How rich are people buying 1-1.5 mil homes?
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Anonymous
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What HHI and NW?
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Anonymous
| $450k HHI, $2 million NW, $1.5 mil house |
Anonymous
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Not necessarily "rich". We have a few friends who admit to over-leveraging their finances when buying their $1.2M-$1.5M home because they wanted to get into X school system. Also, if you don't have kids your $$ stretches further etc. So this is a pretty big generalization.
Playing along FWIW... HHI is $400K, NW ~$2M, home $1.3M |
Anonymous
| I don’t recall what our NW was at the time, but we paid $1.1m, put down 30%, our HHI was $280k at the time. We rolled the equity from our previous home into the new one for the down payment. |
Anonymous
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$470K HHI, 1m NW, 1.3M house. First home purchase for both of us, no family help, coming from renting so no equity to roll over, plus buying in this market. We love the house and may be there forever. But.
Not gonna lie, it was rough. |
Anonymous
| I'd guess the mode HHI is 250-300k. Not necessarily the average though, as I think the mode is close to the bottom |
Anonymous
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HHI when we bought was $275k, $1M house, 30% down, NW $1M.
It was a stretch for the first year or two while our two kids were in daycare. |
Anonymous
| 250HHI but we had 750k that we put down on the house. We were good savers + sold a previous home. |
Anonymous
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We are looking to buy a ~1.3/1.5 M house. HHI 275 but we are hoping to roll in 400-500k in equity from current home + same amount in cash (from inheritance mostly). So our mortgage would be 500-600k.
Not super helpful as comparison given inheritance. We were aiming for a 1M$ house before receiving the inheritance |
Anonymous
| 300 HHI, $3m nw, 1.2 house |
Anonymous
| We just bought 1.5. HHI appx 850k. net worth just passed 1M. |
Anonymous
| Wow it is amazing how much people have tied up in their houses. |
Anonymous
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You can't ask this question without asking about family help and/or equity from another house. MANY people in the DC area get assistance from family (inheritances, down payment help on this or a previous starter home that now has equity, etc.). And PP is right that people over-leverage for schools.
Our HHI is $250 with a low NW (no family help and lots of student loan debt) and we'll probably end up having to spend $1m for schools with a 20% down payment, but that would over extend us and make it difficult to catch up on retirement saving. |
Anonymous
Do you live in the DC area? Housing isn’t cheap. |
Anonymous
| It’s a lot of dual income families making $350-$450k, rolling the equity from their starter home into the new home. |