Can I Afford A $1,000,000 House?

Explore More Shows from Ramsey Network:

Ramsey Solutions Privacy Policy

[lkjg]

A $1 million home in some parts of California is a two bedroom bungalow. I watch these home renovation / flip shows and it amazes me the prices of homes out there. Dave is on point with his response here.

[RyanABC]

This is a question EVERYONE on the west coast is asking themselves.

[MaiMai-gzio]

Property taxes, insurance, heating, air conditioning, landscaping, etc. etc. is all proportional to the value of the house. So many people buy too much house.

[mamajojoworld]

I admire couples who work together and are intentional. It appears to me that this man and his wife have been on the same page for years, following Dave Ramsey for a long time. Marriage does work if the two people pray together, agree on the most things and have the same vision. This man and his wife are a good example of making marriage wife. Nothing hidden in their marriage.

[nephetula]

Twice the house = (probably) twice the taxes, twice the maintenance expenses, and a significantly larger utility and insurance bill. Plus, their mortgage debt immediately goes up 50%.

These things will affect your ROI, and need to be considered!

[TheGeorgeous]

The biggest issue in America is quantifying value of the primary house.
Take a call on living frugally in a wealthy house or living well in a basic house.
Never associate your house as part of your net worth.

It's a fixed purchase you die in. No mortgages.

[plantsthewin]

I dont understand why people dont get it with these houses. The only thing you can do is sell it or pull out the equity (another loan). This is why I live in a BASIC house, its just a sense of security for me.

[candy]

He also has to factor in maintenance costs for a home in that high price range.

[desimo]

A lot of this discussion depends upon how much runway this guy has left in his career. If he is wanting to retire in 10 years, this is probably a bad deal. If he's going to go for another 20 or 25 years, this might make more sense. He would still then have plenty of time to get the mortgage paid off and build investments beyond the value of the home.

[barbieblue]

Smaller homes often increase in value more than pricier homes.

I don't consider $170k "a little left over" to pay on a $575k home

He started talking about a 30 year mortgage. 2:40 Doesn't Dave want 15 year mortgages?

[paulharsh]

A million dollar house has million dollar bills, property tax, repairs, utilities. Probably would cost $4000 a month without a mortgage.

[brentmeg]

As long as I have water, food, clothing, and shelter, I consider myself a multi-millionaire.

[libertysprings]

With the higher priced home you have a higher property tax which is maybe not sustainable in retirement. Home insurance may keep going up too

[annam]

In Australia it is no capital gain tax on the owner occupied house, provided that it is used as a main residence. We are thinking of selling our main residence which has no mortgage on it and it is expected to sell for over $4 million . (only selling expenses would come out of the selling price, no capital gain tax). We would use the money for investments. We love one of our investment property and we both agree that we could live in it happily. The suburb we would move into lacks several of the conveniences we are used to, however offer more parks, a creek, large lake, bicycle track along the creek, e.t.c. The more I am listening to you Dave, the more I convinced that it will be fine.

[brokgladden]

I would love Dave to talk some specifics about income producing investments. Does he talk about that in his new book?

[thomasallan]

Bruce Williams said that buying a house is an investment in a lifestyle not a financial investment.

[tancreddehauteville]

Expensive homes can be hard to sell - this is the problem. I've seen a lot of multi-million dollar real estate taking YEARS to sell.

[matthewgardner]

And wait for the lifestyle creep when they move (and you know they're gonna buy this house) when this happens. They will want a new SUV, multiple trips to Pottery Barn, etc etc etc.

[Teamshmo]

lol laughs in Toronto as most people make between $60k-100k and live in a $1.5 million dollar house

[blkboxmobilefitness]

I'm in Sacramento too Troy! Goodluck brotha!