Author Topic: How much are those miles really worth?  (Read 2911 times)

Tbill

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How much are those miles really worth?
« on: December 28, 2015, 11:30:47 AM »
I'm trying to fix my commute situation. I think I have a good opportunity here, I wanted to put some numbers out there to help me think through it and wouldn't mind getting a  reality check from you guys.

Current salary 80k
Current home value 155k
Current mortgage PITI $1050/mo  <--I've only been in this house ~6 months and put 5% down
Current Commute 600 miles per month, $160 tolls per month, 1.5 hours per day, 2 car family

I have an option to accept a promotion that moves me to another office in another city. Houses are available within walking biking distance of the new location, but are much more expensive.

Proposed Salary 83k-89k I'm told I'll get a "salary adjustment" I dont know how much, this is my guess.
Proposed Home Value 240K
Proposed Mortgage PITI $1400/mo  <-- this assumes 20% down (48k)
Proposed Commute 60 miles per month, $0 tolls, ~3 miles bikeable commute

So, what do you think? The short commute would be a dream, but I feel that I would be somewhat house poor. Do you think I would be better off or worse off with the proposed numbers? I could get cheaper housing further out, but that tacks on more miles. 48k down payment is most of my available cash, this scenario assumes I would be dumping all that into a down payment to avoid pmi.

Jeremy E.

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Re: How much are those miles really worth?
« Reply #1 on: December 28, 2015, 11:35:42 AM »
http://www.mrmoneymustache.com/2011/10/06/the-true-cost-of-commuting/
Assuming everything else that you didn't put down is equal, I'd go for the new job.

thd7t

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Re: How much are those miles really worth?
« Reply #2 on: December 28, 2015, 12:06:50 PM »
Without considering car costs beyond tolls and ignoring the increase in your income, you're looking at paying $350/month to get about 33 hours of freedom.  At an IRS number of $0.54/mile, even if you didn't bike, you'd be reducing your costs by $291.60, so with car costs, you're paying about $58/month for those 33 hours.  When you factor in a pay increase, you'll be gaining income and time (hundreds of hours per year). 

The only downside that comes up immediately is cost to change houses, but I still think that this is a good opportunity.

JLee

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Re: How much are those miles really worth?
« Reply #3 on: December 29, 2015, 01:57:40 PM »
Have you also factored in the costs to sell your current home? Or do you have the ability to rent it out?

stlbrah

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Re: How much are those miles really worth?
« Reply #4 on: December 29, 2015, 08:41:02 PM »
Not having to deal with the perceived invulnerability that cowards have on the road an extra 600 miles per month is worth a lot to me. The road is a dangerous place imo, lots of egos running wild.

Tbill

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Re: How much are those miles really worth?
« Reply #5 on: January 27, 2016, 08:06:14 AM »
So, I accepted the transfer. I'm in an apartment temporarily, I got a 7 months lease. I put my old house on the market and had a full price offer after about 2.5 weeks. I rode my bike to work today for the first time in my life. It was great. The apartment is only about a half mile from the office though.

Retire-Canada

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Re: How much are those miles really worth?
« Reply #6 on: January 27, 2016, 04:39:35 PM »
So, I accepted the transfer. I'm in an apartment temporarily, I got a 7 months lease. I put my old house on the market and had a full price offer after about 2.5 weeks. I rode my bike to work today for the first time in my life. It was great. The apartment is only about a half mile from the office though.

Nicely done. Congrats! :)

Blonde Lawyer

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Re: How much are those miles really worth?
« Reply #7 on: January 27, 2016, 08:03:23 PM »
That's awesome! I would have said to take the job too.

mxt0133

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Re: How much are those miles really worth?
« Reply #8 on: January 27, 2016, 09:14:16 PM »
Do you still need to 'buy' a house?  Now's a really good time to buy some stocks for sale.