...when they chose to live further away to "afford" more house says Ric Edelman, a financial planner in Fairfax in answer to a question about how much money one should borrow when buying a house in yesterday's Washington Post Real Estate Section (How Much House Can I Afford, December 13, 2008, Washington Post). From the Post article:
"Avoiding that risk (exceeding the decades old formula of all your loans - mortgage, car, credit debt - not exceeding more than 36% of your gross monthly income) may mean buying a condominium unit instead of a house or living farther from the city than you wanted to, Edelman said. The first is fine. The second is a "disastrous compromise," he said. "People radically underestimate the cost of commuting when they're fixated on buying the home of their dreams."
"There are the economic costs of the commute itself, including gasoline, maintenance and repairs associated with the extra driving and the need to replace the car more often, he said. There are also lifestyle costs, including more time away from the family and the effects on physical fitness and stress levels."
Good things to keep in mind when making housing choices.
Chris Hamilton is the Commuter Services Chief for Arlington County, manager of CommuterPageBlog and a Metro/biking commuter from Rosemont in Alexandria
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