- Joined
- Aug 30, 2016
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Lets run the numbers here.
A single physician making $300,000 in a state without an income tax would have a net pay of approximately $207k, with $80k going towards federal income taxes, $8k towards social security, and $5k towards medicare. Might be able to get that a bit higher with additional deductions (such as from a big mortgage!) but not by a whole lot.
A 30-year fixed jumbo rate right now is at approximately ~4.5% interest. Even with 20% down ($1.2 million!), a $4.8 million mortgage would run you $24.3k... monthly. That would be ~$292k/year. Approximately $85k a year more than the above net pay.
And that's just for principle/interest.That doesn't take into account insurance, property tax, or utilities, which will all likely be absurd for a house that expensive. Plus you know, food, transporation, and all the other expenses of living. Plus saving for retirement (though I suppose that person can always sell the house...).
Basically, it's not feasible to buy a $6mm house on "only" a $300,000 salary, even if you have a $1.2 million down payment.
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.
Well, what's the extreme viable end on the spectrum then regarding the house with the annual 300k? 4 million maybe?
