Anonymous
Post 09/26/2011 10:45     Subject: Who can afford 800K-1M homes? Genuine Curiosity!
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:Two professionals (one JD, one masters) working in the public sector, early 30s. HHI $200k+. Bought a house ($650k) in an urban, up and coming area (U Street) in 2008 that has appreciated enough to sell and buy a $1.2 million + house in the suburbs (Potomac).


Really? In 2008? It seems like you would have to be very lucky to have made 200K, so you put that down and have 1m mortgage on 200K salary? Just curious.


It some hot neighborhoods (such as U Street), the bubble never popped: prices leveled off for a while, then started inflating again. I can easily believe that someone has made $200K on a house in U Street purchased in 2008. And it's smart to have sold this year, before the bubble pops.


I don't know about that. I live in U St. My neighbor paid $825k for their house in 2007/2008. That was the same year DC assessed our house value at $825k plus. Since then, our assessments have gone down every year; now our house is assessed at about $650k. The neighbors put their house on the market last year above $850k, reduced, and then gave up.



I am the original poster on this - we live in a very niche block in the U Street area where property values have just gone up and up in the last few years - houses do not sit for more than a week, and most houses are sold before the open house (often with several offers). So, yes, it is possible.
Anonymous
Post 09/26/2011 09:56     Subject: Who can afford 800K-1M homes? Genuine Curiosity!
I know some people who make a good living and they spend plenty of time with their kids. (oh, and I have an MBA and still have my soul - I work for a nonprofit, lol.) One thing that money can buy around here is a shorter commute so you can spend more time with kids that way. If you work in DC and spend the money to live in DC or North Arlington, your commute is shorter than if you lived in Chantilly or whatever. Making less money doesn't necessarily mean you're more virtuous (or less talented or less smart)- it just means you may have picked a career that isn't as lucrative. Lots of folks do.
Anonymous
Post 09/26/2011 09:15     Subject: Who can afford 800K-1M homes? Genuine Curiosity!
I love how all the people who make less money need to rationalize it by saying they *must* spend more time with their kids or *must* prioritize family more.

What a load. Some of us just happened upon jobs, through luck, education, smarts or whatever, that pay us more. You all come across as extraordinarily bitter.

Listen, we have a $1M home. We also have high incomes. We have dinner pretty much EVERY NIGHT at 7 pm as a family. We both volunteer at school (public) and have flexible enough jobs to take off for lunches with the kids, etc. We just simply MAKE MORE MONEY. I don't begrudge my friends who work just as hard, if not harder, at their jobs. Some are in teaching, journalism, etc. They work their asses off, spend LESS time with their kids, but have rewarding jobs...that pay a lot less.

It isn't that hard...
Anonymous
Post 09/26/2011 09:10     Subject: Who can afford 800K-1M homes? Genuine Curiosity!
Anonymous wrote:How many of you in this "league" - BOTH partners, that is - spend much time with your own kids?

We live in a modest home that could probably be listed at $500K right now. We have a little less than 3/4 acre. However, we are thinking of downsizing and eliminating a mortgage altogether or having one that's very small.

As public employees, we don't make much - probably $150K combined, as I only work PT. But we see our kids each day. I'm with them during the summer, and although only I am available to pick up my son from preschool, either my husband or I can pick up our daughter from school. Both attend private school. And we do share a nanny for morning care only, as our works hours start at the butt crack of dawn.

I'd much rather have my mediocre home in our average 'hood and be able to spend time with my kids than to work my ass off, spending hours commuting, in order to afford a $6-7K monthly mortgage.

It's all about priorities.


We make $400K and spend a lot of time with our kids. Of course, between school and activities, the kids are gone about 45 hours a week too. But we certainly don't have a big mortgage - only $2800.
Anonymous
Post 09/26/2011 09:07     Subject: Re:Who can afford 800K-1M homes? Genuine Curiosity!
Anonymous wrote:
Anonymous wrote: People frequently discuss the fact that they have advanced degrees and high paying jobs accordingly. Let me just say that I will be discouraging my children from getting a humanities PhD (DH)!

Signed,
Liberal arts graduate who married another liberal arts graduate and obviously didn't understand that a great-books education should be chased by a high-powered professional degree not more of the same...
Shit, why didn't anyone ever explain this to me? We'll live in PG forever!


Yes, but you still have your soul. The lawyers and MBAs sold theirs.



he or she said jealously. I still have my soul and my JD, thankyouverymuch.
Anonymous
Post 09/26/2011 09:05     Subject: Who can afford 800K-1M homes? Genuine Curiosity!
Anonymous wrote:Even without buying and selling at peak, simple year over year inflation provides quite a boost to the balance sheet. My inlaws live in buttfuck nowhere in Virginia, bought their house for 20K in 1969. Worth over 300K now (never was a bubble in their town). They paid it off sometime in the early 80s. If they sold now, that's a ton of cash to plop down on a new home.

We've had a few years of down prices, but no one can seriously argue that housing inflation is over. It isn't, in fact it's up--look at rental inflation. One of the smartest things you can do for your personal balance sheet is lock in your housing costs with a fixed rate mortgage, especially now.


Or pay off your mortgage. Bought in '99, paid it off this year. Ahhhhhhhhhhhh.
Anonymous
Post 09/25/2011 21:35     Subject: Who can afford 800K-1M homes? Genuine Curiosity!
Anonymous wrote:
Anonymous wrote:Two professionals (one JD, one masters) working in the public sector, early 30s. HHI $200k+. Bought a house ($650k) in an urban, up and coming area (U Street) in 2008 that has appreciated enough to sell and buy a $1.2 million + house in the suburbs (Potomac).


Really? In 2008? It seems like you would have to be very lucky to have made 200K, so you put that down and have 1m mortgage on 200K salary? Just curious.


They said the house appreciated. They never said how much they put down. Say they were able to put down anywhere from 20-40%. That's $130K-$260K plus the profit. Given your estimate of $200K, that's ballpark $400K. They also didn't say if they were putting any more of their savings into the house, but let's face it, if the jobs are secure and they have $400K to put down, there are very few banks that would not grant a jumbo loan for $800K under those circumstances. We're talking 30-35% down payment. As far as banks are concerned, that's significantly safer than probably 50% of the buyers out there right now.
Anonymous
Post 09/25/2011 20:31     Subject: Re:Who can afford 800K-1M homes? Genuine Curiosity!
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:As a realtor I can tell you it's a combo of people who have left over money from buying and selling at peak times, people who make saving for a house the number one priority in life (above college education or retirement for example), and people who have some kind of family trust, starter money or inheritance. True most of these people have hhi's close to 200k but very few are over 400k.


We have several friends with a $6K mortgage.

If they weren't my friends, I'd call them idiots to their faces.

Who pays $72K/year in mostly interest?


I hope you're not my friend. My $6k/month mortgage isn't a big deal for a $500k/yr salary. Maybe you don't realize just how much I make with my bonuses...?


Brag all you want; it won't get you anywhere with me.

I prefer to live simply on my VERY secure salary. So while the economy crashes around me and while people lose their jobs, I'll be happy with my yearly extra $30K in the bank, my health benefits and pension.

Good luck living high on the hog. I've already seen quite a few lose their homes to foreclosures. One of my pals, in fact, was the happy recipient of a $1m home that went into foreclosure for less than half of that. Her mortgage is only $50K. And guess what? She's a Fed making only about $110K with three kids and a husband who's into real estate.

Now THAT's a smart lady.



You're funny. It's an anonymous forum, how can I possibly brag? Reality is, you have no idea if it's true, where I live, how much I paid for the house vs how much it's worth, etc. If you're banking $30k a yr, that doesn't strike me as very much. But perhaps that's above and beyond whatever else you bank, I don't know (or really care).

There haven't been any foreclosures anywhere near my neighorhood--it's not exactly full of McMansions. But if you're happy believing that I'm upside-down and struggling,, working 60+hrs a week to earn that money, that's fine. I'd hate to make you even more bitter...
Anonymous
Post 09/25/2011 20:22     Subject: Who can afford 800K-1M homes? Genuine Curiosity!
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:Two professionals (one JD, one masters) working in the public sector, early 30s. HHI $200k+. Bought a house ($650k) in an urban, up and coming area (U Street) in 2008 that has appreciated enough to sell and buy a $1.2 million + house in the suburbs (Potomac).


Really? In 2008? It seems like you would have to be very lucky to have made 200K, so you put that down and have 1m mortgage on 200K salary? Just curious.


It some hot neighborhoods (such as U Street), the bubble never popped: prices leveled off for a while, then started inflating again. I can easily believe that someone has made $200K on a house in U Street purchased in 2008. And it's smart to have sold this year, before the bubble pops.


I don't know about that. I live in U St. My neighbor paid $825k for their house in 2007/2008. That was the same year DC assessed our house value at $825k plus. Since then, our assessments have gone down every year; now our house is assessed at about $650k. The neighbors put their house on the market last year above $850k, reduced, and then gave up.

Anonymous
Post 09/25/2011 18:15     Subject: Re:Who can afford 800K-1M homes? Genuine Curiosity!
Anonymous wrote:Before the bubble pops?


If you just read the last sentence of what 17:36 wrote, it sounds crazy. If you read the whole post, then it makes sense.
Anonymous
Post 09/25/2011 17:59     Subject: Who can afford 800K-1M homes? Genuine Curiosity!
Anonymous wrote:How many of you in this "league" - BOTH partners, that is - spend much time with your own kids?

We live in a modest home that could probably be listed at $500K right now. We have a little less than 3/4 acre. However, we are thinking of downsizing and eliminating a mortgage altogether or having one that's very small.

As public employees, we don't make much - probably $150K combined, as I only work PT. But we see our kids each day. I'm with them during the summer, and although only I am available to pick up my son from preschool, either my husband or I can pick up our daughter from school. Both attend private school. And we do share a nanny for morning care only, as our works hours start at the butt crack of dawn.

I'd much rather have my mediocre home in our average 'hood and be able to spend time with my kids than to work my ass off, spending hours commuting, in order to afford a $6-7K monthly mortgage.

It's all about priorities.


We both spend a lot of time with our kids. I only work 2 days a week, am with the kids the rest of the time. DH is almost always home between 6 and 7. He helps with dinnertime, baths, bedtime. He almost never works on the weekends and is able to take at least 3 weeks of vacation.
Anonymous
Post 09/25/2011 17:42     Subject: Re:Who can afford 800K-1M homes? Genuine Curiosity!
Before the bubble pops?
Anonymous
Post 09/25/2011 17:36     Subject: Who can afford 800K-1M homes? Genuine Curiosity!
Anonymous wrote:
Anonymous wrote:Two professionals (one JD, one masters) working in the public sector, early 30s. HHI $200k+. Bought a house ($650k) in an urban, up and coming area (U Street) in 2008 that has appreciated enough to sell and buy a $1.2 million + house in the suburbs (Potomac).


Really? In 2008? It seems like you would have to be very lucky to have made 200K, so you put that down and have 1m mortgage on 200K salary? Just curious.


It some hot neighborhoods (such as U Street), the bubble never popped: prices leveled off for a while, then started inflating again. I can easily believe that someone has made $200K on a house in U Street purchased in 2008. And it's smart to have sold this year, before the bubble pops.
Anonymous
Post 09/25/2011 15:04     Subject: Who can afford 800K-1M homes? Genuine Curiosity!
Anonymous wrote:Two professionals (one JD, one masters) working in the public sector, early 30s. HHI $200k+. Bought a house ($650k) in an urban, up and coming area (U Street) in 2008 that has appreciated enough to sell and buy a $1.2 million + house in the suburbs (Potomac).


Really? In 2008? It seems like you would have to be very lucky to have made 200K, so you put that down and have 1m mortgage on 200K salary? Just curious.
Anonymous
Post 09/25/2011 13:59     Subject: Who can afford 800K-1M homes? Genuine Curiosity!
Anonymous wrote:
Anonymous wrote:two doctors HHI 350K, soon to increase to near 500K. We are looking to buy a house in that price range and will put 20% + down. we are just savers. Save for retirement, college for kids and a house. drive regular cars, currently live in a small house and don't spend tons on extras.


We would be savers, too, with that income. DH's brother is a doctor and his loan payments are huge--did you guys have student loans?


One of us was military for a while (so no siginificant loans) and the other only has med school loans. Our loans are such low interest, that we will continue to pay them off (extra payments a year etc) but are in no rush. You are right it is def. easier to save the more money you make - but easier to spend too.

To the PP who asked how much time we spend with our kids...a lot. We could both actually make more money but do not work more to do so in order to be with our children as much as possible. They always come first.

While I love being a doctor, I am not sure I would want this life for my children. It has been a long, hard road - lots of college, lots of long hours, physical and emotional wear and tear. We make money now, but not until the past couple years (and who knows what the future holds). We are, however very thankful for what we have and realize we are fortunate.