SERIOUSLY - how are people affording these $1Mil+ homes with $8,000+ monthly mortgages!?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Plenty of people bring home 30k a month, Like, everyone on my block does.

30k per month? That’s crazy. I just hit $4k per month and I was feeling rather rich.

you are, this is the DCUM bubble , filled with women that hate sex and lawyers that pretend to work.

Aw is someone mad? My husband and I have sex every week and we pull in $60K/month. Could tell you more about our portfolio but don’t want to make you even angrier!

Only once a week? Poor guy.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I must be doing something wrong. My household income is $300K and with two small kids, I want to live in a good public school zone. It feels impossible! My mortgage budget is $4k…which is maybe a $600K home. My research says if I want a good school with that budget, I’m buying an outdated 1500sq ft home with 7.5 foot ceilings. I need to leave Montgomery county!

You can get a decent house for under $900k in Wootton cluster. If you put 20% down you’re looking at a 5-6k monthly mortgage. A house near me just sold for $760k.

Maryland is shredding local zononh authority, so the Wootton cluster will probably go downhill in the next decade.

You’ve been saying this since the past decade.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Plenty of people bring home 30k a month, Like, everyone on my block does.

30k per month? That’s crazy. I just hit $4k per month and I was feeling rather rich.

you are, this is the DCUM bubble , filled with women that hate sex and lawyers that pretend to work.

Aw is someone mad? My husband and I have sex every week and we pull in $60K/month. Could tell you more about our portfolio but don’t want to make you even angrier!

Wow, he pays 15K each time! 4x a month for 60K. Wow.

[Anonymous]

Anonymous wrote:How old are you that you have two small children, but no home equity? Do you have other assets at least?

My DH and I are 37/38 and have two kids ages 3 and 5. We spend our 20s and early 30s paying on our student loans and now we are paying for daycare. By the time we are done with that, we might be able to start saving for a downpayment. The only people in our boat I know who bought a home have family money. We don't.

[Anonymous]

Anonymous wrote:

Anonymous wrote:How old are you that you have two small children, but no home equity? Do you have other assets at least?

My DH and I are 37/38 and have two kids ages 3 and 5. We spend our 20s and early 30s paying on our student loans and now we are paying for daycare. By the time we are done with that, we might be able to start saving for a downpayment. The only people in our boat I know who bought a home have family money. We don't.

So how old will you be when you buy your first home? Our neighbor are first time home owners at 49. Similarly to you they had student loans and very young kid. I think their oldest is 4 years old. It seems like some of the major life events people had in their late 20s/early 30s now happen happen in late 30s/early 40s. Who can blame them? Kids are expensive, cost of living is high.

I come from a wealthy family. I was handed pretty much everything. I am thankful. I will never judge those got everything by themselves. I can only admire their achievements. My dad gave us $400k for a down payment. We could have bought a bigger house as we both make a good living. But we opted for a small split level (to the weird disappointment of my parents go figure) 2k square feet that cost us only $600k. Given our income we could have bought a 1 million dollar home, but what's the point? Perhaps because I grew up in a huge house I was just never into buying a huge house.

[Anonymous]

Anonymous wrote:

Anonymous wrote:How old are you that you have two small children, but no home equity? Do you have other assets at least?

My DH and I are 37/38 and have two kids ages 3 and 5. We spend our 20s and early 30s paying on our student loans and now we are paying for daycare. By the time we are done with that, we might be able to start saving for a downpayment. The only people in our boat I know who bought a home have family money. We don't.

We got fellowships to pay for grad school and/or got very well paying jobs that allowed us to pay off loans in <2 years after graduating. Then we saved a down payment and purchased before we had kids and had to start paying daycare.

No family help, but significant grad school fellowships (merit-based, not need).

[Anonymous]

I think interest rates is the answer here. We bought in McLean in 2019 for 1.3mil, at that time our HHI was 350k, down payment was 300k and our mortgage payment is $5400.00 @2.65%. Our HHI is much higher now but the purchase was made on assuming 350k will remain the highest. I know many families who bought in our neighborhood at that time with HHI of 300kish.

[Anonymous]

Anonymous wrote:I think interest rates is the answer here. We bought in McLean in 2019 for 1.3mil, at that time our HHI was 350k, down payment was 300k and our mortgage payment is $5400.00 @2.65%. Our HHI is much higher now but the purchase was made on assuming 350k will remain the highest. I know many families who bought in our neighborhood at that time with HHI of 300kish.

+1. At 7% I really feel for those who have been priced out. And home owners are very greedy too. They want endless appreciation in their property. I think some people if they don't buy in the next couple of years, they can forget ever becoming homeowners. Blame the Fed for their stupid policies.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How old are you that you have two small children, but no home equity? Do you have other assets at least?

My DH and I are 37/38 and have two kids ages 3 and 5. We spend our 20s and early 30s paying on our student loans and now we are paying for daycare. By the time we are done with that, we might be able to start saving for a downpayment. The only people in our boat I know who bought a home have family money. We don't.

We got fellowships to pay for grad school and/or got very well paying jobs that allowed us to pay off loans in <2 years after graduating. Then we saved a down payment and purchased before we had kids and had to start paying daycare.

No family help, but significant grad school fellowships (merit-based, not need).

We are teachers so not well paying jobs.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How old are you that you have two small children, but no home equity? Do you have other assets at least?

My DH and I are 37/38 and have two kids ages 3 and 5. We spend our 20s and early 30s paying on our student loans and now we are paying for daycare. By the time we are done with that, we might be able to start saving for a downpayment. The only people in our boat I know who bought a home have family money. We don't.

We got fellowships to pay for grad school and/or got very well paying jobs that allowed us to pay off loans in <2 years after graduating. Then we saved a down payment and purchased before we had kids and had to start paying daycare.

No family help, but significant grad school fellowships (merit-based, not need).

We are teachers so not well paying jobs.

It shouldn't be a surprise that it's challenging to buy a house in a very expensive market on teacher salaries.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How old are you that you have two small children, but no home equity? Do you have other assets at least?

My DH and I are 37/38 and have two kids ages 3 and 5. We spend our 20s and early 30s paying on our student loans and now we are paying for daycare. By the time we are done with that, we might be able to start saving for a downpayment. The only people in our boat I know who bought a home have family money. We don't.

We got fellowships to pay for grad school and/or got very well paying jobs that allowed us to pay off loans in <2 years after graduating. Then we saved a down payment and purchased before we had kids and had to start paying daycare.

No family help, but significant grad school fellowships (merit-based, not need).

We are teachers so not well paying jobs.

It shouldn't be a surprise that it's challenging to buy a house in a very expensive market on teacher salaries.

We don’t live in an expensive market. We aren’t in DC anymore. We still wouldn’t be able to afford it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:How old are you that you have two small children, but no home equity? Do you have other assets at least?

My DH and I are 37/38 and have two kids ages 3 and 5. We spend our 20s and early 30s paying on our student loans and now we are paying for daycare. By the time we are done with that, we might be able to start saving for a downpayment. The only people in our boat I know who bought a home have family money. We don't.

You made a bad financial decision to have kids before buying a house.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How old are you that you have two small children, but no home equity? Do you have other assets at least?

My DH and I are 37/38 and have two kids ages 3 and 5. We spend our 20s and early 30s paying on our student loans and now we are paying for daycare. By the time we are done with that, we might be able to start saving for a downpayment. The only people in our boat I know who bought a home have family money. We don't.

You made a bad financial decision to have kids before buying a house.

My mom had me at 40 and I vowed never to be an old mom. She died when I was 20 and left me with two younger siblings to raise.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How old are you that you have two small children, but no home equity? Do you have other assets at least?

My DH and I are 37/38 and have two kids ages 3 and 5. We spend our 20s and early 30s paying on our student loans and now we are paying for daycare. By the time we are done with that, we might be able to start saving for a downpayment. The only people in our boat I know who bought a home have family money. We don't.

You made a bad financial decision to have kids before buying a house.

My mom had me at 40 and I vowed never to be an old mom. She died when I was 20 and left me with two younger siblings to raise.

I’m sorry to hear that. Not saying you made a bad life decision.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:A lot of people bought when interest rates and prices were lower. People move up the property ladder.

+1 most people buy starter homes and keep rolling their equity forward. I started with a condo, then a fixer upper, which allowed me to cash out ~$250k for my current home.

Condos are terrible idea. It worked during housing bubble when sanity left the market but have been a bad deal ever since.

Agreed and add townhomes to the list. We bought one as our starter home thinking we'd upgrade someday. The townhome has appreciated by about 1/3 in the time that SFHs have by 50-100%. Now consider current interest rates...I wish we hadn't tried so hard to be responsible, and had stretched our budget when we first bought.

You must live in a really crappy area. We bought our townhouse for $500K in 2014 and sold it last year for $800K. We didn't make any improvements in that 10 years except paint, new appliances, and light fixtures.

Our North Arlington TH also was flat. I’ve discovered that only new townhouses in up and coming areas appreciate; established townhouses are a bad deal because they look run down and no HOA is willing to invest to make them look nice again. In fact, probably about half the original owners have moved out and rent out their townhouse, further depressing the appeal to new buyers who don’t want a community of transients.

Hm, I'm the person you're quoting and I don't know what to tell you. We bought our 1970s TH in Falls Church (FFX) and made $300K when we sold it 10 years later. The entire neighborhood is turning over with similar prices - an old timer's heirs sold his for $550 last year to a flipper who then up and sold it for $850. It's not zoned to a great elementary school either but a great location for commuters near the highway, Tysons, easy to get to DC. It's really all about location. A lot of North Arlington townhouses are in dumpier areas and because of locations, sellers expect more money, so I get why yours didn't appreciate much, but our old neighborhood is selling like hotcakes.