How can someone afford to own a $25 million house?
#luxuryhome #affluentarea #incomelevel
Have you ever wondered what it takes to own a multi-million dollar house in an affluent area? It’s a question that often comes to mind when we see these extravagant properties. Let’s dive into the finances behind a $25 million home and explore the possibilities.
##Earning Potential for $25 Million Home
###Income Requirement:
– To qualify for a mortgage on a $25 million house, one would need to earn at least $10 million per year.
###Job Possibilities:
– What jobs pay $10 million a year?
– Do such high-paying jobs really exist?
##Mortgage Details for $25 Million Home
###Monthly Payment:
– How much would the monthly mortgage payment be for a $25 million house?
– What factors affect the monthly payment amount?
As we unravel the mystery of affording a $25 million home, we’ll uncover the truth behind these lavish properties. Who knows, you might be surprised by what we find!
I need a Klondike bar
You abuse and exploit the less fortunate to profit from their labour.
At that level of wealth, it’s not a matter of someone *doing* something, but rather someone owning a chunk of a company and how much value they skim off of *someone else’s labor.*
Every 4th generation nepo baby rich guy will be the first to tell you how hard he worked for his grandfathers company starting in the mailroom/janitor and became CEO through hard work alone.
Win the lottery, whether through birthright or the actual lottery, or own the labor of others.
No one who labors will ever see that kind of wealth.
Your money is working for you, you are not working for it. They own a company etc.
Inherited. Don’t open any doors for themselves.
$25m house, 20% down, 7.7% fixed is $143k/mo for P&I. Figure double that with taxes and insurance, or $286k/mo. Housing shouldn’t be more than 30% of your income, so $11.4m/yr income; your guess was surprisingly accurate.
Pretty much nobody “earns” that kind of money; they either steal it or inherited it from someone who stole it.
Honestly, she can give you whatever anecdotes she wants, but it doesn’t change the fact that money breeds money. Even if they did start from “nothing” , odds are they had wealthy family who was able to help them out with debt, pay for fancy schools, give a large chunk of money to start with, etc. Us poor people who never had family to help them out like that probably won’t ever step foot inside a house like that except to clean it or fix something.
Be lucky enough to have been born into generational wealth.
While obviously a lesser amount, I can tell you what the founder of my company did to own a $10 million beach house in Miami Florida.
His family began a contract manufacturing business in Latin America for a large U.S. corporation because labor was cheaper there. As the US corporation grew, so did their manufacturing volume and profits. 30 years later the company was bought and the father received a nice cash out of $20,000,000 from stock he held in the corporation through his agreement with them.
Fast forward another ten years, the father immigrated to America, and became a serial entrepreneur with his son. They would identify business opportunities, and invest the money to start multiple companies. Last I heard they owned a couple dozen in the US and more in Latin America.
The father passed down the role of CEO of a handful of the larger companies to his son and their families.
Our company makes around $30 million in profit a year, and that’s what allowed our founder to purchase a nice beach home for $10 million.
We were just told this year that raises were not in the budget and layoffs are likely coming.
So yes, to echo what everyone else in these comments had said, you have to have a lot of luck or be incredibly gifted when it comes to business intelligence. Either way, at that level of wealth, someone else either made the money for you in the past or is currently making the money for you.
To give you an idea of how insanely wealthy that is, a close family member of mine works for a large defense contractor. They make around 350-400k a year. They live a very nice life. They buy their cars in cash, their house is paid off, and they take vacations to Disney World for 2 weeks every year. They all have the newest phones and devices. The children have their college paid for. They have healthy retirement accounts and make a lot of passive income through investments.
Even if that family member was paid 20x their current salary, they wouldn’t be able to afford a house like that. And they already make a salary of 0.1% of upper wealth in terms of wages.
This is why I try to steer clear of companies with nepotism at the top. They’ll only ever make decisions to pad their pockets, and you’ll get screwed over as an employee every time.
On a sidenote, anyone hiring in here?
Can’t tell you what they “do,” but I can tell you what they don’t do, and that is eat avocado toast and drink coffee everyday.
/s
“behind every great fortune there is a great crime”
— Balzac
sometimes not even so great.
I currently work for an international company 2nd in its industry and the executives all make $10m+/year (their actual salaries are posted, most are about $8mil, the CEO is over $20mil). That’s about a dozen people at one company who could afford a $25mil house.
Nothing, if they can afford homes like they come from rich families.
It’s all about generational wealth. An infinitesimally small number of people go from zero to that wealthy.
Be a hot chick who bottles her bath water and farts on OnlyFans.
Rags to riches stories are few and far between. Most people with that kind of money have generational wealth. They either inherited it all or they’re rich parents have them money to start a business.
Exploiting others
Be born into a wealthy family or marry into one. See, not as hard as you thought. You’re welcome.
Only three ways to make that kind of money – leverage technology, capital or labor.
You don’t “do” anything, you own assets that earn value, and have employees who do the work for you. No one person can earn that much off of their own labor.
People that own $25 million dollar houses don’t ‘do’ anything. They flit about, telling other people to tell other people to tell other people what to do.
they inherit.
thats it.
they dont do shit.
millionnaires and billionaires are generationnal wealth, always have been.
Probably butt stuff, at least.
Other than athletes or performers, I’d bet few rise up from poverty or the middle classes to make that sort of money.
You have to own a large enough business to make that sort of money, and how do you do that without money to begin with?
ETA: aren’t most ball players broke within 7 years after their sports careers ends?
What would someone have to do to afford $25 million house?
Either exploit the actual labor of people making that money, and/or inherit the wealth and entitled attitude of whoever originally exploited them.
No wage earning job pays that kind of money annually except maybe a CEO but every human being has 24 hrs a day so they are multiplying their efforts through other people’s labor. They also own pieces of companies or other equity. You can’t work hard or fast enough to earn that kind of money on your own.
No most of them don’t start with nothing. That bootstrap stuff is a rare exception not the rule. 75% of multi millionaires have a good chunk of wealth tied up in real estate and they are getting income from it.
It’s always family money, sometimes it’s also tax fraud. You can usually see it everywhere in smaller examples. No one goes from dirt poor to millionaire anymore. Generational wealth is being handed down or outright stolen.
Dirty/corrupt politician?
Inherited wealth and trust fund babies would be my guess.
Be born rich.
Short answer? Be born rich. I live in a fairly affluent area and the vast majority of people with the 7-8 figure homes, second homes on lakes, etc. all have tons of family money or businesses supporting them. It’s a lot easier going through life when you have no debt for anything coming out of HS or college. A lot of these people also have access to jobs the average person will never see due to insane gatekeeping based on wealth, schooling, social standing, etc. even if they have no qualifications for them.
I’ve worked in billionaires homes/businesses for close to 20yrs. Literally 100 million dollar homes.
My conclusion is it’s luck and knowing the right people.
Sure the average person with an average education can work really really hard and have a decent business/career but… they definitely won’t be buying a 25 mil home.
Hard work alone will only lead to getting taken advantage of by superiors.
those houses probably aren’t mortgaged; they are more like you purchased for cash.
Which, incidentally, isn’t the worst way in the world to launder money
Own the means of production.
Violate someone’s, or many peoples , human rights.
People who own houses like that don’t make money doing things. Their money makes money.
Inherit.
My old boss owned/lived on a property called Malibu Family Wines in the Malibu hills. People always praised him for all the work he’s done to make his fortune ($300 million). In reality his dad owned a military exporting company in the 70s.
When his brother and him were old enough they bought 88 Huey helicopters from the US government and secretly smuggled them to North Korea as well as radio equipment to Syria. This netted him no less than $40M.
They got caught and he spent 1 year in federal prison, his brother 3 years and paid a fine of $30k. One time he told me “I made more money when I was in prison as the mafia was his friend and moved his money around”
A few years ago his son started an electric truck company called Thor trucks that eventually became XOS. They went public with 1.2B from the Cayman Islands. Wonder where that $$ came for.
Exploit others for one’s own gains
Steal your labour value
Mercilessly exploit American workers.
Basically shit all over the working class and the working poor.
I always say selling drugs cause that is the only way it makes sense
I was teaching law today to HS kids and we talked about a DA in NY who acted poorly when pulled over. We looked online and found a job listing for a DA job in that part of NY (Rochester)
71k to 98k
My students were like the fuck I am going to 4 years of college and 3 years of law school and make less than 6 figures.
I will keep saying selling drugs when I see these multi million dollar homes because my middle class brain can’t comprehend what I would do with 200k a year little yet millions of bucks
Inherit.
Those people make millions by exploiting blue and white collar workers – they profit greatly from us wage slaves.