How rich are people buying 1-1.5 mil homes?

[Anonymous]

Anonymous wrote:Wow it is amazing how much people have tied up in their houses.

Is it really that amazing though? It's a high COL area. My job and my spouse's job are in DC. To avoid a miserable commute, we bought a close-in suburban house. It's NOT a fancy house, but it did cost $1M.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Wow it is amazing how much people have tied up in their houses.

Is it really that amazing though? It's a high COL area. My job and my spouse's job are in DC. To avoid a miserable commute, we bought a close-in suburban house. It's NOT a fancy house, but it did cost $1M.

right - if you nw is in the millions why is it weird to have several hundred thousand of it as equity in real estate?

[Anonymous]

Anonymous wrote: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.

"Having to spend $1m for schools."

Ok.

[Anonymous]

Anonymous wrote:

Anonymous wrote: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.

"Having to spend $1m for schools."

Ok.

How do you feel if I tell you we're getting paid for good schools? Say if you bought in McLean, after your kids are done with schools, your house is worth at least 500k even 1M more. You can then cash in and move to other areas you want.

[Anonymous]

Hmm. We have assets but a very low income. So quite different from other people on this thread, which I suppose is understandable, since there are a lot of working professionals in the area.

[Anonymous]

DH and I have a HHI of around $500k. We could afford the monthly mortgage of a 1-1.5 million house, but cannot get it together to save for a down payment. Even with saving monthly expenses, and cutting back on trips, it seems so far away to obtain.

[Anonymous]

Not rich. Just dual income earners with great credit who waited until their 30s to buy so had savings for the down payment.

[Anonymous]

Anonymous wrote:Wow it is amazing how much people have tied up in their houses.

Compared to total net worth? I agree with you. Essentially these folks are all dependent on their continued gainful employment to fund their lifestyles.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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.

"Having to spend $1m for schools."

Ok.

How do you feel if I tell you we're getting paid for good schools? Say if you bought in McLean, after your kids are done with schools, your house is worth at least 500k even 1M more. You can then cash in and move to other areas you want.

I don't care what you're doing. Just don't frame it as a necessity. "I can't buy a house worth under $1m because schools!"

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Wow it is amazing how much people have tied up in their houses.

Is it really that amazing though? It's a high COL area. My job and my spouse's job are in DC. To avoid a miserable commute, we bought a close-in suburban house. It's NOT a fancy house, but it did cost $1M.

right - if you nw is in the millions why is it weird to have several hundred thousand of it as equity in real estate?

There is a difference between 1-2M in net worth and 10M in net worth. Especially if you're in your 30s or 40s, with children to put through college.

[Anonymous]

We were around $300K HHI when we bought our $1.3M home. The house we were previously living in, my husband bought on his own when he was making about $75k. After I moved in, we lived there together for about 8-9 years with the much higher joint income so we socked away a LOT. We put about 40% down and took out a 15 year loan on our current home, AND kept the old place as a rental. Our income growth has slowed but we're still over $400k with the rental income... our PITI is high but not unmanageable.

[Anonymous]

We live in a HCOL area but not DC, one in the NorthEast with crazy property taxes.

House shopping now with a roughly 350-400k income depending on bonuses, and we'd probably put 25-40% down. $1M we can afford PITI easily, and if my income (100kish) went away we'd still be okay with the monthly carrying cost. $1.5 would be way too much monthly b/c taxes alone on these listings can be 3-4k per month.

[Anonymous]

165k income - $1,325,000 house

[Anonymous]

We are a dual income family making $350k. We could afford $1m (bought in the 700s because we wanted to play it very safe. Yea, I grew up very very poor).

[Anonymous]

lol DCUM people are largely financially illiterate. They treat houses as a liability rather than an appreciating asset, and they brag about their financial illiteracy - oh, we make $1M a year but we only bought a 500k house.