If a person wanted to live in a two million dollar house, how much money would you have to make?

1. How much should he put down?

2. How much money should he have in savings. (after the down payment).

3. How much should he make annually?

Are there any other major factors that should be considered?


I know everyone's idea of affordibility is different, but I'm curious to hear your opinions. I know there's a handful of people here with money and a sound financial philosophy.

Thanks

 

You'd need an income of at least $500k per year. 20% down, or $400k down, would be ideal.

- Warren

 

1. 20%

2. At least the same amount as what he used for DP

3. http://www.bankrate.com/brm/mortgage-calculator.asp and multiply the monthly payments by 4

 

are we talking 500k gross income or after tax income?

 

so far reasonable numbers. Pretty much what I would figure I thought people would push much more conservative numbers on me, but I guess having 20% down and the equivalent in savings is a secure way to go. 500K stable income would be sufficient too.

thanks for sharing your opinions guys.

 

Silly question. I think it depends on your wealth and how you get your income just as much as it depends on what your income is.

If you are making 150k a year consistently, have 200k a year coming in residual income from a bunch of t-bills or dividends, saves or invests most of his after tax income, and has a net worth of 8 or 10m, buying a 2m house isn't nearly the same predicament as a sales guy setting records that currently leases an aston martin and a ferrari, has a net worth about equal to his salary of 500k, and rents a high priced condo for 15k a month downtown.