Million Dollar Mortgages
- Thread starter Rose11
- Start date
When will the rates start to come down. Rates went up but the house prices have only lowered maybe 2-5%.
The house prices have actually dropped 20%. We are starting to see a recovery but a lot slower than expected.
even
Actually it's affordable. Mortgage of 6500, property tax about 6000.00 per hear which equates to 500.00 per mouth. Internet, cable, lets call it 200.00 per month. Heat, AC, Gas lets call it 400.00 per month. Grand total 7600.00 per month. Lets add another 1000.00 for shits and giggles. Thats puts us at 8600.00. Yes there's still food, kids, gas, car insurance, car payments.....bla bla bla.
Anyways you mentioned "even with high incomes" you implied two people working because of the "s" in income. Lets make this easy...... If hubby is making 200,000 and wife is making 200,000 your net take home with both salaries combined is around 18,000 - 19,000 after tax. There's money left over. I guess whats your definition of high income? Many of my friends and co workers have wives that work too. Combined incomes between the two is between 445,000-500,000 per year. Most of them are taking home after tax around 25,000 per month. So there's plenty of people who are taking on bigger mortgages since the net cash flow is high. If you're taking home 25,000 a month after tax you can afford a bigger payment of 6500.00 per month.
My definition of high income or incomes has changed over the years. If I want that 2 million dollar home I know two couples making 100K each cant do it. There was an article in the Toronto Star that mentioned the income required to live downtown on a 1.2 or 1.3 million dollar property. It was something like 247,000. That was the minimum.
I guess its all relative.
Do most people earn these wages?
Sometimes, people who buy these expensive homes have other assets or investments that help cover the costs. Plus, there are different ways to finance the purchase, like getting a loan for part of the price. Also, keep in mind that these pricey homes often come with higher property taxes and insurance fees. So, the monthly costs can really add up. Actually, sometimes it's worth asking a Mortgage Broker in Northampton for advice.
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