I saw a story this morning about a house listed (in California) for $250-million. The owner said only about 3,000 people in the world can afford that house. I wonder if he thinks I (or anyone else) admire him for that.
Thanks for all the responses.
The shear size and costs of some of these houses still amazes me. :eek:
Also, the extent that many people will go to afford these huge houses as well as the how there can be a huge house(s) in one area and a short distance away another much smaller house.
Thanks
Every time I think about relocating out of the Bay Area the cost of housing is a driving factor. Haven’t pulled the trigger, yet.
Another thing you might not be considering is that Fort Worth is filled with families that are living off trust funds for generations. A lot of people might not have a fund large enough to retire on, but have enough to more than help with expenses. A lot of people don’t realize how much hidden wealth Fort Worth has. There are, off the top of my head, 4 country clubs. Look on Google earth near Rivercrest country club. You’ll see estates (such as the Bass Family’s home). The three big private schools run about 22,000 a year and have waiting lists. Many of our cultural gems (museums and zoos) were privately funded.
To me, what is more shocking are the homes in the fairmont district. These are often bungalows that require a lot of work and if you find one, are in the 200-300 range. Also all the new apartments that are being built in the museum district often start at 1,600 a month.
Have you only considered first time home buyers? Many people buying may already have a home with equity to desire a nicer neighborhood for their lst house at the ages of 45 to 55 instead of the first time buyer at 28 to 38
Yes, my grandfather used to be a Fort Worth politician and took me to the Petroleum Club when I was young. He knew tons of people much richer than he is. That has never been a poor area in modern times. There is a lot of hidden wealth.
My mother and stepfather live outside of Dallas in a gated community with whole neighborhoods full of houses that cost a whole lot more than $300k. Everyone has a different story. My mother is a successful author and international speaker while my stepfather is an endowed chair college professor. Some of their neighbors are people that have jobs like law partner and software engineer for Match.com.
Toyota USA just relocated their headquarters from California to their general area and that brings lots of good jobs. I made it a point to walk through entire neighborhoods under construction a couple of years ago. It was spooky. The roads, houses and even schools were just empty land the year before and there they were just waiting for people to move in.
That said, I live in the Boston area and would kill for a house that only cost $300k. They don’t really exist here unless you want a teardown in a terrible neighborhood. I am confused about how many people afford it too but I know how I did it. You just have to have a decent job and spend more for less than you would in other parts of the country. I spent 7 years fixing up a dilapidated house that turned out beautifully but it cost more than $300k even in poor condition in 2001 and a whole lot more when the renovations were done.
You just get to be “house poor” for a long while and sacrifice in most other areas so that you can have it at all and that can be a precarious situation. Banks used to approve mortgages for almost all of your take-home household income. Forget little things like eating or car payments. I didn’t fall for it but lots of other people did. All it take is a temporary loss of income for that whole house of cards to fall. That is the explanation of the recent housing crisis in a nutshell.