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Old 06-04-2015, 07:08 PM
 
1,078 posts, read 1,076,444 times
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^ But no one has a monthly debt of $0.
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Old 06-04-2015, 07:20 PM
 
2,986 posts, read 4,576,909 times
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Quote:
Originally Posted by incognitoe View Post
^ But no one has a monthly debt of $0.
not everyone has 2k of monthly debt either
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Old 06-04-2015, 07:23 PM
 
1,078 posts, read 1,076,444 times
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Quote:
Originally Posted by Cardiff Kook View Post
not everyone has 2k of monthly debt either
People with kids = a lot more than 2k. 2k monthly expense is more believable than someone with 0. Even if you live with your parents, no way it's 0. Unless you're 4.


What's yours?
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Old 06-04-2015, 07:36 PM
 
Location: Laguna Niguel, Orange County CA
9,807 posts, read 11,140,888 times
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The truth is everyone is right and the financial situation of most people varies. Whatever the case, 150k is enough to live in OC, but one will not be living a lavish lifestyle.
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Old 06-04-2015, 07:49 PM
 
Location: OC/LA
3,830 posts, read 4,662,889 times
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Quote:
Originally Posted by incognitoe View Post
People with kids = a lot more than 2k. 2k monthly expense is more believable than someone with 0. Even if you live with your parents, no way it's 0. Unless you're 4.


What's yours?
I guess you don't know what debt is. Not too surprising, honestly. Here's a quick finance lesson. Debt is not the same thing as expenses.

Debt is things like car loans, credit cards debt, mortgages, etc. Plenty of people have zero debt. My current debt is $325 a month for another year. Then it will be zero.
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Old 06-04-2015, 08:23 PM
 
2,986 posts, read 4,576,909 times
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Quote:
Originally Posted by incognitoe View Post
People with kids = a lot more than 2k. 2k monthly expense is more believable than someone with 0. Even if you live with your parents, no way it's 0. Unless you're 4.


What's yours?
Kids = living expenses

Notes payable and loans = monthly debt
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Old 06-04-2015, 08:24 PM
 
Location: OC/LA
3,830 posts, read 4,662,889 times
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Quote:
Originally Posted by cardiff kook View Post
kids = living expenses

notes payable and loans = monthly debt



I'm so glad I didn't go into the residential mortgage industry. If I had to talk with people who have no clue about finance all day I would kill myself.

Last edited by HyperionGap; 06-04-2015 at 08:33 PM..
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Old 06-05-2015, 09:29 AM
 
Location: Sputnik Planitia
7,829 posts, read 11,787,380 times
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that calculator it totally bogus, that is part of the problem here... the definition of what is "affordable" has itself been re-written.

One thing that so many people fail to realize is that the higher income jobs are much more volatile, i.e. in a bad economy they are the first things to get cut and they are the most difficult to replace. The confidence with which people thing their jobs will last forever is downright laughable.

Buying a home requires an extreme dose of conservatism that seems to be all but missing with today's population encouraged by idiotic calculators like this that tell them it's OK. It is NOT OK to spend $850,000 on a home making $150k/yr unless you have substantial levels of liquid net worth as backup. Most likely the people who buy these types of homes exhaust all their savings on the downpayment and cross their fingers that they don't lose their jobs. Well, you can also go to Las Vegas and play roulette there while you are at it.

Another point I'd like to make is that the lifestyle people live when making $150k/yr is hardly conservative as far as i've seen... not only do these people buy the $600,700 or 800k homes, they still have to buy the Lexus, BMW, Mercedes, still have to have lavish parties for their kids, take exotic vacations etc. etc. Not everyone but a large majority do this.

Some friends of mine living in the Bay Area recently bought a home for $900,000, but they are both tech workers and their combined income is more like $300,000, not $150k!!
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Old 06-05-2015, 09:58 AM
 
10,275 posts, read 10,338,537 times
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I don't make much more than 150k (and I'm talking household income, not my personal income), and I could easily afford a 1.5 million home in OC.

It isn't only how much money you make, it's your net worth and debt. I have liquid assets that I could use to buy a nicer home. I also have no debt (well I have a car payment, but it's 0% interest so not really debt).

I know people earning 50-60k who have million dollar condos in NYC. Bank of Mom and Dad put down a huge down payment.
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Old 06-05-2015, 10:54 AM
 
Location: Laguna Niguel, Orange County CA
9,807 posts, read 11,140,888 times
Reputation: 7997
Well we don't make a whole lot more in my household and have to budget. I guess some are simply luckier or are better equipped to deal with life than others. I always pay my car off in cash, never with payments. I guess it also depends on how much you spend for housing (when you purchased, financing, and purchase price). Housing certainly takes a big bite of our budget in OC. But my earlier point is that 150 certainly does not afford one a lavish lifestyle in OC.
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