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Taxation! Why less is more.

*Kodos*
post 9.Mar.2006, 03:25 PM
Post #121


QUOTE (RoyE)
It depends where you live. It's hightly variable and partly responsible for the population migrations goinn on in the US. For Example, There's an exodus from Californa to he West, a migration from the Northeast to the southern states. It's people voting with their feet.

Some states have no state income tax at all, other as high as 8.5% or higher with additional local taxes on top of that.

The cost of living in New York or Hawaii is ridiculous. But South Carolina, Florida, or Texas will see your dollar go a lot further.


Excellent point, Roy.

The interesting thing is that North Carolina...in the urban areas is not cheap. And I do not mean more expensive when comparing it to rural areas of NC, either.

I was in sticker shock when I first moved here from Western PA. I could not get over the cost of a gallon of milk, let alone real estate. When I think of how far my dollars would stretch in the Pittsburgh real estate market, I cringe. I could have twice the house of what I have now.

Then again...finding a job in Pittsburgh, outside of temporary employment, was not the easiest to do when one first finishes college.
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Alfredo
post 9.Mar.2006, 03:43 PM
Post #122
Joined: 1.Dec.2005

Purely out of interest, say you were working somewhere in New England, then ?

Or Illinois ?

Also, is it normal for people to borrow 5 times their income, in order to buy a house ?
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*Kodos*
post 9.Mar.2006, 04:07 PM
Post #123


My husband is from New England. He grew up in Yarmouth, Maine which is outside of Portland. If you're ever looking for a nice vacation spot in the US...Maine is really the place. It is simply gorgeous.

I'm just a silly yankee from Pennsylvania who fled to the South.

I'm not sure how some people decide what they can actually afford for a home. If you have decent credit and a decent down payment, the banks will throw money at you (at least...that's how I felt when I went through the mortgage process). Our lender was surprised that we chose to finance what we did.

Personally...I think a lot of people buy the biggest house they think they can afford. We call that "house poor" which (basically) means that you have all of your money tied up in the value of the home and very little liquid assets.

Real Estate seems to be the best investment for middle class families. It's stable and generally appreciates. We are experiencing a bit of a bubble burst, so I'm not sure people are going to be able to sell their houses for the astronomical amounts they have in the past.

Being "worst case scenario" types, my husband and I decided not to buy the most expensive house we could afford. I was laid off a few years ago and without a job for a month (which is really nothing when you think about it). Having gone through that, we decided it would be best to buy a reasonable home that could be sustained (including taxes, insurance and all of the other crap tacked on to the actual mortgage) on an income level of 1.5 people(factoring in taking a part time job at a grocery store, coffee house or temp office job to make ends meet).

Is this similar to the real estate market where you are? What sort of hoops do you have to go through? As a rule of thumb, how do people decide how much they can afford?

Roy...do you have any thoughts on this? How is the market in your neck of the woods?
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Alfredo
post 9.Mar.2006, 04:33 PM
Post #124
Joined: 1.Dec.2005

You keep forgetting my taxing question !
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*Kodos*
post 9.Mar.2006, 04:47 PM
Post #125


I'm sorry. I was sidetracked by real-estate. How can I help you? ...Or at least direct you to something/someone who can? :oops:
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Alfredo
post 9.Mar.2006, 04:57 PM
Post #126
Joined: 1.Dec.2005

You see, this is why you should never ask a woman a question ... they just get side-tracked ... start talking about something completely different ... and before you know where you are, you're talking about something very important, like who's got the cutest ass ...

Now where was I ...

Oh yes ... tax. How much net income would you have, on a gross salary of 30k, living in Portland, let's say ?
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*Kodos*
post 9.Mar.2006, 05:34 PM
Post #127


Here is a link to what would be taken from the Feds. http://www.fredbien.com/canat113.html

One would also have to factor in all muncipal and State taxes. Dock does the taxes in our house and I won't even dare to touch State tax forms because...well...I have Dock to to that for me. smile.gif

In Pennsylvania, one has to pay Federal, State and Local (1% of your gross income) taxes each year. One also must pay an "occupational priviledge" tax to the particular town they are working in. That one is usually very small, about $10 - $20.00 a year.

In North Carolina, one must pay Federal, State, County and City (where applicable) taxes. There is no "occupational priviledge" tax here.

Your N is going to vary depending on where you live. Not just the State, but the town and county. The N also varies based on your marital status.

Hope this information is remotely helpful. Taxes...they're not my bag. :wink:
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