/biz/ - Business & Finance

>>719306
Well off enough that by the time you can afford it you will want something you can't afford.

Your income needs to be about 40 million.

>>719306
The rule of thumb for real estate is that you can afford a house that costs 3x what you make in a year if you have 30% in cash for a down payment.

>>719315
What this guy said...
Although if you get the 100 percent and want your great grandkids to have some pretty fucking chill landscape try and horde assets like a mother fuckee

What about yearly salaries with a
-30 yr loan:
-15 yr loan:
-10 yr loan:
With about a 40-50% down payment.

>>719415
There are online mortgage calculators.

Well, let's take averages. 7.5M house with 4% at 20% down takes about 36k / month.

Guidelines suggest spending about 30% of your income on a home, so you should be making 120k net per month is about 1.4M / year.

Before taxes, say 35%, that would be over 2M / year.

Assuming you can even get a loan at 20% down.

I wonder what the property taxes are in these choice hill lots in Cali. That would be the biggest expense, even more than maintenance. I'd imagine the property value itself goes higher if the property tax is low, as in low.

didn't want to create a new thread:

I am looking at houses that costs 350 - 450k. My income is 75k + around 10k bonus. Although my income should increase around 10k this. Also I plan on putting down 100k. Will still have emergency savings and family support.

Am I stupid and should I save up for a larger down payment? Anything cheaper is too far away or in the ghetto. Also I don't want to live in a shack or some bullshit condo with an hoa. Looking for a long term place to live.

>>719306
you used to be able to take out liar loans as a janitor-thanks Obama

Im also wondering about this. My business just took off this year and im going to be making somewhere on the order of 400K profit this year. Is there any reason not to buy the most expensive home i can afford in an area which will see double digit price gains? i plan on living in this home for at least 5 or so years.

>>720611
If that 400k can be covered and grown for 2-3 of those 5 years, go for it mate.

>>720611
How does it feel making 400k profit every year anon? I think I'd be on top of the world.

>>720538
House hack. Buy a duplex at a price where renting half pays your mortgage

>>720611
what business bro

Pic related is that popular instagram kid Kaylin Slevin's house. Apparently her dad owns a lot of car dealerships (Slevin Automotive Group). I believe this house is in the region of $10-15 million. Estimated net worth on this guy /biz/?

>>721565
bump. nigr has one BIG houz

it would probably be a good idea to have $5-10 million

Minimum 30 million in assets

>>719306
Only person I know who owns a $9 million dollar house in California is the Head of a major investment bank's South America division. So like there's no one above him except for C-level executives.

>>719306
In order to keep it, you must be able to pay every year property taxes between $90 000 and $200 000, if you also use electricity, water, servants, buy food, etc... you must have an average income around $300 000 to $400 000 AFTER taxes, that is $500k to $600k annual income. And you won't have much to invest, it is insane. If you also took loan, you have to be somewhere between $800k to $1200k annual income, not possible if you're not owning your business, or invest worldwide.

>>719306

I'd say about 5-10 million dollars.

And then make enough each year to pay property tax and maintenance.

So i guess my question should have been whether or not buying the most expensive house i can in an area with double digit price gains is a good investment vs putting it in an index fund and riding the market. I am prequalified for a large home loan 1.7 Mil but i dont necessarily need that big a house im just wondering if it would be a good investment seeing as prices are rising sharply in the location im looking. As for my income of 400K i have to say that i have been making peanuts for quite a while and although i work like an animal im happy to say that its paying off somewhat now.

>>721978
Always keep in mind that your own home is not an investment, it's a place to live. And even if you buy a rental home, never buy a house with appreciation as your main strategy.

If you want an investment, buy into the index fund or buy rentals that make sense to own. If you want a place to live, buy a home.

Why do you say not to buy a home i live in as an investment? isnt that part of the game?

>>722973
Well, it's a bit of a grey area, but google it, you'll find articles about it.

In my mind, though, you pay to live there, whereas investments pay you. It can definitely go up in value, but it's just equity and not meaningful unless you sell. And, primary residences are even more illiquid than regular rental properties, because if you DO sell, you'll most likely need to use that money to buy somewhere ELSE to live. It's usually not just free capital.

Also, for accredited status, you cannot count your primary residence equity as part of your net worth.

>>722973
Because over the long-run, houses tend to rise in value on the rate of inflation. Of course this is all area dependent and you coult theoretically sell in one place at a boom cycle and buy in another at a bust cycle.

But for most people, you will not recouperate the interest paid on the mortgage, the taxes, the maintenance, the realtor costs, etc. sunk into the property when you sell, even when the value of the home substantially rises.

>>721565

LOL, people know Kaylyn outside of /tv/?

>>721565
shitty location though

>>721598
>major investment bank in California
>head of South America division