Returning to rewatcher’s original post, let’s consider the 1% yearly property tax on a $2 million house, which is $20K, or about $1700 per month.
So, Mello Roos (800) + HOA (450) + Basic club membership (850) + Property tax (1700) = $3800 per month
Suppose a hypothetical buyer had a $500K downpayment. A loan of $1.5 million at 6.5% interest rate would have monthly payments of about $9500.
Total house costs per month = about $13,300
Would seem to me that annual family income needs to be at least $500K to afford that. I’m assuming that most people, like me, need to save for retirement, college costs for kids, etc.
Are there still a lot of jobs making at least $500K after the banking crisis?
