There are 3 houses in my neighborhood that have been or are on rent and every one of them has a rent payment much higher than you could get any of those homes for (including mortgage, property tax, insurance, maintenance, etc). The people living in them either can't get financing or need a short term place to stay (one man makes good money but is in the middle of a divorce for example).
I own a few single family homes and none of my rent is less than the mortgage which includes insurance and property taxes. All of the rents run about 20-30% above the cost. If I cant cash flow the property I sell it. I'll be honest and say how surprising the demand is for these places. Put a house on craigslist and within hours I have showings and can usually get somebody passing a background check and have a signed lease within a week.
Cars are probably the worst example of short term thinking. Go buy a 60K car that is worth 20K in 5 year. There are much better ways to spend 40K than to drive it into the ground.
what fucking idiotic article.
$25k a year on house maintenance?
$15k on utilities?
$30k a year on food for 4?
$9k a year on auto insurance? wtf are they driving and how bad a driver are they?
Who gives a flying squirrel what a car is worth if you don't plan on selling it? Could it be that people buy cars to enjoy them?
If it's a lease, they didn't spend $60k. Renting a car still allows someone to enjoy it.
You money people are absurd.
The implication is that the majority of people driving $60k cars would be much better served by buying $20k cars and spending $40k on other stuff...some of which could be quite fun indeed.
And do you really think that MOST people buying expensive cars are doing so because they are motorheads, vs. as a status symbol?
The implication is that the majority of people driving $60k cars would be much better served by buying $20k cars and spending $40k on other stuff...some of which could be quite fun indeed.
And do you really think that MOST people buying expensive cars are doing so because they are motorheads, vs. as a status symbol?
And do you really think that MOST people buying expensive cars are doing so because they are motorheads, vs. as a status symbol?
I swear, people who don't care about cars care more about others' cars.
They're leasing or maybe even bought CPO. And we don't know, do we? Besides, you don't have to be a motorhead to enjoy a car. Christ.
I swear, people who don't care about cars care more about others' cars.
400k per year would be considered poverty stricken by some people's standards. It's all about perspective.
Me personally I'd feel like a damn king. Would probably only have to work a few years before I had enough of a pile to call it quits forever.
Seems as though a lot of people missed that the $25k/year in maintenance is on $1.2 Million home. I don't think that's really outlandish. It's about 2% of the value of the real estate. If you compare it to a $250k home that would be about $5k per year. Obviously, estimating the annual maintenance for a home is more complex than just taking a percentage of the cost/value of the property, but the simple point I'm making is that more expensive properties come with more expensive maintenance. The year that you need to put a new roof on a $1.2 Million home, you'll be spending WAY more than $25k for it.
I think the reaction is because "maintenance" is poorly defined
if they are included paying someone to clean it and others to take care of yard work its more believable. but if not im not seeing it.
If everything is in working order you should not have to do 25k worth or work every year
sure things break, appliances, and such but not 25k of them per year.
that's all most people are saying
WTF First thing is 1.2 million house then 24k in property taxes plus 30k on groceries.
https://screen.yahoo.com/videos-for-you/400-000-feel-broke-160902355.html?vp=1
400k per year would be considered poverty stricken by some people's standards. It's all about perspective.
Me personally I'd feel like a damn king. Would probably only have to work a few years before I had enough of a pile to call it quits forever.
If they do then they are way out of touch with reality. That's in the .02% income bracket.
Because most people have no clue.
Maintenance costs become an average. Some years you may get lucky and spend next to nothing, then one year you have a pipe burst, a/c failure, or the true maintenance things like fencing and roofs that just run out of usable life.
On a 1.2 Million dollar home a roof can run $100k or more easily and fencing can be brain damage.
And in lawn care and the factor that most 1.2 million dollar homes have high maintenance landscaping, one could be paying $500 a month just for that.