If the price of my house is more than $1,2M, and is pay in full, am I rich?

Answer 1

Well, if you wanted to sell your house and buy one that costs say $150,000 somewhere where the cost of living is cheap, then, no, you're not rich. Well off, I'd say, but not rich. If you were going to move somewhere cheaper, you could invest the money and use the interest for living expenses and you might not have to work as much.

Answer 2

Look at it this way. $1.2 million, on a 30 year mortgage with 5% interest would have monthly payments of $6,441.86. That is $77,302.32 year you are NOT paying for housing. At 1/3 of your income for housing, that would require an income of $231,906 per year. If you are NOT 'rich', you can't afford to live in a $1.2 million house even without payments.

Answer 3

To be rich is very subjective...

I personally believe that a person's house is a liability not an asset as you never realize its value until you sell it, but still have expenses to maintain it. If you were to sell it and move into a $200k home and invest the $1 mill in rentals or other investment, then I would start to think you are well on your way to riches or at least a comfortable life.

Answer 4

It would depend on the area you are living in. If you sold it could you get a house for less than the one you have now and live comfortably in it? If not, I would not say you were rich.

Answer 5

Not really, if you're living in it. You have to live someplace, so if you are in an area where housing costs are very high, then it's great that you have your house paid off, but that doesn't make you rich. You can't take the money out and spend it.

Answer 6

Boy you'd think someone living in a 1.2 million dollar house would have gone to school...and been able to type in english...I guess it's not just people from the 'other' side of the tracks...;o)

Answer 7

Yeah.

Answer 8

not really