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Paid 800k for mine in 2014 ( Boston area). It’s now worth $1.5M and I’m staying put. Every time I have the itch to upgrade, I spend a little bit of money to make the current place a bit more comfortable 🙃. The house is paid off and I can’t justify buying up
We own $6.5M worth of houses but two of them are revenue generating. Our primary home cost $842k when we bought in 2015 and is now worth $1.5M. I can’t imagine spending $8m on a single home but I think it has a lot to do with your overall finances. You must be doing well to even consider it, but it seems silly to complain about the cost of an $8m home when you own a $4m home.
Bought a year ago for $4m. Putting $8m is a bit insane. Unless you have a lot more money to just throw. After $5m the ability to sell the house semantically changes.
What’s the most you have paid for a car? I just bought a super car and it was $257k us. My last car is only worth $15K. This inflation is out of control!
#humblebrag
Totally!
Enthusiast
Only 2.2M. 8M is a huge chunk of change to put into a single asset. Especially at that price range it feels prices are more volatile. If I look here in NYC tons of people that took a bath by buying in overpriced stuff. Quite honestly unless you have 20-30M in other assets it feels off.
Agree with P2. Ask yourself what % of your total assets you are putting into a single investment.
$8M seems to be in a bracket where if you have to second guess your desire for spending that amount, you might not be ready to spend that amount. Most people in that bracket that are considering buying an $8M house typically don’t stress out about spending that amount.
$8M is a lot of house pretty much anywhere. General rule of thumb is that primary residence should not be more than 30% of net worth. If your net worth is ~$27M then honestly why even ask as it doesn't matter if the house is $8M or $6M or $10M in that situation.
People who are looking at an $8m house are not allowed to complain. Sorry.
And make sure you do the honest math on all follow-up cost: maintenance, insurance, cleaning, gizmos, energy, tax, … an 8M house will incur a lot more direct and indirect forced cost.
Bought primary home for like $650k in 2015. Currently worth $1.2m. Bought second home for $1.3M in 2022. That feels like plenty of allocation to residential real estate.
How much equity do you have in your $4m house and are you planning to sell it and roll it over to the new house? What’s property tax on $8m? Here it would be ~$90k/year.
We bought $2.6m. We’re not buying another primary residence but rather looking for a second home.
700k for me but I think the question should be different:
Will it bring you joy without jeopardizing your financial situation? You will not take the money into your grave…
I think it’s all where you are with your planning for retirement and financial health. As you mentioned you can afford it, so it’s up to you.
I’d rather spread it across multiple real estates and other things.
Kids are gone, downsized and went to a less expensive neighborhood. Bought a place on the mountains on a lake where the kids like to go, and a place on the shore where the kids will also join us.
I think $800K to $1.5M houses turn over much faster if we want to sell one.
We lived where a $2M house was $30K in taxes alone. Now all three are $20K.
What are you all making to be able to buy 4M properties?
$1.1m in HCOL (Boston area) but I’m a 3rd year partner, HENRY status.
I did the same except in NJ. Also 3rd year Partner, and not at that ramp up stage yet!
$1.5M…and that’s as much house as my family of four will ever need. I’d rather save aggressively and retire early.
I bought my house when I was a Director for around $730k. We’ve put maybe $500k into it (addition and large two tired deck). No intention of moving into anything bigger, I love where I live and I love my street. It’s down to earth and not too snobby. I don’t think I’d have much in common with my neighbors if I lived on a street with $2.5/3m+ houses and Ive never really been about status.