How are people affording to live in expensive houses?

[DavidEaslea]

Are they all making $150k+?

[BLOATMOGGER]

By taking enormous loans which they are praying inflation will inflate away.

That and RSUs from their job in a big tech company.

[mcdojo]

$150k isnt a lot of money

[BLOATMOGGER]

$150k isnt a lot of money

It's enough to afford a $1m house

[northernlights7]

It's a combo of them living on credits of massive loans and assuming they'll always have a second income by being married (always amazes me how terrible most married people are with money). I mean just the other day this dude I know was telling me how he and his wife refianced their house to a new 30 year loan options instead of opting for a 20 or 15 year loan so they can buy more toys and other depreciating crap in the short term.

Imagine choosing to add 5 - 10 years back onto your mortgage situation so you can spend more money on stupid chit now instead of paying a little more money upfront and having the thing paid off in roughly half the time while saving many thousands in interest over the years. I find it nuts to think that many people my age with decent jobs are signing up to not have their homes paid off until their 60's (many probably simply can't afford the loans with less years because they buy too expensive of houses and blow money on too much bs in general) instead of setting themselves up to be mortgage free homeowners before their 50's. But most people are just super focused on the short term when it comes to money/finances.

[wolfofmarkcity]

It's a combo of them living on credits of massive loans and assuming they'll always have a second income by being married (always amazes me how terrible most married people are with money). I mean just the other day this dude I know was telling me how he and his wife refianced their house to a new 30 year loan options instead of opting for a 20 or 15 year loan so they can buy more toys and other depreciating crap in the short term.

Imagine choosing to add 5 - 10 years back onto your mortgage situation so you can spend more money on stupid chit now instead of paying a little more money upfront and having the thing paid off in roughly half the time while saving many thousands in interest over the years. I find it nuts to think that many people my age with decent jobs are signing up to not have their homes paid off until their 60's (many probably simply can't afford the loans with less years because they buy too expensive of houses and blow money on too much bs in general) instead of setting themselves up to be mortgage free homeowners before their 50's. But most people are just super focused on the short term when it comes to money/finances.

It's fine to still have a mortgage way late in life if you're investing decently. No reason to pay it back quickly if can earn a lot more.

Most people are like your friends though and just shoot themselves in the foot over the long term by not doing anything worthwhile with the extra cash.

[Kewbrah]

Mind blown that some people are somehow surviving on less than $150k

[FingerNailsBrah]

Bought the house before it was expensive

[AdamWW]

It's enough to afford a $1m house

Uh if you wanna be broke AF

[Kev1972]

2 incomes, child tax credit, low interest rates, help from boomer parents.

[SettingOff]

cuz they lock themselves into 1-1.5k/mth payments for 25 years JUST LOL at mortgagcels

[Azzurri]

It's enough to afford a $1m house

It's absolutely not. No lender is going to give you a loan for a home that's priced at $1 Million dollars.

Unless you put 80% down, then you'll only finance 200k which is doable at 150k a year.

[r32gojirra]

Bought the house before it was expensive

^^^^ ding ding ding

Winrar

They certainly didn’t achieve it sitting around hoping for the market to crash

[DigDeeper1]

Last year I brought in $3.6 million after tax, so was able to afford my new place quite comfortably

[mgftp]

Mind blown that some people are somehow surviving on less than $150k

In some areas of the US this is true, in other areas 150 is a very good living.

[DavidEaslea]

^^^^ ding ding ding

Winrar

They certainly didn’t achieve it sitting around hoping for the market to crash

I was looking to buy a house a year ago but waited until 2021 because I thought everything will crash and it ended up getting much worse. I went from being able to buy a big house to not being able to buy a small one in one year.

[BLOATMOGGER]

It's absolutely not. No lender is going to give you a loan for a home that's priced at $1 Million dollars.

Unless you put 80% down, then you'll only finance 200k which is doable at 150k a year.

[r32gojirra]

I was looking to buy a house a year ago but waited until 2021 because I thought everything will crash and it ended up getting much worse. I went from being able to buy a big house to not being able to buy a small one in one year.

If it helps people have been making the same mistake since 1999

I don’t know if you’re old enough to remember the Asian financial crisis

I bought my first block of land at age:19 and built a house on it. Everyone told me I was nuts and the market was about to crash but by the time it was built it was worth twice what I paid.

[THATSfunnyOP]

I was looking to buy a house a year ago but waited until 2021 because I thought everything will crash and it ended up getting much worse. I went from being able to buy a big house to not being able to buy a small one in one year.

Big fukn feels in the same boat. Feeling pretty depressed about it. Its fukd.

[yeshli2nuts]

cuz they lock themselves into 1-1.5k/mth payments for 25 years JUST LOL at mortgagcels

While in 20 years the rentcel's rent will be triple that while the mortgagecel is still paying relative pennies.

[LethalGunz34]

Doge coin investors.

[DavidEaslea]

If it helps people have been making the same mistake since 1999

I don’t know if you’re old enough to remember the Asian financial crisis

I bought my first block of land at age:19 and built a house on it. Everyone told me I was nuts and the market was about to crash but by the time it was built it was worth twice what I paid.

I just can't imagine the house prices going up further. I don't know who's paying for all this.

[Kraken]

Median age is between 36-42. Many Americans become more successful as they progress through life and can afford a larger home. (Which is why we become more and more conservative as we age)

You need to have an upward moving plan in life. Extra training, schooling, building financial securities...the plan might hit some bumps in the road, because that’s life, but what counts is that you always have a plan and keep makes my progress with it. Hit a bump? Gotta adapt and figure it out.

[Azzurri]

https://listwithclever.com/real-esta...the-right-way/

[SouthDakotaBrah]

I just can't imagine the house prices going up further. I don't know who's paying for all this.

Makes me happy when I see people without houses say this (srs)

Don’t worry, you’ll be paying it through your rent when inflation hits in a year or two

[Kraken]

https://listwithclever.com/real-esta...the-right-way/

Maintenance costs of an $1m home can be pretty outrageous. Let say you buy a 5,000sq ft house. It will most likely have two AC units and multi zone system. The duct system is also likely mechanical.

Most of these homes are custom too. You can’t just replace things easily. You might have to find a custom replacement for it. These could include doors, cabinets, flooring, windows, built in stereo system, security system...

If it’s not a brand new house, it’s going to be a lot of work.

[criminal_manne]

It's enough to afford a $1m house

No. No it’s not. Maybe if you’re single.

I make close to 150 and live in a 280k house. No way I could afford a million.

[DavidEaslea]

No. No it’s not. Maybe if you’re single.

I make close to 150 and live in a 280k house. No way I could afford a million.

Average house in Australia is 1 mill with the average salary of 70k.

[yeshli2nuts]

Maintenance costs of an $1m home can be pretty outrageous. Let say you buy a 5,000sq ft house. It will most likely have two AC units and multi zone system. The duct system is also likely mechanical.

Most of these homes are custom too. You can’t just replace things easily. You might have to find a custom replacement for it. These could include doors, cabinets, flooring, windows, built in stereo system, security system...

If it’s not a brand new house, it’s going to be a lot of work.

Not to mention most millennials these days probably don't do their own cleaning or yard maintenence so you can tack on a maid and landscaper to your monthly costs.

[donblaximus]

First, the OP needs to define expensive. I do see things going north very quickly and its nuts to me. People buying 1.5-2.5M in TEXAS and these houses are being picked up within weeks. Very little inventory on the market in that price range in a major city in Texas.

Seems a bit odd to me.