If you bought a house over $1.5 were you able to afford to do so on your salaries or equity?

[Anonymous]

I'm curious about people buying homes for $1.5 mil and up.. are you buying based on really high salaries or equity rolled from previous homes? We have a $400-600k+ salary but wouldn't consider that enough for that mortgage.

[Anonymous]

We wouldn't have been able to do it on salaries alone. Equity from our prior house plus a gift from family.

[Anonymous]

Salaries. You can definitely afford $1.5m on $600k.

[Anonymous]

$400-$600k is certainly enough to afford a $1.5mm home, assuming you have been making that long enough to afford a down payment and a cushion for after the purchase.

[Anonymous]

We're in the 500K and we used equity from our prior homes. The first one we bought with family help.

[Anonymous]

We had both when we bought our newest home, but we didn't need the equity to make the purchase.

[Anonymous]

We have mortgages for about $1 million on 400K/year.

[Anonymous]

It’s really hard to read these threads where people like OP act like they are middle class and can’t afford a million dollar house. 600k??? Give me an effing break. You don’t have the vaguest idea of what it is like to not be able to afford something.

[Anonymous]

Anonymous wrote:I'm curious about people buying homes for $1.5 mil and up.. are you buying based on really high salaries or equity rolled from previous homes? We have a $400-600k+ salary but wouldn't consider that enough for that mortgage.

Are you for real, asking such a stupid question?

[Anonymous]

$1.5m with 20% down at 3.5% interest should be under $7k/month, or $84k/year. Even at $300k HHI that's still less than 1/3 of your gross income. Understandable if that still makes you uncomfortable but you're competing against a lot of buyers who will stretch themselves much further to make things work.

[Anonymous]

We are both trusties so just ... used our money to buy.

[Anonymous]

Anonymous wrote:$1.5m with 20% down at 3.5% interest should be under $7k/month, or $84k/year. Even at $300k HHI that's still less than 1/3 of your gross income. Understandable if that still makes you uncomfortable but you're competing against a lot of buyers who will stretch themselves much further to make things work.

We have really unstable salaries (self employed)

[Anonymous]

Anonymous wrote:It’s really hard to read these threads where people like OP act like they are middle class and can’t afford a million dollar house. 600k??? Give me an effing break. You don’t have the vaguest idea of what it is like to not be able to afford something.

Understandable sentiment, but I don’t think that’s fair to OP, who didn’t claim to be middle class or even despair about not being able to afford anything acceptable. He/she just said they wouldn’t be comfortable with that large a payment. There is nothing immoral about being conservative with your money.

[Anonymous]

$6M networth. $1.5M income.

[Anonymous]

We have 1.2M on 300K and it's perfectly comfortable. Could we retire earlier with a smaller mortgage? Sure, but we don't want to be totally cramped and miserable in our home.