Lexington, Concord, Lincoln, Wayland, Sudbury, Weston? (Boston, Cambridge: HOA, insurance, mortgage broker)

[bigfatdude]

Just out of curiosity, what is the average household income of those considering a $1M+ house, especially if they have kids? Do they all pull in at least $300K combined or are they just being a slave to a bunch of plywood-covered 2x4s sitting on a large patch of dirt?

[yesmaybe]

Originally Posted by robr2

As I noted earlier, the traffic can be bad very close to the Labs. In the AM, traffic backs up on Hartwell Ave. as the left onto Wood St. is close to the AF base gate. In the PM. traffic backs up on Wood trying to turn onto Mass Ave. to get to 128.

You wouldn't really need to go to the Hartwell way in the AM coming from the South, would you? And in the PM you wouldn't want to take 128 S anyway.

[yellowstatus]

Originally Posted by bigfatdude

Just out of curiosity, what is the average household income of those considering a $1M+ house, especially if they have kids? Do they all pull in at least $300K combined or are they just being a slave to a bunch of plywood-covered 2x4s sitting on a large patch of dirt?

My cohort of early to mid 30s is two income professional jobs, concentrated in technology, law, medicine, and drug development. I can't speak to others, but my current work is by far the most interesting and enjoyable of all my jobs. It just happens to pay a lot more now. Not saying it's fair, but that's how the job market is currently incentivized.

Check out this site. The reported jobs are biased towards the more competitive, higher paying jobs. But the actual compensation is accurate as far as I know. $100k - $200k compensation is quite attainable. Above $300k compensation is quite rare in the Boston market, matches my personal experience. That's more business owner or especially talented / specialized jobs.

https://www.levels.fyi/Salaries/Soft...r-Boston-Area/

Financing interest rate is close to inflation, so owning in Boston can be a surprisingly good financial decision as long as you're able to fund the down payment.

[id77]

Originally Posted by bigfatdude

Just out of curiosity, what is the average household income of those considering a $1M+ house, especially if they have kids? Do they all pull in at least $300K combined or are they just being a slave to a bunch of plywood-covered 2x4s sitting on a large patch of dirt?

I think you're looking at this the wrong way. It's not about the income but the assets.

That said, to answer your question, nearly all of the $1M+ owners I know have an annual HH income under $300k. The ones whose detailed finances I'm aware of are not saddled in debt or burdened by their housing payment (if they even have one).

[mwj119]

The strike price in Cambridge has probably fallen a bit during the recession.

Advice that you didn’t ask for- If it were me, I’d buy rent in Cambridge and do the backwards commute for a few years. Once you start a family and grow out of a smaller place, then move out a bit down route 2. At 32, with or without kids, you will feel quite young in these upscale, bucolic suburbs. That goes for any suburb in that direction.

If you’re committed to buying a SFH (and can’t buy in Cambridge at your budget), take the advice above, and instead buy in an inner ring suburb like Arlington to start. With your budget, you can live in one of the more upscale neighborhoods and in a nice home. Arlington has an active downtown, great access to Cambridge and Somerville, and a healthy mix of renters and buyers. A ton of young couples and young families for that reason.

When you do move out a bit further- I agree with those saying Concord. Sounds like it’s your personal favorite of that bunch, and it’s certainly mine as well. If suburban prices/lack of supply persists, and prices in Concord are simply too high at that point, I think you’d be perfectly happy in Acton or Sudbury which will always be within your price range.

[bigfatdude]

Oh, I'm well aware of all of the below, I'm just curious as to what percentage of family income is typically spent on mortgage/tax/utilities when dealing with $1M+ houses.

Originally Posted by yellowstatus

My cohort of early to mid 30s is two income professional jobs, concentrated in technology, law, medicine, and drug development. I can't speak to others, but my current work is by far the most interesting and enjoyable of all my jobs. It just happens to pay a lot more now. Not saying it's fair, but that's how the job market is currently incentivized.

Check out this site. The reported jobs are biased towards the more competitive, higher paying jobs. But the actual compensation is accurate as far as I know. $100k - $200k compensation is quite attainable. Above $300k compensation is quite rare in the Boston market, matches my personal experience. That's more business owner or especially talented / specialized jobs.

https://www.levels.fyi/Salaries/Soft...r-Boston-Area/

Financing interest rate is close to inflation, so owning in Boston can be a surprisingly good financial decision as long as you're able to fund the down payment.

[mwj119]

Originally Posted by id77

I think you're looking at this the wrong way. It's not about the income but the assets.

That said, to answer your question, nearly all of the $1M+ owners I know have an annual HH income under $300k. The ones whose detailed finances I'm aware of are not saddled in debt or burdened by their housing payment (if they even have one).

Definitely.

$1M+ homeowners that I know with families- without knowing exactly what they make, but instead what they do- make $400k+. They also built a lot of equity in a former purchase, and invest a good % of their money.

[r_p]

Originally Posted by id77

I think you're looking at this the wrong way. It's not about the income but the assets.

That's right. A lot of wealth that has been created over the last decade. DJI has averaged 15%. If you did nothing and simply maxed your 401k since 2009 then you will have a cool $500k. For dual income earners that is an easy million. Those who actively invested in real estate, TSLA/Bitcoin etc. did much better.

[hken]

Originally Posted by bigfatdude

Oh, I'm well aware of all of the below, I'm just curious as to what percentage of family income is typically spent on mortgage/tax/utilities when dealing with $1M+ houses.

I would guess like 50% but it's not really a useful benchmark. A lot of people in the the area who work in tech and biotech may have a bunch of money in company stock/stock options so that % is less relevant if they have access to cash that is not reflected in their income.

I would say most people who can get into the $1M+ category as a "young family" likely do so by trading up in their homes (say bought in Somerville 5 years ago) or they made bank in company equity.

[bigfatdude]

50% in housing costs? Sheeeeeeiiiit, and here we were thinking more than 25% of gross pay is a bad idea. That's not just house-poor, that's house-destitute!

Originally Posted by hken

I would guess like 50% but it's not really a useful benchmark. A lot of people in the the area who work in tech and biotech may have a bunch of money in company stock/stock options so that % is less relevant if they have access to cash that is not reflected in their income.

I would say most people who can get into the $1M+ category as a "young family" likely do so by trading up in their homes (say bought in Somerville 5 years ago) or they made bank in company equity.