Here's a comment left on my post titled How to Go Broke on $200,000 a Year that gives a real-life example of how a couple saved a significant amount of money by moving from one location to another:
When we decided to buy a house, a 60-minute commute for my husband vs. a 15-minute commute made about a $200K difference in home costs. And property values are still climbing in our area, rather than being seriously inflated to begin with.
And before someone points out that time is money too, the extra 7.5 hours per week will take almost 14 years to add up to $200K in money at his current salary.
My thoughts:
1. See, I told you it could be done. ;-)
2. Yes, there is a cost in time here and to consider it is a valid point. I actually was able to increase my income and decrease my commute, but that was by moving from one city to another, not moving within a city as this example details.
3. For more of my thoughts on this issue, see my previous posts on moving:
Time may or may not mean money, but it can also mean quality of life. My husband's general happiness increased when we moved in order to halve his commute. When my dad's daily commute went from 60 minutes each way to about 5 minutes, his blood pressure went down. My commute recently went from over an hour on public transportation to less than 20 minutes WALKING. I feel better, get to sleep in, and see more of my husband.
What about the overall affect to the environment and society? Buying houses 60 minutes away from where you work adds to urban sprawl.
Posted by: Kimberly | April 19, 2007 at 12:31 PM
I am sure I have replied to your posts on the subject before as we did make the move. But you know living in the most expensive area of the country - was just a no-brainer. Anyway, I know many people who made the move and commute 4 hours round-trip a day (usually with a deal of only going into the office 2-3 days a week) or even staying with friends/family during the week. In our situation, most of the people I know who did this moved from an area where a 2-bedroom fixxer cost $500k to where you could buy a really nice house for $200k. Then just after a few years equity skyrocketed and most of the people I know who commuted ended up moving somewhere cheaper. The did get burned out. OF course, without the temptation of so much equity (which came on fast, before they really got settled here) most of them preferred the big-commute lifestyle rather than needing 2 full-time jobs (& then some) just to buy a crappy house. Just a unique situation.
My hubby commuted for a year (stayed with family 3 nights a week, worked from home fridays). Before kids it was a very fine arrangement. Even if he had to stay in a hotel or something probably would have been worth it. He eventually got laid off and had trouble finding work here, but our cost of living was lowered so dramatically we just decided we no longer needed the wage. We make 1/2 as much money but feel twice as well off, with the move and his lay-off.
Plus I know many people who do that 4-hour RT commute by train. Like you said, takes a lot of time, but not when you have to work 2 jobs to survive otherwise. Depends how extreme the situation is I guess.
Posted by: Teri | April 19, 2007 at 12:39 PM
How much does that commute cost these days? It can't be cheap, even with a hybrid. One needs to consider all costs, not just a few.
Posted by: Lord | April 19, 2007 at 01:12 PM
Kimberley: You have to weigh the effect, as not everyone has the same situation. My husband and I have been looking for a house. If we bought within 10 miles of our jobs, we'd either be in a wreck or a 600 sq foot condo. 30 miles away (and a straight shot down the turnpike), we're getting a 1200 sq foot house in a nice neighborhood.
I don't like adding to suburban (or ex-urban) sprawl, but I'd be too stressed out by the lack of space and/or lack of security if we bought a closer place.
Posted by: Anitra | April 19, 2007 at 02:24 PM
I remember the nightmare of a commute that I used to have that was more then 80 minutes (each way). On the plus side, I was able to claim a tax exemption for the car I had just purchased, and claimed alongside this some moving expenses. I believe the rule is if you move more then 55 miles (correct me if I'm wrong, I did my taxes back in January) you can claim this exemption along with other items.
Posted by: FC | April 21, 2007 at 06:02 AM