Cost of Living

I was watching House Hunters last night. I tend to enjoy watching the show to see other houses and see what the market is like in other states. Last night, the home buyer was in Manhattan trying to find a larger flat. OMG! The housing was absurd, but it was the "assocation fees" that shocked me. No wonder rents are so high there.

This home buyer is a voice actress. Not sure what someone in that field makes, but it would have to be a small fortune! She looked at three flats - all around 600 square feet. That's a little over half of my house. It's probably close to my downstairs. She needed one bedroom near her work in Manhattan.

The first place was puny. It was not glamourous and the views were awful. Yet, it was $500k and assocation fees were an addtional $750 a month. Another $750 a month is over my mortgage payment!!! The next place was $485k and the association fees were the same. So the final flat is $495k, association fees are $720 a month. I'm thinking with a mortgage on a flat that costs $500k, you are looking at a mortgage payment of around $2700 if you can afford 20% down. Under 20% down with PMI, I'm sure the payment would be around $3300 - $3500. Add on your association fees and you'll be paying $3400 to 4200 per month. That's absurd! If I realize that the housing prices in many areas are going to force people to work themselves to death, why can't the government???