It is important to design products for what buyers could afford. (DO NOT TAKE POLL: POLL CLOSED)

NEW -> Contingent Buyer Assistance Program

bkshopr_IHB

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<strong>(DO NOT TAKE POLL: POLL CLOSED) </strong>I know this is a delicate question and especially during the recession. The most important parts of market study is the characteristics of members interested in the same club. Income is the most pertinent factor in any product development. Over saturation of products exceeding demand should be avoided.



This is the second series of 5 polls. Thanks in advance for your participation.



This will also provide important data for our moderators to understand its membership composition and broaden its appeal to other demographics.



(avoid posting text initially just vote to retain your anonymity)



You must vote in order to see poll result.
 
When it comes to housing, amount of liquid cash is more important than income. Everyone I know bought with cash, and they have almost no income.
 
[quote author="asianinvasian" date=1231821843]When it comes to housing, amount of liquid cash is more important than income. Everyone I know bought with cash, and they have almost no income.</blockquote>


Ancient Chinese secret or FCB.
 
[quote author="asianinvasian" date=1231821843]When it comes to housing, amount of liquid cash is more important than income. Everyone I know bought with cash, and they have almost no income.</blockquote>


You must know a lot of wealthy people.
 
[quote author="qwerty" date=1231822380][quote author="asianinvasian" date=1231821843]When it comes to housing, amount of liquid cash is more important than income. Everyone I know bought with cash, and they have almost no income.</blockquote>


You must know a lot of wealthy people.</blockquote>


There are 1.4 Billion Chinese in the world.
 
[quote author="qwerty" date=1231822380][quote author="asianinvasian" date=1231821843]When it comes to housing, amount of liquid cash is more important than income. Everyone I know bought with cash, and they have almost no income.</blockquote>


You must know a lot of wealthy people.</blockquote>


Some Asians and especially the first or 1.5 generation spent most of their available cash in the purchase. AI is right that they have little documented income. When they needed cash they resorted to HELOC to withdraw their equity for other large expenditures. Irvine Renter's research on Asian HELOC abuse is certainly an alarming facet of how some ( or alot) Asians channeled their cash flow.
 
The poll is going extremely well. We should expect to see a bell curve. According to textbook the theoretical mean average should dictate the bulk of product segmentation. With stricter financing currently developers must adhere to realistic prices that shoppers can afford unless AI's rich friends decide to distort the graph. IHB should provide much more accurate insightful data compared to extrapolated info from Home Finding Center or other paid participants.
 
Maybe in addition to asking how much we make, we could also have a different poll asking "how much do you owe?" That is a heavy factor these days.
 
[quote author="Astute Observer" date=1231829089]I won't participate until I know how much do we get paid for the 0.75 seconds of time to click the poll.</blockquote>


It took you more time to write "0.75" than to click.
 
You guys are really good and all those are very good inputs. It is true that we should take into considerations of all other debts and cash assets. I am afraid if the poll is worded with too many contingencies then I might lose the audience.
 
[quote author="Stuff It" date=1231831300]I feel like a pauper!</blockquote>


Don't be. It is very important that the lower income earners be represented. You might be young and just started in your career and you will be well informed about housing and finance compared to your peers. Please do not be intimidated and vote.
 
Please follow my next several polls not posted yet and I will explain in series of interactive workshop sessions how raw datas are processed into a housing formula integrating design, density, land value starting with what buyers can afford.
 
Just a casual look at the biased sample of people who voted has confirmed my observation of Irvine...that people looking to buy here make significantly more than the median income of Irvine.



How could it not...given how high prices are here, since your Irvine median income person can currently only afford a 2 bedroom condo in northpark.
 
AO's comment is a very good one that poll statistics will not ever get to a custom fit program or home for exactly the individual. In any product design whether it is in housing or consumer products intelligent broad stroke assumptions and stereotypes have to be made to best describe the idiosyncrasy of a particular consumer group.



Even company like Apple has made some mistakes on its product such as the I-Phone. Targeted group was initially under 40 year old but it quickly learned that its consumer audience really encompasses older consumers. Its keystroke screen was designed too small for the vision challenged older folks while other brands recognizes Apple?s mistakes quickly introduced copycat version with large key screen trying to capture the older executive consumers.



In order to tailor fit a home to consumer one really has to buy a custom lot and design a home with a specific lifestyle or habit program. For this production home exercise the intent is to arrive at a solution that address the livability and price base on a realistic land price. Land price is really the main driving factor for the price of a home while the size of the home to certain extent is another contributing factor. Cookie Cutter housing is the economical method in delivering housing to the masses. A custom home of similar size will cost 3 times higher. Unfortunately there is a huge price gap between custom and production homes. Custom fee expenditure is often high due to a stricter design guideline and having the various professional involvements such as architect, landscape architect, builder, structural, civil, mechanical, and electrical engineer.



During the 1920?s there were no production homes but the lots resembled cookie-cutter lots. In Floral Park the home buyers were greeted by builders and architects before the homes were built. The buyers specified a program and their preferred architectural style. 18 months later the families moved into their dream homes. Back then there was little government involvement so the streamlined process cut out many disciplines and did allow monetary profit for the developers. The maturity that we see today in Floral Park could never be replicated. The Department of Interior in DC is currently designating Floral Park as National Historic Landmark. The Department of Interior recognizes the land economic in OC that owners in prestigious neighborhood must add on to their homes to reflect today?s RE prices. OC has just a few historic neighborhoods and most have already been McMansionized such as Newport Heights, Old Tustin, Main St Huntington Beach, and Balboa Peninsula. They lost some or most of their historic charm. Floral Park and Old Town Orange both being farther away from the greed of developers were spared. Homes in Floral Park will be protected under its Historic Landmark designation and additions will be allowed only through a rigorous review by historic review board.



In today?s home market many model homes are designed with different lifestyle elements. The goal is one or more should address the needs of the buyers. The survey although is not comprehensive but it?s nonetheless an approximate gauge in meeting the buyers on this board.
 
The income sample represented here is by far the best gauge from realistic home shoppers. I am not surprised at all to see the median is much higher than the Irvine average. The much lower median income in Irvine provided by the census I believed is incorrect due to the income datas from Asian population. Asians are known to have cash and have little documented income and having approx. 35% of Asians could really lower the realistic average.



The samples provided here will certainly excite the developers.
 
Those developers should think more about focus groups. I think the people they use to plan large family homes don't have large families themselves. What they think might be useful ends up being useless.



From looking at all the various new developments throughout Irvine the last 15+ years... it seems like the last time they were almost getting it right was 1999.
 
I think there are probably a lot of people who don't answer the income part of the census honestly, especially if they were born in counties where people are less than trusting of the government.
 
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