Who's buying?

[AW]

Since it's an ira, there are also tax benefits to it.  (Can't use it for primary)
Writing off depreciation of directly owning it (non primary) will less of a benefit when you're in the upper tax bracket unless your primary income/job is in real estate
Not quite there yet, hopefully I'll cross this bridge one day

 

[JackTamkin]

I'm really puzzled about the strength of the Irvine buyers. My demographics are quite similar to many on this thread, and I know many physicians, lawyers, and engineers. Amongst my group of friends and associates, only a small handful own a home over $1.5mm, and that person's net worth is well into the 8 figures.

 

[JBean72]

I'm really puzzled about the strength of the Irvine buyers. My demographics are quite similar to many on this thread, and I know many physicians, lawyers, and engineers. Amongst my group of friends and associates, only a small handful own a home over $1.5mm, and that person's net worth is well into the 8 figures.

I think as some have stated before. Some prefer to live conservatively - there are probably a lot who could afford a 1.5+ home, but decide they don't need it, and prefer to save money, travel, or just not live lavishly, own the shiny new car, etc.

I've known a lot of people that have a modest income who have Porsches, BMW's and Mercedes - and on the flipside, people that have millions in savings, and own a modest car like a Toyota or Honda, keep their car for over 10 years, and live in a condo.

 

[JackTamkin]

Don't get me wrong - I'd love to live in Irvine. Lots of beautiful neighborhoods. I love parts of Turtle Rock, and also checked out Orchard Hills.

I have a large family and many contacts, and I just find it hard to believe that so many haven't taken the plunge. If it's because of fiscal conservatism, more kudos to them!

For instance, I only know of two people who own Porsches. One lives in Manhattan Beach, and the other person, I guess you'd say, isn't as responsible.

In any case, I know people who've owned in North Park for years, and have the equity to "move up," but have decided to allocate their resources differently.

To address the OP's point, I'm just saying that on a physician's salary, PCP or otherwise, I don't know many people buying $1.5mm homes.

 

[Irvinecommuter]

I'm really puzzled about the strength of the Irvine buyers. My demographics are quite similar to many on this thread, and I know many physicians, lawyers, and engineers. Amongst my group of friends and associates, only a small handful own a home over $1.5mm, and that person's net worth is well into the 8 figures.

I think as some have stated before. Some prefer to live conservatively - there are probably a lot who could afford a 1.5+ home, but decide they don't need it, and prefer to save money, travel, or just not live lavishly, own the shiny new car, etc.

I've known a lot of people that have a modest income who have Porsches, BMW's and Mercedes - and on the flipside, people that have millions in savings, and own a modest car like a Toyota or Honda, keep their car for over 10 years, and live in a condo.

Doctors and lawyers don't make as much as you may think...especially factoring in loans and years spent in school.  Also, a number of doctors/lawyers have spouses that stay home to take care of children...which is an extra expense in itself. 

I think I said before that the parking lots at the apartments I lived in were filled with BMWs, Mercedes, and Caddies.  In my current neighborhood, there are a lot of Toyotas and Hondas.

 

[bones]

I think we've been through this on another thread. Some doctors and some lawyers make a lot. Def enough to afford a $1.5m house but like jbean says, I'm sure there are many that just choose not to. I can't think of any reason to live in large house. Too many rooms that serve no or singular purposes. 

 

[Irvinecommuter]

I think we've been through this on another thread. Some doctors and some lawyers make a lot. Def enough to afford a $1.5m house but like jbean says, I'm sure there are many that just choose not to. I can't think of any reason to live in large house. Too many rooms that serve no or singular purposes.

The key here is "some"...average attorney coming out of law school make about $60-70K a year...a 5th-7th year attorney may make $100K.  Pretty good money but throw in taxes and a monthly loan payment of about $1000, that paycheck is not so high.

Doctors make more but PCP don't make much more and have a higher debt load as well as losing 3-5 years of earning potential.

 

[JBean72]

I've known patent and trademark attorneys who make a TON of money, corporate law etc. The income bracket from attorneys can range anywhere below 100K a year all the way into the millions. The salary range is very wide open. Same with docs - you have Family Practitioners, then you have Plastic Surgeons. Salary range is huge.

So to say you know Docs, attorneys etc. who haven't bought 1.5+ homes - either they're just fiscally conservative, or they really can't afford to buy one, especially if they are the sole breadwinner with a slew of debt and student loans.

Funny thing is, I've even seen Nurses driving the shiny new cars, and Docs driving some old beaters. Most of the time however, I found Docs driving either Porsches or Priuses

 

[bones]

Exactly. I know tons of lawyers and doctors in $1.5m dollar houses. So what does this prove. Nothing except I know people who do and you know people who don't. Great.

 

[Bullsback]

I think we've been through this on another thread. Some doctors and some lawyers make a lot. Def enough to afford a $1.5m house but like jbean says, I'm sure there are many that just choose not to. I can't think of any reason to live in large house. Too many rooms that serve no or singular purposes.

I'm the same way...once you get to about 3500 sq ft, anything bigger then that just loses a lot of functionality and becomes wasted space in my eyes. To me the sweet spot for a 4 or 5 person home) (if you can afford it...especially in the newer more modern builds) is 2700 - 3200 sq ft. A little more is great, but a lot more, way more then I need. I don't need a home where half the rooms are never used or are used once a year. 

 

[Happiness]

Exactly. I know tons of lawyers and doctors in $1.5m dollar houses. So what does this prove. Nothing except I know people who do and you know people who don't. Great.

Oh come on, my anecdotal evidence is better than your anecdotal evidence.

 

[The Motor Court Company]

it is better to have a smaller house in a better location. views, school district, neighborhood amenities, lot size etc

house structure will depreciate but location won't

 

[bones]

I think we've been through this on another thread. Some doctors and some lawyers make a lot. Def enough to afford a $1.5m house but like jbean says, I'm sure there are many that just choose not to. I can't think of any reason to live in large house. Too many rooms that serve no or singular purposes.

I'm the same way...once you get to about 3500 sq ft, anything bigger then that just loses a lot of functionality and becomes wasted space in my eyes. To me the sweet spot for a 4 or 5 person home) (if you can afford it...especially in the newer more modern builds) is 2700 - 3200 sq ft. A little more is great, but a lot more, way more then I need. I don't need a home where half the rooms are never used or are used once a year. 

Yup. 4 bed plus loft with a small space for a small office/desk area around 2800-3200sf is ideal. Less than 3000 is better. I know the great IHS can achieve all that in around 2000sf but feels too cramped for me.

 

[aquabliss]

Sorry but I have to disagree here.  I prefer a 4000-5000 sq ft home with a huge 12ft ceiling great room, enormous loft, master bedroom with retreat, large walk in closet, casita, the list goes on and on.

And don't get me started on the back yard.

 

[bones]

Sorry but I have to disagree here.  I prefer a 4000-5000 sq ft home with a huge 12ft ceiling great room, enormous loft, master bedroom with retreat, large walk in closet, casita, the list goes on and on.

And don't get me started on the back yard.

So why are you slumming it in PP.  Funds tied up in China? 

 

[Happiness]

Ideally, I would like to see 3,000 sq ft for the first two occupants, and an additional 1,000 sq ft for each additional occupant after the first two.

 

[irvinehomeowner]

Sorry but I have to disagree here.  I prefer a 4000-5000 sq ft home with a huge 12ft ceiling great room, enormous loft, master bedroom with retreat, large walk in closet, casita, the list goes on and on.

And don't get me started on the back yard.

Fail.

No mention of 3CWG (or 4CWG).

 

[JackTamkin]

Exactly. I know tons of lawyers and doctors in $1.5m dollar houses. So what does this prove. Nothing except I know people who do and you know people who don't. Great.

Oh come on, my anecdotal evidence is better than your anecdotal evidence.

Sure, it's my personal experience & anecdotes - I got that. I grew up & have lots of family in LA, and I get why people love Irvine - nice new homes, good schools, and safe. When I see a brand new model home, it's easy for my family to imagine living there.

Maybe this has been beaten to death before. But, when I saw this topic, I had to respond. How are people buying in OC??

Like I said, it's only my senior colleagues who are dropping big bucks in LA. Families like mine (late 20s to early 40s) with young kids, ? family support, are hesitant to take on mortgages over $1mm.

Changing gears, what would change my mind at this point? >4000 sq ft, single story home, 20ft ceiling great room, 4+ BR, 3.5+BA, separate office/casita, at least 3 car garage, on 13000 sq ft lot. I'll need that for 15 years, then I'll move when the kids are done with school. Don't think I'll find that in Irvine.

 

[bones]

Exactly. I know tons of lawyers and doctors in $1.5m dollar houses. So what does this prove. Nothing except I know people who do and you know people who don't. Great.

Oh come on, my anecdotal evidence is better than your anecdotal evidence.

Sure, it's my personal experience & anecdotes - I got that. I grew up & have lots of family in LA, and I get why people love Irvine - nice new homes, good schools, and safe. When I see a brand new model home, it's easy for my family to imagine living there.

Maybe this has been beaten to death before. But, when I saw this topic, I had to respond. How are people buying in OC??

Like I said, it's only my senior colleagues who are dropping big bucks in LA. Families like mine (late 20s to early 40s) with young kids, ? family support, are hesitant to take on mortgages over $1mm.

Changing gears, what would change my mind at this point? >4000 sq ft, single story home, 20ft ceiling great room, 4+ BR, 3.5+BA, separate office/casita, at least 3 car garage, on 13000 sq ft lot. I'll need that for 15 years, then I'll move when the kids are done with school. Don't think I'll find that in Irvine.

Sorry, my comment wasn't really targeted at your posts....more towards my favorite Irvinecommuters
I mean it's a valid ask but I just think people discount all the various scenarios that allow a family to buy a $1.5M house.  I know it's hard to believe people make that much money but they do.  I made 6 figures my first year out of college.  And so did every single one of my colleagues.  And some may not, but coupled with family help, some luck along the way in RE, etc... it's do-able.

 

[Happiness]

I made 6 figures my first year out of college.  And so did every single one of my colleagues.

What are you???  A longshoreman???