Reply to Curious: where do the $$ come from??

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Looking at DC metro real estate and can't figure it out.  How does an economy that is primarily supported by the federal government (losing jobs every year, no pay raises, etc.) manage to sustain housing that is so outrageously expensive.  Putting aside that it's mostly ugly and poorly constructed, I genuinely don't understand how the area keeps it all afloat.  Understand that there are some lobbyists/lawyers that are financed by the private sector and some lavish foreign governments, but are there really that many?  Enough to sustain oodles of houses at $1.5 and up?  And my inexpert, anecdotal searching shows that even $1.5 has become modest in many, many metro areas. Even if the average joint fed household brings in a 180-200K pre-tax and has saved like crazy to make the downpayment, how can they keep up with that huge a mortgage?  And if it's not fed households, what industry are the people who buy these homes in?  [/quote]

Actually in DC Fed households tend to be dual GS15s making more like 310,000 a year combined....[/quote]

But to afford a 1.2M house you need $400k a year and when it is reached by dual earner you really should discount 40k for daycare camps etc.

Honestly most people buying expensive homes bought before the bubble; they sold to folks making not enough so took risky loans from bank, banks failed and were bailed out by US govt.

So you could say a lot of those homes were paid by taxpayers via the bank bailouts.

People just starting out at, how much can you affords[/quote]

You can afford a 1.2 million home on a 200k salary without any debt if you stretch it.

If you are 275K it is within the normal DTI

http://www.zillow.com/mortgage-calculator/house-affordability/[/quote]

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