Reply to s/o--so how did you afford a 2 million dollar home?

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[quote=Anonymous][quote=Anonymous]22:40 - IF you have a financial advisor, you need to fire him yesterday.  Of all the people I know in $2-$3m houses, NONE of them have mortgages.  They have MANY different investments, their house is just one of them.  Their money is tied up many different ways, some I have never heard of (all legal, as they are audited just like the rest of us).  Its not like they can hand out money like candy, their money is tied up, committed and invested very prudently.  You need to look into this for yourself.

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You are definitely well off and have friends that are wealthy and probably have been there years ago and perhaps bought their homes years ago.  In the not so distant past 1 mil used to buy you a high end home that only 2 mil will buy you now.  2 mil now is the new 1 mil.  People moving into 1 mil+ homes are upper middle class professionals, most of whom take mortgages and would not be able to buy their homes out right.  It is just the reality of RE prices in this place, starter homes in mediocre locations now cost 500K, and entry level price in many neighborhoods, which is not a tear down, now is 1 mil, which makes 2 mil+ homes not that unusual and not only reserved for the well off, like it used to be a decade or even less ago.  You are right, that at some price range, homes are purchased mainly by people who truly can afford them, not many of those who overextend themselves.  But this price range is moving rapidly upwards, because people who want nice quality homes realize they cannot get them for under 2 mil and are willing to leverage more and make more sacrifices to get into the house they want.  I live in the area where these 2 mil homes are routinely built on 800K tear down lots and they sell.  It's becoming very common in many inner burbs of DC.  Chances are someone with the stable HHI of 500k and enough savings for downpayment and a rainy day would be willing to do a 2 mil dollar home or close to it, just to get themselves settled into a home they want.  Those with lower 6 figure incomes are buying 1 mil+ homes, they are forced to either take on a larger mortgage to get into the area they want, or have to move further out.   I remember the times when you would be considered rich if you lived in a 1 mil home, now, it's just an OK acceptable middle class looking home in a top desirable area or a nice new construction home far out.

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