Saturday, March 19, 2005

How can you bend that way?

Just got back from dropping off one of the boys at a friend's. Went by a house that the wife pointed out as one she has always admired. Then I looked it up on the ol' web-a-roo.

Whoa, 3 million bucks!

OK, that's a real nice house and all, but let's do the math. 1% property taxes mean you shell out $30,000 bucks a year to the local gubbament. If you have the regular old 1 million clam sorta house and you owe a couple hundred grand on it, that means you need a jumbo sort of loan for a mere $2,200,000 which works out to approximately $11,810.08 per month.

So now you need just about $171,720.96 per year to pay the taxes and mortgage. Toss in some more for insurance and your getting pretty close to 180 grand EACH YEAR for the house. That's $493 every 24 hours, or if you like that works out to making about $62 an hour just for the house. You'll probably need some money for munchies and clothes, magazine scrips and cellphones. At this rate you are going to want premium cable and high speed Internet.

Looks like $15,000 a month, or $180,000 a year AFTER TAXES. You might want to go on vacations and save for retirement so let's slide it on up to $200,000. At an overall tax rate of, oh, 30%, you need to make just about $286,000 a year to cover it all. Yes Virginia, that's about $140 an hour for the regular 40 hour week.

I'm going to ask for a big ol' raise when I get back to work, or maybe just get two more jobs.

2 comments:

katya said...

Yeah, every time we go into an open house in Palo Alto, I gasp at the price and wonder aloud if that includes the maid, the gardener, and other "service" providers. If you know what I mean. Realtors never think that's funny.

Bob Collier said...

Realtors don't think it is funny because they think it might impinge on their cut of the deal.

$3,000,000 * 0.06 = $180,000

That'll buy at least one pair of The Manolo.