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Being able to pay (or be qualified to get a mortgage to pay) $815k for a home kind of makes you 'wealthy', no?

by gist 8y ago

CydeWeys 8y ago
If you're defining wealthy as anything like "the 1%", then no, you can be well below the 1% and still afford a mortgage on a $815k home, especially if you have dual income earners.
- dlp211 8y ago
  So sustained top 5% in household income.
  - CydeWeys 8y ago
    It's all relative. In the country at large, maybe. Relative to NYC or other big cities, definitely not.
jonknee 8y ago
It probably would in Buffalo, but not in Manhattan. The median home price in Manhattan is nearly $1.3m: https://www.zillow.com/manhattan-new-york-ny/home-values/ https://www.zillow.com/manhattan-new-york-ny/home-values/
- gammateam 8y ago
  Fortunately there is an endless supply of dreamers from bumbaf*ck that will be impressed by your modicum of six-figure stability in Manhattan. At least a few weeks after they've realized the hopelessness of Carrie Bradshaw fantasy and understand the value of a 400 sq. ft. walkup.
notyourday 8y ago
A lot of those loans are IO only ARMs with a balloon. You pay IO and treat it as rent. Balloon in 5-10 years means you have 5-10 years in place where a landlord cannot jack up rent on you. If everything goes well and your unit appreciates, then you now have more equity which means you refinance it again. If your mortgage requires you do pay off the balloon and you can't refinance, you sell. Even if you sell at a loss, the loss is likely to be less than the rent you would have paid for the same space. You take the money and do it again, in a new space. This is one of the reason why you see all kinds of house trading among celebrities - they don't actually "buy" houses with conventional 30 year mortgages. When the balloons come due, they instead sell a house either for more money or for less money and make the balloon whole with the "saved rent"

Being able to pay (or be qualified to get a mortgage to pay) $815k for a home kind of makes you 'wealthy', no?

by gist 8y ago

Being able to pay (or be qualified to get a mortgage to pay) $815k for a home kind of makes you 'wealthy', no?

If you're defining wealthy as anything like "the 1%", then no, you can be well below the 1% and still afford a mortgage on a $815k home, especially if you have dual income earners.

dlp211 8y ago
So sustained top 5% in household income.
- CydeWeys 8y ago
  It's all relative. In the country at large, maybe. Relative to NYC or other big cities, definitely not.

jonknee 8y ago

It probably would in Buffalo, but not in Manhattan. The median home price in Manhattan is nearly $1.3m: https://www.zillow.com/manhattan-new-york-ny/home-values/ https://www.zillow.com/manhattan-new-york-ny/home-values/

gammateam 8y ago
Fortunately there is an endless supply of dreamers from bumbaf*ck that will be impressed by your modicum of six-figure stability in Manhattan. At least a few weeks after they've realized the hopelessness of Carrie Bradshaw fantasy and understand the value of a 400 sq. ft. walkup.

notyourday 8y ago

A lot of those loans are IO only ARMs with a balloon. You pay IO and treat it as rent. Balloon in 5-10 years means you have 5-10 years in place where a landlord cannot jack up rent on you. If everything goes well and your unit appreciates, then you now have more equity which means you refinance it again. If your mortgage requires you do pay off the balloon and you can't refinance, you sell. Even if you sell at a loss, the loss is likely to be less than the rent you would have paid for the same space. You take the money and do it again, in a new space. This is one of the reason why you see all kinds of house trading among celebrities - they don't actually "buy" houses with conventional 30 year mortgages. When the balloons come due, they instead sell a house either for more money or for less money and make the balloon whole with the "saved rent"