If someone has 200Mill to spend on a house they can afford 4 mill a year.

@@user-og3ti3bp3w Dude wait, do you think people buy these things with their own cash????? Lol. It's bank rolled by loans upon loans. Think of it this way, a person gets relatively wealthy, say has about 10 million dollars in their bank account. He then gets a bank loan, of 50 million dollars to set up a business or build a house. He sells house for 65 million, and profits by 15 million, however cleaning costs, advertising, taxes, interest on his loan, living and other expenses brings his profit to about 7 million. He now has 17 million and applies for a bigger loan, say of 100 million to start a chain of restaurants, with a 25 percent interest on that loan to be paid in full after 10 years. He succeeds, and pays back his loan, but because of this has no real profit in his restaurant chain yet, and so needs an even bigger loan...500 million dollars. Juat to run the business properly. His business booms, and he buys a 200 million dollar house. *BUT HE HASN'T PAID BACK THE 500 MILLION DOLLAR LOAN YET* He bought the house to increase his networth via real estate, just so he can pay off an existing loan, whe he resells the house and other assets.