/biz/ - Business & Finance

[Anonymous No.16983425]

Can someone explain to me the math behind buying a million dollar house?

The rule of thumb is to do 3x your income right?
So even if you make 200k, you'd be at a 600k house.

Someone explain to me the math behind jumbo loans and how this isn't just purely fake money inflated by banks that will never be paid off

[Anonymous No.16983482]

you are right

sure there are actually smart people who knows what they're doing but most of the time it's just retards stressing out over huge loans they took out expecting price to go even higher

they basically went 5x long with all their networth for an already inflated asset.

Brother of a friend I know is doing this and am personally amazed by his sheer inability to detect the irony of him trash talking on bitcoin/link every chance he gets while at the same time putting himself to debt over worthless boomer boxes

[Anonymous No.16983512]

>>16983425
$1 million house
25% down
$750k loan

$3,500 per month mortgage payment

mortgage shouldn't be more than 28% of gross income
$3500/.28 = $12,500 per month => $150,000 per year

i work with a guy who lives in a house that has a $2.7 million assessment. he pays nearly $30,000 a year in property taxes.

[Anonymous No.16983533]

The thing is most areas are so inflated that everyone is priced out besides investment gooks. So your only other option is to rent or basically piss money away. Either way let's say 2-3k on rent or 3-4k on a mortgage is a rip off, but greedy boomers inflated the house prices 10x.

[Anonymous No.16983539]

>>16983533
I make 50k and just bought a house for 160k.

still feel like I'll never pay it off

[Anonymous No.16983589]

>>16983539
Need to get a house 200km away from the city for those prices then drive in and make up the difference in petrol cost. The average here is 600k 30-50km away from the city... And no no one will pay you 60k in bum fuck nowhere. You're out of touch with reality. This isn't the case anywhere besides the Midwestern US.

[Anonymous No.16983601]

>>16983589
Your example isn't the case anywhere besides the Midwestern US *

[Anonymous No.16983605]

>>16983589
I'm out of touch because I live in Ohio?

[Anonymous No.16983612]

2/3 working Americans are financial retards

[Anonymous No.16983620]

>>16983425
>The rule of thumb is to do 3x your income right?


That rule of thumb probably dates back to a time when 30k was considered a decent salary, and the average home was only 80k. The real estate market is ridiculous, and the banks are getting insanely liberal with credit.

I know a dude at my job who just recently bought 315k house with girlfriend. He makes 14 dollars an hour. I am not shitting you.

[Anonymous No.16983630]

>>16983620

[Anonymous No.16983632]

>>16983425
>banks want to lend
>people want to borrow
>sometimes an irresponsible amount is lent
>”this is the customer’s fault they shouldn’t have asked for this much, at least we can write it off our taxes because we made a bad business decision so we should be rewarded with money.”
There’s the math.

[Anonymous No.16983641]

>>16983605
No, i lived in Missouri. I want to move back, but not everyone's life circumstances dictate they can drop everything they are doing and go live where affordable housing is. You are lucky thsts where you found a job+have a family but thsts not most people as they have family +work responsibilities elsewhere. Also that housing example just isn't the case in most east/west coast states Canada/Australia etc. It's not even different leagues its a different game.

[Anonymous No.16983699]

>>16983620
>>16983630

My ex was in the same exact situation. She was making $25/he and bought a house for 350. She only put 5% down, so they raped the shit of hey with pmi. Every fucking week I had to listen to her complain about her 45k leased mercedes and house payment.

"The bankers just don't want people like me to have nice things, which is why they make it so expensive. Bernie will fix this"

This was a few years ago, and I didn't realize how fucked that situation was. It was a gift from God she left me for another guy. Heard they were engaged. Hope the poor guy realizes what he's got before it's too late.

[Anonymous No.16983718]

>>16983699
Damn sounds like serious cope bro. Enjoy jacking off at your mom’s house tho

[Anonymous No.16983723]

>>16983539
You should never pay off your mortgage, you should ALWAYS have a mortgage. Mortgages are literally the best part about real estate from a retail investor standpoint. It’s the best form of leverage you can get.

[Anonymous No.16983739]

>>16983723
you know whats better for me? paying it off and having peace of mind.

im not all about the min/max finance shit sometimes we have different goals.

[Anonymous No.16983830]

>>16983723
Yeah, I'll be sure to take financial advice from some sperg on 4chan during Saturday night. I bet you're oblivious as to why you're poor too.

[Anonymous No.16983960]

>>16983723
Cope

[Anonymous No.16984136]

>>16983718

Already got a new gf and had sex there times this week.

Cope and project some more though

[Anonymous No.16984172]

>>16983723
That's what a poorfag tells himself. Faggot