4 ms·
Top 1% income is about $540k/year according to https://www.usatoday.com/story/money/2020/07/01/how-much-you-need-to-make-to-be-in-the-1-in-every-state/112002276
by lpolovets 5y ago
Top 1% income is about $540k/year according to https://www.usatoday.com/story/money/2020/07/01/how-much-you-need-to-make-to-be-in-the-1-in-every-state/112002276 https://www.usatoday.com/story/money/2020/07/01/how-much-you...
In my experience, an income of $X lets you get a mortgage for a house worth ~$6X. Where do you live where $3m+ won't get you a house?
- yellow_postit 5y agowhile a bank may write you a mortgage for 6x I think it’s very worthwhile considering how that fits into an overall financial plan.
- lpolovets 5y agoI'm not a financial advisor, but I think housing is a very reasonable investment given: 1) you need a place to live no matter what 2) historically the real estate market does well over long time horizons 3) if you make $540k and your mortgage is $200k/year, you'll still have like $100k-$150k in spending money after taxes. 4) housing values are a good hedge against inflation 5) IMHO inflation is going to be bad over the next few years, which means your fixed mortgage payments will shrink rapidly in an inflation-adjusted sense. YMMV