Is this possible without family money?

[Anonymous]

I didn't read the whole thread but it probably depends on where they were living before - definitely doable if they were living below their means for a while.

My DH bought a house by himself when he was making $70k. We lived there for like 8 years as our joint salary went up to ~$300k. We saved for a 40% downpayment on a $1.3M house - got a 15 year loan AND kept the other house as a rental. We've since paid off the rental so the rent we get is pure income (which actually goes into savings - we haven't had to touch it). We don't spend frivolously but we take nice vacations, have a cleaner, contribute to a 529 (only one kid - which I will admit makes a huge difference) and max out 401k. In the 3 years we've been in the new house it has never felt like we're struggling.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Why do you care?

OP here. We are same age, roughly same income and I don’t get the math without them being very very house poor.

It's all about institutional racism.

[Anonymous]

Give us the address and I will look up if they took out a mortgage. it's listed in the MLS.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We live in a 3m home. Our mortgage is 11k per month for a $1.8m mortgage. Dh’s salary is 400k. Monthly take home is 18k per month. We easily live off his salary and save and invest every cent of his $1.5m bonus. Our house is almost double the cost of OP’s friend but we can still afford it on just the salary. It would have been a stretch if DH didn’t earn seven figure bonus. 1.6m home with say $1m mortgage or 7-8k monthly mortgage? Totally doable on biglaw senior associate income.

I’m a SAHM of 3 kids. This is our third home. I used to save my six figure bonuses when I was working. No family money.

A $1.5 million bonus is a game changer. You are basically buying a $3 million home on $2 million/year. Not even close to similar as what the op is saying.

I said we pay our mortgage and live off dh’s 400k salary easily and we have a 1.8m mortgage. Of course we would not have bought a 3m house on just 400k since there would be no savings. We absolutely could and would have bought a 1.6m home. Very doable with kids attending public school and no childcare with SAHM.

[Anonymous]

OP here. I obviously believe you guys. But I'm still not seeing how they easily afford this AND save adequately for a nice retirement and college for 3 kids, while having all the trappings of a UMC life. I'm wondering if a grandparent is paying for college and/or the couple is expecting a large inheritance at some point.

[Anonymous]

Anonymous wrote:OP here. I obviously believe you guys. But I'm still not seeing how they easily afford this AND save adequately for a nice retirement and college for 3 kids, while having all the trappings of a UMC life. I'm wondering if a grandparent is paying for college and/or the couple is expecting a large inheritance at some point.

Kids can always pay for their own college.

[Anonymous]

Op, not everyone is a great saver. Maybe they do have family money.

Why do you care if they have enough retirement savings?
Maybe the kids will go to UVA.

Stop comparing yourself with others. I’m sure a lot of people think we live above our means. We don’t. DH is obsessed with saving.

[Anonymous]

Anonymous wrote:OP here. I obviously believe you guys. But I'm still not seeing how they easily afford this AND save adequately for a nice retirement and college for 3 kids, while having all the trappings of a UMC life. I'm wondering if a grandparent is paying for college and/or the couple is expecting a large inheritance at some point.

If he's a senior associate, it wouldn't surprise me if they paid for this by passing on college fund and anything more than minimal retirement contributions on the assumption that he'll make partner and then they'll be able to catch up on everything else. Certainly wouldn't be the first senior associate to think that way.

[Anonymous]

Anonymous wrote:Give us the address and I will look up if they took out a mortgage. it's listed in the MLS.

You can do that?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Give us the address and I will look up if they took out a mortgage. it's listed in the MLS.

You can do that?

Yup! MLS is awesome.

[Anonymous]

How long have you known them? Is it possible they were both single and owned their own homes BEFORE they got married? Then they sold those (made money), purchased a "starter" home. Started having kids then moved into this home? There are just so many factors...

[Anonymous]

Sure they could have. Maybe they bought Apple stock 10 yrs ago or similar. Owned homes that appreciated a lot, etc. Yes, it's possible. Some people are just good with money and investing.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP here. I obviously believe you guys. But I'm still not seeing how they easily afford this AND save adequately for a nice retirement and college for 3 kids, while having all the trappings of a UMC life. I'm wondering if a grandparent is paying for college and/or the couple is expecting a large inheritance at some point.

Kids can always pay for their own college.

it will be all loans then.

[Anonymous]

Anonymous wrote:Totally possible. .Their mortgage assuming they put down something like $500,000 from a previous house sale or from savings will be around $6500 for PITI. That is totally doable on a salary of $350,000, especially if the wife stays at home and they don't have any childcare expenses.

Infant/toddler childcare around here is $2,000 a month or so. For 2 young kids that is about $4,000 a month, yet no one around here ever posts stuff like "OMG can you believe that X family has 2 young kids in childcare and pays $2,500 a month on a mortgage for a $600,000 house with only $350,000 in family income!" Yet $4,000 in childcare costs + $2,500 in mortgage is the exact same expenses per month as the family in the OP here.

This exactly! I have an $850k house and pay $2600 a month for preschool. If I had $7600 towards a mortgage instead of $4k, I’d have a much large house or a 15yr mortgage.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Totally possible. .Their mortgage assuming they put down something like $500,000 from a previous house sale or from savings will be around $6500 for PITI. That is totally doable on a salary of $350,000, especially if the wife stays at home and they don't have any childcare expenses.

Infant/toddler childcare around here is $2,000 a month or so. For 2 young kids that is about $4,000 a month, yet no one around here ever posts stuff like "OMG can you believe that X family has 2 young kids in childcare and pays $2,500 a month on a mortgage for a $600,000 house with only $350,000 in family income!" Yet $4,000 in childcare costs + $2,500 in mortgage is the exact same expenses per month as the family in the OP here.

This exactly! I have an $850k house and pay $2600 a month for preschool. If I had $7600 towards a mortgage instead of $4k, I’d have a much large house or a 15yr mortgage.

$4000 + $2600 does not equal $7600. Just sayin.