How rich are people who buy 3 million dollar houses

[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?

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

NP here. No, people are stupid with their money. I know someone who has the local big landscaping firm at their house every week, whether it needs it or not. I think flushing money down the toilet is one of the ways they feel they can "tell the world" they "made it". Ridiculous and wasteful.

[Anonymous]

Anonymous wrote:

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.

I actually agree with your sentiment. Plus, covid has changed the way most of us live.

[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.

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.

Thanks for your reply. What is your insured replacement cost? Who do you use for insurance? Did you go direct or via agent? Did you run into the same issue where most companies can't underwrite above $5m?

[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.

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.

NP here. No, people are stupid with their money. I know someone who has the local big landscaping firm at their house every week, whether it needs it or not. I think flushing money down the toilet is one of the ways they feel they can "tell the world" they "made it". Ridiculous and wasteful.

Lol. My neighbor does the same - expensive landscaper visit weekly. Also a dog poop scooper visit DAILY…. The home is est $2m.

[Anonymous]

A lot of people that cannot really afford them which is why so many are not held long…. One of the ironies of modern baronial splendour.

[Anonymous]

Anonymous wrote:

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.

We're not poor, but we're also not rich. The down payment was really an investment in our future. We worked extremely hard and are very proud of everything we have achieved.

[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.

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.

Thanks for your reply. What is your insured replacement cost? Who do you use for insurance? Did you go direct or via agent? Did you run into the same issue where most companies can't underwrite above $5m?

It is not necessary to insure a $7.5M house for $7.5M as the land has value. Our current replacement coverage is $4.993M (there is actually a 20% kicker that applies to inflation, so technically we have just under $6M in rebuilding cost. We are currently insured with State Farm. I do keep meaning to look into a specialty insurer but my State Farm agent calls every year so I just keep renewing it.

That said I’d be surprised if State Farm or travelers couldn’t insure higher. I have a $10M umbrella policy with State Farm. I would think over a certain amount any insurer would just have a reinsurance treaty in place with other insurers to share the risk.

[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.

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.

Thanks for your reply. What is your insured replacement cost? Who do you use for insurance? Did you go direct or via agent? Did you run into the same issue where most companies can't underwrite above $5m?

It is not necessary to insure a $7.5M house for $7.5M as the land has value. Our current replacement coverage is $4.993M (there is actually a 20% kicker that applies to inflation, so technically we have just under $6M in rebuilding cost. We are currently insured with State Farm. I do keep meaning to look into a specialty insurer but my State Farm agent calls every year so I just keep renewing it.

That said I’d be surprised if State Farm or travelers couldn’t insure higher. I have a $10M umbrella policy with State Farm. I would think over a certain amount any insurer would just have a reinsurance treaty in place with other insurers to share the risk.

I;m the person who just bought the $5M home. We do insurance through CHubb for all homes.
Our replacement cost was $7m - given supply chain, labor shortages and other inflationary economic factors.

[Anonymous]

Anonymous wrote: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.

how big is that house? do you have a lot of kids? a

[Anonymous]

Anonymous wrote:

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.

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.

NP here. No, people are stupid with their money. I know someone who has the local big landscaping firm at their house every week, whether it needs it or not. I think flushing money down the toilet is one of the ways they feel they can "tell the world" they "made it". Ridiculous and wasteful.

Lol. My neighbor does the same - expensive landscaper visit weekly. Also a dog poop scooper visit DAILY…. The home is est $2m.

To be fair - I’ve got a very labor intensive yard - every landscaper has charged me a monthly (too high) fee. So of course I expect them there every week.

[Anonymous]

Anonymous wrote:

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.

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.

NP here. No, people are stupid with their money. I know someone who has the local big landscaping firm at their house every week, whether it needs it or not. I think flushing money down the toilet is one of the ways they feel they can "tell the world" they "made it". Ridiculous and wasteful.

Lol. My neighbor does the same - expensive landscaper visit weekly. Also a dog poop scooper visit DAILY…. The home is est $2m.

Insane. So many better ways to be spending that money. Just because you have money to light on fire, doesn't mean you should. When I think of all the chemicals on that lawn. One only needs so much attention to the lawn, especially in the cold weather. The blowing of imaginary leaves takes the cake. The few that do actually fall get blown over to our yard, in keeping with the spirit, apparently. Ridiculous.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

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.

NP here. No, people are stupid with their money. I know someone who has the local big landscaping firm at their house every week, whether it needs it or not. I think flushing money down the toilet is one of the ways they feel they can "tell the world" they "made it". Ridiculous and wasteful.

Lol. My neighbor does the same - expensive landscaper visit weekly. Also a dog poop scooper visit DAILY…. The home is est $2m.

To be fair - I’ve got a very labor intensive yard - every landscaper has charged me a monthly (too high) fee. So of course I expect them there every week.

You need to shop better.

[Anonymous]

Anonymous wrote:

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.

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.

Thanks for your reply. What is your insured replacement cost? Who do you use for insurance? Did you go direct or via agent? Did you run into the same issue where most companies can't underwrite above $5m?

It is not necessary to insure a $7.5M house for $7.5M as the land has value. Our current replacement coverage is $4.993M (there is actually a 20% kicker that applies to inflation, so technically we have just under $6M in rebuilding cost. We are currently insured with State Farm. I do keep meaning to look into a specialty insurer but my State Farm agent calls every year so I just keep renewing it.

That said I’d be surprised if State Farm or travelers couldn’t insure higher. I have a $10M umbrella policy with State Farm. I would think over a certain amount any insurer would just have a reinsurance treaty in place with other insurers to share the risk.

I;m the person who just bought the $5M home. We do insurance through CHubb for all homes.
Our replacement cost was $7m - given supply chain, labor shortages and other inflationary economic factors.

I think some of you were oversold on your insurance. For example, landscaping - covered for what? The frequent earthquakes in Bethesda?