Houses

[cheetodug]

Can a physician with 200k in income (140-120k after taxes) afford a 2 million house and a mercedes?

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[MilkIsGood]

no

 

[libertyyne]

2 mill mortgage is roughly 10k. 200k after taxes =~150 k /12 =~12.5 /month. I mean you could buy it , but you wouldn't be able to afford upkeep, taxes , student loans or most other things. You would be house poor.

 

[Redpancreas]

2 mill mortgage is roughly 10k. 200k after taxes =~150 k /12 =~12.5 /month. I mean you could buy it , but you wouldn't be able to afford upkeep, taxes , student loans or most other things. You would be house poor.

What about that Mercedes tho?

 

[cheetodug]

How about 1 -1.5 million?

 

[BadSanta]

Why on Earth would you want to buy a $2 million home? The thought of the upkeep is enough to drive me insane...

Houses don't make you happy. Experiences make you happy. I believe it is much better to put any extra money into vacations, dinners with the husband/wife, kayaking adventures (or the like), etc.

A home is just a place to lay your head at night.

 

[cheetodug]

Real question. How about 2 bedroom high rise condo in a big city? Affordable?

 

[libertyyne]

Real question. How about 2 bedroom high rise condo in a big city? Affordable?

Wouldn't be able to afford the HOA fees.

 

[libertyyne]

What about that Mercedes tho?

You could lease a c class car for 500 bucks .

 

[cheetodug]

Wouldn't be able to afford the HOA fees.

How much HOA are you thinking of?

 

[libertyyne]

How much HOA are you thinking of?

HOA fees vary, but they can be as high or higher than the mortgage. Have you thought about this ?Has anyone thought of the long term financial benefits of marrying another doctor?

 

[cheetodug]

Can i afford a shack in the middle of nowhere and buy a second use honda civic, and eat instant noodles as an attending making 200k?

 

[mistafab]

Bruh - that is a recipe for disaster (and the standard USA lifestyle).

Mercedes too?

I mean cmon bro - these are bad financial decisions.

 

[mistafab]

Now you are getting it.

Can i afford a shack in the middle of nowhere and buy a second use honda civic, and eat instant noodles as an attending making 200k?

 

[Perrotfish]

How about 1 -1.5 million?

At 140K after tax your lifetime after tax income over a 35 year career is 5 million. You can spend that on what you want. You could afford a 2 million dollar house, in the sense that you could pay for it and have enough to live and retire on, but you would be spending a disproportionate amount of your income on your home.

As a doctor you can have (almost) anything, but you can't have everything. You choose what matters. Boats? Cars? Travel? Big home? Private schools for the kids? Free time? Early retirement? Charity? You have your after tax income x 35. Decide what matters most.

 

[cheetodug]

So I can afford a shack in the middle of nowhere? With 200k?

At 140K after tax your lifetime after tax income over a 35 year career is 5 million. You can spend that on what you want. You could afford a 2 million dollar house, in the sense that you could pay for it and have enough to live and retire on, but you would be spending a disproportionate amount of your income on your home.

As a doctor you can have (almost) anything, but you can't have everything. You choose what matters. Boats? Cars? Travel? Big home? Private schools for the kids? Free time? Early retirement? Charity? You have your after tax income x 35. Decide what matters most.

 

[libertyyne]

According to standard measures , if you have no student debt you can afford a 900k house. With 28% pretax income dedicated towards house payment. more likely 700k will be the ideal spot.

 

[cheetodug]

Breaking that "rich doctor" myth with one thread

 

[IlDestriero]

You can’t afford a $2m home unless you’re putting about $1.4M down.
Anyone can get a Mercedes.
Unless you want an S65 AMG.

Mmmm... Biturbo V12...

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Il Destriero

 

[cheetodug]

Just wanted to know the buying power of 200k income, does anyone know?

 

[IlDestriero]

You can afford a $600k house, lease the lady a nice minivan and a rock a used E class. Adjust down for individual debt.
Hopefully your significant other will have a job so you can do things like take some vacations, save money, invest, retire, etc.
The more modestly you live the better off you will be in the long run.
So that $400k house and a Honda Accord are looking better and better. The sooner you learn this lesson the better off you will be. Some never learn it, some can retire at ~50 with more than they’ll ever need.

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Il Destriero

 

[Forever Geebs]

You can’t afford a $2m home unless you’re putting about $1.4M down.
Anyone can get a Mercedes.
Unless you want an S65 AMG.

Mmmm... Biturbo V12...

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Il Destriero

The drool is real. I miss my S63 AMG. #priorities


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[cheetodug]

You can afford a $600k house, lease the lady a nice minivan and a rock a used E class. Adjust down for individual debt.
Hopefully your significant other will have a job so you can do things like take some vacations, save money, invest, retire, etc.
The more modestly you live the better off you will be in the long run.
So that $400k house and a Honda Accord are looking better and better. The sooner you learn this lesson the better off you will be. Some never learn it, some can retire at ~50 with more than they’ll ever need.

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Il Destriero

I am planning to work until 65 though, and I will have no debt. Does that make a difference?

 

[IlDestriero]

First world problems...
Retirement car edition...
S65 vs 488 vs GTC4
After all, you can’t take it with you.


--
Il Destriero

 

[IlDestriero]

I am planning to work until 65 though, and I will have no debt. Does that make a difference?

No debt means you’re able to get all those things more easily and earlier than most. As for the rest, the more you work, the more you’ll earn. The more you earn, the more you can spend. However learn the value of compound interest and you can have my problems above, and retire early.
If you want to prioritize spending that on cars and watches and whatever else, go for it.


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Il Destriero

 

[Futuredoc23 23]

Can a physician with 200k in income (140-120k after taxes) afford a 2 million house and a mercedes?

Possibly, if zero in retirement and living poor the rest of your is the goal. You might have a castle, but no money to heat or cool it.

 

[HueySmith]

Sounds like middle class lifestyle to me hahaha.

 

[libertyyne]

Sounds like middle class lifestyle to me hahaha.

 

[HueySmith]

View attachment 225151

I mean, that doesn't mean much if what you're living like is what was described above.

 

[AMEHigh]

Why on Earth would you want to buy a $2 million home? The thought of the upkeep is enough to drive me insane...

Houses don't make you happy. Experiences make you happy. I believe it is much better to put any extra money into vacations, dinners with the husband/wife, kayaking adventures (or the like), etc.

A home is just a place to lay your head at night.

Well my old neighborhood 1 bedroom apartments were 800k-1 million. So don't underestimate the cost of housing in certain locations in regards to being a homeowner. 2 million doesn't necessarily mean a 7,000 sq foot mansion. The upkeep on a 2 million dollar apartment isn't anything extravagant in some places.

But OP no, you can't afford that mortgage on that salary unless you have a sizeable down payment. There are plenty of salary calculators and mortgage calculators out there that you can use to estimate.

 

[Ismet]

In the interest of transparency, OP was banned as it was an alternate account used for sockpuppeting.

Only one account per person, folks.

 

[Polonium-210]

People dream of purchasing fancy cars or nice houses. I like Neo’s line from the Matrix when he gets uploaded into the construct to prepare for rescuing Morpheus: Guns. Lots of guns.

 

[ealgroupllc]

The answer to the original question is absolutely not.

 

[Money Moniker]

The good physician derives joy and fulfillment from selflessly helping others, be they patients, hospital administrators, or nurse practitioner colleagues. When it comes to material wealth, he is satisfied with living vicariously through the escapades of his hospital CEO, for whom he is willing to walk through the very fires of hell. Remember: the first step to becoming a Good Provider is realizing there is no "I" in doctor.

 

[You shall know the Truth]

The good physician derives joy and fulfillment from selflessly helping others, be they patients, hospital administrators, or nurse practitioner colleagues. When it comes to material wealth, he is satisfied with living vicariously through the escapades of his hospital CEO, for whom he is willing to walk through the very fires of hell. Remember: the first step to becoming a Good Provider is realizing there is no "I" in doctor.

I agree, I do thing there is an I in physician though.