How can anyone afford a huge expensive home?!

[Anonymous]

Anonymous wrote:Moved to area bought 900k home 8 years ago. No other bills so paid 2x mortgage every month over past few years. Sold last year with $400k equity from double pmt.....also have $100k sitting in bank. In 2016 Put $300k down on 1,6mm house. Mortgage is $6000 per month but HHI is $35k per month. Drive 2 paid-for luxury cars- 2005 and 2012, so no car pmt. DH is bank exec. I (wife) work in a small office. No family money, 2nd generation college. Student loans paid off. 2 Kids in public school in McLean.

Not house poor. But still cautious with our $. Just paid $25k for to have our 1st floor decorated and furnished (will furnish rest of house from existing stuff). Looking to buy new $50k car since 2005 van needs a lot of work. Will pay cash for it.

Every time we get bonus it goes into savings. Dh is finance person so we've been saving since before we married. $1MM net worth (even with debt in current new built house).

So it can be done. Only giving this much info because site is seemingly anonymous

This is the lamest humble brag ever. An 11 year old luxury van? A new $50k luxury car? $25k for decorating an entire floor? Sorry, but you aren't nearly as rich as you think you are.

[Anonymous]

what a dumb question

You buy what you can afford, save, wait, tradeup rinse cycle and repeat

Doesn't matter what year you start anyone can do it with patience and discipline

If I was starting out today I would buy a condo. There are plenty for under 300k in great areas which is less than 2k mortgage payment which is more than most of you fools are paying in rent

[Anonymous]

Anonymous wrote:

Anonymous wrote:bought in 2001 and bought way, way, way more house than we needed as 30 year olds so we'd never have to move.

(and for those who claim that was an easy and great time to buy in the District, no, it wasn't easy. We lost two bidding wars and had to stalk elderly homeowners. in 2000 / 2001)

Ohh tell me about stalking the elderly homeowners. I truly considered that! We're looking to buy in the District in the next year and have been stalking houses in our current neighborhood (Hill East).

DH wanted to do this. We did look at some homes owned by elderly folks, but they were often in really terrible shape and they wanted way too much.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We paid $500k in the 90s. Some was equity from our previous home. Did a $500k renovation about 10 years later. Worth $1.4m now. We used cash and a HELOC for the reno, and paid the HELOC off in about 3 years. We owe very little on it now. No family money or trusts just 2 working parents. It's not that complicated.

It isn't that complicated. Just get a time machine to the 90s.

The point is buy what you can, make it nicer, and then hopefully sell for a profit. Roll that into the next one.

Exactly. And be patient. While $500k bought a decent house in the 90s it needed work, and we waited 10 years before we did that work. At that point we could afford the renovation.

Ok, but "it isn't that complicated" is a little patronizing to those of us who weren't able to buy in the 90s. In my neighborhood, houses went from $200k to over $500k between the late 90s and around 2005. They have since risen maybe 10%. Some of this is pure luck and timing.

YOU CAN STILL DO IT! I've been saying this here on DCUM since 2010. If you'd taken my advice then instead of scoffed like you're doing now you could have pocketed a few hundred thousand in rarity in just six years. Back then Brookland or Pet worth were my picks. Now I'd say Woodridge, mount rainier or Hyattsville.

[Anonymous]

HHI is $250 combined, we're purchasing a house for $450k. Could we afford more? Absolutely, but we want to have a better work/life balance, travel with our child, plus we're only a family of 3. We don't need a huge house (new home is a townhouse).

[Anonymous]

LOL, um they probably make more money than you? How can you not figure that our on your own?

[Anonymous]

We make 750k and bought a 2 mil house with 500k down.

[Anonymous]

"Anonymous wrote:
This is not that HARD. They make more money than you.


Seriously. Op, you are a moron if you can't figure this out"

No. It is not all that. Most of it is people who had great timing. Tons of families bought when it was cheaper and either could not now afford their price if they had to buy it at the current price or else made money and traded up but still benefited from a big equity windfall due to timing.

That is the real answer. My nonprofit colleagues in Arlington are not rolling in it. They simply bought 15+ years ago.

[Anonymous]

We have a seven figure HHI. We actually live well below our means in our $1m home.

[Anonymous]

Anonymous wrote:Inheritance
Family help
Make a lot of $$

Not rocket science.

I do not agree with this premise that the average earners cannot buy homes in this area. It's called, Budgeting and Savings. We did it on Fed salaries... although I'm not sure what you would consider a "huge expensive home".

[Anonymous]

Anonymous wrote:

Anonymous wrote:Inheritance
Family help
Make a lot of $$

Not rocket science.

I do not agree with this premise that the average earners cannot buy homes in this area. It's called, Budgeting and Savings. We did it on Fed salaries... although I'm not sure what you would consider a "huge expensive home".

Agreed. -- Another fed

[Anonymous]

Anonymous wrote:We just bought and have a 600K mortgage. HHI of 165K. I know most DCUM would consider us overextended but the key for us is no other debt and an full emergency fund (6 months income), plus we have the option to rent out the basement if things get tight and cover 1/3 to 1/2 our mortgage. We are managing fine, paying for daycare and still saving 20%. We bought a condo at rock bottom prices right after we got married. Stockpiled savings while our mortgage was low. Sold the condo for 150% of purchase price 5 years later, rolled the proceeds into a down payment and voila!

Uh, ok. Still overextended.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We just bought and have a 600K mortgage. HHI of 165K. I know most DCUM would consider us overextended but the key for us is no other debt and an full emergency fund (6 months income), plus we have the option to rent out the basement if things get tight and cover 1/3 to 1/2 our mortgage. We are managing fine, paying for daycare and still saving 20%. We bought a condo at rock bottom prices right after we got married. Stockpiled savings while our mortgage was low. Sold the condo for 150% of purchase price 5 years later, rolled the proceeds into a down payment and voila!

Absolute moron.

WHY???!
They have a 6 month emergency fund, saving 20%, no other debt...they are doing better than most americans. god, DCUM is so dang critical!!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We just bought and have a 600K mortgage. HHI of 165K. I know most DCUM would consider us overextended but the key for us is no other debt and an full emergency fund (6 months income), plus we have the option to rent out the basement if things get tight and cover 1/3 to 1/2 our mortgage. We are managing fine, paying for daycare and still saving 20%. We bought a condo at rock bottom prices right after we got married. Stockpiled savings while our mortgage was low. Sold the condo for 150% of purchase price 5 years later, rolled the proceeds into a down payment and voila!

Absolute moron.

WHY???!
They have a 6 month emergency fund, saving 20%, no other debt...they are doing better than most americans. god, DCUM is so dang critical!!

But, I bet you'd be quick to blame it on the Wall Street if these people lost their jobs and got foreclosed on. How quickly we forget the lesson from 2008.

[Anonymous]

Anonymous wrote:A huge expensive USED home. Boggles my mind.

I don't understand people like you. The concept of disposable house, i.e., new builds, is gross.