Don’t worry we are doing GREAT!

[FlyerInHi]

True, NSR. But medical advancement is creating a health gap.

Dentistry is generally not well covered even with health insurance. Within one race you can look at teeth and determine social status.

Look at the quality and cleanliness of the complexion to determine social status. Look at overall weight and fitness.

And even if physical appearance is no indication of real health, I’m sure that it’s a determinant of psychological health which affects the drive to do better.

[The-Shoveler]

Being destitute and healthy is better than being wealthy and bedridden (or worse).

What does that have to do with anything ?
Nothing just thought I would add that.

(keep fit, if possible, it’s your best asset).

[no_such_reality]

[quote=FlyerInHi]True, NSR. But medical advancement is creating a health gap.

Dentistry is generally not well covered even with health insurance. Within one race you can look at teeth and determine social status.

Look at the quality and cleanliness of the complexion to determine social status. Look at overall weight and fitness.

And even if physical appearance is no indication of real health, I’m sure that it’s a determinant of psychological health which affects the drive to do better.[/quote]

The real determinant is stress. Lack of adequate financial resources and uncertainty in financial resources are a huge component of that.

You’re mistaking looking at winners and thinking that it’s the fruit of the money when it reality it’s the fruit of the lower stress of winning.

Check the health of any high income, highish networth person when their business has lost it’s edge and their health suffers accordingly.

As for the socialite idle rich, yea, over $5M or $25 M, wining and losing is just an ego thing, it’s like playing monopoly and has no consequences.

[kev374]

When I read these sob stories of how everyone is suffering I just laugh. The median home price in Orange County is currently $550,000…over HALF A MILLION DOLLARS for the 50th PERCENTILE!!! What should be the median household income be then? If you take the typical ratio of limiting total home price to 1/3rd of gross yearly which is considered the metric most financial conservatives use, the median household income county wide should be $183,000/yr.

Also considering that a $550k home would need a 20% down amounting to a pretty staggering $110,000 in addition to closing costs AND move-in expenses AND financial reserves the total would be cash on hand of $150,000 or more.

So, do you expect me to cry tears for the median household that is earning close to $200,000 and has $150,000 in savings?

Apparently people are not only buying these homes in droves, both the media and economists calls the market as being in a state of “historic affordability” relative to incomes. So, incomes must be staggeringly strong which is in direct contradiction to the sob articles of poverty you have posted.

Now, IN ADDITION, not only are people buying these homes in droves, they are also spending money at a brisk pace – the restaurants here in Orange County are all packed and have you eaten out lately? It has become shockingly expensive to eat out and yet the establishments are all packed. If incomes are not fueling this then what exactly is?

[spdrun]

Because the economic situation in Orange County reflects that of the whole country. Right, ok. That’s like judging the French economy by the Riviera or the New York economy from the Hamptons.

Also, if you correlate home prices to average incomes, you’re ass-u-meing that all people buy homes at the ideal value-to-income ratio. I suspect that the lower 30-40% of incomes in Orange County aren’t buying homes any time soon, and thus the home price numbers are skewed towards the wealthier end of the spectrum.

Kind of like in NYC, where only 30-40% of so of residents own their homes.

[kev374]

The wealthier end of the spectrum is not buying $500,000 homes as these homes are in ghettos like Buena Park and Anaheim. The wealthier households buy in Irvine and Tustin Ranch which have average home prices close to a million dollars.

We are talking about half a million median in solidly blue collar neighborhoods like Buena Park and Orange. Especially Orange, not sure what is going on there because the demographics there are all Blue collar yet homes are way north of half million.

[NotCranky]

[quote=The-Shoveler]Being destitute and healthy is better than being wealthy and bedridden (or worse).

What does that have to do with anything ?
Nothing just thought I would add that.

(keep fit, if possible, it’s your best asset).[/quote]

That’s a good idea, keeping fit, so that when you die what kills you is not as likely to be something that also bankrupts you.

[no_such_reality]

[quote=kev374]The wealthier end of the spectrum is not buying $500,000 homes as these homes are in ghettos like Buena Park and Anaheim. The wealthier households buy in Irvine and Tustin Ranch which have average home prices close to a million dollars.

We are talking about half a million median in solidly blue collar neighborhoods like Buena Park and Orange. Especially Orange, not sure what is going on there because the demographics there are all Blue collar yet homes are way north of half million.[/quote]

No, Irvine is middle class. Shady canyon in Irvine is neuvo money and most are posers. People with real money, buy on little Lido island, Pelican hill Lemon heights.

That’s a solidly California distortion, people living in million dollar homes are really working class professionals. Financially well off, but most are not wealthy.

[spdrun]

^^^

Question is: are they old-money working-class professionals, where the homes have been in the family free and clear for 50 years?

[FlyerInHi]

People buy houses over time and neighborhoods take decades to develop. It only takes a few sales to move the market. .
The original houses in mission Viejo sold for $80k back in the 80s. I think about $600k now.

[no_such_reality]

[quote=spdrun]^^^

Question is: are they old-money working-class professionals, where the homes have been in the family free and clear for 50 years?[/quote]

They aren’t monied families. A few of the Indian and Chinese ones are back in their ancestral country, but by and large, Irvine, MV and most of OC is just working class stiffs with white collars.

Their money is living with them and passing with them.

[spdrun]

What do you consider “working stiff” income? Keep in mind that a $1MM house financed at 90% will cost $60k/yr in taxes and mortgage payments alone, not accounting for HOA fees, Mello-Roos, improvements, maintenance.

At $5-6k/mo, you can rent something pretty damn nice for half the price.

[no_such_reality]

Working stiff doesn’t matter if they make $30,000 or $300,000 or $500,000 or even a million dollars. They’re working stiffs.

They can’t stop working, if they stopped their primary work they couldn’t maintain their lifestyle.

They may be a self-employed dentist that actually does love it, but they still need to show up everyday. They may work for someone else. Even most of the people running their own business are still just working stiffs.

Working stiff, if they step off the treadmill, they’re broke in a decade.

[spdrun]

By that definition, isn’t 99.9% of employed America “working stiffs?” Of course if you’re really making $500k/yr, why aren’t you buying a well-managed condo per year, renting it out for $10k/yr or so profit, so as to have a Plan B if TSHTF as far as your job or company?

If the people who spent their time “prepping” and collecting arms spent half their time preparing financially for independence, I bet they’d be a lot happier.

[no_such_reality]

Because the reality is 99% of Irvine is tapped out at $300K of household income.

And yes, you win a cupie-doll, 99% of Americans are just glorified working stiffs. Especially the hot-shot wall street guys thinking they’re making $500K+ a year. Their years are number, their income is fickle.

I know plenty of people that did just as you said, they bought the rental properties, they were holding the bag when the music stopped in the last bubble.

Now, for your buy a well maintained condo. Okay, you do, how many do you need to own when you’re blowing through $200K+ a year in living expenses?

[Author]

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