How does someone buy a 2M+ house in their 20’s just a few years out of grad school?

[Anonymous]

Anonymous wrote:

Anonymous wrote:My kid just did this. We did pay for college (and they got a masters within the 4 years) so no school debt. Got a great job and saved like heck. It can be done.

It can be done. But it a smart use of funds? We’re a tad older in early 30s and could easily buy a $3M house tomorrow with our HHI and savings.

But should we, when the market tells us the rule of 72 and all that? Why would we lock up so much liquidity in an asset that depreciates much more slowly than equities when we’re so young and have so much compounding ahead of us?

If you come from a normal background without expecting an inheritance it’s a bigger thought exercise than simply “can I afford this” - it’s about the time value of money.

Your generation hasn't experienced a stock market crash yet like 2008. It can go poof very quickly. The blind optimism of 20-30 somethings when it comes to equities is really remarkable. Especially today when stocks are at their highest valuations ever. Tick tock, tick tock. It's gonna happen again.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My kid just did this. We did pay for college (and they got a masters within the 4 years) so no school debt. Got a great job and saved like heck. It can be done.

It can be done. But it a smart use of funds? We’re a tad older in early 30s and could easily buy a $3M house tomorrow with our HHI and savings.

But should we, when the market tells us the rule of 72 and all that? Why would we lock up so much liquidity in an asset that depreciates much more slowly than equities when we’re so young and have so much compounding ahead of us?

If you come from a normal background without expecting an inheritance it’s a bigger thought exercise than simply “can I afford this” - it’s about the time value of money.

Your generation hasn't experienced a stock market crash yet like 2008. It can go poof very quickly. The blind optimism of 20-30 somethings when it comes to equities is really remarkable. Especially today when stocks are at their highest valuations ever. Tick tock, tick tock. It's gonna happen again.

Spoken like someone who has missed out on a lot of stock market gains. I’m sure you sold off at the beginning of 2025 and are just praying for a drop of over 30% to get back to that level. Yes - this insane crash you say is coming will bring us all the way back to 2025.

Financial incompetence here on display.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My kid just did this. We did pay for college (and they got a masters within the 4 years) so no school debt. Got a great job and saved like heck. It can be done.

It can be done. But it a smart use of funds? We’re a tad older in early 30s and could easily buy a $3M house tomorrow with our HHI and savings.

But should we, when the market tells us the rule of 72 and all that? Why would we lock up so much liquidity in an asset that depreciates much more slowly than equities when we’re so young and have so much compounding ahead of us?

If you come from a normal background without expecting an inheritance it’s a bigger thought exercise than simply “can I afford this” - it’s about the time value of money.

Your generation hasn't experienced a stock market crash yet like 2008. It can go poof very quickly. The blind optimism of 20-30 somethings when it comes to equities is really remarkable. Especially today when stocks are at their highest valuations ever. Tick tock, tick tock. It's gonna happen again.

PP. This could very well be true. Even more reason not to lock up hundreds of thousands or millions in an illiquid asset.

Though historically the US stock market always recovers over time. Yes, money went “poof” in 2008, but the S&P500 is also up close to 600% since 2008. If the market truly collapses and never comes back, we’ve got bigger problems like societal collapse and my stock market gains will be the least of my concerns.

[Anonymous]

Anonymous wrote:I know an acquaintance who just did this. They only have a handful of years work experience. I make pretty decent money at 29 but I can’t even fathom buying a $1M house let alone 2 million.

You are in the wrong field.
My DD's friend is 22 and making $60k a month as a content creator on Youtube and TikTok. Social media is making many young creators rich.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I know an acquaintance who just did this. They only have a handful of years work experience. I make pretty decent money at 29 but I can’t even fathom buying a $1M house let alone 2 million.

You are in the wrong field.
My DD's friend is 22 and making $60k a month as a content creator on Youtube and TikTok. Social media is making many young creators rich.

Of course. Also making big bucks with crypto and NFTs. Who isn't?

[Anonymous]

Anonymous wrote:We have two kids out of college working. Own two investment single family homes (est $1m each now but purchased for est$600k ) in nova. We purchased both about 10 years back knowing our kids, despite working hard and doing all the right things in life would need the housing assistance. Now Waiting for them to purchase one at a steep discount. We saw it coming - cost of housing continues to outpace earnings. It’s been an excellent family investment.

That’s too bad you didn’t invest the money in index funds instead, would have outperformed housing by a lot.