How do people afford $800k - $1.2 million homes? (Houston, Dallas: foreclosures, job market)

[mimimomx3]

I think it boils down to people's priorities about money, which are always intensely personal and shaped by life experiences. As long as what you're doing is legal, no one should care.

[mezman]

Originally Posted by d-boy-80

Can we at least agree that some do immoral things for that wealth? Yes. Leave doctors and surgeons out of this. I was not referring to them. I was referring to businessmen and lawyers that obviously do illegal or immoral things for wealth accumulation.

There are doctors and surgeons who do immoral things for wealth... no profession is immune.

[golfernurse22]

My husband makes 450,000 a year and works VERY hard for it. we live in a 230,000 house and I too am sooooo curious as how people can afford a house that is 500,000 and above. We paid our school loans off and have no car debt. We are fairly frugal but we save for our children's college and go on 3-4 vacations a year. How do people do it??

[BevoLJ]

Originally Posted by golfernurse22

My husband makes 450,000 a year and works VERY hard for it. we live in a 230,000 house and I too am sooooo curious as how people can afford a house that is 500,000 and above. We paid our school loans off and have no car debt. We are fairly frugal but we save for our children's college and go on 3-4 vacations a year. How do people do it??

I don't know much about real estate but $500,000 does not seem like a lot for a house. The average price for a house in San Francisco is over $600,000. San Diego is almost 600k. The area of Austin where I live the that $500,000 wouldn't even pay for my land that my home is on, not counting the house itself. I imagine the average price for a home in Westlake is probably around $800k to a million. In London where I my small flat is (Camden) the average price for a home is £650000 (~$1 million). Or at least it was when I got my flat not to long ago.

To me $500,000 doesn't seem like much for a house. But I guess it is relative where you came from or what you are used to.

[janejanejanejanejane]

Originally Posted by BevoLJ

I don't know much about real estate but $500,000 does not seem like a lot for a house. The average price for a house in San Francisco is over $600,000. San Diego is almost 600k. The area of Austin where I live the that $500,000 wouldn't even pay for my land that my home is on, not counting the house itself. I imagine the average price for a home in Westlake is probably around $800k to a million. In London where I my small flat is (Camden) the average price for a home is £650000 (~$1 million). Or at least it was when I got my flat not to long ago.

To me $500,000 doesn't seem like much for a house. But I guess it is relative where you came from or what you are used to.

You must have a lot of poor people then. How many people in San Fran can ACTUALLY afford that? In England? I am betting not many. Let's be realistic, not snobby.

[Biscuits]

Originally Posted by golfernurse22

My husband makes 450,000 a year and works VERY hard for it. we live in a 230,000 house and I too am sooooo curious as how people can afford a house that is 500,000 and above. We paid our school loans off and have no car debt. We are fairly frugal but we save for our children's college and go on 3-4 vacations a year. How do people do it??

Assuming you live in Texas, your husband's $450k annual income leaves you with an after-tax total of $284,380 or $23,698 per month free-and-clear.

A $500,000 30-year mortgage at 7% is $3,326 per month.

I am curious as well. Why are you inferring that you are scraping by and what precisely is so difficult to imagine about people -- many married with two incomes -- being able to afford a $3,326 mortgage payment? Continuing my curiosity, do you think every family but yours earns $30,000 or less per year?

[Biscuits]

Originally Posted by janejanejanejanejane

You must have a lot of poor people then. How many people in San Fran can ACTUALLY afford that? In England? I am betting not many. Let's be realistic, not snobby.

Apparently there are many people who can ACTUALLY (currently the most abused and overused word in the English language) afford those prices or they would not be averages.

[hoffdano]

Originally Posted by golfernurse22

My husband makes 450,000 a year and works VERY hard for it. we live in a 230,000 house and I too am sooooo curious as how people can afford a house that is 500,000 and above. We paid our school loans off and have no car debt. We are fairly frugal but we save for our children's college and go on 3-4 vacations a year. How do people do it??

A couple of things going could be going on here if you can't imagine how people who make less than you live in expensive homes:

- your husband really doesn't make $450K
- some money is leaking away and you don't see it
- you take really nice vacations
- you are stashing/investing serious money every year
- your kids go to private schools

At your income level, your house could be paid off in five years. You are essentially a 1%er.

[buffettjr]

Originally Posted by hoffdano

A couple of things going could be going on here if you can't imagine how people who make less than you live in expensive homes:

- your husband really doesn't make $450K
- some money is leaking away and you don't see it
- you take really nice vacations
- you are stashing/investing serious money every year
- your kids go to private schools

At your income level, your house could be paid off in five years. You are essentially a 1%er.

I was thinking the same thing. No student loan debt and no car debt mean over $20,000 per month of disposable income if what she says is true. If she can't afford a $500,000 house on that, something fishy is going on here. Your husband's name isn't Yassine is it?

[Aquitaine]

I make well under half that, live in a 350k home, my wife isn't employed yet and has student debt, and I have nothing to complain about. Forget 450k a year, 450k once and it'd be premium cocktail night in Circle C!