How can so many people afford expensive homes and nice toys??

Question

And I'm not talking about million dollar homes on the ocean either. From coast to coast, towns large and small. there is always the neighborhood in every single one of them where people own $250,000+ homes. I am amazed at the number of people that own them. And even if you have all kinds of credit (spending other peoples money as i read in another post) you still have to be able to afford the 2,000+ per month mortgage payment. Seriously who can do that? I am mind boggled by this. I can't believe so many people can afford this, sometimes I feel like knocking on their door and asking "Just what is it you do?" There can't be that many CEO'S and doctors, business owners or similiar. So seriously, what kind of work/income for these people? And if you own such a home tell me what you do!!!!

Answer 1

While credit has a HUGE impact on a persons quality of life and the things that they can bring into it. Being your own boss has much more to do with it. If you were to go to these homes and simply ask for a minute of their time to ask what they do to provide for their families more than 70% of them would most likely say that they are Entrepreneurs. In today's unstable market and due to the current trends that are changing workplace security and success, people are changing too. People who have taken control of their families financial success. There are a lot of things out there and if you are open to look at them there are a few things that you should keep in mind that are outlined in my "Honest Opportunity" yahoo360 blog. The other thing that successful people do is hire advisers and people to protect what they have, for more info on how that can happen take a look at my "Protect Your Family" blog as well. Then of course now days to keep what you build safe you have to protect it from the rising threat of identity theft. For more information that the banks aren't telling you check out the "Your Identity" as well. In the society we live people who want to get ahead have to be ProACTIVE about it. Going to work punching a clock has never made any one rich EVER and it never will.

Answer 2

we own a home, almost 100%. Just like everyone else, we work, have a salary that can support mortgage payments, living expenses, child care, and have not much left for savings... But we bought our home just as the prices were starting to go up like crazy. I kept on telling my husband, if we had to buy our home now, we wouldn't be able to afford the mortgage payments despite the low mortgage rates. The value of the house appreciated about 90% (a very conservative estimate) over the last 6 years.

I constantly wonder about the new homeowners, how they're able to afford the mortgage, property taxes, new cars, quarterly vacations... My husband and I sort of have a very tight budget because of my aggressive financial plans. So we haven't had a real good vacation for at least 3 years (since our first daughter was born). But we figured, those that are buying everything are either loaded with money (from parents, relatives... ), highly levereged, or have very good salary to make the ends meet. We have nothing, just good salary with tight budget for now.

Answer 3

I, too, have wondered this very question. My husband is a physician and makes really good money but we can't even afford to live in some of these monster homes. What I have found out is that some of these people never pay on the principal of their mortgage...they only pay the interest which makes their monthly payments really low. Plus, most of them don't pay their bills. I live debt free...that is, we worked hard to pay off our home. We pay cash for our cars and any entertainment items and if we don't have the cash, we wait until we have saved it.

Answer 4

Credit card debt. I'm not kidding. People these days are living way above thier means. I see people come in all the time that are buying homes that they absolutely can not afford. I honestly don't know how a bank will lend them money.

It's certainly not for me. I don't want to lay awake at night wondering where the mortgage payment is coming from.

Answer 5

You'd be lucky to find $250,000 homes in my area (Northern VA) as most homes here start at $500K. And I agree with you -- million dollar homes are sprouting like mushrooms in our area that you'd think everyone living here is super rich to be able to afford these homes.

The median income in our county is $88,133 compared to only $44,684 for the whole of the United States. The county attracts more educated, more higher-paid people - and hence home prices have reached stratospheric heights as well.

I like to think that there's truth to the commercial that says "I'm in debt up to my eyeballs" ...

Answer 6

1

Answer 7

At 800 a month, i somewhat do not imagine it somewhat is sufficient, even for the bare minimum. the position i stay, a one bedroom apt. is about seven-hundred a month, then component on your cellular telephone bill, nutrition, gas, electrical energy, etc. you'll likely ought to positioned down a deposit, it really is frequently a minimum of one months employ, so as which could take in what you've already got in cost reductions. for my area, it will be superb to keep up for a minimum of two months employ, in basic terms in case you lose your job throughout the time of your employ, and also you need to in all likelihood favor to p.c.. up more suitable time at artwork to keep you charges paid off. inspite of in case you are able to make all those charges on 800 a month, which could go away no room for having spending money to take excitement in. i'd propose engaged on ending college, or a minimum of have an friends beforehand you look at transferring out. residing which includes your kin ought to correctly be stressful now, yet there isn't any ensure that transferring out receives rid of those complications, as well because the addition of the monetary household projects you are able to have will upload even more suitable rigidity. yet, if you're nevertheless wanting to flow out, you need to always evaluate getting a roommate. it may lighten the monetary burden, yet you need to be careful, because in the experience that they bail and may't pay their 1/2 of the charges, it ought to grow to be a authentic difficulty for you. i'd heavily evaluate staying at domicile for only a touch longer, yet inspite of you come back to a decision, sturdy success.

Answer 8

they think" capital growth not cash-flow" they have learnt to leverage their assets to create wealth. I suggest you go to the library or your local book store and read the book by self made millionaires, these will help you achieve the same lifestyle

Answer 9

they probably bought the house when the real estate market wasnt like it is now.

Answer 10

It's called having a job. You should try it