You’re right, people typically spend what they make, but I meant something different. To do the exact same job will often have different pay in different cities. So one person, could perform the exact same job, but depending on the location, he would earn a different wage. If that person goes to buy a car, the payment will be a larger % of his income if he worked in the lower paying city.
Easy numbers for example purposes.
If you make $2000/month, a $200/month payment is 10% of your earnings.
If you make $2500/month, a payment of $200/month, is only 8% of earnings. Or you could pay $250/month and have the same 10% debt ratio.
Of course you’ll pay more for most things in the other city, but you can have the same job, but drive a nicer car.
Also, if you buy a house in SoCal, the payment is ridic, but when you sell it and move to Pgh, you can afford a sweet-ass place. Sell the average Pgh home, and it would make a nice down payment out there.
There is plenty of property tax in PA. Did you mean there’s no “personal property” tax? Is that the same thing Quik was talking about, when you pay tax every year on your car and other luxuries?