Mansions for Sale in Greater Houston, TX | Page 347 | ZeroDown (2024)

FAQs

How to buy a 10 million dollar home? ›

Home equity loans

A home equity loan and a home equity line of credit (HELOC) may help current homeowners pay for a mortgage on a million-dollar house. These financing tools work by leveraging the equity of your primary residence as a means of financing when buying a second home.

A business-friendly climate with relaxed construction regulations and lower labor costs, in addition to a favorable tax structure with no state income tax and lower property taxes, contributes to making Texas housing more affordable.

Furthermore, housing costs in Houston are 84.7 percent below the average of the most populous U.S. metros. Lower housing costs are one of the reasons Houston's overall living costs are 29.2 percent below the large-metro average.

Therefore, to purchase a home worth a million dollars, you'd generally need a hefty $200,000 for the down payment. However, different mortgage programs could affect the down payment amount. For example, some such as conventional jumbo loan programs can allow for down payment options that start as low as 10%.

What your salary needs to be to afford a $1 million home. A homebuyer would need to earn nearly $200,000 annually to afford a $1 million mortgage. The number of homes in the United States valued at $1 million or more has steadily increased in recent years.

Because these high-end homes are so unique, there are fewer reliable comps. That makes these homes difficult to price. They are also harder to find buyers for. A luxury home with a state-of-the-art production studio, for instance, is going to appeal to only a small subset of wealthy clients.

And, here is the answer to the question: You need anywhere from $100,000 to $300,000 in income to buy a $1 million dollar home right now. The reason there is so much variance is because there are so many factors that impact qualification, including: Size of down payment. Property tax rates.

What is the most expensive part of Houston to live in? ›

River Oaks was named by American Home Shield as the costliest neighborhood in Houston with the average home costing $481 per square foot. A new study has revealed the most expensive – and least expensive – neighborhoods in Houston, and no surprise, ritzy River Oaks topped the list yet again.

In Dallas, the cost of living is approximately 5% higher than the cost of living in Houston. This disparity is mostly due to the varying housing costs. Dallas's dynamic real estate market, spurred by significant economic growth and demand, often results in higher housing prices and greater resale values.

The necessary salary to live a financially stable life in Houston is nearly $12,000 more than in SmartAsset's 2023 report, which said Houston residents needed to make $62,260 a year to live comfortably in 2023. To continue reading this story, visit our ABC13 partners at Houston CultureMap.

Top Three Reasons to Buy Your First Home in Houston

Housing in most of the city remains relatively affordable compared to major cities on the East Coast and West Coast. Potential for real estate appreciation exists—the diverse energy- and healthcare-based economy is better than local economies in much of the country.

Best Time to Sell Your House for Higher Price

April, May, and June are the best months to sell your house in Houston. The median sale price of houses in May 2023, was $346,000, which is expected to rise more in 2024.

With a 20% down payment, you'll need to make a minimum of $1.6 million per year to afford a $10 million home. Jumbo loans tend to have stricter underwriting standards than conforming loans, so you'll need to prove you have the income to afford the payments.

Thus, your $10 million property would require a monthly mortgage payment of around $43,000 at 5% interest. Financial experts believe that mortgage payments should not take more than 28% of your monthly income.

Price-to-Income Ratio: A common rule of thumb is to spend no more than 3 times your gross annual income on a house [1]. Using this guideline, you would need an annual salary of at least $5 million USD to afford a $15 million house.