I think in that scenario you are a dumbass and finance the purchase of a $10MM beach home on the coast right off the bat
It’s not really about that, it’s more that the single person households obviously drive the number down. And doing income instead of expenses also doesn’t account for people living above their means through credit cards, etc.
On a 30-year mortgage? At 7% that’s $42,800 a year in mortgage payments. Are you suggesting that property taxes and home insurance cost $58k a year?
This is the dumbest shit possible. Single people are the same as single working families. It's not going to drastically skew a number from a sample form 127 million households
Depending on when you live, this is entirely possible. Insurance and taxes on a 2,000SF condo in Sarasota is over $50k per year.
29% of American households in 2022 were single person and 27% of family households were single-income. I think it in fact does have an impact.
Wait. How do I get a mortgage on a 1.2M home at 7% and only pay 3567/mo. What kind of magical math is that?
It means they directly offset each other. Not all families are dual income earners or high dual income earners. The avg American family doesn't have 100k in annual expenses. That's not fucking reality
A $1m home right now is going to run you about $7k per month, plus taxes and insurance. Obviously taxes and insurance vary but you can do them for under $30k in like 99% of the country.
You understand that a measure of national median income is going to include both single-person and single-income family households, while a measure of average family of four expenses is only going to measure the latter, correct? That’s literally millions of “households” included in one and not the other. They don’t offset each other.
Yes, I completely understand. You can remove whatever you want. There are millions of single income families of 4. The idea that families of 4 are solely double income, high income at that, is asinine A median family of 4 isn't going to have expense that exceed their earnings by like 50%
Agreed. Based on what I've looked at so far, they're looking at something like getting paid 265k and owing 450k, the %'s really look pretty wild. But honestly it's taken me until I was in my 40's to realize how bad with money my parents have been. They may have no other option at this time and I don't care about any little scraps of inheritance, I mean at least that's not my focus. I'm hoping to do better and teach my kids and nieces to handle their money better.
sorry I knew the all in mortgage, insurance and tax number and trusted that Jake’s sub $50k mortgage was correct while out to dinner and not fully paying attention. Total between the three is over $100k a year. Which was the original point.
Tbh it's right at 100k. 84k for loan, 12k for taxes, like 6k for insurance. I can't think of anywhere in the US that would have 50k in taxes and insurance on a $1m house. I've seen some crazy tax bills in NYC and some areas in Texas but I don't think any of them are getting to $50k.
$6k for insurance on the Florida coast? Not sure where you are getting that but give me a contact if true. It’s already double that if not more after these past couple years.
I just want to point out that generational wealth doesn’t necessarily mean the later generations done have to work at all. Wealthy people still have jobs that supplement their inheritance. Most of the conversation so far has been about inheritance and income returns relative to the national average which has fairly resulted in a reasonable debate. However, if you assume that the beneficiary has a typical job, like a school teacher, their salary plus inheritance easily makes them wealthy.
You're not buying on the coast for $1m so not sure why you're bringing that up. You can get insurance for a $1m+ home for 6k-8k in Florida.
The most likely thing to happen would be your dipshit failson kids will blow it on bad real estate investments and it won’t make it to the third generation.
yea, maybe. But it was still generational wealth. Nobody is going to argue that some dumb ass couldn’t possibly spend it all.
Will you look at that. https://www.zillow.com/homedetails/...r-T1-102-Longboat-Key-FL-34228/47466602_zpid/
yeah - I was super confused. I was being intentionally coy, but my interest rates are much lower than 7% and the combined debt is about 1.2MM with about $8,500/month in payments.
It's really really really easy to prevent your failchildren from blowing eight figures through the most basic of estate planning. Making your dipshit children the sole trustee of their own trusts is about the only way to realistically blow anywhere near that money.
That's a townhome, insurance is way different than a single family home. The HOA has a master insurance policy that covers the structure and all on site amenities so the $1300 HOA cost covers the majority of your insurance. Contents insurance is cheap. HTH
My first post you quoted mentioned a condo, which this is. Please keep up. And yet the insurance is still significantly more than the $6k you quoted.