the point? We thought about it and worked out the numbers.

In the first 5 years of a loan, you pay something like 95% interest and 5% principal. So the amount of principal we'd pay over the 5 years we plan to stay here, amounted to something like $10k. We'd be better off investing that money over the 5 years and reaping much more out of it than the $10k we'd get if we handed it off to the bank.

So we did IO and plan to leave within the 5 years OR we are thinking of refinancing (maybe this year) to get a better rate and that also re-sets the 5 year clock. We did not overextend ourselves with what we could afford, we consciously stayed way under rather than getting whatever they said we could 'afford'. We knew what we could comfortably afford without eating ramen for 5 years.

Personally, I think IO can be done in a smart manner esp if you only plan to stay in a residence for a short period of time, as long as you know pro's and con's and if you can be diligent about investing that 'principal' into something that would reap more and be safer than RE. I would NEVER get a 30 year IO but for the 5/1 it made sense for us as this is just our starter home and we plan to move on .... BUT that's if the market agrees!! Who really knows what it will be like in another 3.5 years...hence why we are considering refinancing now to reset the clock. Plus we REALLY love our place!

 

[websailor]

Mara,

A quick question - with an IO, if you wanted to pay principal, can you? Would it change the loan payments at all (do they re-compute the payment amount ever)?

 

[Dancing Fire]

Mara
i was in your shoes 19 yrs ago.i went with a 30 yr ARM at 10.50% with 20% down. 2 yrs later i refinance into 15 yr 9.25% fix.with a IO loan when the bubble burst and your home value go down 20%,you will owe the bank more than what your house is worth because,you didn''t put any money down.yes.....i will look like a jack A** if the market keep going up but,when the bubble burst you will hear me say "i told you so"

 

[Dancing Fire]

Date: 6/9/2005 2:13:43 AM
Author: movie zombie
today in santa cruz, california:

loaf of bread: $3.99 [very very good bread]
$/gallon of gas: $2.36 for rotten robbie 87 octane about as low a grade as you can get
matinee movie: $6.75

median house price: $725K

California Association of Realtors article: http://orangecoastrealestate.com/news_car.htm

bubbles always burst....as witness the stock market ''adjustment'' of 2000.

peace, movie zombie

yep.....the nasdaq market bubble burst at 5050 march of 2000,this time is the housing market bubble.

 

[Momoftwo]

At least where I live in the No VA area, the housing market shows no sign of slowing down. Every real estate analyst and financial planner I've heard recently expects no bubble burst, just a leveling off of prices. Even if prices drop 10% or so, almost everyone will have made a lot more than they lose in an adjustment. The ones in the biggest trouble are those that buy for a quick turnaround to make money. Also, IO loans aren't a big deal if you put a good down payment on the property and could otherwise afford the payments, just choose to use the money elsewhere, like retirement accounts or college funds. Those that will get in trouble are people who get IO to just barely afford the house. Some IO's are short-term ARM's, some long. We actually looked at refinancing to a IO 10 year ARM, with the option to make principal payments anytime we want, but decided against it because we couldn't justify the cost of refinancing to save $100-$200/month (closing and buy down were going to cost over $25,000). Our current rate is a 10-1 ARM at 5.25%. By the time the ARM can adjust, we'll be refinancing to at least a 15 year loan. Two more houses just went on the market in our neighborhood this week, one for 915K and the other for 990K. We bought at a great time. We put 20% down (made off our last home) and now have like 42% equity in 18 months. I have family in Texas and they choked when I told them what real estate cost here. We could buy the same house there for less than 1/2 the cost here.

BTW, our first home in 1982, we had a 15% interest rate loan. And we just missed the 18% rate by about a month. When we refinanced to 12 1/2% a year later we thought we'd hit the jackpot. We saved $100/mo on our mortgage payment down to $600/mo. Our real estate taxes and insurance are more than that per month now. I love NYC, but I couldn't imagine buying there and having to spend so much for an apt. At least here we have 2/3 acre.