What he HELL does everyone do in OC to make money? (Irvine: 2015, tax)

[incognitoe]

Originally Posted by k374

that calculator it totally bogus, that is part of the problem here... the definition of what is "affordable" has itself been re-written.

One thing that so many people fail to realize is that the higher income jobs are much more volatile, i.e. in a bad economy they are the first things to get cut and they are the most difficult to replace. The confidence with which people thing their jobs will last forever is downright laughable.

Buying a home requires an extreme dose of conservatism that seems to be all but missing with today's population encouraged by idiotic calculators like this that tell them it's OK. It is NOT OK to spend $850,000 on a home making $150k/yr unless you have substantial levels of liquid net worth as backup. Most likely the people who buy these types of homes exhaust all their savings on the downpayment and cross their fingers that they don't lose their jobs. Well, you can also go to Las Vegas and play roulette there while you are at it.

Another point I'd like to make is that the lifestyle people live when making $150k/yr is hardly conservative as far as i've seen... not only do these people buy the $600,700 or 800k homes, they still have to buy the Lexus, BMW, Mercedes, still have to have lavish parties for their kids, take exotic vacations etc. etc. Not everyone but a large majority do this.

Some friends of mine living in the Bay Area recently bought a home for $900,000, but they are both tech workers and their combined income is more like $300,000, not $150k!!

So how are people in OC (which the avg household income is about $50-65k) able to afford the avg home price of $590k?

[NOLA101]

Originally Posted by incognitoe

So how are people in OC (which the avg household income is about $50-65k) able to afford the avg home price of $590k?

If you already own (like most households) then the ratio of income to average home price is irrelevent.

Plenty of people live in places like Corona del Mar and make <100k, BUT they bought a long time ago, so are fine.

And renters can make do just fine at lower income levels.

[JohnG72]

Originally Posted by incognitoe

So how are people in OC (which the avg household income is about $50-65k) able to afford the avg home price of $590k?

They can't and won't. Likewise neither can a family of four making $100k a year. They buy in Sant Ana, Anaheim, or one of the other oc communities that are run down and not expensive, or they rent. Historically few homes are selling and it's because they are unaffordable. If it wasn't for cash moving out of China the past several years, sales would have been at a crawl.

[incognitoe]

Originally Posted by JohnG72

They can't and won't. Likewise neither can a family of four making $100k a year. They buy in Sant Ana, Anaheim, or one of the other oc communities that are run down and not expensive, or they rent. Historically few homes are selling and it's because they are unaffordable. If it wasn't for cash moving out of China the past several years, sales would have been at a crawl.

China's stock market crashed. Hopefully, few of them are investing making more homes available for the locals.

The bubble needs to pop already. It's ridiclous.

[californiasucks]

What the hell does everyone do in OC to make money

Online marketing. Done right, you're only working a few hours (3-4) every week. The rest of the time is play-time.

[adr3naline]

My company headquarters are in Irvine.

When I visit I have a habit of grabbing coffee and taking a seat a some tables near the parking entrance. From 8-9am as employees pour in from the surrounding areas. I see Mercedes after Mercedes, BMW after BMW. Many of the workers in their late 20's. Then throughout the day I will hear their low-mid level titles as we go through introductions. Surprising at first. Knowing how our SoCal comp packages are assembled it is easy to see they're spending a significant portion of their disposable income on vehicles, fashion, etc. That "look" they're after.

They lease vehicles, rent upscale apartments, and spend their dimes at The Spectrum. They possess a fundamentally different outlook on savings & retirement from much of the country. I myself being raised in the Midwest where many residents can be considered "Private Millionaires" driving small Toyotas with big bank accounts, I can't help be be fascinated with their financial decisions. The lifestyle is rented and no one seems to mind.

Not to say this way of life is wrong. If ^this is you and you're happy - good for you. Who I am to judge.

[expatCA]

Originally Posted by adr3naline

My company headquarters are in Irvine.

When I visit I have a habit of grabbing coffee and taking a seat a some tables near the parking entrance. From 8-9am as employees pour in from the surrounding areas. I see Mercedes after Mercedes, BMW after BMW. Many of the workers in their late 20's. Then throughout the day I will hear their low-mid level titles as we go through introductions. Surprising at first. Knowing how our SoCal comp packages are assembled it is easy to see they're spending a significant portion of their disposable income on vehicles, fashion, etc. That "look" they're after.

They lease vehicles, rent upscale apartments, and spend their dimes at The Spectrum. They possess a fundamentally different outlook on savings & retirement from much of the country. I myself being raised in the Midwest where many residents can be considered "Private Millionaires" driving small Toyotas with big bank accounts, I can't help be be fascinated with their financial decisions. The lifestyle is rented and no one seems to mind.

Not to say this way of life is wrong. If ^this is you and you're happy - good for you. Who I am to judge.

Many today do not see the American Dream as desirable. they do not see marriage, children or saving for retirement as appealing. They want the "good life" right now. Clothes, cars, restaurants, etc they can pay for, long term planning is for what to do the next weekend.

[oping00]

Originally Posted by expatCA

Many today do not see the American Dream as desirable. they do not see marriage, children or saving for retirement as appealing. They want the "good life" right now. Clothes, cars, restaurants, etc they can pay for, long term planning is for what to do the next weekend.

Don't forget Chipolte.

[expatCA]

Originally Posted by oping00

Don't forget Chipolte.

OK, next weekend.

[payutenyodagimas]

Originally Posted by adr3naline

My company headquarters are in Irvine.

When I visit I have a habit of grabbing coffee and taking a seat a some tables near the parking entrance. From 8-9am as employees pour in from the surrounding areas. I see Mercedes after Mercedes, BMW after BMW. Many of the workers in their late 20's. Then throughout the day I will hear their low-mid level titles as we go through introductions. Surprising at first. Knowing how our SoCal comp packages are assembled it is easy to see they're spending a significant portion of their disposable income on vehicles, fashion, etc. That "look" they're after.

They lease vehicles, rent upscale apartments, and spend their dimes at The Spectrum. They possess a fundamentally different outlook on savings & retirement from much of the country. I myself being raised in the Midwest where many residents can be considered "Private Millionaires" driving small Toyotas with big bank accounts, I can't help be be fascinated with their financial decisions. The lifestyle is rented and no one seems to mind.

Not to say this way of life is wrong. If ^this is you and you're happy - good for you. Who I am to judge.

whats the range of the compensation?

I myself couldn't imagine why someone rents at Irvine. its not just like NY where the alternative is traveling more than an hour by train

with the rent you pay at Irvine, that's monthly amortization already in Lake Forest, Mission Viejo or RSM

I can understand the predicament of a single mother I know, who rented an apartment in front of a school but that is to make sure that she doesn't have to drop and pick up her kids