Reply to s/o - feeling "poor" at these ludicrously high incomes. what are they actually missing?

Forum Index » Money and Finances

Reply to "s/o - feeling "poor" at these ludicrously high incomes. what are they actually missing?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]PP here who bought house in 99.   When I started out, 20+ years ago, I noticed that my senior colleagues were much much better off than me.  They made more than me, sure, but the big difference was that they were paying the same in mortgage payments as I was for my one bedroom appt.

I realized that buying a house is insurance against rent increases.  So, I bought what I could afford -- on my income.  Money was tight for the first few years.  But in time, my income increased -- from 60K when I bought the house (1999) to 170K now.  Some of that was inflation, but most was career growth.  Now, my mortgage was at 8%, not 3.7%.  So, with the same monthly mortgage payment as a fraction of income, I  would be able to borrow 480K with an inflation adjusted salary to 85K. (same Loan to debt ratio).

That means a 600K house, which is basically what I live in.

More to the point, when we hire someone out of grad school, after a few years (same place in life), they are making about 100K.  At 100K, with current interest rates, they could buy my house today.

In 20 years, assuming modest inflation, they will be comfortable/
[/quote]

r. 
You won the housing lottery and totally ignoring the difference between a $40k down payment vs $120k down payment. [/quote]

I took a risk.  It paid off.  I also work hard.  When I was starting out, the mountain seemed high.

With that said, no one earning what I am earning is poor\
[/quote]

You didn't take a risk. You yourself said buying was cheaper then renting, and your house cost barely 3x what you made vs 6x what you contemporary example would be paying -- BUYERS NOW are taking a risk.

You just got lucky, but don't have the graciousness to admit it. [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics