Thread: How are people affording to live in expensive houses?

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

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

$150k isnt a lot of money

Originally Posted by mcdojo

$150k isnt a lot of money

It's enough to afford a $1m house

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.

Originally Posted by 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.

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.

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

Bought the house before it was expensive

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

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

Originally Posted by Kewbrah

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.

Originally Posted by Azzurri

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.