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

[Anonymous]

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?

[Anonymous]

va loan, income of 450K hhi

[Anonymous]

There are three young families on my block who bought in that price range on my block. They all had help from their parents.

[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?

Come on, so take your $1 million equity and use it to buy a $2 million house.

[Anonymous]

Anonymous wrote:There are three young families on my block who bought in that price range on my block. They all had help from their parents.

+1 Lots of generational wealth from the ones I know who bought so young.

[Anonymous]

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?

Come on, so take your $1 million equity and use it to buy a $2 million house.

this

[Anonymous]

We recently bought a $1.6 million house in Arlington. Each of us bought cheap condos in 2009 with VA no money down loans after leaving the military and had roommates in a one bedroom condo who paid a chunk of our mortgage and condo fee. We had full time jobs and weekend jobs and saved as much as we could. When we got married in 2015, we sold one condo to the roommate and made about $75 K with no commissions. We lived in my condo and continued to work 2 jobs and save. We put down $700k from savings and have a $900k mortgage amortized over 15 years to pay down faster. After first baby due in April, we will stop weekend work and do the weekend job as a full time job from home.

[Anonymous]

Help from parents is one scenario. Other possibilities might include: higher risk / lower down payment; high dual-income HHI, since older Millenials are mid-30s and well into their careers; secondary income from side gig, Air B&B, etc.; and/or bringing equity from somewhere else, such as a condo they bought in a sketchy part of DC that has gentrified.

I guess I don't think 40 is that all that young to be buying a million dollar house. They aren't kids fresh out of college. DH and I were born in '77 and '79, respectively -- we're among the youngest GenX -- and we could afford a $1M house on our unimpressive government salaries plus the equity from a TH we bought 10 years ago.

[Anonymous]

-2

Why would they give up a paid off house to keep up with the Jones’? They should enjoy not paying a mortgage and stop worrying about other people and how they can afford things.

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?

Come on, so take your $1 million equity and use it to buy a $2 million house.

this

[Anonymous]

Anonymous wrote:We recently bought a $1.6 million house in Arlington. Each of us bought cheap condos in 2009 with VA no money down loans after leaving the military and had roommates in a one bedroom condo who paid a chunk of our mortgage and condo fee. We had full time jobs and weekend jobs and saved as much as we could. When we got married in 2015, we sold one condo to the roommate and made about $75 K with no commissions. We lived in my condo and continued to work 2 jobs and save. We put down $700k from savings and have a $900k mortgage amortized over 15 years to pay down faster. After first baby due in April, we will stop weekend work and do the weekend job as a full time job from home.

What is your income and industry? I guess you bought condos at 25 if having first baby now 10 years later?

[Anonymous]

Anonymous wrote:Help from parents is one scenario. Other possibilities might include: higher risk / lower down payment; high dual-income HHI, since older Millenials are mid-30s and well into their careers; secondary income from side gig, Air B&B, etc.; and/or bringing equity from somewhere else, such as a condo they bought in a sketchy part of DC that has gentrified.

I guess I don't think 40 is that all that young to be buying a million dollar house. They aren't kids fresh out of college. DH and I were born in '77 and '79, respectively -- we're among the youngest GenX -- and we could afford a $1M house on our unimpressive government salaries plus the equity from a TH we bought 10 years ago.

Agree, if you can’t afford it by 40 maybe you will not later on. At 40 many people in careers that can afford 1+mill homes are established and making the salary necessary.

[Anonymous]

I feel like your age range is too big to be meaningful. We bought our first starter home at 28 for $525. We bought a house recently in CCMD for $2M+ at age 40. But, we had more than a decade of earning and appreciation in between.

[Anonymous]

We each bought condos in 2009 with the 10k from Obama. They were foreclosures where the owners had just abandoned them. Lived with roommates who paid nearly the entire mortgage. We still saved a lot. We didn't live together until we married so that we could keep getting the roommate money. Sold the condos in 2016 and bought a 1m house. We only owe 350k on it and our salary is under 200k. We're 32 and plan on staying here long term. Key also was waiting until we could afford kids.

[Anonymous]

Anonymous wrote:-2

Why would they give up a paid off house to keep up with the Jones’? They should enjoy not paying a mortgage and stop worrying about other people and how they can afford things.

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?

Come on, so take your $1 million equity and use it to buy a $2 million house.

this

That's a whole point. A lot of people are leveraging their equity and taking on debt to afford the houses. It's not a huge stretch depending on what the other household expenses are.

[Anonymous]

Anonymous wrote:We each bought condos in 2009 with the 10k from Obama. They were foreclosures where the owners had just abandoned them. Lived with roommates who paid nearly the entire mortgage. We still saved a lot. We didn't live together until we married so that we could keep getting the roommate money. Sold the condos in 2016 and bought a 1m house. We only owe 350k on it and our salary is under 200k. We're 32 and plan on staying here long term. Key also was waiting until we could afford kids.

Interesting you could pursue a condo with zero equity that generates enough rent to cover mortgage and hoa.

And these were 1bedroom condos — so were you sleeping in a closet or something?