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I think this kind of article is helpful. The thing I notice most is a lot of people buy cars (and replace them frequently) that are way above their "level" and
by ben7799 7y ago
I think this kind of article is helpful.
The thing I notice most is a lot of people buy cars (and replace them frequently) that are way above their "level" and represent hugely irresponsible decisions.
E.x. you should be way into 7 figures of wealth accumulation before you start leasing/buying $50-70k luxury cars.
You never know what someone's stock portfolio/401k/IRA whatever looks like but it's always an eyebrow-raiser for me to see someone drive up in an expensive car and then they later tell you they pay rent and have never bought property and the longer you talk to them the more you realize they're probably living paycheck to paycheck.. just with a relatively large paycheck that disappears nearly completely.
Especially when the trendy area to rent gets you a small studio or 1BR apartment for $2.5-3.5k/month and that's enough to pay the mortgage on a $1M property within 10 miles of said apartment.
- greedo 7y agoA mortgage for a $1M property is roughly $4-$5k depending on credit etc etc.
- jdashg 7y ago$5100 for $1M borrowed (a low) 3%, excluding down payment, property taxes, and likely PMI, given how onerous saving 20% of seven figures is.
- hultner 7y agoIs the interest rate that high in the US? If you negotiate with a couple of banks in Sweden you can easily get sub 1% (0.79% is what I seem to be able to get). Heck I just checked my bank and I can even get a line of credit up to 1M SEK at 1.74% for up to 50% of my portfolio without any property as security.
- shantly 7y agoChecking, I'm seeing rates approaching 4% for 30-year mortgages here (the US), down to 3.5% for a 15-year, which squares with what's been more-or-less the norm for a while, so is probably about right. 1% on a mortgage would... not be normal here.
- hultner 7y agoOh but that's with a locked rate, I always go fully moving rate.