Quote:
Originally Posted by dreamingat30fps
I can't wrap my head around how someone who could potentially have "some struggles" would buy an $8M house... like in my mind I would have to be sooooooo set that no matter what happened I would have no problems keeping the house.
I saw some chart the other day of what they (by they I mean some random site on the interwebz) recommend income wise to afford $X house and I was amazed at how little actual money you needed to have to buy multi million dollar houses.  |
I read somewhere that a vast majority of US housing buyers focus entirely on monthly payment... 0 on amount owed or total mortgage... as we had the 2% rates, this is partially what spurred the insane purchasing. So great, your payment is low but your principal owed is also 800k lol. People have a hard time understanding that and is why you see senior citizens with not paid off homes... and since in the US, you can't take age into account when approving for a loan, this creates a further problem.
The other problem are all of the low downpayment programs that put people into more home that they can afford and here we are. I was in a scenario many years back where I was renting a condo in downtown Miami and the seller wanted to sell it... the buyer called me as a tenant to do some due diligence asking me this and that... turned out the buyer was some 25 year old who just got a job and ended up not getting approved because he didn't even have 10k down lol. This was at a time when I could have bought the place cash lol... I called the owner and asked why am I even talking to this guy and who is this guy wasting your time. Back in the day, buyers like that wouldn't have even been talked to.