Reply to How much was your HHI if you bought a $1M House

Forum Index » Money and Finances

Reply to "How much was your HHI if you bought a $1M House"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous]$500k.  15 year mortgage.  Wouldn't do it on any less unless you want to be house poor.  Million dollar homes aren't for $250k middle class earners.  No more than 2x HHI and 15 years.  If you can't afford that then you are looking at too much house and may need to check out Haymarket.
[/quote]

I thought the rule of thumb was for 4-5x HHI. Obviously, that doesn't mean someone should buy a 2.5 million house if they make $500K, but I can see someone who makes 200-300K stretching to buy a 1 to 1.5 million house, especially around here. The Post did that article about who was buying up all these 1 million plus houses inside the Beltway.[/quote]
I think 4-5x HHI is ridiculous, hence my post.  You proved it yourself by pointing out how someone with a 500k HHI "obviously" shouldn't buy a 2.5MM house.  Once you throw in child care (if applicable), retirement savings (we save a third of what we make), college savings, etc.  I just don't see how someone can extend to 4-5x HHI.  You simply don't have to stretch that far to find nice housing in a good school district around here.  That being said, a lot of people do, but that is purely for vanity reasons.  They want to appear fancy and keep up with their friends and have that sprawling Great Falls/McLean mansion, but it really is a stupid idea and they end up paying for it in the long run.[/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