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

[Anonymous]

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.

[Anonymous]

Parents gave them a downpayment and they make a lot, like $250-$400K+ - dual income, but it really depends on how much DP they got as a gift from the parents. Gotta get the mortgage before the kids come and mom goes part time.

[Anonymous]

old money, inheritance, gambling windfall lol

[Anonymous]

Anonymous wrote:Parents gave them a downpayment and they make a lot, like $250-$400K+ - dual income, but it really depends on how much DP they got as a gift from the parents. Gotta get the mortgage before the kids come and mom goes part time.

Also assumes no education debt, a gift itself, that's how the wealthy do it.

[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.

Easy. They have a lot more money than you do. It’s not rocket science.

[Anonymous]

Most likely family money. DH and I bought a nice home 3 years out of law/grad school. Neither of us has student loan debt, and we had typical big law/business salaries, so it was easy to save a good-sized down payment in 3 years.

[Anonymous]

Anonymous wrote:Parents gave them a downpayment and they make a lot, like $250-$400K+ - dual income, but it really depends on how much DP they got as a gift from the parents. Gotta get the mortgage before the kids come and mom goes part time.

They only have a single income and her husband works a government or contracting type job. So it’s weird. Idk how someone makes that much with only a few years work experience and in a government role

[Anonymous]

Anonymous wrote:

Anonymous wrote:Parents gave them a downpayment and they make a lot, like $250-$400K+ - dual income, but it really depends on how much DP they got as a gift from the parents. Gotta get the mortgage before the kids come and mom goes part time.

They only have a single income and her husband works a government or contracting type job. So it’s weird. Idk how someone makes that much with only a few years work experience and in a government role

As people are saying, family money.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Parents gave them a downpayment and they make a lot, like $250-$400K+ - dual income, but it really depends on how much DP they got as a gift from the parents. Gotta get the mortgage before the kids come and mom goes part time.

They only have a single income and her husband works a government or contracting type job. So it’s weird. Idk how someone makes that much with only a few years work experience and in a government role

Obviously, family money.

[Anonymous]

Family money. That's why comparison is not only the thief of joy, but also really counterproductive and useless. You have to operate within your own circumstances and means, and make the best of YOUR situation.

[Anonymous]

Anonymous wrote:Most likely family money. DH and I bought a nice home 3 years out of law/grad school. Neither of us has student loan debt, and we had typical big law/business salaries, so it was easy to save a good-sized down payment in 3 years.

Partly this, partly family money.

Because yes, if you graduate without student loan debt and are making $200K+ each, you can choose to live off $150K and aggressively save the rest for 2-3 years and have $600K+ as a downpayment without any "family money" other than no student loan debt. And most likely someone who has no loan debt from law/medical school will also get some help with a downpayment.

But yes, if your income is $400K+, you have $600K+ as a downpayment, it is possible to buy a $2M home all on your own.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Most likely family money. DH and I bought a nice home 3 years out of law/grad school. Neither of us has student loan debt, and we had typical big law/business salaries, so it was easy to save a good-sized down payment in 3 years.

Partly this, partly family money.

Because yes, if you graduate without student loan debt and are making $200K+ each, you can choose to live off $150K and aggressively save the rest for 2-3 years and have $600K+ as a downpayment without any "family money" other than no student loan debt. And most likely someone who has no loan debt from law/medical school will also get some help with a downpayment.

But yes, if your income is $400K+, you have $600K+ as a downpayment, it is possible to buy a $2M home all on your own.

Those figures are a bit low for 6.5% interest rates. Now you’d need 400k hhi/1M down or 600k hhi/600k down

[Anonymous]

Anonymous wrote:

Anonymous wrote:Parents gave them a downpayment and they make a lot, like $250-$400K+ - dual income, but it really depends on how much DP they got as a gift from the parents. Gotta get the mortgage before the kids come and mom goes part time.

They only have a single income and her husband works a government or contracting type job. So it’s weird. Idk how someone makes that much with only a few years work experience and in a government role

So like I said. They have more money than you do. Likely they received it from relatives on one or both sides. This is nearly always the answer to questions like this. It’s not mysterious.

[Anonymous]

Go to open houses, OP. See how often the parents of one of the buyers goes with the couple. You’re not competing with your peers for that house. You’re competing with your peers’ parents and even their grandparents’ net worth for that coveted house.

[Anonymous]

We have the money to do this for our children, but we're probably not going to, because none of us want the hassle while they're in their 20s and won't know exactly where they'll land geographically. It's annoying to live somewhere while renting out your property elsewhere.

My neighbor did something similar to this, however - bought an expensive property in a really nice neighborhood with great schools, while he was on the younger side, and presumably with his parents' help. Decades later, it's been a great investment financially, but he's still single. Oh well.