Saw an ad for a range rover with the low monthly payment of $799.
I’m curious what the income bracket is for people able to afford this. On a related note, how much is someone who purchases a million dollar home typically making a year? Or the income bracket of someone say who is able to afford their own private jet?
Well I was playing around with the mortgage calculator on my banks website the other day and you too can qualify for a million dollar mortage with an income as low as $225,000/yr.
You would have to owe nothing else and it wouldn’t be a very fun life but the bank would hand over the cash.
Lease or buy on credit?
Again - buying a million dollar home in cash or with a mortgage? If with a mortgage, I know people whose earnings were as low as 300K range that bought $1M homes fairly comfortably.
I don’t know anyone with a private jet. I think you have to be very extravagantly rich to do so. But people with $700K+ incomes who fly a lot should be able to afford to buy into private jet share programs such as NetJets. Prices I think start at $115K for a 25-hour chunk. And if you are flying on business, you can write it off.
At one point, we had 2 car payments that totaled almost that much. Of course, apart from our mortgage, they comprised the bulk of our debt and the payments were so high because we financed for 36 months rather than 60.
No clue for the million dollar mortgage, tho. When we got a 200K mortgage, our combined incomes were around $160K, so extrapolating, that would give an income of 800K - I’m not sure my logic is valid. Debt load would obviously play a part.
Thanks. Just trying to get some sense as to what income bracket is being targeted by Land Rover.
I once had a car payment of $1215 a month. Really. 48-month loan, $60K car.
I kept the car 13 years, having just traded it in a couple of months ago.
My friend, who is nearly as broke (actually, she may be more broke, but she has a somewhat larger income) as I am, just bought a car. It was from one of those places where folks with not-great credit can qualify for a much-too-nice car with way-too-high payments. I’m agog that her payment if going to be $400 a month. I know that’s a fairly typical payment, but I sure couldn’t do it–and am not sure I’d be willing to even if I could, unless I had WAY more income than I can imagine myself having…but part of that is just me being used to my financial situation. If I made 60K a year, it might not look bad at all.
I have wondered that same thing. We like to ride through the neighborhoods of humongous houses that just stink of money and we do this thing where one starts saying and the other chimes in “I hate my life, I hate my job, I hate my house…” and so on because it makes you feel like such a loser. I know, money doesn’t bring happiness and big homes don’t mean a contented life. I would be willing to try anyway. Or maybe just be able to pay the power bill this month.
Anyway, we wonder who are these people? What are their jobs? Incomes? We live in a big medical town so I know that many are doctors married to doctors, also some work at the Bomb Plant (nuclear plant in SC) Some are personal injury or homicide lawyers. The inherited wealthy live in another part of town.
They have mighty purty houses is all I know.
I have a 400 dollar per month car payment (but I pay 500 per month instead), and make about $60K per year. I think I could afford $799 per month if I really wanted the car, and all my student loans were paid off.
Wouldn’t a million dollar mortgage be fairly easy for someone with even a 200k income? Say their take home is 125,000. A million dollar mortgage + property tax and insurance would come out to about 7k a month- that leaves 41,000. That’s more than most people have left over after their rent/mortgage. It’s obviously not a sensible thing to do, but seems like someone could do it without issue if they lived like a normal person aside from their million dollar house.
799 a month for 60 months works out to 48k, factor out interest and that works out to a 40k car on a 5 year payment plan (assuming 6-7% interest).
So it isn’t ‘that’ extravagant. 40k is about where entry level luxury sedans start.
But who can afford that? People whose net household incomes after taxes are at least 4-5k a month I would assume (assuming they live in relatively low cost real estate, which I’m sure they don’t). But that is based on the wholly unrealistic assumption that people’s car payment is roughly the size of their rent or mortgage (which I’m sure it isn’t). I’m just saying if you had a household income of 4-5k a month and rent was less than a thousand, you could probably afford that kind of car payment if you wanted it.
A household income of 180k a year would give you an after tax income of around 10-11k a month. On that you could afford 4k a month for the mortgage and 1500 a month for the car payments on 2 entry level luxury autos.
Eric Clapton and his $4,750,000 Ferrari wipe their asses with $799 dollar a month car payment bills. The floor mats may cost $799 a month.
Man fuck that I don’t pay any bills at all. True enough u won’t be able 2 get free sex by not paying bills, but I’d rather spend my money on girls than on over priced rent or mortgage
You sort of bounce back and forth between calling it fairly easy and not sensible, but I think you nailed it with ‘not sensible’. $41,000 might sound like a lot of money to have left over net after taxes and housing but they need to save a lot more than lower income people do in order to retire. They ought to save $40,000 a year for retirement leaving them with only $1000 a year for their car, clothes, food and all other expenses! Oh and their poor kids’ college funds will be woefully underfunded.
Welcome to the SDMB, Yazuka. Another of the expectations we have around here is that people stay on the topic of the OP, rather than using every possible opportunity to trot out their own schtick. Please make an effort to do so.
twickster, MPSIMS moderator
Where there are expensive houses, there are expensive groceries, expense gasoline, expensive day cares, expensive auto garages, and expensive movie theaters. If you live in a neighborhood with a million-dollar home, you can’t afford to live on $41,000.
I’ve bolded perhaps an error in your thinking. You point to a random million-dollar house and I’ll point to a house with two or more working professionals in it. It’s not about salary, it’s about household income.
If you and your wife make $150k each, you could easily afford it, and that number’s not that hard to come by.
One of these things is not like the others. By orders of magnitude.
That sounds about right. A million dollar home (with an 800k mortgage) has a payment of around 4k/month. I think you need to keep in mind that most homes that expensive ate in major cities, and the percentage of income dedicated to housing in urban environment is always higher than it otherwise would/should be. In many areas, a million dollar house is not all that fancy.
My partner works in collections and has seen every crazy payment you can imagine. He was telling me about one woman who was 2 years behind on her mortgage, which was about 700 a month. They had a $1000 Porsche payment, 2 kids in private school and a bunch of other things. He had a hell of a time convincing them that if they wanted a place to live, they needed to cut back on other things.
I guess the real question isn’t who can afford it, it’s who SHOULD. My husband and I make a good amount of money between the two of us. We would probably qualify, easily, for a million dollar mortgage and/or an $800 car payment. But the reason we have a nice life now is that we would never have considered either possibility. Neither of us have ever believed that it was a good idea to mortgage your future to pay for your present. We have a modest house and two modest cars—one 12 years old, one 4 years old. Certainly has worked for us.