Saturday, March 27, 2010

"Drive Until You Qualify"

There is an old expression in real estate about "Drive Until You Qualify". Homes located further out from the center of an area cost less the further away you go. There is a reason. The further out you go, the more likely you are going to have to spend lots of time commuting in.

I came across a great website that calculates the cost of that commute as part of the cost of the home. http://www.cnt.org They have an interactive map with 330 metropolitian areas in the US. It makes sense to include that cost just as one would include the cost of the utilities. If you have to spend $120 per month to use a toll road to get to your job from your new house...well...you will want to factor in that cost.

To see how much it actually costs to own your car, go see http://www.edmdmunds.com/apps/cto/intro.do

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