How rich are people who buy 3 million dollar houses

[Anonymous]

Anonymous wrote:We started looking at $3M homes after crossing $15M NW. Truthfully, I couldn’t wrap my head around the holding costs … heating a 7,000 sqft house, maintenance, and the enormous property tax bill. Seems like we can “fix” our current much cheaper house with a $500,000 extension. I know that seems silly given our NW, but it just seems like so much waste. Income is about $750K fyi.

I agree. There's a psychological barrier there. Personally, it seems wasteful, but then we're introverts who don't socialize much. It would certainly make more sense for families who entertain a lot, or people who must host to optimize their career path.

[Anonymous]

Just bought $5m home. Close in december. Need to sell our $2.5m home.
Both parents work.
HHI - $3.5M. NW - $20M+
We will get a mortgage for 2.5 since we didn't have one for the other house we are now selling.
Own a 2nd home outright with no mortgage.
We don't include homes in our net worth calculations.

[Anonymous]

DH was a fed making 110k and I was a SAHM when we bought our home for 3.25M. My parents were happy to help

[Anonymous]

Anonymous wrote:DH was a fed making 110k and I was a SAHM when we bought our home for 3.25M. My parents were happy to help

Beautiful story.

[Anonymous]

Anonymous wrote:DH was a fed making 110k and I was a SAHM when we bought our home for 3.25M. My parents were happy to help

So you are poor.

[Anonymous]

At $10m net worth I looked at $3m houses but was not confident enough to buy one.

NW went from $10m to $30m over a few years and I finally pulled the trigger on a house around $3.5m on 1-2 acres of land.

I'm constantly amazed by how expensive the upkeep and maintenance of the house is. It's probably $100k/year before I touch property taxes or mortgage. I'd be just as happy in a full service condo but kids love the extra indoors and outdoors space so the house is really for them.

[Anonymous]

Anonymous wrote:At $10m net worth I looked at $3m houses but was not confident enough to buy one.

NW went from $10m to $30m over a few years and I finally pulled the trigger on a house around $3.5m on 1-2 acres of land.

I'm constantly amazed by how expensive the upkeep and maintenance of the house is. It's probably $100k/year before I touch property taxes or mortgage. I'd be just as happy in a full service condo but kids love the extra indoors and outdoors space so the house is really for them.

You're lying. There is no way what you said is remotely true. I own a $3.5M house. No way the cost is anywhere close to $100k/ year before taxes and mortgage.
If you are really worth $30M, you're not supposed to be this ignorant.

[Anonymous]

Anonymous wrote:

Anonymous wrote:At $10m net worth I looked at $3m houses but was not confident enough to buy one.

NW went from $10m to $30m over a few years and I finally pulled the trigger on a house around $3.5m on 1-2 acres of land.

I'm constantly amazed by how expensive the upkeep and maintenance of the house is. It's probably $100k/year before I touch property taxes or mortgage. I'd be just as happy in a full service condo but kids love the extra indoors and outdoors space so the house is really for them.

You're lying. There is no way what you said is remotely true. I own a $3.5M house. No way the cost is anywhere close to $100k/ year before taxes and mortgage.
If you are really worth $30M, you're not supposed to be this ignorant.

Insurance $2k/mo
Landscaping $1.5k/mo
Utilities $1.5k/mo (less in summer, more in winter)
Pool maintenance incl. winterization and refill $10k/yr

That's $70k/yr between those, and it feels like every other month there's a random bill for a couple thousand dollars. This doesn't include deferred maintenance like a new roof or HVAC. If I'm doing something wrong, please let me know as I'd love to pay less.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:At $10m net worth I looked at $3m houses but was not confident enough to buy one.

NW went from $10m to $30m over a few years and I finally pulled the trigger on a house around $3.5m on 1-2 acres of land.

I'm constantly amazed by how expensive the upkeep and maintenance of the house is. It's probably $100k/year before I touch property taxes or mortgage. I'd be just as happy in a full service condo but kids love the extra indoors and outdoors space so the house is really for them.

You're lying. There is no way what you said is remotely true. I own a $3.5M house. No way the cost is anywhere close to $100k/ year before taxes and mortgage.
If you are really worth $30M, you're not supposed to be this ignorant.

Insurance $2k/mo
Landscaping $1.5k/mo
Utilities $1.5k/mo (less in summer, more in winter)
Pool maintenance incl. winterization and refill $10k/yr

That's $70k/yr between those, and it feels like every other month there's a random bill for a couple thousand dollars. This doesn't include deferred maintenance like a new roof or HVAC. If I'm doing something wrong, please let me know as I'd love to pay less.

See? This is why you’re lying because you have no idea how much big houses cost.
My insurance cost is 2.2k per YEAR, with replacement coverage of more than 2.5M.
My utility is on average less than 300 per month, and I have 10,000sqft.
See how ridiculous you sound?

[Anonymous]

We bought a house a bit over $3M about 10 years ago. Income was variable. I had earned just under a million several years in a row but I had 4 years earlier was $500k+. Net worth was maybe $6M at the time. The initial plan was to rent the basement apartment and if things got too tight I’d sell some other real estate I had. We put down $1M. I was extremely confident that my income would rise

10 years later my income skyrocketed and so did house value (we also put $1.M cash into it). The property is worth $7.5M today.

Bottom line I don’t think either of the requirements are necessary but you would need someone on the right trajectory.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:At $10m net worth I looked at $3m houses but was not confident enough to buy one.

NW went from $10m to $30m over a few years and I finally pulled the trigger on a house around $3.5m on 1-2 acres of land.

I'm constantly amazed by how expensive the upkeep and maintenance of the house is. It's probably $100k/year before I touch property taxes or mortgage. I'd be just as happy in a full service condo but kids love the extra indoors and outdoors space so the house is really for them.

You're lying. There is no way what you said is remotely true. I own a $3.5M house. No way the cost is anywhere close to $100k/ year before taxes and mortgage.
If you are really worth $30M, you're not supposed to be this ignorant.

Insurance $2k/mo
Landscaping $1.5k/mo
Utilities $1.5k/mo (less in summer, more in winter)
Pool maintenance incl. winterization and refill $10k/yr

That's $70k/yr between those, and it feels like every other month there's a random bill for a couple thousand dollars. This doesn't include deferred maintenance like a new roof or HVAC. If I'm doing something wrong, please let me know as I'd love to pay less.

See? This is why you’re lying because you have no idea how much big houses cost.
My insurance cost is 2.2k per YEAR, with replacement coverage of more than 2.5M.
My utility is on average less than 300 per month, and I have 10,000sqft.
See how ridiculous you sound?

Lol at $1.5k/mo landscaping. The dude is living in Versailles probably.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:At $10m net worth I looked at $3m houses but was not confident enough to buy one.

NW went from $10m to $30m over a few years and I finally pulled the trigger on a house around $3.5m on 1-2 acres of land.

I'm constantly amazed by how expensive the upkeep and maintenance of the house is. It's probably $100k/year before I touch property taxes or mortgage. I'd be just as happy in a full service condo but kids love the extra indoors and outdoors space so the house is really for them.

You're lying. There is no way what you said is remotely true. I own a $3.5M house. No way the cost is anywhere close to $100k/ year before taxes and mortgage.
If you are really worth $30M, you're not supposed to be this ignorant.

Insurance $2k/mo
Landscaping $1.5k/mo
Utilities $1.5k/mo (less in summer, more in winter)
Pool maintenance incl. winterization and refill $10k/yr

That's $70k/yr between those, and it feels like every other month there's a random bill for a couple thousand dollars. This doesn't include deferred maintenance like a new roof or HVAC. If I'm doing something wrong, please let me know as I'd love to pay less.

See? This is why you’re lying because you have no idea how much big houses cost.
My insurance cost is 2.2k per YEAR, with replacement coverage of more than 2.5M.
My utility is on average less than 300 per month, and I have 10,000sqft.
See how ridiculous you sound?

I'm not sure why my numbers seem to have triggered you so much. You have inspired me to shop around to see if I can save. My structure's replacement cost was appraised at >$5m because there is a lot of custom interior work that the previous owner put in. Most insurance companies said they couldn't underwrite policies above $5m. I was left with Chubb and one other option, both of which were very expensive. If you have any ideas on underwriters who are more reasonable, I'm all ears. I wouldn't even care to insure the house for more than what I paid for it but I was told they aren't allowed to insure for less than what they believe full replacement cost to be, which didn't make sense to me.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:At $10m net worth I looked at $3m houses but was not confident enough to buy one.

NW went from $10m to $30m over a few years and I finally pulled the trigger on a house around $3.5m on 1-2 acres of land.

I'm constantly amazed by how expensive the upkeep and maintenance of the house is. It's probably $100k/year before I touch property taxes or mortgage. I'd be just as happy in a full service condo but kids love the extra indoors and outdoors space so the house is really for them.

You're lying. There is no way what you said is remotely true. I own a $3.5M house. No way the cost is anywhere close to $100k/ year before taxes and mortgage.
If you are really worth $30M, you're not supposed to be this ignorant.

Insurance $2k/mo
Landscaping $1.5k/mo
Utilities $1.5k/mo (less in summer, more in winter)
Pool maintenance incl. winterization and refill $10k/yr

That's $70k/yr between those, and it feels like every other month there's a random bill for a couple thousand dollars. This doesn't include deferred maintenance like a new roof or HVAC. If I'm doing something wrong, please let me know as I'd love to pay less.

See? This is why you’re lying because you have no idea how much big houses cost.
My insurance cost is 2.2k per YEAR, with replacement coverage of more than 2.5M.
My utility is on average less than 300 per month, and I have 10,000sqft.
See how ridiculous you sound?

I'm not sure why my numbers seem to have triggered you so much. You have inspired me to shop around to see if I can save. My structure's replacement cost was appraised at >$5m because there is a lot of custom interior work that the previous owner put in. Most insurance companies said they couldn't underwrite policies above $5m. I was left with Chubb and one other option, both of which were very expensive. If you have any ideas on underwriters who are more reasonable, I'm all ears. I wouldn't even care to insure the house for more than what I paid for it but I was told they aren't allowed to insure for less than what they believe full replacement cost to be, which didn't make sense to me.

I wasn’t triggered at all. I was just astonished by numbers you pulled, given my own experience and my friends’ with similar houses. If what you said is true, then you must have a very unique old house. So your situation is not representative at all.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:At $10m net worth I looked at $3m houses but was not confident enough to buy one.

NW went from $10m to $30m over a few years and I finally pulled the trigger on a house around $3.5m on 1-2 acres of land.

I'm constantly amazed by how expensive the upkeep and maintenance of the house is. It's probably $100k/year before I touch property taxes or mortgage. I'd be just as happy in a full service condo but kids love the extra indoors and outdoors space so the house is really for them.

You're lying. There is no way what you said is remotely true. I own a $3.5M house. No way the cost is anywhere close to $100k/ year before taxes and mortgage.
If you are really worth $30M, you're not supposed to be this ignorant.

Guys guys, the real question is what career field are you in? I have two toddlers that I'd like to start influencing to that field so I can live in luxury when I'm old.

Insurance $2k/mo
Landscaping $1.5k/mo
Utilities $1.5k/mo (less in summer, more in winter)
Pool maintenance incl. winterization and refill $10k/yr

That's $70k/yr between those, and it feels like every other month there's a random bill for a couple thousand dollars. This doesn't include deferred maintenance like a new roof or HVAC. If I'm doing something wrong, please let me know as I'd love to pay less.

See? This is why you’re lying because you have no idea how much big houses cost.
My insurance cost is 2.2k per YEAR, with replacement coverage of more than 2.5M.
My utility is on average less than 300 per month, and I have 10,000sqft.
See how ridiculous you sound?

I'm not sure why my numbers seem to have triggered you so much. You have inspired me to shop around to see if I can save. My structure's replacement cost was appraised at >$5m because there is a lot of custom interior work that the previous owner put in. Most insurance companies said they couldn't underwrite policies above $5m. I was left with Chubb and one other option, both of which were very expensive. If you have any ideas on underwriters who are more reasonable, I'm all ears. I wouldn't even care to insure the house for more than what I paid for it but I was told they aren't allowed to insure for less than what they believe full replacement cost to be, which didn't make sense to me.

I wasn’t triggered at all. I was just astonished by numbers you pulled, given my own experience and my friends’ with similar houses. If what you said is true, then you must have a very unique old house. So your situation is not representative at all.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:At $10m net worth I looked at $3m houses but was not confident enough to buy one.

NW went from $10m to $30m over a few years and I finally pulled the trigger on a house around $3.5m on 1-2 acres of land.

I'm constantly amazed by how expensive the upkeep and maintenance of the house is. It's probably $100k/year before I touch property taxes or mortgage. I'd be just as happy in a full service condo but kids love the extra indoors and outdoors space so the house is really for them.

You're lying. There is no way what you said is remotely true. I own a $3.5M house. No way the cost is anywhere close to $100k/ year before taxes and mortgage.
If you are really worth $30M, you're not supposed to be this ignorant.

Insurance $2k/mo
Landscaping $1.5k/mo
Utilities $1.5k/mo (less in summer, more in winter)
Pool maintenance incl. winterization and refill $10k/yr

That's $70k/yr between those, and it feels like every other month there's a random bill for a couple thousand dollars. This doesn't include deferred maintenance like a new roof or HVAC. If I'm doing something wrong, please let me know as I'd love to pay less.

I own a $7.5M house. Your numbers are way off.

My house is historic in a historic district in an urban area (literally the most expensive type of residential property that be insured). Extensively custom detailed. Insurance is $6,500 per year. Our house is 10,000 square feet and although historically restored we don’t have double pane windows. In the winter heating can approach $800-$900 per month, but admittedly I don’t like to be cold and I don’t turn it down a few degrees to save money in the winter. On average though out utilities, including cable and WiFi are $750 per month.

Our lot is much smaller (our house is in dc proper) but we have very extensive landscaping. We pay about $250 per month. So maybe given lot size that figure is right. We do own a pool (not in our dc house, but a second home). $10k could be right in that.

I’m still dumbfounded on your insurance figure. Presuming a 10,000 square foot house you are paying $1,800 per square foot to insure. That is insane. Literally nothing costs anywhere near that. Custom super high end in NYC retail might approach $1,000 square foot (but that would be like custom made leather flooring, custom made wall paper, brining over stone makers from Italy). Although it is not my main stream of income I own a fair amount of commercial real estate (about 40,000 square feet). I don’t anywhere near what you are supposedly paying for insurance.