I am 40 years old. This would be my first house. I currently live in an upscale apartment building, and it has been (mentally) challenging to pay so much more per month than a mortgage would be at current interest rates to get a house. But at 40, I am accepting that I need to stop letting perfect be the enemy of good.
The house is $3.25m and probably needs $700k of maintenance and updating, none of it urgent. It would be a multi-year investment involving a variety of contractors. It has some unique attributes that would make it difficult to resell.
So far fairly reasonable questions, $3.25m is pretty nuts for a first time home purchase
I earn ~$2.5m / year (post-tax) as an executive at a public F500 company. This varies with stock performance, but can reasonably be expected to continue (though, see below). Yearly spend is ~120k/year (not counting rent).
My net worth is $7.1m, virtually all liquid. 100% in equities.
He says his rent is ‘much’ more than what a mortgage would be for a 3.25m house and is not specific. A quick calculator (without 20% down) at today’s interest is like $27k a month including taxes and insurance, so $324,000 per year+ on rent not including expenses related to rent. He can pocket 2m per year and has 7.1m net worth? Either he just became a high level exec or something doesn’t add up. You be the judge.
That would be me as a single dude. I’d also be living an extremely luxurious lifestyle at that spend. I’m sure that I could have a nice place to live (as a single guy, too much space is a problem), sick car, lots of travel (presumably the job would limit how much I could do, but I’d fly first class and such) and still spend under 10k/month.
I mean you obviously don’t want to go through your entire life living like that but if somebody wants to work an extra job for a few years to pay off a debt because they are tired of seeing $500/month come out of their account and it not even make a dent in their balance because the interest is eating them alive I don’t think that’s the most unreasonable in the world. But I also don’t fault the people who would never want to do that either.
This article is not nearly as bad as the ones that are like:
Got a $115k forgiveable loan from my parents
Made my own coffee and stopped drinking at Starbucks
I get that, but when you go through the article its clear that he is a Dave Ramsey cultist, which means he likely tithed ten percent of his income and paid boatloads to team Ramsey in the process and I wonder how much more quickly he could have paid stuff off if that wasnt the case
“And today, Burr thinks the only criticism over the way he paid off his debt would come from current student loan borrowers, “who want the taxpayer to pay their student loan debt,” he said.”
