To rejoice the launch of my new e-book, Millionaire Milestones: Easy Steps To Seven Figures, on Might 6, 2025, I believed it’d be enjoyable to discover numerous millionaire subjects main as much as the discharge.
For many millionaires, proudly owning the nicest home they will afford is a prime precedence. On condition that many people are nonetheless spending extra time at house post-pandemic, the intrinsic worth of a house has gone up. And for millionaires with children or loads of furry associates, a spacious home on a big lot can really feel like a necessity.
So on this put up, let’s discover a enjoyable query: How a lot revenue and internet price do you should afford a $10 million house?
This matter is especially fascinating to me as a result of I really like actual property. After I bought my present house in This fall 2023, I informed myself I’d reached the prime of my property ladder and didn’t need to climb increased. However there’s no hurt in working the numbers simply in case the financial system roars again or I get fortunate with an funding.
Minimal Earnings Needed To Afford a $10 Million Residence
Relating to shopping for property responsibly, I prefer to observe my 30/30/3 house shopping for rule:
Rule #1: Spend not more than 30% of your gross revenue in your month-to-month mortgage fee.
For those who’re financing the house, be sure that the month-to-month mortgage doesn’t exceed 30% of your gross revenue. For those who’re paying all money, it’s best to simply fall beneath this threshold.
Rule #2: Have a minimum of 30% of the house’s worth in money (20% for the down fee, 10% as a buffer).
For a $10 million home, meaning:
- $2 million for a 20% down fee
- $1 million as a money reserve or liquid investments
This buffer is your security internet in case of job loss, an sudden expense, or a serious house restore.
Rule #3: Spend not more than 3–5 instances your gross annual revenue on the acquisition worth.
Ideally, you’d earn a minimum of $3.33 million a yr to purchase a $10 million house responsibly. That’s the 3X rule in motion. You may stretch it and purchase the house on a $2 million revenue when you’ve got sturdy revenue stability and progress potential, however that’s a calculated threat.
Stretching to 5X your revenue means you’ll seemingly really feel financially tight for a minimum of the primary yr. For those who go this route, right here’s easy methods to survive essentially the most harmful interval after shopping for a house.
Minimal Web Value Required To Afford a $10 Million Home
After proudly owning a number of houses over the previous 22 years, I’ve discovered the candy spot in your main residence as a share of your internet price is not more than 30%. Ideally, it’s nearer to twenty%.
For those who’re searching for a $10 million house, this seemingly isn’t your first rodeo. You most likely have already got vital wealth and different investments. In distinction, the typical American has over 70% of their internet price tied up of their main residence.
A $10 million purchaser may be:
- A profitable entrepreneur
- A senior government at a monetary establishment
- A associate at a prime regulation agency
- A star or skilled athlete
- A well-connected or corrupt authorities official who can commerce with insider info
If your own home represents greater than 30% of your internet price, you’re at larger threat of monetary stress throughout downturns, similar to what occurred throughout the 2008 International Monetary Disaster. So many misplaced their houses to foreclosures.
In case your main residence represents lower than 10% of your internet price, you could be under-living relative to your monetary capability. That may very well be an indication to spend just a little extra on your self or take into account giving extra away.
Superb Web Value Vary
To really feel financially safe with a $10 million house buy:
- Really helpful internet price: ~$33 million (30% allocation)
- Superb internet price: ~$50 million (20% allocation)
With a $50 million internet price, you can comfortably pay money or tackle a smaller mortgage. Even in case you tackle an $8 million mortgage at 6%, your month-to-month fee could be about $48,000—simply manageable at this degree.
Combining Superb Earnings and Web Value
Right here’s a fast reference information to soundly shopping for a $10 million house:
Class | Quantity |
---|---|
Minimal Earnings | $2 million/yr |
Really helpful Earnings | $3.33 million/yr |
Minimal Web Value | $5 million (at 50%) |
Really helpful Web Value | $33.4 million (at 30%) |
Superb Web Value | $50 million (at 20%) |
For those who solely meet the minimal revenue requirement, be sure you have a minimum of the advisable internet price. Conversely, in case your internet price is on the low finish, you’ll need your revenue to be on the upper aspect. Here is a extra complete chart that highlights extra houses at completely different worth factors.

Put Down Extra Than 20% If You Need To Purchase A $10 Million Home
For those who’re planning to purchase a $10 million house, it is sensible to place down extra than simply 20%. Most individuals I do know shopping for houses on this worth vary are placing down 50%+, typically paying all money.
Why? As a result of many excessive earners making over $1 million a yr do not have excessive base salaries. As an alternative, their base is usually within the $250,000–$600,000 vary, with the remaining coming from inventory grants and year-end bonuses. Banks could not absolutely acknowledge these types of revenue when underwriting giant mortgages given they’re extremely discretionary.
In as we speak’s still-high rate of interest atmosphere, all-cash provides are additionally extra engaging to sellers and extra sensible for consumers. Right here’s what a mortgage would seem like at 6%:
- $8 million mortgage = ~$47,000/month
- $7 million mortgage = ~$42,000/month
- $6 million mortgage = ~$36,000/month
- $5 million mortgage = ~$30,000/month
Whereas these funds could also be reasonably priced in case you’re making a minimum of $2 million a yr ($166,667/month), sticking to the rule of spending not more than 30% of your gross revenue on housing suggests a month-to-month cap of $50,000. That’s slicing it shut with an $8 million mortgage.
The Ongoing Value To Personal A $10 Million Residence
Proudly owning a $10 million home doesn’t simply imply an enormous upfront buy, it means persistently giant ongoing prices as properly. Property taxes alone can vary from $40,000 to over $300,000 a yr, relying in your state. Hawaii provides the bottom property tax charges, whereas states like Illinois, New Jersey, and Texas are among the many highest.
Past taxes, the fee to take care of a $10 million house provides up quick:
- Greater heating and utility payments
- Dearer home-owner’s insurance coverage
- Elevated upkeep and restore prices
- Pricey landscaping and cleansing companies
- A bigger mortgage fee (except paid in money)
And let’s not overlook furnishing the place. It may price properly over $200,000. The larger the home, the costlier it’s to make it really feel like a comfy house. When one thing goes improper—like a roof leak throughout a “Bomb Cyclone” as I skilled—it turns into a lot tougher (and costlier) to repair.
When evaluating a $10 million house, don’t simply deal with the sticker worth. Think about the price of sustaining a $10 million home yearly. Then issue within the alternative price of tying up a lot capital in a main residence that’s not producing revenue.
These ongoing prices are why you could observe my revenue and internet price pointers by house worth. For those who do not, your property may take you below financially.
Associated: What’s It Like Residing In An $18 Million Mega-Mansion?
$2.5 Million Earnings Household Funds Proudly owning A $10 Million Residence
Right here’s a practical breakdown of a household of 4 residing in a high-cost space, incomes $2.5 million a yr:
- Residence: They put $3 million down on a $10 million dream house, taking out a $7 million mortgage at 6%, which prices them $504,000/yr. Add ~$149,000/yr for upkeep, taxes, insurance coverage, and landscaping, and the entire housing price is round $653,000/yr.
- Youngsters: Their two kids attend personal grade college for $130,000/yr, plus $5,000 in donations.
- 529 Contributions: They contribute $19,000/yr for every baby.
- 401(ok) Financial savings: Every guardian maxes out their 401(ok) at $23,500/yr (2025 restrict), working towards millionaire standing.
Regardless of the excessive bills, they handle to avoid wasting $373,140/yr of their taxable brokerage accounts and have a $1M+ buffer in money and liquid shares for emergencies.

However right here’s the chance: If one guardian loses their job and family revenue drops by 50%, the household may very well be in deep trouble. Bear markets don’t simply carry down funding portfolios, additionally they enhance the chance of job loss.
Even a $5 million internet price, absolutely the minimal I like to recommend to personal a $10 million house, is probably not sufficient. All of it relies on how that internet price is structured.
As an illustration, if $3 million is tied up in house fairness and $1.8 million is in illiquid firm inventory that vests over three years, then having simply $200,000 in money received’t go far given their excessive burn fee. They need to have a minimum of $500,000 in money. Alternatively, if the $2 million was sitting in a cash market fund, they’d be OK for 2 years earlier than needing to promote their house.
Realistically, to personal a $10 million house with minimal monetary stress, a internet price nearer to $33 million is extra applicable. At that degree, you may climate market volatility, job loss, and unexpected bills. Even higher is a paid off house to protect you from all of the chaos and uncertainty. If you cannot sleep peacefully at night time in your mansion, then what is the level?
Ought to You Purchase a $10 Million Residence?
The finest time to personal the nicest home you may afford is when your children are nonetheless residing at house. So, I get why a few of you may be searching $10 million+ listings on-line. It’s enjoyable to dream, and perhaps you are even critical about upgrading.
However even in case you earn $2 million or extra a yr, I’m not satisfied it’s price shopping for such an costly property. The maintenance alone is usually a main draw back, particularly if the house wasn’t properly constructed. I do know a few individuals who purchased $10+ million houses and ended up spending years making an attempt to repair persistent leaks. What a nightmare.
Constantly making over $2 million a yr can also be no simple feat. You may experience a scorching streak for some time, however the financial system strikes in boom-bust cycles. I noticed this firsthand throughout my banking days, once more when small enterprise homeowners have been pressured to close down throughout COVID, and now with tariffs arresting client spending and spiking enter prices. One yr you are up, the following you’re making an attempt to remain afloat. Your window of alternative to make massive bucks doesn’t final eternally. Beware about extrapolating your excessive earnings with ever-increasing beneficial properties!
That’s why I imagine you want a internet price of a minimum of $33.3 million earlier than shopping for a $10 million house. Your internet price is extra dependable than your revenue, however even then, it is not bulletproof. Simply take a look at 2025, when tech shares dropped greater than 20%. If $30 million of your $33.3 million internet price was tied up within the Magnificent 7 corporations, you’d be gazing a ~$6 million loss. Ouch.
One other issue: what are you upgrading from? For those who’re leaping from a one-bedroom house to a 6,000-square-foot, six-bedroom mansion as a result of your AI firm IPO’d, making you a decamillionaire, that’s most likely overkill. However in case you’re buying and selling up from a $6 million, 3,900-square-foot house with 4 bedrooms, the leap could also be extra cheap. Additional, you’ll have the expertise to truly make use of the additional area.
For the sake of adaptability and long-term appreciation, a great rule of thumb is to not improve your main residence by greater than 100% in worth. Past that, the dangers and complexities begin to outweigh the rewards.
A Higher Manner To Reside In A $10 Million Residence
When you’re engaged on constructing your revenue and saving up a down fee for that dream $10 million home, take into account a better method: put money into actual property to maintain up with the market, with out overextending your self.
You may need to observe my BURL technique, which stands for Purchase Utility, Hire Luxurious. The concept is straightforward: put money into properties that generate excessive rental revenue, and lease the posh life-style as a substitute of shopping for it.
For those who observe this technique, you can generate sufficient passive revenue to lease a $10 million house—and nonetheless have cash left over.
For instance, as a substitute of shopping for a $10 million home at a 3% cap fee, which might generate simply $300,000 a yr in rental revenue, you can lease that very same home for $300,000 a yr. Then, make investments the $10 million in higher-yielding multifamily properties at a 7% cap fee, and earn $700,000 a yr in passive revenue.
After overlaying your lease, you’d nonetheless have $400,000 earlier than taxes to spend or reinvest. Plus, your funding properties may admire over time, particularly in the event that they’re positioned in fast-growing, extra reasonably priced 18-hour cities.
Through the use of the BURL technique, you’re optimizing your capital and your life-style. The issue is, upon getting an eight determine internet price, the tenancy is desirous to personal every thing.
There’s no level in turning into a multi-millionaire in case you’re not going to get pleasure from life greater than the typical particular person. There needs to be some reward for all of your exhausting work and risk-taking. If a $10 million house is what you need and you may afford it, go for it. Simply be conscious of the dangers that include shopping for a house you undoubtedly don’t want. Better of luck with the brand new buy!
Order My New E book: Millionaire Milestones
For those who’re able to construct extra wealth than 93% of the inhabitants and reside the great life, seize a replica of my new e-book, Millionaire Milestones: Easy Steps to Seven Figures. With over 30 years of expertise working in, learning, and writing about finance, I’ve distilled every thing I do know into this sensible information that can assist you obtain monetary success.
The fact is, life will get higher when you might have some huge cash. Monetary safety provides you the liberty to reside in your phrases and the peace of thoughts that your kids and family members are taken care of. You may even take into account shopping for your $10 million water-view mansion on a big plot of land after studying my e-book.
Nonetheless, earlier than you get to a $10 million internet price, you first have to succeed in the $1 million milestone. Millionaire Milestones is your roadmap to constructing the wealth you should reside the life you’ve all the time dreamed of. Order your copy as we speak on Amazon and take step one towards the monetary future you deserve!

Make investments In Actual Property Passively
Try Fundrise, one of many main actual property crowdfunding platforms with over 380,000 traders and roughly $3 billion in belongings below administration. With the financial system in turmoil and inventory market volatility working excessive, there’s a rising flight to extra steady belongings like actual property to assist climate the storm.
Since 2016, I’ve invested about $1 million throughout numerous personal actual property funds and offers to diversify away from my expensive San Francisco actual property holdings. My purpose has been to generate extra passive revenue and capitalize on long-term demographic shifts towards the Sunbelt, the place Fundrise concentrates a lot of its portfolio.

Fundrise is a long-time sponsor of Monetary Samurai, and I’ve personally invested over $300,000 on the platform thus far.
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