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I understand both parents need to work and you need to pull in an average household income of $150+ but I see so many threads on here about people (in their 30's) saying they need help finding a house but don't want anything too expensive and then say their ceiling is $750K! I'm baffled! What do these people do for a living!? How do these people afford these houses and these lifestyles!? What's their secret? I guess I'm more interested in knowing what everyone does for a living (spouses too) and what they make a year. I know it's a bit of a personal question and please don't answer if you think so but I'm just trying to wrap my head around it. I'm an insurance broker and make just above $100, own a $225K condo, drive a Chevy. Nothing extravagant. But I see people younger than me driving Mercedes and BMW, living in expensive towns with expensive homes. I'm not at all jealous and I respect people that earn a great living. I just want some insight into the secret of their success.
You can't gauge it by luxury cars since there are monthly leases that bring down that cost. Mortgages including taxes are anywhere between 2500 and 3500 a month (once polled). Some have help from parents for a down payment. And like you, some already make $100k+, and it's not hard for the spouse to make over $50k to supplement. Dual income is big. It all comes down to the monthly cost, not everything at once.
I know an awful lot of teachers here and they make 6 figures because - union. If not that, then at least one works with a Manhattan salary. Or two at $70k is close to the $150k. Median in Nassau is just under $100k and there are a lot more ranches and capes than the $750k colonials.
Easy: people stretch themselves in good times. Work well always be there and values will only go up. Also, I think couples are buying these homes without a real plan about what to do once they have kids.
I understand both parents need to work and you need to pull in an average household income of $150+ but I see so many threads on here about people (in their 30's) saying they need help finding a house but don't want anything too expensive and then say their ceiling is $750K! I'm baffled! What do these people do for a living!? How do these people afford these houses and these lifestyles!? What's their secret? I guess I'm more interested in knowing what everyone does for a living (spouses too) and what they make a year. I know it's a bit of a personal question and please don't answer if you think so but I'm just trying to wrap my head around it. I'm an insurance broker and make just above $100, own a $225K condo, drive a Chevy. Nothing extravagant. But I see people younger than me driving Mercedes and BMW, living in expensive towns with expensive homes. I'm not at all jealous and I respect people that earn a great living. I just want some insight into the secret of their success.
You answered your own question in the first sentence.
You're an insurance broker, don't you see it when you write policies? I worked for an agent for 6 months and we didn't write one HO policy where the buyers had one mortgage - everyone had a second mortgage right out of the gate. Overfinanced, stretched to the max, with no plan for what to do when the taxes go up or like someone said, kids come along - or some other emergency.
People are living with a ton of debt. If you drill down and talk to people, most have no plan how to pay it off, thinking some magical day will come when they are able to do so. And most have no hope of ever paying off their mortgage and owning the house outright.
There are also plenty of people who can indeed afford those homes (especially with dual incomes). Doctors, executives, successful small business owners, investors, brokers, to name a few. Not everyone is mortgaged to the hilt (although plenty are)
LOL most doctors are terrible business people, the ones I have known are the ones most mortgaged to the hilt - the worst kind of keeping up with the joneses. Why do think there are so many old doctors doddering around? They have to work. They aren't good at saving for retirement. Small business owners in the same boat - it takes a LOT of discipline to save your own money for retirement, without a pension or 401(K). And I know a ton of old Wall Streeters who are on the verge of financial collapse. Not guessing on my part - it's a known fact because they talk about it.
The people doing best are those with someone in the family on the gravy train, which is fine - you just won't find a lot of posters here admitting to it when they are on it! It's nice when you don't have to save your own pennies for retirement.
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