How rich are people who buy 3 million dollar houses

[Anonymous]

What's the typical income/net worth for this demographic? Is anyone making under 7 figures or having a net worth below 10 million?

[Anonymous]

Anonymous wrote:What's the typical income/net worth for this demographic? Is anyone making under 7 figures or having a net worth below 10 million?

Maybe one or the other (making seven figures but only for the last 5 years or so, or making $800k but this is their last stop on the property ladder and they have a NW above $10M, 2.5 in home equity), but hopefully not both.

[Anonymous]

Living in a 3.5M house (cost at 2M). HHI 500K. NW 6M.
I don't consider myself rich, just comfortable.

[Anonymous]

Anonymous wrote:Living in a 3.5M house (cost at 2M). HHI 500K. NW 6M.
I don't consider myself rich, just comfortable.

You’re out of touch, just sayin’!

[Anonymous]

Anonymous wrote:Living in a 3.5M house (cost at 2M). HHI 500K. NW 6M.
I don't consider myself rich, just comfortable.

OP said people who buy 3M homes, not people who buy 2M homes and enjoy appreciation.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Living in a 3.5M house (cost at 2M). HHI 500K. NW 6M.
I don't consider myself rich, just comfortable.

OP said people who buy 3M homes, not people who buy 2M homes and enjoy appreciation.

I was trying to demonstrate that you don't have to make 7 figures to buy a 3M house. Even if I wasn't living in a 3M house, I could still feel comfortable buying it now.

[Anonymous]

Many are borrowing against other assets so pretty rich.

[Anonymous]

Based on those I know in this category — all are either making stable seven figures, have bare minimum $10M+ net worth or have significant family help.

We live in the SF Bay Area now and it’s not uncommon for dual career tech families to be in or tracking towards at least one of the categories above. However $3M is now entry level in many fairly average neighborhoods so people are not exactly living large.

[Anonymous]

We started looking at $3M homes after crossing $15M NW. Truthfully, I couldn’t wrap my head around the holding costs … heating a 7,000 sqft house, maintenance, and the enormous property tax bill. Seems like we can “fix” our current much cheaper house with a $500,000 extension. I know that seems silly given our NW, but it just seems like so much waste. Income is about $750K fyi.

[Anonymous]

These people are borrowing against their stock holdings. They aren't actually putting cash down. It's a good move given that inflation will make the value of the loan lower.

[Anonymous]

Wow, 10-15m does not seem like enough for this to me! But I guess if you buy in a really expensive neighborhood maybe it’s not as much house as I think.

[Anonymous]

It's also people that made a lot in equity in their previous homes.

[Anonymous]

HHI of 600k and we live in a 1.15 million home bought at 900k with 150k in renovations. Our home equity is now at just under 1 million but we would not dream of purchasing a 3 million dollar home. We are trying to build up NW but it is hard given that we just started making this much but it seems we are going towards a higher HHI next year.

[Anonymous]

Anonymous wrote:HHI of 600k and we live in a 1.15 million home bought at 900k with 150k in renovations. Our home equity is now at just under 1 million but we would not dream of purchasing a 3 million dollar home. We are trying to build up NW but it is hard given that we just started making this much but it seems we are going towards a higher HHI next year.

This is not helpful at all.

[Anonymous]

Anonymous wrote:We started looking at $3M homes after crossing $15M NW. Truthfully, I couldn’t wrap my head around the holding costs … heating a 7,000 sqft house, maintenance, and the enormous property tax bill. Seems like we can “fix” our current much cheaper house with a $500,000 extension. I know that seems silly given our NW, but it just seems like so much waste. Income is about $750K fyi.

Glad you feel this way. Waste is waste.