Reply to I don’t understand how my neighbors are paying for their renovation

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Are sure they only make $160k? That’s very low for a 30+ year old married couple from wealthy families. Are they teachers? I have a feeling their income is a lot higher than you think it is.[/quote]

[b]Who said their families were wealthy? [/b]

Pretty sure the house was not valued at $900k when the parents bought it.[/quote]

Passing down an almost $1M home means you’re wealthy. Doesn’t matter when the parents bought it.[/quote]

Not really.  Parents likely bought it for $100K 40 years ago and paid off the mortgage over 30 years.  And lived there until they couldn't any longer and then passed it onto the kid rather than selling.  Those parents may not be "wealthy", just financially savvy and able to stay in one house their entire lives and pay off a mortgage over 30 years.

[/quote]

They may not be wealthy, just financially savvy and patient? It may not be wealthy by your standards of wealth inside the wealthy DMV bubble but to say that’s not “wealthy” is absurd.

I don’t understand why DCUM struggles to call people wealthy. [/quote]

Buying a home for $100K and paying it off after living in it for 30 years is NOT wealthy.  It does NOT matter what the home is worth now.  They bought a middle class home and lived there for 30+ years.  That does not make them wealthy.

My own LMC parents did something similar... paid $80K for a home and sold it 35 years later for $320K, and only had a $25K mortgage at that point.  Trust me, they are NOT wealthy.  Never made more than $35-40K yearly over their lifetime.  They just lived frugally, stayed in the same home and saved whatever they could.  But they are NOT wealthy.  Even with the home sale, they were only worth $800K at that point with all their "savings".   That is likely a middle class family who worked to pay off their mortgage, not keep up with the Joneses(ie did not upgrade to a fancier home along the way), and just got lucky that the home increased a ton during those 30-40 years.  But that fact alone does not make them wealthy, as they did not purchase the 900K home---they paid maybe $100K 30-40 years ago.  [/quote]

I get it now. I use wealthy to mean “has money”. You appear to have all sorts of class baggage tied up with the term. [/quote]

Well one does not "have money" if it's tied up in a home.  they have to sell the home 30-40 years later and then you still need somewhere to live (and the homes are going to cost similar or more than what you have sold for) or have to plan to rent for your retirement or buy a new home and carry a mortgage until you die.   But to each their own...whatever definition you like. [/quote]

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