How are Millennials affording new $1.5+million home in MD, DC and VA?

[Anonymous]

My neighborhood has 2 former SCOTUS clerks who rolled their $500k signing bonus to big law right into their new house purchase.
It was the first question the older one asked the younger one- what’d you do with your special bonus?

[Anonymous]

Anonymous wrote:I'm amazed at how many 28-40 yo's we know that are purchasing brand new homes in Bethesda, Chevy Chase, DC, Vienna and McLean. What took my spouse and I years to afford, they are buying at a relatively young age. How do they do it here? My spouse is a partner in a law firm and our house is barely worth a million. Granted, we'll have it paid for next year. But really, Millennials what's your secret?

A lot of information is missing here. Income matters more than title. A law firm partner could be someone who puts out a shingle with his buddy and brings home $200K and has a stay at home spouse. Or it could be a biglaw partner bringing home a salary of $1M+ and also has a high earning spouse.

How much savings do you have?

How much did you pay for your home and how much do you still owe on the mortgage? If you paid $350K, owe $85K on the mortgage, and it's worth $1M, then you could probably sell and purchase a new $1.5M home. If you paid $985K, owe $800K, and have a HHI of only $200K and little savings, then trading up to a $1.5M home would be more difficult.

Our story, but I'm not a millennial: Spouse bought a condo and I bought a rowhouse prior to meeting each other. I lived very frugally to save up for that rowhouse - rented a house with roommates in a cheaper neighborhood, careful with spending, etc. Met each other and sold condo for a profit. We lived in rowhouse and later sold for a very large profit. Bought a SFH for a lot less than we could have. We actually paid less than what we sold the rowhouse for. Could have easily been approved for $1.5M+ but didn't want to spend that much.

Family money is a big in this area. Some people also live very frugally to save. Some people also buy at the maximum of what the banks will approve for their loan. I think this can be dangerous because many banks approve amounts that are too high and these folks are a few missed paychecks or a medical issue away from financial disaster.

[Anonymous]

Anonymous wrote:TARP was repaid with interest without 9 mos by all the banks forced to take it to stabilize the system.

Move on and get a real point.

There are PLENTY of lucrative careers and interesting successful well-paid people in the DMV. Plenty.

+100

[Anonymous]

Anonymous wrote:TARP was repaid with interest without 9 mos by all the banks forced to take it to stabilize the system.

Move on and get a real point.

There are PLENTY of lucrative careers and interesting successful well-paid people in the DMV. Plenty.

Only bc Fed steppes and bought all their crap. That paid back with interest canard may work for you but pay more attention.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'm amazed at how many 28-40 yo's we know that are purchasing brand new homes in Bethesda, Chevy Chase, DC, Vienna and McLean. What took my spouse and I years to afford, they are buying at a relatively young age. How do they do it here? My spouse is a partner in a law firm and our house is barely worth a million. Granted, we'll have it paid for next year. But really, Millennials what's your secret?

Millennials here. We bought our starter home for $1.2M 10 years ago at age 28. It was an apartment in Manhattan. We had no help from family.
We now live in a $2M home in Arlington.
The secret is hard work.

for

Investment banking?
Your welcome for TARP.

Hard work Pfftt...

Nah. But I bet PP knows the difference between your and you’re.

Of course, I majored in something practical; I’m not an English major using connections from my dad and prep school lacross team to land a sweet NYC gig.

Me, either. I did pass third grade fairly easily though. YMMV.

You’re obsession about grammar makes me wonder if you feel like a fraud b/c of the bailout too?

But NYC would be a smoking hole if the banks failed, no matter what industry PP is in. To pretend they are ‘hard-working’ success stories in NYC without acknowledging the help they received is pretty high hubris.

Lots of people work hard; many people work two jobs. Not everyone starts with they right opportunities or guidance, and they benefited from more than ‘hard work’so they should learn some grace.

Its as if you wrote the check for TARP! Not an investment banker, and not PP, but I hope you took your TARP proceeds and invested them well. Between you and Warren Buffet with his warrant deals, folks did well off those evil banks.

We all wrote the check for TARP.


And it doesn’t change the narrative that PP ‘work hard, bro’ attitude is misplaced

[Anonymous]

Anonymous wrote:

Anonymous wrote:TARP was repaid with interest without 9 mos by all the banks forced to take it to stabilize the system.

Move on and get a real point.

There are PLENTY of lucrative careers and interesting successful well-paid people in the DMV. Plenty.

Only bc Fed steppes and bought all their crap. That paid back with interest canard may work for you but pay more attention.

That’s right, Gov’t also made a huge return on what they bought. Great investment for 9 months hold to get made whole and then appreciation thereafter.

Go Neil kashkari! Go TARP! Just can’t stop talking about it can you Pp. I know why tho: because it was such a SUCCESS!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:TARP was repaid with interest without 9 mos by all the banks forced to take it to stabilize the system.

Move on and get a real point.

There are PLENTY of lucrative careers and interesting successful well-paid people in the DMV. Plenty.

Only bc Fed steppes and bought all their crap. That paid back with interest canard may work for you but pay more attention.

That’s right, Gov’t also made a huge return on what they bought. Great investment for 9 months hold to get made whole and then appreciation thereafter.

Go Neil kashkari! Go TARP! Just can’t stop talking about it can you Pp. I know why tho: because it was such a SUCCESS!

Talk to me when the Fed can execute quantitative tightening without the market freaking out. We are still in very dangerous waters, we just shifted the risk on to the government and the people.

[Anonymous]

what does that have to do with 2008 TARP?

and no I don't want to waste time talking with you.

[Anonymous]

We definitely don’t fall into this category - we’re mid-30s in a starter townhome. But of my friends who do:

one couple grew up in this area and bought at the lowest part of the market in 2009, a basic colonial in a good part of Fairfax. Fixed it up decently well and cashed in on equity, plus two good jobs in defense contracting. Their parents provide free daycare for their kids although they do pay a bit for half day church preschool.

One couple owns a few investment properties in another area of the country, and the guy (who is a bit older, early 40s) sold a condo at the peak of the market in 2005 for a lot of money.

One Biglaw partner.

One doctor with a SES partner.

Everyone else has had extensive family help with a down payment.

[Anonymous]

Anonymous wrote:what does that have to do with 2008 TARP?

and no I don't want to waste time talking with you.

2008 TARP was paid back b/c Fed propped up and purchased garbage MBS, which gave banks the capital to pay back the govt. I guess you are a young millennial?

Which kept PPs NYC Manhattan lifestyle in the black.

[Anonymous]

Anonymous wrote:

Anonymous wrote:what does that have to do with 2008 TARP?

and no I don't want to waste time talking with you.

2008 TARP was paid back b/c Fed propped up and purchased garbage MBS, which gave banks the capital to pay back the govt. I guess you are a young millennial?

Which kept PPs NYC Manhattan lifestyle in the black.

what does 2019 Fed doing QE in the current global macro environment have to do with 2008 TARP?

you have no clue who I am, but I can guarantee you i know what I'm talking about and I can guarantee everyone here that you do not. but you sure are consumed with hate from 2008. take a pill or something.

[Anonymous]

Please stop talking about TARP in 2019.

You sound like an idiot and it is embarrassing. You are humiliating yourself.

[Anonymous]

Jesus. No one even works in finance here. Some people just make a lot of money. You really need to get over your bitterness. And improve your grammar.

[Anonymous]

With interest rates so low pretty easy. If rates went back to 8 percent different story

[Anonymous]

You’re out of touch with incomes. This happens as you get older. There are plenty of millennials pulling in 300-400k HHI. Plop down 300-400k on a $1.5 mm and you have a mortgage around 3x HHI. If you’re pulling in around 18k after taxes each month you should be able to handle a 7k mortgage payment.