Can I Afford This $1,000,000 Toy? 

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This is not a toy, it is real estate that can be rented and will go up in value! Perfect "toy" to buy!

Came here hoping for a crazy hypercar, but a Parisian vacation home IS pretty nice. I think 10% of your net worth spent on a toy makes more sense with a higher net worth. Spending $10k on a toy with a $100k net worth feels more frivolous than spending $1MM when you’re worth $10MM

Dave is a better host than the other personalities because he connects the calls to his own personal experiences

10 Mil on a engineer salary, even a +300k a year, my guy was living frugal and investing, good for him!

Everyone’s all “It’s a $1 million apartment!”, and here I am admiring the guy’s business sense for taking advantage of a depressed valuation situation.

The nice thing with this decision is that the "toy" will likely go up in value vs blowing say $1 million on a super car or a nice boat or a plane.

Guy is worth 10 million and he doesn't sound like he even enjoys his life.

If they wanted to, they could hire a company to oversee it as a vacation home 10 months out of the year and potentially make the money back over a few years.

For a few weeks a year I think it makes more sense to rent a chateau or an apartment. Managing a place they own that's an international flight away is going to become a frustrating (and expensive) chore.

Hey Dave, I have a net worth of twenty dollars, can I afford a Popeye's biscuit?

10 million net worth and asking Dave for advice. 😂

Incredible!!! Saving and giving are underrated factors to building wealth.

It’s a big toy that holds its value. Not everything needs to be an investment once you’ve made it. At the same time, Airbnb is a good alternative.

Thanks for the great content and perspective!! God bless George and Dave!!!

Short version: Has $10 million in assets, wants to buy an 800 sq. ft, $1 million apartment in Paris as a vacation home. Dave is fine with this, since it's only 10% of his assets. Plus it's real estate, so it'll retain most of its value, or go up over time.

I lost a $20 bill other day at Walmart.. I've been sleeping in the parking lot hoping somebody comes around and ask if anybody has lost some money.🤣

I'll admit 10 million at 45 years old is impressive and garners respect. But no way he earned that just working in an corporate structure as an engineer.

I truly love how quickly Dave flips the switch on his advice when somebody is in a great situation wtih their net worth.

Always a good educational video to listen to is always good.

Asking for what the people want is very important. Goals are amazing since it is the start of you having some kind of restraint from getting something very expensive right away. It might be smart to get it now or maybe next year. Sometimes we have tax implications with where we pull the money from. Our advisors have to figure out which direction would be best before getting these great toys. Good stuff.

Excellent as always, I need to exercise my enjoyment muscles without guilt. Your the best Thanks Craig

In Europe it’s measured in square meters, 1 square meter is almost exactly 10 square feet just to keep it easy to compare

Good for you!!! Enjoy Paris 🥳!!!

Well done! Why didn’t I know about this 20 years ago!!!! 😿

in this inflationary period, buying real estate is a good decision, it's hard for real estate to actually lose value (unless something dramatic happens)

Buy back time. I like that thought process. You only live once and why work the entire thing whereas if you save and invest you can retire early and enjoy your time.

This is one of the best explanations he’s had.

"How did you make it to ten million?" "Well my father was in Aviation with lots of ups and downs." What was the company? BlueStar Airline..................... "Blue Horseshoe loves BlueStar Airlines."

I bought a vacation house in the mountains in 2018 for 160k. Put 100k down and thanks to covid it's now worth 450k. I have a ton of fun visiting it and golfing/snowboarding multiple times a year. But it is definitely nice knowing it has appreciated in value almost 3x. I say this guy will be just fine.

How can you say that an apartment is a toy. I bet the “toy” goes up like 5-10% in value every year

Here I think it makes sense because it's something the whole family can enjoy and it sounds like his wife is on board. If he was buying something that was only or mostly for one member of the family it would be less reasonable.

Great advice

Exactly why the lakehouse i plan on buying in the future will be 80% an airbnb

Robert is an absolute STUD! Tryna be like robert when i grow up

Dang I hope I can achieve something like this by 45, way to go man. I'd love to own something over seas and possibly retire there. I was thinking Belgium, no tax on capital gains.

Wow he's done very well. My goal isn't 10 million, it's 3 or 4 at the rate we're going. And I'm on my way! Can't wait!

A millionaire worth 10 million bucks asking advice from someone worth thing hundreds of millions!! no ego no attitude but still learning great call!

Money flows in and out! Enjoy it!!!! Don’t be a stickler

At least it’s being spent on real estate instead of something that will depreciate!

Bad idea, he said he’ll use it at most 2 months, better to rent

Was thinking the exact same thing as “well, it’s not a Lambo.”

Even if this guy was frugal, there has to be more to the story to have $10mm as a 45yo engineer.

Another available option in metropolitan France is to purchase a hotel suite. The hotel manages and rents it out when the owners are not using it, and when there the owners have all the amenities that the hotel provides: food, cleaning, etc.

Dang, ten million. Wow, this conversation is too rich for my blood. I'm putting off going to chiropractic school because it's twelve thousand every trimester. Geez, coming from an upbringing where we didn't have a dollar in the bank, I can't imagine paying for school or earning ten million in two life times. I shouldn't have clicked on this video 🙄

Does this apply for individuals with high net worth but low income compared to net worth?

Why not rent a place in Paris instead? Seems like less of a financial commitment, way less responsibility, less money out of pocket and if you decide to vacation in a different area you don't have to go through the trouble of selling?

Those kids are going to be tired of Paris in a few years .

I still think it's kind of crazy that he expects you to donate as much as you would spend on wants when it's your money and you earned it now that's not to say that I'm not for donating the charity but a million dollars is a whole lot of money...

I ran the numbers and this caller can retire at age 65 with nearly one hundred million dollars if he simply invests the money and does not contribute a cent more. Didn't invent anything, didn't build a great business, doesn't play sports, didn't win the lottery... just an average guy who saved most of his money and will retire with one hundred million. Amazing!

Or buy a timeshare!!! LOL

Tight!

Here is a question: My family and i live in a large-ish town in Canada. I just got a new permanent and secure job in a rural area, thirty minutes away from our current home . Because of the isolation, the real estate is cheaper near my new job than in our large-ish town. We owe about 200 grand on mortgage and make about 170 grand a year (we only clear 8 grand a month, due to mandatory pension contributions and higher taxes in Canada ). We plan to payoff our mortgage in about 6 -8 years (maybe sooner) BUT: We could realistically be mortgage free by selling our current home and buying a suitable home in the rural area (near my new job). Does it make sense to accelerate into baby step 7 by buying a cheaper house than the one we're currently in? Or should we stay the course, stay in debt for 5-10 more years, and live in our current home? Also what do you think Dave Ramsey would say?

Just rent in Paris for 8 weeks per year. Cheaper and this family is not at the whim of governments which will curtail or tax to death foreign owners. It happens.... just rent and be free to go anywhere. This family may change their mind and want to go somewhere else. Ongoing operational costs of this luxury item will continue to eat at this family's 10 million dollars. They will not continue to have the 10 million in a few years if they buy this. During the 2 year pandemic, airplane travel was curtailed or stopped. Are foreign owners double taxed? Would you owe France taxes? Could squatters have rights over foreign owners? The caller would note even be a voter.....would the government care about his property? Just rent.

Unlike most "toys" it's not going to go down in value. No-brainer to me if I had $10 million (assuming I was at least $5 million liquid).

Why not buy it? And AIR BNB the property. Or just rent on AIR BNB for 8 weeks they are there.

GT2RS will hold It's value

It's cheaper to air bnb it when you go to Paris. That's crazy. 1 million to be in it for 8 weeks a year. Think about the maintenance and upkeep. Sheesh I wouldn't buy it. I would put the 1 million In dividend stocks and put a down payment on it and pay it monthly with dividend money.

He also needs to keep in mind maintenance costs. How cool!

It doesn't make sense but you could rent the property when you're not there. Also, it appreciates in value over the years.

Engineering with a net worth of 10 million at 45. Sheesh I would be happy if I got 1/3 of it by 45 lol

Could bring in money too if its rented when youre not there.

France is a bureaucratic nightmare. There are easier cities in Europe. 10% sounds fine though for a non maximized asset.

Well there is flying there and well Paris isn't the same.

Im sure that this will go up in value but at the same time he could get some cash by hiring a manager for airbnb to run the property.

I don’t get characterizing a vacation home as a “toy”.

My dream right there. To have the ability to buy multiple vacation spots prior to retirement

€1 million for a remote home to visit just a few weeks each year? What taxes, insurance, and repair costs? How much work to operate as an airbnb? Probably wiser to rent a different vacation home each summer. After all, that is when the locals leave the city and short term vacancies peak.

Today i bought a $0.99 cup of noodles.. actually i bought two. The 2nd one is the one i was questioning

This guy is literaly the Dave Ramsey poster boy! Engineer: CHECK. No inheritance: CHECK. Self-made Miwionaire: CHECK

If you don't listen to the end of this video you miss the big point. 10 Million net worth. Saved hard. ONLY 45 years old!!!

No guarantees but the $1m house will probably not become worthless over the next 10 years.

He beat around the bush when they asked how he made the 10m

An apartment is an actual asset which will appreciate over time. He can Air BnB it and generate cash flow. He’s not buying a million dollar boat. That’s a toy.

Why the only question asked was Nett Worth not cashflow as well?

The only thing that matters regarding income is how are you going to get to 10 million?

For all us regular folk. If you put a $20 bill on table and burn it would your life change? 😂

At this point in history, mortgage rates were at historic lows. Telling someone to pay 1.1m cash in that environment is ridiculously bad advice.

I thought he was like 60 plus. When he said 45 i was shocked. Go and enjoy life brother, buy your apartment and then find way to give a million to something that would benefit as many people as possible

Go bless someone with that money!!!!

It is not much of a toy a vacation home is more like an investment property I don't think it will lose any money if not appreciate in price

Heck, if it stressed you, you could always sell it. A Paris apartment is not going down in value. Don't sweat it.

It is an appreciating toy and not a car

Why not buy an apartment complex, make cash flow. Use the cash flow to rent a lake house ANYWHERE!

If it flies, floats or f..cks it's cheaper to rent.

My only concern is that he wouldn’t be there enough to enjoy it. I think instead he should just stay at hotels when he travels, he will have more freedom then

I don’t often disagree but in this case the “toy” won’t lose value. So it’s not really a toy. It is a decent investment that will probably appreciate over the years, save them the cost of hotels and might be rentable when the buyer isn’t staying thus creating another income stream. Not to mention, there are probably some tax advantages.

This dude is a hero.

If he can afford it, why not. They can rent it when they are in the US. A 1M$ appartement, it can be in a very touristic place. Put it on Airbnb when you are not around.

Dave, You should define the ratio. Each and everyone of us has a different feeling about ratio. I like how you have a ratio for cars and vehicles. We need a ratio for personal homes / vacation homes.

Wow. A summer home in Paris, I like to be able to afford chicken. 😅

How about buying a better phone that doesn’t sound like Thomas Edison built it?! 😂😂

Depreciating Lamborghini? That moment when they sell about 15% over sticker.

If you can't just go off of ratios like, how much is it gonna cost for him to upkeep it? How much is the airfare gonna be per year? Flying to France like there's more tunes than just buying. The property is the upjeep and the travel expenses to and from the property. Gonna drain your ten million knots

I would more be worried to make a good deal on that house, and seing that as an investment ;) And enjoy it

High life style can definitely get you in big big debt

Mega luxury cars like Lambos don't depreciate, or do se very, very slowly. Do these people know anything?

Why not rent it out for the rest of time you're not there?

Just buy apple Tesla Google Amazon with your 10 million and with the growth in 3 months take that 1 million and buy it .

i don't get the math behind this. as an engineer graduating at say 22, he's had 25 years to build 10M with no inheritance. When i put this is in an investment calculator, with a 10% return, he should have averaged 8000 dollars a month in savings to get it to 10M. even with income growing over time and living very, very, very frugally, something sounds off here. I wish they'd had asked him about his income and savings rate over the years.