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0 pointscheesecake_luvr4y ago0 comments

Personal questions and you don't have to answer at all: Did your family really have the money to pay it? Where did your family get it from?

Don't have to answer if you don't want to.

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4 comments · 1 top-level

Mandatum4y ago· 3 in thread

Yes. They sold their last house for $1.4M. They bought it for $400K 12 years ago. They've never had a job that earned them more than $100K. They have just bought something else for $1.5M which needs $200K spent to get it to how they want it (renovating bathrooms, kitchen, etc).

itsoktocry4y ago

>They have just bought something else for $1.5M which needs $200K spent to get it to how they want it (renovating bathrooms, kitchen, etc).

They are putting $200k into an asset which is already 10x+ their income? Ouch. I can't wrap my head around a financial decision like that.

If you look at income and ignore their wealth, maybe it seems strange. But they have > 1.4 million in equity. They're allocating < 15% of their equity.

At the end of the day they'd be sitting on a mortgage that's only 2-3x their annual income, that's very reasonable.

lepton4y ago

By "income", parent is referring to employment income. But their true income is the real estate investment of their primary residence, which nearly doubles their income.

They are borrowing $300k I guess (1.5m + 0.2m, less 1.4m), and will likely sell their new house for far more than $1.5m when they sell again in another dozen years.

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