Who's buying?

[RHOC]

The biggest factor in being able to live in a 2 mil and up house is luck or getting a lucky person to marry you.  There is no way "making the right financial decisions" will get you there.  Most doctors and lawyers do not live in 2 mil houses.  90% of small businesses fail within 5 years.  I hate to break this news to you, but you're either lucky or you're not.

Don't mean to be rude but too many negative thought process here about the affordability of Irvine . I'm a Doctor and my husband is a fireman. We live in Irvine and have been since we've been married (12years). It's all about timing, know when to sell and when to buy. We started with a 420k home in Irvine West Park area in 2004 and worked our way up (3 homes later and yes I hate moving) now to Turtle ridge 2.6 mil house with a 500k mortgage that is not a back breaker. We are now considering selling(will profit 900K) and moving to Shady Canyon. It is NOT all luck!! Buying and selling homes is like any other business. You have to know what your getting your self into and not make a emotional purchase. Intuition, and knowing when to sell and when to buy. Analyzing the market, and by all means I don't have a PHD on finance but read the WSJ  I do think the Irvine market is unfortunately inflated due to foreign cash buyers, however, the schools are some of the best public schools in the state. Education is very big for me and I rather spend the $$$ on housing then private schools. Maybe when they go to Harvard, that will be worth paying for! LOL ;D

 

[Happiness]

The biggest factor in being able to live in a 2 mil and up house is luck or getting a lucky person to marry you.  There is no way "making the right financial decisions" will get you there.  Most doctors and lawyers do not live in 2 mil houses.  90% of small businesses fail within 5 years.  I hate to break this news to you, but you're either lucky or you're not.

Don't mean to be rude but too many negative thought process here about the affordability of Irvine . I'm a Doctor and my husband is a fireman. We live in Irvine and have been since we've been married (12years). It's all about timing, know when to sell and when to buy. We started with a 420k home in Irvine West Park area in 2004 and worked our way up (3 homes later and yes I hate moving) now to Turtle ridge 2.6 mil house with a 500k mortgage that is not a back breaker. We are now considering selling(will profit 900K) and moving to Shady Canyon. It is NOT all luck!! Buying and selling homes is like any other business. You have to know what your getting your self into and not make a emotional purchase. Intuition, and knowing when to sell and when to buy. Analyzing the market, and by all means I don't have a PHD on finance but read the WSJ  I do think the Irvine market is unfortunately inflated due to foreign cash buyers, however, the schools are some of the best public schools in the state. Education is very big for me and I rather spend the $$$ on housing then private schools. Maybe when they go to Harvard, that will be worth paying for! LOL ;D

Only special people have intuition.  Most of us only have luck to fall back on.

 

[hello]

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

What are you???  A longshoreman???

or cop or firefighter.  Wait he said college.  I take that back.

 

[JackTamkin]

The biggest factor in being able to live in a 2 mil and up house is luck or getting a lucky person to marry you.  There is no way "making the right financial decisions" will get you there.  Most doctors and lawyers do not live in 2 mil houses.  90% of small businesses fail within 5 years.  I hate to break this news to you, but you're either lucky or you're not.

Don't mean to be rude but too many negative thought process here about the affordability of Irvine . I'm a Doctor and my husband is a fireman. We live in Irvine and have been since we've been married (12years). It's all about timing, know when to sell and when to buy. We started with a 420k home in Irvine West Park area in 2004 and worked our way up (3 homes later and yes I hate moving) now to Turtle ridge 2.6 mil house with a 500k mortgage that is not a back breaker. We are now considering selling(will profit 900K) and moving to Shady Canyon. It is NOT all luck!! Buying and selling homes is like any other business. You have to know what your getting your self into and not make a emotional purchase. Intuition, and knowing when to sell and when to buy. Analyzing the market, and by all means I don't have a PHD on finance but read the WSJ  I do think the Irvine market is unfortunately inflated due to foreign cash buyers, however, the schools are some of the best public schools in the state. Education is very big for me and I rather spend the $$$ on housing then private schools. Maybe when they go to Harvard, that will be worth paying for! LOL ;D

Wow - that's pretty impressive! I haven't seen this in my circle of friends in OC who purchased homes around 2000-2004. Most are still in their first or second homes, and sitting on a bunch of equity. They plan on helping their kids with college. Or moving elderly parents to OC (buying a second home rather than trading up to a bigger home).

Maybe that's why it seems my friends in the OC are living in larger, nicer homes even though we're all in similar income brackets. It's like JBean72 said, for some, it's & cheaper to buy a new home in Irvine than to deal with an older home in La Canada/Pasadena/South Pasadena. There is a constrained supply of new or updated homes that fit in amongst existing homes. For instance, we couldn't see ourselves in a McMansion in Arcadia adjacent to 1950s ranch homes.

 

[Perspective]

The biggest factor in being able to live in a 2 mil and up house is luck or getting a lucky person to marry you.  There is no way "making the right financial decisions" will get you there.  Most doctors and lawyers do not live in 2 mil houses.  90% of small businesses fail within 5 years.  I hate to break this news to you, but you're either lucky or you're not.

Don't mean to be rude but too many negative thought process here about the affordability of Irvine . I'm a Doctor and my husband is a fireman. We live in Irvine and have been since we've been married (12years). It's all about timing, know when to sell and when to buy. We started with a 420k home in Irvine West Park area in 2004 and worked our way up (3 homes later and yes I hate moving) now to Turtle ridge 2.6 mil house with a 500k mortgage that is not a back breaker. We are now considering selling(will profit 900K) and moving to Shady Canyon. It is NOT all luck!! Buying and selling homes is like any other business. You have to know what your getting your self into and not make a emotional purchase. Intuition, and knowing when to sell and when to buy. Analyzing the market, and by all means I don't have a PHD on finance but read the WSJ  I do think the Irvine market is unfortunately inflated due to foreign cash buyers, however, the schools are some of the best public schools in the state. Education is very big for me and I rather spend the $$$ on housing then private schools. Maybe when they go to Harvard, that will be worth paying for! LOL ;D

This is satire, right? I sure hope so. Although, it is a fact that doctors are some of the worst investors because they're highly educated and think they know about personal finance than they really do. That might fit the bill here. Your house buying and selling was 90% luck. Sorry to disappoint, and not trying to be rude.

 

[Angels_Baseball_2015]

But the inflation of foreign cash buyers helped you with your $900K appreciation, no? 

 

[bones]

This is satire, right? I sure hope so. Although, it is a fact that doctors are some of the worst investors because they're highly educated and think they know about personal finance than they really do. That might fit the bill here. Your house buying and selling was 90% luck. Sorry to disappoint, and not trying to be rude.

Why can't the fireman be the financial mastermind behind all the intuitive moves!?!

 

[woodburyowner]

Don't mean to be rude but too many negative thought process here about the affordability of Irvine . I'm a Doctor and my husband is a fireman. We live in Irvine and have been since we've been married (12years). It's all about timing, know when to sell and when to buy. We started with a 420k home in Irvine West Park area in 2004 and worked our way up (3 homes later and yes I hate moving) now to Turtle ridge 2.6 mil house with a 500k mortgage that is not a back breaker. We are now considering selling(will profit 900K) and moving to Shady Canyon. It is NOT all luck!! 

I think it would have been a completely different story if you bought in 2006/2007.  Did you sell your properties and then rent for awhile before jumping back in the market during your moves?  That would be impressive if you did.  But if you just kept rolling into the next property, then I would say it was more luck/timing based.

I have a friend who bought in 02, then 04, and then in 06 (basically 2 years on the dot for capital gains exclusion).  He would never have been able to afford the 2006 house if he didn't happen to buy in 2002. 

 

[paperboyNC]

We started with a 420k home in Irvine West Park area in 2004 and worked our way up (3 homes later and yes I hate moving) now to Turtle ridge 2.6 mil house with a 500k mortgage that is not a back breaker.

I'm guessing your home isn't valued at 2.6 mill for property tax purposes?

A home like this:https://www.redfin.com/CA/Irvine/57-Shady-Ln-92603/home/5892632

Has a $29,000/yr property tax bill

Even with a 500k 30yr mortgage at 4% your monthlies would be:

$2,400 mortgage payment
$2,400 property tax
$400 HOA
$300 insurance
----------------------
$5,500/mo

To have what TI considers a comfortable home to gross income ratio of 25% your monthly pre-tax income would need to be $22,000.  Obviously not impossible for a doctor - but the point is that property insures that even if you can afford to buy really expensive homes for cash (or close to no mortgage), your monthly expenses can still be high.

 

[Paris167]

Interesting conversation here today. I've never even looked at La Canada so went on Redfin to look at some comparable homes and was not impressed. They look really old, the neighborhoods don't look like they are governed by an HOA, it looks very "LA" (like I can see power lines running right behindsome of the homes in the back yards. )

So we're a young couple, professionals, early 30s, young kids and I think I can speak for many here as to why we bought in Irvine:
1. Great PUBLIC schools
2. New homes - I love my new build because for the same price as some 20+ year old product I got to buy a functional floor plan, put in all the options, all the latest technology and my favorite designs into a home made to my liking
3. Everything in Irvine is aesthetically beautiful and I LOVE that - beautiful landscapes, rolling orchard groves surrounding my home in OH, no power lines to be seen anywhere around my home, everything matches, all the neighbors homes are coordinated and looks like it all fits together nicely. No neighbors with a red front door or pink house color that sticks out.
4. lots of outdoor spaces, trails, parks, community centers and all farily new
5. More young families like us in the neighborhood (no rock stars, wanna be actors, very hip LA crowd mixed into our neighborhoods)
6. Relatively close to the beach - takes me 15-20 mins surface streets on jamboree to drive to Newport and the beach
7. Lots of convenient shopping centers, great malls (south coast, fashion island, Irvine spectrum) at my fingertips...relatively easy to get to
8. Not as much traffic congestion as LA - this was a primary reason we moved out of LA. That congestion and inconvenince just to get an errand done without honking my horn once was well worth the move outta LA
9. Overall more relaxed environment - my feeling in LA is more people are stressed out and that energy can be felt
10. Irvine is safe, safety is of primary importance with young kids
11. And YES lot size is much smaller but I (maybe rare sentiment) LIKE that because it is less yard space I have to maintain but I can walk 5 mins outside my house to a park for the kids to play, tennis courts for tennis, a massive pool that we can enjoy but I don't have to maintain.

Anyway some reasons we love Irvine and I'm sure many of my TI members here share in my sentiment.

My thoughts on Irvine affordability is that most live within their means or a little below. But I can't speak for others..for us we try very hard to live below our means. Our 3230 sqft home is a perfect size for our family of 4 and meets all of our needs. Larger home to us does not equal happiness, it equals more money and effort to maintain. Life is better enjoyed simpler which is a motto we live by. I'm a doctor and I have many physician friends but all our sources of income and wealth span from hundreds of thousands to well into the multi-millions because it depends on if the physician is the sole breadwinner of the family or their spouse makes just as much or even more than they do. And yes the poorest physician earners (family medicine, primary care, general peds) make the average $150-160 k but remember that most physicians these days are specialists and those average salaries are $300k to $500k annually as an "average". And my plastics friends, interventional radiology are easily into the million range salaries. So yes they have school loans and are late in the game to earn a salary but we catch up to the "average" professional earner very quickly. But as perspective mentioned, how they manage that income is a whole different story. I have friends that are extremely financially savvy and others that spend every dime they make with no positive cash flow at the end of each month.

 

[Perspective]

Doctors and lawyers have a high propensity to be what "The Millionaire Next Door" terms "under accumulators of wealth." Many can have very high incomes with very poor levels of wealth relative to their income.

 

[Paris167]

Doctors and lawyers have a high propensity to be what "The Millionaire Next Door" terms "under accumulators of wealth." Many can have very high incomes with very poor levels of wealth relative to their income.

Generally speaking true but I know many physicians with a fairly high net worth but usually these are not your regular salaried physicians - they are the ones with businesses, rental properties, a good diversification of wealth that optimizes their net positive cash flow in addition to what they make practicing. The younger generations of professionals seem to be more financially savvy than their older counterparts.

 

[WTTCHMN]

Doctors and lawyers have a high propensity to be what "The Millionaire Next Door" terms "under accumulators of wealth." Many can have very high incomes with very poor levels of wealth relative to their income.

Generally speaking true but I know many physicians with a fairly high net worth but usually these are not your regular salaried physicians - they are the ones with businesses, rental properties, a good diversification of wealth that optimizes their net positive cash flow in addition to what they make practicing. The younger generations of professionals seem to be more financially savvy than their older counterparts.

Or maybe they just marry firemen or marines who are more financially savvy than them. 

 

[JBean72]

Interesting conversation here today. I've never even looked at La Canada so went on Redfin to look at some comparable homes and was not impressed. They look really old, the neighborhoods don't look like they are governed by an HOA, it looks very "LA" (like I can see power lines running right behindsome of the homes in the back yards. )

So we're a young couple, professionals, early 30s, young kids and I think I can speak for many here as to why we bought in Irvine:
1. Great PUBLIC schools
2. New homes - I love my new build because for the same price as some 20+ year old product I got to buy a functional floor plan, put in all the options, all the latest technology and my favorite designs into a home made to my liking
3. Everything in Irvine is aesthetically beautiful and I LOVE that - beautiful landscapes, rolling orchard groves surrounding my home in OH, no power lines to be seen anywhere around my home, everything matches, all the neighbors homes are coordinated and looks like it all fits together nicely. No neighbors with a red front door or pink house color that sticks out.
4. lots of outdoor spaces, trails, parks, community centers and all farily new
5. More young families like us in the neighborhood (no rock stars, wanna be actors, very hip LA crowd mixed into our neighborhoods)
6. Relatively close to the beach - takes me 15-20 mins surface streets on jamboree to drive to Newport and the beach
7. Lots of convenient shopping centers, great malls (south coast, fashion island, Irvine spectrum) at my fingertips...relatively easy to get to
8. Not as much traffic congestion as LA - this was a primary reason we moved out of LA. That congestion and inconvenince just to get an errand done without honking my horn once was well worth the move outta LA
9. Overall more relaxed environment - my feeling in LA is more people are stressed out and that energy can be felt
10. Irvine is safe, safety is of primary importance with young kids
11. And YES lot size is much smaller but I (maybe rare sentiment) LIKE that because it is less yard space I have to maintain but I can walk 5 mins outside my house to a park for the kids to play, tennis courts for tennis, a massive pool that we can enjoy but I don't have to maintain.

Anyway some reasons we love Irvine and I'm sure many of my TI members here share in my sentiment.

My thoughts on Irvine affordability is that most live within their means or a little below. But I can't speak for others..for us we try very hard to live below our means. Our 3230 sqft home is a perfect size for our family of 4 and meets all of our needs. Larger home to us does not equal happiness, it equals more money and effort to maintain. Life is better enjoyed simpler which is a motto we live by. I'm a doctor and I have many physician friends but all our sources of income and wealth span from hundreds of thousands to well into the multi-millions because it depends on if the physician is the sole breadwinner of the family or their spouse makes just as much or even more than they do. And yes the poorest physician earners (family medicine, primary care, general peds) make the average $150-160 k but remember that most physicians these days are specialists and those average salaries are $300k to $500k annually as an "average". And my plastics friends, interventional radiology are easily into the million range salaries. So yes they have school loans and are late in the game to earn a salary but we catch up to the "average" professional earner very quickly. But as perspective mentioned, how they manage that income is a whole different story. I have friends that are extremely financially savvy and others that spend every dime they make with no positive cash flow at the end of each month.

Ahem... don't knock La Canada until you've seen it in person. And make sure you visit the area behind "The Dish" restaurant - those homes are beyond beautiful.

Sorry, but you just can't replicate a neighborhood like that with the cookie cutter feel of Irvine. Just can't compare the two.

Yes Irvine is clean, well manicured, and not like L.A, but La Canada is about as clean and manicured as you can get for L.A county. Visit some time then tell me your thoughts

Basically as I said, the decision to buy in Irvine vs L.A was convenience. You get a turn-key home, customized the way you want, with plenty of areas to choose from.

With regards to L.A, you have to really be diligent about house hunting, and if you see a home you love, and fits your needs, don't waffle, because someone else is already bidding on it - such was the case with La Canada. The moment we found the perfect home, it was pending the DAY it was listed. Thus, we gave up... for now There's a reason why La Canada homes are pending, it's a very sought after area with the best schools. Just not an easy place to shop for a home.

But I agree on all your points except for #5 - there are a lot of families in L.A, just depends on the area. And #11 - I hate having a small yard, sorry!

 

[AW]

I guess you had to have work and lived around that part of LA to appreciate what's good
LA has its own vibe, just like OC, just like NYC, everyone has their own preference

 

[JBean72]

I guess you had to have work and lived around that part of LA to appreciate what's good
LA has its own vibe, just like OC, just like NYC, everyone has their own preference

This is true, different preferences for sure. Having lived in both areas, I love L.A - just wish the traffic wasn't psycho. Definitely things I appreciate about the O.C over L.A, but overall my preference is La Canada, and Pasadena area over Irvine any day.

 

[Paris167]

Doctors and lawyers have a high propensity to be what "The Millionaire Next Door" terms "under accumulators of wealth." Many can have very high incomes with very poor levels of wealth relative to their income.

Generally speaking true but I know many physicians with a fairly high net worth but usually these are not your regular salaried physicians - they are the ones with businesses, rental properties, a good diversification of wealth that optimizes their net positive cash flow in addition to what they make practicing. The younger generations of professionals seem to be more financially savvy than their older counterparts.

Or maybe they just marry firemen or marines who are more financially savvy than them. 

Excuse me, don't put down firemen and members of the military because when your million dollar home is surrounded by a wildfire or ISIS is at your front door those "heroes" are the first people we all turn to. I'm very proud of my husband's military service to this country - it allows you to live within the safety net of your little protected bubbled Irvine world under the protection of the strongest military force in the world. So have a little respect for the military, they sacrifice their life, limbs, family life to protect us.

And for your information my husband is now in corporate finance making a lot more than me and he is extremely financially savvy (which is why we live comfortably below our means) 

 

[Paris167]

I guess you had to have work and lived around that part of LA to appreciate what's good
LA has its own vibe, just like OC, just like NYC, everyone has their own preference

This is true, different preferences for sure. Having lived in both areas, I love L.A - just wish the traffic wasn't psycho. Definitely things I appreciate about the O.C over L.A, but overall my preference is La Canada, and Pasadena area over Irvine any day.

You're right JBean - I haven't been to La Canada, I'm sure there are some beautiful neighborhoods there unlike my brief Redfin search with a narrowed perspective.

But my comments in general were a comparison to typical LA neighborhoods compared to OC. I lived in LA most of my life and in my 20s it was an amazing place to be. But as we started a family I gravitated more towards OC for those particular reasons that worked for our family. Everyone's needs are different but I love Irvine which is why we live here 

Out of curiosity though if you love LA/La Canada and hate small backyards why did you buy in Capella? You live in Capella right?

 

[JBean72]

I guess you had to have work and lived around that part of LA to appreciate what's good
LA has its own vibe, just like OC, just like NYC, everyone has their own preference

This is true, different preferences for sure. Having lived in both areas, I love L.A - just wish the traffic wasn't psycho. Definitely things I appreciate about the O.C over L.A, but overall my preference is La Canada, and Pasadena area over Irvine any day.

You're right JBean - I haven't been to La Canada, I'm sure there are some beautiful neighborhoods there unlike my brief Redfin search with a narrowed perspective.

But my comments in general were a comparison to typical LA neighborhoods compared to OC. I lived in LA most of my life and in my 20s it was an amazing place to be. But as we started a family I gravitated more towards OC for those particular reasons that worked for our family. Everyone's needs are different but I love Irvine which is why we live here 

Out of curiosity though if you love LA/La Canada and hate small backyards why did you buy in Capella? You live in Capella right?

Sounds like you made the right decision then, especially since you've already lived in L.A, you know the comparisons!

OC is great for families, and definitely a great choice!

We choose Capella for financial reasons - didn't want to take on more than the price of a Capella home. We ended up getting a decent lot (for Capella) so it works for us, but I would love to have a larger yard one day! As you said, the parks more than make up for it.

As for our choice for Capella over L.A, we tried for awhile to find a home in those areas I mentioned, and it just wasn't in the cards. Multiple offers came in on homes we wanted, or we had to overbid. Prices were comparable to here not including the extra work to renovate, and a lot of the homes were not sewer connected or had pools (which we do NOT want), so it was a matter of doing what was convenient for us at the time.

 

[bones]

Everyone's needs are different but I love Irvine which is why we live here 

Hate to admit it but this is us too.  We have zero reasons to live in Irvine.  And not a single tie.  But we do & everytime we keep wanting to move out, I get sucked back in.  But one day, I will quit Irvine