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Using the old "a house should be 2.5x your income" guideline (which is proablaby very conservative by today's standards), it would take a $400,000 income to afford a million dollar house.
...that's assuming that the mortgage was a high percentage of that million dollar price tag. I am guessing that many of these homes are being bought by "move-up buyers" who have a significant down payment.
...that's assuming that the mortgage was a high percentage of that million dollar price tag. I am guessing that many of these homes are being bought by "move-up buyers" who have a significant down payment.
Probably so, but the point I was trying to make is that it doesn't take a million dollar income to afford a million dollar house.
You cannot know the income of folks by the house they live in or the car they drive. Some wealthy folks want smaller homes and less status for security reasons and don't want to advertise their wealth. As to how folks can afford million dollar homes? Family members bought a million dollar home by
1) vowing at the time of their marriage never to have debt other than mortgage
2) keeping cars until they die and never buying new cars
3) saving as much as they can, not using credit cards unless emergency
4) not trying to keep up with the Jones
5) taking few vacations and saving for the ones they do take instead of putting the expenses on credit cards
6) not eating out as often as the average family
7)not spending their money on liquor or cigarettes
8)foregoing all the latest toys and gadgets and teaching their kids not to think they have to have it all too
9) finding their entertainment in hobbies, free or very affordable venues
Some of us would think this way of life would not be fun but they seem to be happy and well adjusted.
However, I think most people who live frugally (as indicated in your list) are also those who are probably less likely to live in million-dollar homes -- even if they have more than enough bucks in the bank.
I admire people who have money and spend it. I know of people who have it and live like paupers. They don't even donate it to good causes. Makes no sense to me.
Quote:
Originally Posted by no kudzu
You cannot know the income of folks by the house they live in or the car they drive. Some wealthy folks want smaller homes and less status for security reasons and don't want to advertise their wealth. As to how folks can afford million dollar homes? Family members bought a million dollar home by
1) vowing at the time of their marriage never to have debt other than mortgage
2) keeping cars until they die and never buying new cars
3) saving as much as they can, not using credit cards unless emergency
4) not trying to keep up with the Jones
5) taking few vacations and saving for the ones they do take instead of putting the expenses on credit cards
6) not eating out as often as the average family
7)not spending their money on liquor or cigarettes
8)foregoing all the latest toys and gadgets and teaching their kids not to think they have to have it all too
9) finding their entertainment in hobbies, free or very affordable venues
Some of us would think this way of life would not be fun but they seem to be happy and well adjusted.
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And yes, ironically, I do live in a townhouse community.
