When is rich, rich?

flynnch Wrote:
——————————————————-
> Ever read the book “The Millionaire Next Door”
> Decent read to put things in perspective.
You should read Richistan. Some guy from the WSJ went around the country interviewing the richest Americans he could find and then wrote a book about it. It’s an intersting read. He defined rich as >$10M.
 
MattLikesAnalysis Wrote:
——————————————————-
> http://online.wsj.com/article/SB123983744241222865
> .html
>
> the bottom of this article makes me mad. okay so
> they only make $144,000 and their mortgage
> payments are $48,000 of that, but that means at a
> 7% interest rate, they’re looking at $680,000 in
> mortgages. What is it with peoples’ need to go and
> buy things that are far beyond what they need and
> far beyond useful. How much time do you spend at
> home, hmmm, 6 hours awake maybe including
> weekends, so you probably don’t need a $1 million
> house. Its just stupid. Buy a house that is 2/3s
> the size for half as much in a neighborhood with
> regular people and not rich, stuck up idiots that
> you shouldn’t want to be around anyway and save
> 1/3 of your net income. they are also maxing out
> their 401(k) and giving their church $15,000 a
> year. maybe if they didn’t blow $60,000 on living
> in a house that is too big for them anyway and
> giving the reverend a new car every year, they
> would actually feel like they are money to spend.
>
>
> hmmm, spend over $40K in interest (probably) on a
> mortgage, or go on 8 more trips with my wife
> annually, so i’m not at home anyway, hmmm.
I would hope a lot of people will use this experience to return to first principles. i.e. not borrowing beyond your means. Most people will be dictated to by the economy and banks willingness to lend to them, but it will be a salutary experience.
 
Muddahudda Wrote:
——————————————————-
> MattLikesAnalysis Wrote:
> ————————————————–
> —–
> >
> http://online.wsj.com/article/SB123983744241222865
>
> > .html
> >
> > the bottom of this article makes me mad. okay
> so
> > they only make $144,000 and their mortgage
> > payments are $48,000 of that, but that means at
> a
> > 7% interest rate, they’re looking at $680,000
> in
> > mortgages. What is it with peoples’ need to go
> and
> > buy things that are far beyond what they need
> and
> > far beyond useful. How much time do you spend
> at
> > home, hmmm, 6 hours awake maybe including
> > weekends, so you probably don’t need a $1
> million
> > house. Its just stupid. Buy a house that is
> 2/3s
> > the size for half as much in a neighborhood
> with
> > regular people and not rich, stuck up idiots
> that
> > you shouldn’t want to be around anyway and save
> > 1/3 of your net income. they are also maxing
> out
> > their 401(k) and giving their church $15,000 a
> > year. maybe if they didn’t blow $60,000 on
> living
> > in a house that is too big for them anyway and
> > giving the reverend a new car every year, they
> > would actually feel like they are money to
> spend.
> >
> >
> > hmmm, spend over $40K in interest (probably) on
> a
> > mortgage, or go on 8 more trips with my wife
> > annually, so i’m not at home anyway, hmmm.
>
> I would hope a lot of people will use this
> experience to return to first principles. i.e. not
> borrowing beyond your means. Most people will be
> dictated to by the economy and banks willingness
> to lend to them, but it will be a salutary
> experience.
Hm, if too many people think like the economic recovery could take a little longer …
By the way, all this church talk got me thinking: Have there been churches that leveraged up on the risen value of their God’s houses?
 
I would think that churches would not have the same marketability as a residential and commercial property so I’m not sure how they would have been affected by the bubble.
 
The value of the property should have risen though, so not the house but the land serves as collateral. Banks were financing everything, why not something like this?
 
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