I feel like you buy a $100k car if your NW is like $1M. So if you own a $2M house, is your networth like at least $5M -$10M? Or you go all in and all your money is in your house?
400K down payment split between two people (assuming the folks trying to buy a 2M home is because they need more space for their family) is not unachievable in tech. So I doubt NW really needs to be 5-10M
Car is a liability but house is an asset. You can't apply the same multipliers. One may buy a house when they have enough to put the downpayment (20% of 2M)
Excluding 401k, you’d need ~$550k ($400k down payment + ~$150k for closing costs and reserves) + qualifying income on a $1.6m mortgage to buy a $2m house
Eh I bought 100k car at 500k NW
Did you have any buyers remorse?
No, it will hold value and may even go up in value
Not me
Depends on where you live, your NW can be less than your house price (in mortgage case). Even if your NW 5-10M, you should do mortgage (depends on where you live, tho)
99% of people buying a house have a lower net worth than the house. People buying $300k houses in Ohio don’t even have a net worth over $300k. Your rationale that you’re screwed if the house price goes down only matters if you’re buying as an investment property. If you’re just buying a house to live at then it doesn’t matter too much how the value changes. As others have said in places where $1 million houses are the norm, the land is the most valuable part and the structure is usually much less than half. Home owners insurance will cover the structure part from any catastrophic damage.
Nothing like taking out a mortgage on a house and signing away 30 years of your life to the bank.
🤣🤣🤣
Haven you ever heard of mortgages?
So basically all your money is in your house + worse because if the house is gone, you are in debt
What do you mean by "house is gone"? Drops in value you mean?