Why work? Borrow, leverage and hope for asset inflation. Thats what this whole game is. Its going to work until it doesn't.
I believe it, if you go to either coast of FL, the coast of CA, or areas in the Tri-state area there are endless amounts for 3,4,5 million dollar properties. Where I go in FL there are thousands of million dollar plus condos that sit empty, I doubt these people have huge mortgages on them and leave them un-rented. Just my 2c but I would say the number is pretty close.
The article says they are not including the primary residence, and in any case it's based on net worth so the size of their debt is irrelevant. They're saying that 1 in 97 households has a networth over $5M outside their main home. I know probably 15 millionares personally and I don't think any of them would qualify. The survey is overstating.
and then some by not stating the primary residence... even so with the Fl condos for rent, I doubt they're exactly *sold out* with a line to rent on them.....the amount open is staggering, and even still, there's more projects finishing up and trying to be put on the pre-sold markets...
A guy with a 600K house, buys a 500K second home with cash by mortgaging his first home. Is he included or excluded from the stats? He has a total networth of 600K. Or 500K if you exclude the 100K equity in his primary home.
Nah more like 10 million. In the seventies being a millionaire was a big deal. The stock market and house prices are up 10 fold since then.
So is what is considered "Rich" these days? Is it $10 Million? A friend of mine tried to open a private banking account with $1 Mil and the particular bank he was interested in would not even talk to him. Their minimum account was $25 Mil.
I don't see why this is so hard to believe. Look around and you will see a lot of money out there. Not saying this is 100% accurate, but I certainly would believe it.
If you earned 8-10% on $1,000,000 that is $80-100k per year. You are saying the average middle class American cannot live on that? How many people will ever have $1,000,000?