Lets run the numbers here.
So in other words, only those that happen to be lucky and relative to a doctor lazy/effortless can buy houses for those prices and up like actors/the kids on Twitch/YouTube who pull in millions per month, athletes etc. Sad. The hard-working academics can forget it.
Probably not. After your $800,000 down payment, that would give you a mortgage of $192k a year, not enough left over to even pay your property taxes more likely than not.
The rule of thumb is for a reasonable maximum to your mortgage payment. Someone making $300k/year with $93k in taxes and an $84k mortgage still has $123k a year for everything else. Even with $25k for property taxes and $30k for student loans (about the highest you'd pay with that income under the current IBR plans), that's $68k a year for insurance, food, transportation, etc. It would be basically you prioritizing the house above all else, but you will have enough money left to live a good life (that is, your discretionary spending AFTER housing and loans would still be higher than half the households in the country total income. While you're living in your $1.7mm house).
I think that depends entirely depending on what market you're in. Assuming that our physician wants to live in a decent sized home in a safe neighborhood with quality schools.
Why are you replying to a question that's already been answered? Can't you read?
Speaking of reading, I recommend The Millionaire Next Door by Stanley and Danko. They identify physicians as the top group of high income earners who are Under-Accumulators of Wealth (UAW) and identify reasons why. The mentality that drove you to create this thread only confirm the stereotype that some physicians -- generally speaking -- are horrible with personal finance and accumulating wealth.
I mean, let's say you make 12k a month after taxes, and you spend 3k on your mortgage. That still leaves you with 9k/month to spend, which is still pretty damn comfortable to me.
Local taxes can bite harder than state ones sometimes
I'm in a very high COL area spending $1350 on my half of rent on a resident salary (~65k so like 1/3 of my take-home) and feel completely comfortable. I don't have a car--not because a car is itself expensive but because parking in my building and at the hospital would triple the cost of ownership. I don't see how someone netting three times my gross would have trouble living comfortably spending less on their housing--proportionally--than I spend on rent now.
Because some people get the fancy house plus the fancy car, then send their kids to the fancy private school, and go on fancy vacations when they aren't buying fancy **** for their house.
Is that your definition of living comfortably? Or are you making the sarcastic point that some people do think that's what it means?
Far too many people think that is what it means. That is why so many doctors are underaccumulators,of wealth even with big incomes.
With an income of $600k, you can feasibly get a $2million house even now, but with current interest rates, it's a bit of a stretch to go higher than that. PITI for a house like that will depend on the exact rates, down payment, and property tax/local insurance environment, but is likely on the order of ~$16k/month. That's around a third of your gross and probably around half your net income, depending on your marital status, dependents, and state you're in. Regardless, it's not "unaffordable", but it's not ideal either. Three million would be really pushing it.
Depends on what you do with your income now. If you live on a small fraction of it and invest the rest you will accumulate enough assets to pay the costs a house like that would bring you. But why would you want to do that? If you are happy with your house and with an inexpensive lifestyle now why would you need this later? And if you aren't happy with either why would you deprive yourself for so long?
You won't even have to be 60 to retire to a house of 2.5 mil if you continue to live like regular a upper middle class individual (eg., living on 10-12k/month), which is a lot IMO. 600k/yr is a lot money.
No debt, reasonable house, maybe no kids too?
Possible and smart are two very different things. Possible? Sure. If you've got an income of $300K and $6M sitting around you could buy a $6M house. Would that be smart for this person to put all of their net worth into a house? No.
With our income levels, I think "can you afford this" is better replaced by "should you really spend that much."
If the interest rates are low enough, you have enough down payment, and you have no other debt to pay you can. There are calculators that you can put your info including state/county into and it will spit out your anticipated property taxes and monthly mortgage payment.
Don't forget all the luxury vacations
My mortgage is $900K at just below 5%, and with my base salary of nearly $500K, after contributing 22% to retirement, there definitely is a lot less leftover at the end of the month than I would like there to be. And that's before even starting student loan payments again! I can't imagine how tight it would feel on a $200K salary.
When did you buy it? 25+ yrs ago...
