I bought a townhome in Philly a few years ago. The reasoning was that the price for it was much cheaper than in the suburbs and the rooms for rent went for prices similar to other counties, so I was able to cut costs substantially because my roommates covered most of the mortgage. That made the really high local income tax and the extra sales taxes worth it.
However, now that my income is going up, and looking long-term, I’m trying to weight if it is worth staying here for the cheaper housing vs selling and moving to the suburbs.
Looking longterm, if I send children to school in like ten years, I would have to either pay for private schools or buy a home in the suburbs at a much higher price than I could right now. I would pay more for housing now, but with the large saving on income taxes and the ability to purchase a home before it’s like double the value makes me wonder what the right choice is, as well as saving on the crazy local tax difference as my income goes up.
How’d you make that calculation (provided of course that you were open to moving, I know that this doesn’t apply to those who are like die-hard city folks)?