s/o--so how did you afford a 2 million dollar home?

[Anonymous]

I bought a 14 million dollar estate from a bankrupt country. Mutual investment interests, and an absolute ungodly amount of cash-down closed the deal.

[Anonymous]

Anonymous wrote:

Anonymous wrote:It all depends what he makes, PP, and where he is partner. There are in big DC firms where partners make far less than I make (non-partner at non-DC firm). And there are places where partners make $10 million or more per year. A partner making $1 million or more is pretty common, even for non-rainmakers, in some firms.

We could do it pretty easily if we wanted to, but we would have to sell our second home for us not to feel house poor, and we don't want to do that yet. It isn't clear to me that you really get that much more for $2 million than our current $1.25m house anyway. What I'd really like to know is how to afford a $3+ million house!

I am a biglaw partner and I never heard of any making $10 million. (But I also doubt there are any DC partners making "far less" than a nonpartner at a non-DC firm). Generally speaking if a 40ish YO partner buys a $2M house, I think they've overbought. I know a handful of people with $3M houses. Most are heart surgeons.

I think *most* partners start around 300-400 and I've been told that they take home less than senior associates due to differences in the tax treatment. I think people think DC partners make more than they really so. Most partners I know live in 1.5-2 homes max and bought at much cheaper. A young partner maybe 750-1 million.

[Anonymous]

ITA with PP. You are a piece of work OP. What do you do with your money that you have to ask? Wow.

I know over....lost count...people with over $2m homes. They all TRADED UP - MANY HAVE OWNED 3 OR 4 OR 5 HOMES BEFORE THIS ONE. Not one of them have family money. In fact, they came from nothing and worked their a**es off for thirty years, MORE THAN full time. That is how it works.

I know the idea of hard work is lost on some of you people. Hard work is only for poor people?????? Boy, are you stupid.

What is wrong with you people that you have to ask?

[Anonymous]

DH in investment banking sales. Me in financial consulting. The IB alone has made for a few big years (500+). Never upped our lifestyle when the money started really coming in so a few years of BIG savings.

[Anonymous]

Don't tell them. They are better off thinking you sell crack to young children on the playground. Really.

[Anonymous]

I have two sets of friends who have homes close to that, in the %1.7-1.8M range. One set had a first home purchased pre-2002 - my guess is that they cleared $300-400K from that, and that they also received a nice size inheritance on top of that (father was a heart surgeon). My guess is that they were able to put at least $900K down. The other set of friends bought with an ARM and are barley able to handle their mortgage - I don't think it will end well.

[Anonymous]

Anonymous wrote:ITA with PP. You are a piece of work OP. What do you do with your money that you have to ask? Wow.

I know over....lost count...people with over $2m homes. They all TRADED UP - MANY HAVE OWNED 3 OR 4 OR 5 HOMES BEFORE THIS ONE. Not one of them have family money. In fact, they came from nothing and worked their a**es off for thirty years, MORE THAN full time. That is how it works.

I know the idea of hard work is lost on some of you people. Hard work is only for poor people?????? Boy, are you stupid.

What is wrong with you people that you have to ask?

This is a really asinine comment. Reading this, one would think, that it is just super easy and a given, someone would make millions before they hit 40 or afford to buy a 2 mil home. yes, it is just middle class and anyone can do this, don't you know, stupid? Arrogance is astounding here.

[Anonymous]

Anonymous wrote:Don't tell them. They are better off thinking you sell crack to young children on the playground. Really.

Don't tell "them"? And who are "they"? People not worth your attention, princess?

[Anonymous]

Most people, not excluding those with 2 mil homes have most of their wealth tied up in their home. They make a sale of their older home and make money, what do they do? They put it into the next more expensive bigger/newer home, and sign up for a larger mortgage, they may not have been comfortable with years ago. I know a few people making pretty low 6 figure incomes and whose jobs don't have much of an upside at all, who are still confident at buying 1+ mil homes and insist on new construction or certain type of housing, which IMHO, they cannot afford without some sacrifices. Yes, a lot of people can afford their multi-million dollar homes and have much more in assets and other investments, don't knock it down. But I simply do not believe for a minute that all this fairly large inventory of 2 mil+ homes existing in this area is purchased by self-made multi-millionaires or people with 1 mil HHI.

[Anonymous]

Duh, they trade up!

Is this so hard to understand?

[Anonymous]

Anonymous wrote:Most people, not excluding those with 2 mil homes have most of their wealth tied up in their home. They make a sale of their older home and make money, what do they do? They put it into the next more expensive bigger/newer home, and sign up for a larger mortgage, they may not have been comfortable with years ago. I know a few people making pretty low 6 figure incomes and whose jobs don't have much of an upside at all, who are still confident at buying 1+ mil homes and insist on new construction or certain type of housing, which IMHO, they cannot afford without some sacrifices. Yes, a lot of people can afford their multi-million dollar homes and have much more in assets and other investments, don't knock it down. But I simply do not believe for a minute that all this fairly large inventory of 2 mil+ homes existing in this area is purchased by self-made multi-millionaires or people with 1 mil HHI.

"Most people"? Do you have a cite for that or is it totally made up based on your limited personal data points?

[Anonymous]

Anonymous wrote:The other set of friends bought with an ARM and are barley able to handle their mortgage - I don't think it will end well.

sadly, this is probably more common than anyone realizes. that said, aren't jumbo ARM loans much more uncommon these days? it seems like pre-2007 they were more readily available.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Most people, not excluding those with 2 mil homes have most of their wealth tied up in their home. They make a sale of their older home and make money, what do they do? They put it into the next more expensive bigger/newer home, and sign up for a larger mortgage, they may not have been comfortable with years ago. I know a few people making pretty low 6 figure incomes and whose jobs don't have much of an upside at all, who are still confident at buying 1+ mil homes and insist on new construction or certain type of housing, which IMHO, they cannot afford without some sacrifices. Yes, a lot of people can afford their multi-million dollar homes and have much more in assets and other investments, don't knock it down. But I simply do not believe for a minute that all this fairly large inventory of 2 mil+ homes existing in this area is purchased by self-made multi-millionaires or people with 1 mil HHI.

"Most people"? Do you have a cite for that or is it totally made up based on your limited personal data points?

You tend to ignore the rest of 99% when you think of yourself and your 1%er friends. Most people are not big money earners, and for them to buy homes at current prices they have to be in debt. Most of the people I know who buy these 1 mil-2 mil homes are in debt, paying mortgage and whose ambition is to pay off their home. Please don't tell me that all these thousands upon thousands of expensive homes in DC metro area are owned by those with networth of 3mil+ and incomes of 1 mil+. You may only know these type of people perhaps, but it's you, not me, who needs to come back down to earth and reality.

[Anonymous]

I wasn't willing to buy a roughly $2M home until we had a net worth over $5 million, accumulated through years of luck, hard work, saving and RE appreciation on our prior residence. We stlll carry a mortgage of less than $500K, but could pay it off in a heartbeat if we wanted.

I don't that's so unusual in this area - plenty of millionaires next door, and most of them live quietly in the suburbs.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Most people, not excluding those with 2 mil homes have most of their wealth tied up in their home. They make a sale of their older home and make money, what do they do? They put it into the next more expensive bigger/newer home, and sign up for a larger mortgage, they may not have been comfortable with years ago. I know a few people making pretty low 6 figure incomes and whose jobs don't have much of an upside at all, who are still confident at buying 1+ mil homes and insist on new construction or certain type of housing, which IMHO, they cannot afford without some sacrifices. Yes, a lot of people can afford their multi-million dollar homes and have much more in assets and other investments, don't knock it down. But I simply do not believe for a minute that all this fairly large inventory of 2 mil+ homes existing in this area is purchased by self-made multi-millionaires or people with 1 mil HHI.

"Most people"? Do you have a cite for that or is it totally made up based on your limited personal data points?

You tend to ignore the rest of 99% when you think of yourself and your 1%er friends. Most people are not big money earners, and for them to buy homes at current prices they have to be in debt. Most of the people I know who buy these 1 mil-2 mil homes are in debt, paying mortgage and whose ambition is to pay off their home. Please don't tell me that all these thousands upon thousands of expensive homes in DC metro area are owned by those with networth of 3mil+ and incomes of 1 mil+. You may only know these type of people perhaps, but it's you, not me, who needs to come back down to earth and reality.

Then your friends over bought. Are there really "thousands upon thousands" of $2M+ homes in the recent market around here? Can you make a statement of fact or just all hyperbole?