I don’t understand how my neighbors are paying for their renovation

[Anonymous]

Another possible source of $$ that hasn't been mentioned: perhaps one of them had a prior marriage with a very generous divorce settlement. Not everyone makes their past known. Happened to me.

[Anonymous]

A younger cousin of mine was given her house, fully paid for, and undertook similar scale renovations by borrowing against the house.

[Anonymous]

Anonymous wrote:Family money is your answer, like it or not. I think it is difficult to understand if one does not come from wealth or generous families.

It is this

[Anonymous]

Are you on the spectrum?

[Anonymous]

Jealous?

[Anonymous]

A family with an HHI of 160k typically doesn't buy a 900k home on their own. Either they make more than you think, or they have more equity in the home for whatever reason (family gift, bought cheap, saved for years, etc).

[Anonymous]

My in-laws have bought $700k homes outright for DH’s younger two siblings, who are both teachers married to similarly salaried people. DH makes a high income so he’s cool with this, but family money is a very likely explanation for your neighbors.

[Anonymous]

Anonymous wrote:A younger cousin of mine was given her house, fully paid for, and undertook similar scale renovations by borrowing against the house.

I’m guessing this is the answer. The house was bought for them and they are borrowing against it. People don’t like to advertise these things because they are embarrassed.

[Anonymous]

Unless you’re helping then pay for it, no reason you should know.

[Anonymous]

Anonymous wrote:Of one of them is a business owner there might be some under the table cash

If one of them is a business owner maybe they make enough to pay for it without committing tax fraud?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Of one of them is a business owner there might be some under the table cash

If one of them is a business owner maybe they make enough to pay for it without committing tax fraud?

OP’s estimate of their salaries/incomes makes it unlikely

[Anonymous]

We sold our tiny starter home to a builder and turned a tidy profit that we put into a much newer home. We were early 30s w/ a DC and a newborn. I was a SAHM.

My grandparents gave us a huge cash gift to buy our first house.

I am fortunate to have family money, so family money is the answer.

[Anonymous]

Anonymous wrote:We sold our tiny starter home to a builder and turned a tidy profit that we put into a much newer home. We were early 30s w/ a DC and a newborn. I was a SAHM.

My grandparents gave us a huge cash gift to buy our first house.

I am fortunate to have family money, so family money is the answer.

This is the exact story of my neighbor.

[Anonymous]

We live in a neighborhood of 1.5-3 mil homes (think Tulip Hill, Mohican, Glen Echo Heights) and there are quite a number of people living in their parent's houses, paid for long ago, who are sitting on lots and homes with a massive capital gains. Pretty easy to get a HELOC or equity loan for 500-700 and still not approach 80% LTV

[Anonymous]

Anonymous wrote:A family with an HHI of 160k typically doesn't buy a 900k home on their own. Either they make more than you think, or they have more equity in the home for whatever reason (family gift, bought cheap, saved for years, etc).

We did. That is because we saved 250k. Salary was about 170k when we bought an 860k house 6 years ago. That was one salary/ at that time I was not working. Our combined income was 300k before we bought but no one knew that. We divorced and he kept the house. I am sure people wonder how. I let him keep the equity, that is how. I bought a house nearby for about the same amount. I am sure people wonder how/ I went back to work and side hustle. I make 200k. I bet people think I make less than half that.