The Minimum Income Necessary To Afford A Five Million Dollar House

A five million dollar house is big bucks in every single city in America. Once you cross the $5 million mark, it is classified in the luxury territory, even for cities such as San Francisco and New York. Therefore, I thought it would be fun to calculate the minimum income necessary to own a five million dollar house.

When it comes to buying a home, a good rule of thumb is to spend no more than 3X your gross income on the price of a home house. It is part of my 30/30/3 rule for home buying to help people buy responsibly.

In other words, if you want to buy a five million dollar house, then you should earn about $1.67 million a year. In addition, you should have at least a $1,000,000 down payment and ideally another $500,000 buffer in the form of cash or liquid securities. The buffer

Keep reading this article on Financial Samurai.

Leave a Reply