What’s your family income?

[Trojan4Life]

We see a lot of data from US Census and other sources stating the median incomes, but I was wondering how in line with these medians the readers and posters to this blog are?

Please respond with your gross household income (be honest) so we can get a better look at how blogger incomes affect how/what/where they post.

[PD]

I invite everybody else to go first. 🙂

[an]

haha, after you.

[mydogsarelazy]

We are a two parent family with a stay at home mom, three kids, 100k income.

JS

[Anonymous]

mydogsarelazy, you appear to be an underperformer for being a proud graduate of Leland Stanford U.

And, T4L, you appear to be an overachiever for being a USC grad.

[Trojan4Life]

I love you too, JG!

Freddie, Proud USC Trojan

[PD]

I would bet that almost all of the posters here earn over 75k, unless they are in their 20s and haven’t worked up to that yet.

[PD]

I would bet that almost all of the posters here earn over 75k, unless they are in their 20s and haven’t worked up to that yet.

[(former)FormerSanDiegan]

OK, I’ll help you prove your point, but I don’t want to put a number out there. Our family of four is above the median according to the three measures for SD county.

[sdrealtor]

I could take care of a few median HH’s

[sdrealtor]

I could take care of a few median HH’s

[Anonymous]

Freddie, I’m an ex Naval Officer. I also went to U. of Texas as an undergrad (and thoroughly enjoyed the Rose Bowl of two years ago). I’m just trying to get some interservice ribbing going on.

Like, does your $40K pension from the Air Force cover your disability for turf toe from all of that time on the gold course?

Aside, my wife went to USC and was a Tri Delt. My 11 year old son enjoys irritating her by actuating his ‘talking’ pen: it has a recording of the announcer breathlessly detailing Vince Young’s ‘with time running out’ touchdown at that Rose Bowl.

Actually, USC has gotten a lot better over the years. Used to be, University of Spoiled Children. Now, it’s like Stanford, Berkeley, and UCLA: University of Scarce Caucasians.

[Trojan4Life]

JG,

UUUUGGGGHHHH!!! I almost died that day during the RB, 5 minutes left and I thought we had that game locked up! Have to give Vince his props, we simply could not tackle him.

We irritate our Univ of Oregon neighbors by constantly using our USC bottle opener at gatherings. Plays the fight song!

This year’s average freshman admit was carrying a 3.9 GPA in High School and sporting about a 1300 SAT.

Freddie, Proud USC Trojan

[nla]

non-USC-Stanford-UCLA-Bekeley-UCSD graduate here: 2 income, 180K

[mydogsarelazy]

Since education got brought up, I am probably quite low in terms of earnings compared to other Stanford grads from my class.

That said, as an art professor, I think I am way high on career satisfaction.

Just being a bit defensive here…

JS

[mydogsarelazy]

Since education got brought up, I am probably quite low in terms of earnings compared to other Stanford grads from my class.

That said, as an art professor, I think I am way high on career satisfaction.

Just being a bit defensive here…

JS

[nla]

non-USC-Stanford-UCLA-Bekeley-UCSD graduate here: 2 income, 180K

[Trojan4Life]

JG,

UUUUGGGGHHHH!!! I almost died that day during the RB, 5 minutes left and I thought we had that game locked up! Have to give Vince his props, we simply could not tackle him.

We irritate our Univ of Oregon neighbors by constantly using our USC bottle opener at gatherings. Plays the fight song!

This year’s average freshman admit was carrying a 3.9 GPA in High School and sporting about a 1300 SAT.

Freddie, Proud USC Trojan

[Anonymous]

Freddie, I’m an ex Naval Officer. I also went to U. of Texas as an undergrad (and thoroughly enjoyed the Rose Bowl of two years ago). I’m just trying to get some interservice ribbing going on.

Like, does your $40K pension from the Air Force cover your disability for turf toe from all of that time on the gold course?

Aside, my wife went to USC and was a Tri Delt. My 11 year old son enjoys irritating her by actuating his ‘talking’ pen: it has a recording of the announcer breathlessly detailing Vince Young’s ‘with time running out’ touchdown at that Rose Bowl.

Actually, USC has gotten a lot better over the years. Used to be, University of Spoiled Children. Now, it’s like Stanford, Berkeley, and UCLA: University of Scarce Caucasians.

[(former)FormerSanDiegan]

OK, I’ll help you prove your point, but I don’t want to put a number out there. Our family of four is above the median according to the three measures for SD county.

[Trojan4Life]

I love you too, JG!

Freddie, Proud USC Trojan

[Anonymous]

mydogsarelazy, you appear to be an underperformer for being a proud graduate of Leland Stanford U.

And, T4L, you appear to be an overachiever for being a USC grad.

[mydogsarelazy]

We are a two parent family with a stay at home mom, three kids, 100k income.

JS

[an]

haha, after you.

[PD]

I invite everybody else to go first. 🙂

[Trojan4Life]

I should have started it off…

2-parent household, 1 income earner (me) and 1 hard worker (my wife), 2 kids, $108K

Freddie, Proud USC Trojan

[Trojan4Life]

I should have started it off…

2-parent household, 1 income earner (me) and 1 hard worker (my wife), 2 kids, $108K

Freddie, Proud USC Trojan

[uncomfortably numb]

Really bad idea!

[Trojan4Life]

Then don’t respond, but my theory is that the readers of this blog are likely very high income earners ($80K+) and this leads me to say that if those households with that kind of income are so severely affected by the housing bubble, then we may a larger affordability problem than we think.

Freddie, Proud USC Trojan

[Trojan4Life]

Then don’t respond, but my theory is that the readers of this blog are likely very high income earners ($80K+) and this leads me to say that if those households with that kind of income are so severely affected by the housing bubble, then we may a larger affordability problem than we think.

Freddie, Proud USC Trojan

[uncomfortably numb]

Really bad idea!

[(former)FormerSanDiegan]

Here’s a less-intrusive way to ask.

According to the US Census Bureau, the following are the median income levels in San Diego County for 2005 (in 2005 dollars) :

Per capita income : 28,329
Median Household Income: 56,335
Median Family Income : 66,178

Please answer the following:

1. Is your family income greater than or less than the median ?

2. Is your household income greater or less than the median ?

3. Is your per capita income less than or greater than the median ?

By the way, just curious …
Is your moniker intended to encourage the use of a certain brand of prophylactics to avoid life-threatening disease, or are you a USC grad ?

[(former)FormerSanDiegan]

oops, while I was preparing a response you answered my question regarding your moniker. I hope it wasn’t too personal a question.

[(former)FormerSanDiegan]

oops, while I was preparing a response you answered my question regarding your moniker. I hope it wasn’t too personal a question.

[Trojan4Life]

Former SanDiegan,

I wasn’t planning on conducting a scientific survey with all of the work that goes into it…just a quick look. i really wanted to see numbers, not yes or no.

While I am a fan of finer prophylactics, I am a USC grad. So now you can beat me up even more for every error I make in my postings.

Freddie, Proud USC Trojan

[Trojan4Life]

Former SanDiegan,

I wasn’t planning on conducting a scientific survey with all of the work that goes into it…just a quick look. i really wanted to see numbers, not yes or no.

While I am a fan of finer prophylactics, I am a USC grad. So now you can beat me up even more for every error I make in my postings.

Freddie, Proud USC Trojan

[bobby]

regarding formersandiagan’s post, what’s diff b/t family and household income??

[Trojan4Life]

Family and household income for the purpose of this thread are interchangable.

Freddie, Proud USC Trojan

[drunkle]

is household defined as income of all inhabitants? ie., kids, roommates, etc? i think it is and i think the census numbers are skewed because of it.

[drunkle]

is household defined as income of all inhabitants? ie., kids, roommates, etc? i think it is and i think the census numbers are skewed because of it.

[NotCranky]

I take the value added approach to life..LOL
Actually all things considered about 100K a year for wife and self ,10 year average including some realized sweat equity (not bubble money). She has a 4yr degree I quit school(not the 4th grade JG!) No pension money yet.
We are adjusting to family and both want to be near our kids until and after they start school and beyond. We both,roughly speaking, work part time and won’t hit that average for a while, maybe.

[surveyor]

hh

household income $200k, both college educated, two kids.

[surveyor]

hh

household income $200k, both college educated, two kids.

[taz]

USNA grad here – Go Navy! Single, no kids (just 3 fat cats) – 115K.

[taz]

USNA grad here – Go Navy! Single, no kids (just 3 fat cats) – 115K.

[(former)FormerSanDiegan]

That family and household thing has me perplexed as well. It’s a 17% difference, and Family income is higher than household. Here are the Census Bureau’s definition of family and household.

Family
A group of two or more people who reside together and who are related by birth, marriage, or adoption.

Household
A household includes all the people who occupy a housing unit as their usual place of residence.

If household income were higher than family income I would get it. BUT, family income is somehow higher than household income.

So, riddle me this : How can a group of related people reside together, but not occupy the same housing unit ?

Source :
http://factfinder.census.gov/home/saff/main.html?_lang=en

[PD]

College students live together and don’t earn much.

[avidsaver]

Divorced mother, 1 kid, $97K

USC Grad, non-caucasian

[(former)FormerSanDiegan]

Thanks PD. I guess that also applies to post-college roomies as well. Now I get it, duh!

[drunkle]

what is the point of a household statistic when the members of the house are not financially committed to each other?

family income, ok, you use that measure how well families are doing as well as calculate how much money you can take from them.

individual income, same, although the differences in per capita, median-male, median-female, etc are twisted.

but the household number… seems a distraction from the appalling poverty rate and per capita numbers.

which reminds me, how many homes are there per person?

[(former)FormerSanDiegan]

which reminds me, how many homes are there per person?

Who knows …
If one assumes that the sum of all household incomes equals the sum of all per capita incomes, that would imply about 1.99 persons per household. So, I would guess that there were about 0.5 occupied housing units per person.

[drunkle]

the reason i ask is because i didn’t want to make any such assumptions… you figure 2:1, but i’m thinking it’s more like 2.5 to 3:1, at least for determining persons/incomes per house in the household stat.

the poverty rate is over 12%. the difference between median income and per capita income is huge. the spread between median and top 5% is galactic.

the point of all this being that i dont think anyones estimate of “normal” home price is anywhere near truly affordable. that median income is twisted and skewed in order to justify “inflation” and “appreciation”.

btw, i make 70k/year sdsu dropout i dont know how old i am and i dont want to know.

[(former)FormerSanDiegan]

Found the answer

Incomes are based on the population 16 years and older.
This was 2.147 million
Number of households was
1.04 million

My guess was wrong and left out out all the kids under 16.

Total population
2.824
So, about 2.8 persons per household

Below is the link to SD county breakdown
http://factfinder.census.gov/servlet/ADPTable?_bm=y&-geo_id=05000US06073&-qr_name=ACS_2005_EST_G00_DP3&-ds_name=ACS_2005_EST_G00_&-_lang=en&-_sse=on

[(former)FormerSanDiegan]

Found the answer

Incomes are based on the population 16 years and older.
This was 2.147 million
Number of households was
1.04 million

My guess was wrong and left out out all the kids under 16.

Total population
2.824
So, about 2.8 persons per household

Below is the link to SD county breakdown
http://factfinder.census.gov/servlet/ADPTable?_bm=y&-geo_id=05000US06073&-qr_name=ACS_2005_EST_G00_DP3&-ds_name=ACS_2005_EST_G00_&-_lang=en&-_sse=on

[drunkle]

the reason i ask is because i didn’t want to make any such assumptions… you figure 2:1, but i’m thinking it’s more like 2.5 to 3:1, at least for determining persons/incomes per house in the household stat.

the poverty rate is over 12%. the difference between median income and per capita income is huge. the spread between median and top 5% is galactic.

the point of all this being that i dont think anyones estimate of “normal” home price is anywhere near truly affordable. that median income is twisted and skewed in order to justify “inflation” and “appreciation”.

btw, i make 70k/year sdsu dropout i dont know how old i am and i dont want to know.

[(former)FormerSanDiegan]

which reminds me, how many homes are there per person?

Who knows …
If one assumes that the sum of all household incomes equals the sum of all per capita incomes, that would imply about 1.99 persons per household. So, I would guess that there were about 0.5 occupied housing units per person.

[drunkle]

what is the point of a household statistic when the members of the house are not financially committed to each other?

family income, ok, you use that measure how well families are doing as well as calculate how much money you can take from them.

individual income, same, although the differences in per capita, median-male, median-female, etc are twisted.

but the household number… seems a distraction from the appalling poverty rate and per capita numbers.

which reminds me, how many homes are there per person?

[Anonymous]

2 kids, 1 wife, 50K, living on ramen in CV 🙂

[kev374]

unmarried, I’m 33 and my girlfriend is 30, combined income is $213,000/yr. including bonuses. Currently renting a 1bd for $1350/mo. Will not consider buying until the prices go down such that a household making $75-80k/yr can buy a decent place.

[pnilesh]

Married and no kids… income about 175K. Currently living in a 1 bedroom apartment with rent = 1000.

[pnilesh]

Married and no kids… income about 175K. Currently living in a 1 bedroom apartment with rent = 1000.

[kev374]

unmarried, I’m 33 and my girlfriend is 30, combined income is $213,000/yr. including bonuses. Currently renting a 1bd for $1350/mo. Will not consider buying until the prices go down such that a household making $75-80k/yr can buy a decent place.

[Carlmichael]

22 Single
Former Marine
full time student
transfering to UC Berkeley next year
30k self employed

[SD Transplant]

31 (almost 32) married recently
Just got my MBA
60K base + 15k(school reimbursment benefits/year)
wife 30 w/ part time work & working on her accounting degree here (converting some unitfrom EU & learning the GAAP rules here)
30K /year
90K total/year family income

I have a contract with my organization until January 2008 because they’ve paid 80% of my MBA,so it was one of the main reasons I’ve been working there. After January 2008, I’m ready to move on. Company offered me better jobs in Los Angels, Sterling, VA, CT..etc (I’ve turned them down for the time being….I’ve got my parents and brother in San Diego…..and I’m not ready to relocate for just a few more $$$)

[cyphire]

I’m an owner of a turnkey software company. We employ over 150 people almost all of whom have college degrees except for yours truly (and one of my other partners). My partner and I started the company in the mid-80’s. The company is not located in CA. So i’m up there in compensation with a bunch of multiples – but I’m not one of those people who make insane money. i.e. I could not buy a nice house on the water.

[what_a_disasta]

32, married, no kids. We do not need to work anymore as our investment dividends yield more than enough to live off.

[sd_resident]

Submitted by what_a_disasta on June 10, 2007 – 4:05pm.
32, married, no kids. We do not need to work anymore as our investment dividends yield more than enough to live off.

Thats awesome what_a_disasta! How did you manage it at such young age? Could you please share your investment ideas?

[sd_resident]

Submitted by what_a_disasta on June 10, 2007 – 4:05pm.
32, married, no kids. We do not need to work anymore as our investment dividends yield more than enough to live off.

Thats awesome what_a_disasta! How did you manage it at such young age? Could you please share your investment ideas?

[what_a_disasta]

32, married, no kids. We do not need to work anymore as our investment dividends yield more than enough to live off.

[patientrenter]

When I first saw this topic, I thought it was asking for information that was too private to share, especially if I ever meet others in person through Piggington. But I am benefiting from seeing how others came to the prevailing real estate outlook here on Piggington from very different ages, living situations, and income and asset amounts, so I’ll contribute mine.

I’m 46, and live in a $1425 2+1+garage Orange County rental apartment on my own with no family obligations, and make $250-500K per year, mostly from a traditional full-time job. I limit my spending to equity investment income, currently about $45-50K after tax, and intend to buy ultimately using cash.

I was tempted to buy in 1996, but the places I could afford for cash were unpleasant, so I (foolishly, as it turned out) didn’t buy then. I didn’t invest much in equities either until very recently, so my housing budget now is very limited. Eventually, I will either move out of state (even though I love it here) or buy when my cash savings exceeds the price of a 2+1+garage condo or better here in Southern CA. That’ll be at least a year from now, and more likely 2-4 years down the road. I’m just trying to lock in my cost of living, so I may buy pretty quickly after the crossover occurs, unless the neighborhood I’m targeting is dropping really badly.

Patient renter in OC

[bubble_contagion]

It seems that there is plenty of people with high incomes and large savings waiting on the sidelines. Some will wait for a 5%-10% drop to get in, driving prices up again. This is what is happening now. It seems, without an additional catalist like massive job losses, real prices will stay were they are. Nominal prices will erode with inflation at a snail pace. The US economy may have achieved the dreaded soft-landing.

BTW, mid-30s, married, no kids, $150K/yr, no debt and enough savings for a 20% down even at today’s prices.

[sdrealtor]

If there are several dozen folks on this board with incomes between 100k and 400K and plenty of assets sitting on the sidelines, could there be more that arent on this blog? This thread brought 2 thoughts to mind.

1.) There are plenty of folks on the sidelines with the assets and income to buy at today’s prices who are waiting for lower prices and/or a mor epostive market psychology.

2.) After seeing those income figures SD R, renewed his committment to this board and selling RE to as many of you as possible over the next several years. Looks like he should be buying the beer, the bourbon, the scotch etc…

Heck, I think those income figures got Ozzie back on board also!

[KIBU]

Look like a few got really high income, in the 300,000s. My question is if for example one doesn’t have a business (some here probably must have a bussiness to reach that high income) and you make 200,000, 300,000, would one lose a big chunk of money to SIR IRS ? Waiting on the sideline therefore would be at a big cost (but maybe smaller cost than buying at peak), wouldn’t it???

Any one know the approximate cut off point for a huge income like two to three hundred thousands that would make sense to buy rather than wait???

[surveyor]

RETD

I’ve mentioned this before, but there is a way for people who make huge amounts of money pay little or no taxes legally.

The ironic thing is that it is a real estate tax deduction (the real estate professional tax deduction).

Taking that into consideration, even a household income as “low” as $150k would benefit…

=shrug=

[surveyor]

RETD

I’ve mentioned this before, but there is a way for people who make huge amounts of money pay little or no taxes legally.

The ironic thing is that it is a real estate tax deduction (the real estate professional tax deduction).

Taking that into consideration, even a household income as “low” as $150k would benefit…

=shrug=

[patientrenter]

KIBU,

For me there is no cut-off even though I am a poster child for tax deduction opportunity. Let’s take the best possible case for buying now using borrowed funds and I’ll tell you why it doesn’t work for me.

My marginal tax rate is… I’m not sure exactly, but probably the maximum, 45% or so. So if I can borrow at 6%, and property taxes are another 1% minimum, and maintenance expenses are 1% minimum and I assume they are fully deductible, then I need to see annual returns of at least 4.4% after tax on the property to justify buying more than I can afford with just 100% cash. I don’t believe that 4.4% gross is a good bet in today’s local property market. I wouldn’t even feel very comfortable betting on 0% gross today.

Patient renter in OC

[cyphire]

Well said patientrenter… Same with me. We just moved into a house in La Jolla which would probably cost 2.5M. Using the above numbers – it would cost 200K per year int/only, taxes, maint. I am using the entire home cost in the calculation, because any amount down would reduce my investment income as it would be tied into the house. Only the interest on the first 1,000,000 (and an additional 100,000 equity) is deductible. If you are in the AMT situation, not even that 1.1 Million is all deductible.

This house is costing 6.5K / month to rent. Even grossing that up by 40% would be equivalent to 9.1K. Much better deal than 18,000 / month for a purchase.

The more important issue is that house prices have to appreciate over 6% per year minimum to make buying a better proposition. If that 2.5M house decreases in value to 2.3M, that is a 200K hit to equity, but still having a mortgage of 2.5M (or whatever was not put down as downpayment.

[ibjames]

I still think these forums are not the norm, and that this board consists of financially savvy people. The average person does not computer drops in % in real estate and get a hard on talking about statistics like people on this board. While there is a broad range of people on this board I do think the mind set is different, and the amount in savings and the ethics used in purchasing is different too.

It’s like comparing the people on this board to the people who post for sale items on craigslist. There would be no comparison.

[studenteconomist]

28 yo with 4 degrees (1 PhD and 2 Masters) and $0 monthly income (currently unemployed):( Married with our first child due in 1 week! Getting desperate for a job that would pay just the family median. Getting a PhD at UCSD (Biochemistry) a huge financial mistake, trying to rectify it by moving into financial services (with my MBA). Family income of 45k (wife working). Anyone here need a new employee with exception analytical skills (both scientific and financial)?

[avidsaver]

StudentEconomist, how tied are you to San Diego? Could be something for you in the L.A. area. Not sure what the protocol would be to get contact together though. With the little that you shared though, sounds like it could be a good fit.

[one_muggle]

beanmaestro,

You already killed your dream of retiring young when you got a PhD in engineering… ;^)
Trust me, I know… 8^{

Seriously, an article in Money states that guys earn less than their Dads (Happy Father’s Day), adjusted for inflation: http://money.cnn.com/2007/05/25/pf/mobility_study/index.htm

I believe it. My parents raised 6 kids on Long Island, NY with a civil servant job–no degree (Dad) and an adminstrative job (Mom). They owned their 5 bedroom home, a few miles from the beach, and had money for modest vacations.
Now, gainfully employeed with a PhD in engineering and a wife in medicine, affording a three bedroom house in the LA area is painful. Sure I contribute fully to retirement and have some other investments etc., which my father never did. But, then again, he didn’t really need to do his own retirement since his pension is around 70% his old income, and adjusts for inflation!
I think you really need about $400-500k per year, family income even to live the expected, but non-rich “LA” lifestyle.
Maybe it is more. Friends of ours, whose income is well into the 7 figures, said that they didn’t like going to a certain vacation spot because of all the rich people. dude, that hurts.

-one muggle

[kewp]

33, single, 70k. No degree, but great resume and very smart (cough, cough). Looking to tack on a few certs and maybe hit the 100K+ range.

Being financially responsible finally, should be debt-free by end of 2009. Not sure if thats something to be proud of! :/

As I’ve pointed out elsewhere, what really matters is to check out the median income. I thought I was a pauper until I realized many of the folks I had assumed were doing much better than I was were just racking up mountains of debt.

[JC]

Just another lurker who is above the median. Single. 1 normal weight dog and one normal weight cat. Can afford to buy, but just can’t rationalize it right now….

[JC]

Just another lurker who is above the median. Single. 1 normal weight dog and one normal weight cat. Can afford to buy, but just can’t rationalize it right now….

[kewp]

33, single, 70k. No degree, but great resume and very smart (cough, cough). Looking to tack on a few certs and maybe hit the 100K+ range.

Being financially responsible finally, should be debt-free by end of 2009. Not sure if thats something to be proud of! :/

As I’ve pointed out elsewhere, what really matters is to check out the median income. I thought I was a pauper until I realized many of the folks I had assumed were doing much better than I was were just racking up mountains of debt.

[beanmaestro]

Muggle, in hindsight you might be right, but that’s because if I’d taken a BS and a job, I would’ve bought a house in 1998, and be probably be making about what I am now (if my job survived the tech crash). On the other hand, I wouldn’t have met my wife, and I probably would’ve ended up in the Bay Area or Boston-ish instead of Santa Barbara. Life could be a lot worse 🙂

[beanmaestro]

Muggle, in hindsight you might be right, but that’s because if I’d taken a BS and a job, I would’ve bought a house in 1998, and be probably be making about what I am now (if my job survived the tech crash). On the other hand, I wouldn’t have met my wife, and I probably would’ve ended up in the Bay Area or Boston-ish instead of Santa Barbara. Life could be a lot worse 🙂

[one_muggle]

beanmaestro,

You already killed your dream of retiring young when you got a PhD in engineering… ;^)
Trust me, I know… 8^{

Seriously, an article in Money states that guys earn less than their Dads (Happy Father’s Day), adjusted for inflation: http://money.cnn.com/2007/05/25/pf/mobility_study/index.htm

I believe it. My parents raised 6 kids on Long Island, NY with a civil servant job–no degree (Dad) and an adminstrative job (Mom). They owned their 5 bedroom home, a few miles from the beach, and had money for modest vacations.
Now, gainfully employeed with a PhD in engineering and a wife in medicine, affording a three bedroom house in the LA area is painful. Sure I contribute fully to retirement and have some other investments etc., which my father never did. But, then again, he didn’t really need to do his own retirement since his pension is around 70% his old income, and adjusts for inflation!
I think you really need about $400-500k per year, family income even to live the expected, but non-rich “LA” lifestyle.
Maybe it is more. Friends of ours, whose income is well into the 7 figures, said that they didn’t like going to a certain vacation spot because of all the rich people. dude, that hurts.

-one muggle

[avidsaver]

StudentEconomist, how tied are you to San Diego? Could be something for you in the L.A. area. Not sure what the protocol would be to get contact together though. With the little that you shared though, sounds like it could be a good fit.

[studenteconomist]

28 yo with 4 degrees (1 PhD and 2 Masters) and $0 monthly income (currently unemployed):( Married with our first child due in 1 week! Getting desperate for a job that would pay just the family median. Getting a PhD at UCSD (Biochemistry) a huge financial mistake, trying to rectify it by moving into financial services (with my MBA). Family income of 45k (wife working). Anyone here need a new employee with exception analytical skills (both scientific and financial)?

[ibjames]

I still think these forums are not the norm, and that this board consists of financially savvy people. The average person does not computer drops in % in real estate and get a hard on talking about statistics like people on this board. While there is a broad range of people on this board I do think the mind set is different, and the amount in savings and the ethics used in purchasing is different too.

It’s like comparing the people on this board to the people who post for sale items on craigslist. There would be no comparison.

[cyphire]

Well said patientrenter… Same with me. We just moved into a house in La Jolla which would probably cost 2.5M. Using the above numbers – it would cost 200K per year int/only, taxes, maint. I am using the entire home cost in the calculation, because any amount down would reduce my investment income as it would be tied into the house. Only the interest on the first 1,000,000 (and an additional 100,000 equity) is deductible. If you are in the AMT situation, not even that 1.1 Million is all deductible.

This house is costing 6.5K / month to rent. Even grossing that up by 40% would be equivalent to 9.1K. Much better deal than 18,000 / month for a purchase.

The more important issue is that house prices have to appreciate over 6% per year minimum to make buying a better proposition. If that 2.5M house decreases in value to 2.3M, that is a 200K hit to equity, but still having a mortgage of 2.5M (or whatever was not put down as downpayment.

[patientrenter]

KIBU,

For me there is no cut-off even though I am a poster child for tax deduction opportunity. Let’s take the best possible case for buying now using borrowed funds and I’ll tell you why it doesn’t work for me.

My marginal tax rate is… I’m not sure exactly, but probably the maximum, 45% or so. So if I can borrow at 6%, and property taxes are another 1% minimum, and maintenance expenses are 1% minimum and I assume they are fully deductible, then I need to see annual returns of at least 4.4% after tax on the property to justify buying more than I can afford with just 100% cash. I don’t believe that 4.4% gross is a good bet in today’s local property market. I wouldn’t even feel very comfortable betting on 0% gross today.

Patient renter in OC

[KIBU]

Look like a few got really high income, in the 300,000s. My question is if for example one doesn’t have a business (some here probably must have a bussiness to reach that high income) and you make 200,000, 300,000, would one lose a big chunk of money to SIR IRS ? Waiting on the sideline therefore would be at a big cost (but maybe smaller cost than buying at peak), wouldn’t it???

Any one know the approximate cut off point for a huge income like two to three hundred thousands that would make sense to buy rather than wait???

[SD Realtor]

sdr I had purposely been not reading this thread as I thought it was kind of a curious thread. Your right though I am totally salivating. I need to get a new keyboard. Since the kids are napping and I am bored I thought I would read it.

As for myself, and this thread, (two jobs) digital design manager and system architect for custom ASICs used in high speed networks. Small business owner of my own residential real estate brokerage. Make between 150k and 250k a year, (still much less then sdr so he is still on the hook for drinks) with a wife who also has her business, 2 kids and grandma at home. Renting now and have a pretty good sum in cash for a downpayment for a home.

SD Realtor

[cyphire]

SD Realtor… Ever heard of a company called Zymos?

Just wondering.

[SD Realtor]

Hi Cyphire –

No I have not heard of them. I work for IDT based in San Jose. We have a design team here in the Sorrento Valley. We make PCI expressed based transparent and non transparent bridges and switches. Main use is in com and storage systems.

SD Realtor

[SD Realtor]

Hi Cyphire –

No I have not heard of them. I work for IDT based in San Jose. We have a design team here in the Sorrento Valley. We make PCI expressed based transparent and non transparent bridges and switches. Main use is in com and storage systems.

SD Realtor

[cyphire]

SD Realtor… Ever heard of a company called Zymos?

Just wondering.

[sdrealtor]

SD R,
Did you finish your spreadhseet of who makes what yet?

;)sdr

[SD Realtor]

Spreadsheet? No the really important stuff I always commit to memory.

SD Realtor

[Borat]

We make combined $500K/yr. We save 99% of our income by living on ramen noodles and driving old cars. I have a 95 corolla — anyone who drives anything nicer or newer than me is a stupid spendthrift. We rent a 1/1 in the Somali ghetto area of East SD for $500/mo. Anyone who lives anywhere nicer is a stupid spendthrift. We send our kids to a private school in La Jolla for $30K/year because SD schools are crap and anyone who sends their kids to them is stupid. We have $10M in savings and growing. SD housing is so overpriced. When it crashes we are gonna buy it all.

[lostkitty]

Hilarious Borat!

(I luvs Da Ali G)

[Anonymous]

cvhoverer

36 married w/ two year old, hoping maybe another child before long. Single income should gross $165K this year. Sold in June 05 and renting back at $1600 in 2 bed 1 bath North Park house. Making 5.5% in CD on most of 500% two year gain on $30K down payment while owning. Just hanging out now waiting for CV to drop another 10-15%. Looked at attached home yesterday in CV. Built in 1989 but nicely upgraded, owners bought in 2005 at $900+ and now listed at $820K. Any thoughts on this home?

MLS #: 071026285
http://www.ziprealty.com/buy_a_home/logged_in/search/home_detail.jsp?listing_num=071026285&mls=mls_sandiego&source=SANDICOR&propertyType=SFR

[SD Realtor]

Hang loose on that San Remo home in CV. They owe about 775k on it total right now. Sit tight another year or two and you will most likely find that extra 10-15% you are looking for. My only concern is that this home backs up to DM Heights road so you will get noise in your backyard. Also even though the home is upgraded nicely, it is still overpriced in my opinion.

SD Realtor

[Anonymous]

cvhoverer

thanks SD Realtor. Wow, so how do you know what they owe? I guess this means they can’t go much lower. After closing costs and commissions they’ll be cutting it close before having to pay out to sell it.

It is against Del Mar Heights but they put in a nice tree barrier in the back plus it has a waterfall that muffles any noice. Didn’t notice much noice yesterday. If it had a bit more ‘kid running around’ area I might actually get excited about buying. Anyway, strategy is to continue researching and be patient. I think things may accelerate a bit.

[Anonymous]

cvhoverer

thanks SD Realtor. Wow, so how do you know what they owe? I guess this means they can’t go much lower. After closing costs and commissions they’ll be cutting it close before having to pay out to sell it.

It is against Del Mar Heights but they put in a nice tree barrier in the back plus it has a waterfall that muffles any noice. Didn’t notice much noice yesterday. If it had a bit more ‘kid running around’ area I might actually get excited about buying. Anyway, strategy is to continue researching and be patient. I think things may accelerate a bit.

[SD Realtor]

Hang loose on that San Remo home in CV. They owe about 775k on it total right now. Sit tight another year or two and you will most likely find that extra 10-15% you are looking for. My only concern is that this home backs up to DM Heights road so you will get noise in your backyard. Also even though the home is upgraded nicely, it is still overpriced in my opinion.

SD Realtor

[Coronita]

cvhoverer,

Um.. $812k for a 3bedroom/2.5 bath 1800sqft home even in Carmel Valley IS A RIP OFF imho. Plus it’s a 1989 home, which imho is kinda old for CV. Granted, it has a 6000sqft lot, BUT unless you’re not willing to trade off lot size for bedrooms, something in the 1700-1900sqft is selling around the low to mid $700k in Carmel Valley.

Here’s some links that you might find interesting. I’m not going to comment on the quality of the developments, because opinion varies. BUT, you need to look around.

Trilogy: 1818/3/2.5 $720k (small lots though tight)
http://sandiego.houserebate.com/search/homeview.asp?id=1602570&p3=-1&ix=10

Sands: 2177/3/2.5 $779k. Not bad, but not very upgraded.
Sands: 2135/4/2.5 $795-$825.
San Rafael: http://sandiego.houserebate.com/search/homeview.asp?id=1653081&p3=-1&ix=12
1952/3/2.5 $729k.
Has expensive HOA, but is a gated SFH community.

Sausalito:
http://sandiego.houserebate.com/search/homeview.asp?id=1638350&p3=-1&ix=13
1936/3/2.5 $729k
Personally, I’m not a fan of this complex, but its right across the street from Torrey Hills Elementary

And the listings go on and on.

Personally, I would wait.Put things in perspective for you. I purchased in 2004 when prices were high. But even so, we paid $850k for 2600sqft 5bedroom/3bath place in the older carmel valley (not the developments off of 56). If you bought this home, you’re a lot more for something a lot smaller, plus you’re also going to pay about 1% more on your mortgage than I am.

I’m expecting my home to fall to at least around $750k. There’s absolutely no reason why something 1800sqft on a 6000sqft lot should be this expensive imho.

[Anonymous]

cvhoverer

thanks for your reply. i appreciate the info on other cv homes.

so, since you’re expecting your home to drop to $750K you can just sell it to me for $800K! 🙂

[Coronita]

thanks for your reply. i appreciate the info on other cv homes. so, since you're expecting your home to drop to $750K you can just sell it to me for $800K! 🙂

 

hmmmm… Don't know if my wife and kid would appreciate that.  Unfortunately, I don't think we're one of those 100% financed people :). 

Besides, pretty soon, you can pick and choose. 

[Coronita]

thanks for your reply. i appreciate the info on other cv homes. so, since you're expecting your home to drop to $750K you can just sell it to me for $800K! 🙂

 

hmmmm… Don't know if my wife and kid would appreciate that.  Unfortunately, I don't think we're one of those 100% financed people :). 

Besides, pretty soon, you can pick and choose. 

[Anonymous]

cvhoverer

thanks for your reply. i appreciate the info on other cv homes.

so, since you’re expecting your home to drop to $750K you can just sell it to me for $800K! 🙂

[Coronita]

cvhoverer,

Um.. $812k for a 3bedroom/2.5 bath 1800sqft home even in Carmel Valley IS A RIP OFF imho. Plus it’s a 1989 home, which imho is kinda old for CV. Granted, it has a 6000sqft lot, BUT unless you’re not willing to trade off lot size for bedrooms, something in the 1700-1900sqft is selling around the low to mid $700k in Carmel Valley.

Here’s some links that you might find interesting. I’m not going to comment on the quality of the developments, because opinion varies. BUT, you need to look around.

Trilogy: 1818/3/2.5 $720k (small lots though tight)
http://sandiego.houserebate.com/search/homeview.asp?id=1602570&p3=-1&ix=10

Sands: 2177/3/2.5 $779k. Not bad, but not very upgraded.
Sands: 2135/4/2.5 $795-$825.
San Rafael: http://sandiego.houserebate.com/search/homeview.asp?id=1653081&p3=-1&ix=12
1952/3/2.5 $729k.
Has expensive HOA, but is a gated SFH community.

Sausalito:
http://sandiego.houserebate.com/search/homeview.asp?id=1638350&p3=-1&ix=13
1936/3/2.5 $729k
Personally, I’m not a fan of this complex, but its right across the street from Torrey Hills Elementary

And the listings go on and on.

Personally, I would wait.Put things in perspective for you. I purchased in 2004 when prices were high. But even so, we paid $850k for 2600sqft 5bedroom/3bath place in the older carmel valley (not the developments off of 56). If you bought this home, you’re a lot more for something a lot smaller, plus you’re also going to pay about 1% more on your mortgage than I am.

I’m expecting my home to fall to at least around $750k. There’s absolutely no reason why something 1800sqft on a 6000sqft lot should be this expensive imho.

[Anonymous]

cvhoverer

36 married w/ two year old, hoping maybe another child before long. Single income should gross $165K this year. Sold in June 05 and renting back at $1600 in 2 bed 1 bath North Park house. Making 5.5% in CD on most of 500% two year gain on $30K down payment while owning. Just hanging out now waiting for CV to drop another 10-15%. Looked at attached home yesterday in CV. Built in 1989 but nicely upgraded, owners bought in 2005 at $900+ and now listed at $820K. Any thoughts on this home?

MLS #: 071026285
http://www.ziprealty.com/buy_a_home/logged_in/search/home_detail.jsp?listing_num=071026285&mls=mls_sandiego&source=SANDICOR&propertyType=SFR

[lostkitty]

Hilarious Borat!

(I luvs Da Ali G)

[Borat]

We make combined $500K/yr. We save 99% of our income by living on ramen noodles and driving old cars. I have a 95 corolla — anyone who drives anything nicer or newer than me is a stupid spendthrift. We rent a 1/1 in the Somali ghetto area of East SD for $500/mo. Anyone who lives anywhere nicer is a stupid spendthrift. We send our kids to a private school in La Jolla for $30K/year because SD schools are crap and anyone who sends their kids to them is stupid. We have $10M in savings and growing. SD housing is so overpriced. When it crashes we are gonna buy it all.

[SD Realtor]

Spreadsheet? No the really important stuff I always commit to memory.

SD Realtor

[sdrealtor]

SD R,
Did you finish your spreadhseet of who makes what yet?

;)sdr

[SD Realtor]

sdr I had purposely been not reading this thread as I thought it was kind of a curious thread. Your right though I am totally salivating. I need to get a new keyboard. Since the kids are napping and I am bored I thought I would read it.

As for myself, and this thread, (two jobs) digital design manager and system architect for custom ASICs used in high speed networks. Small business owner of my own residential real estate brokerage. Make between 150k and 250k a year, (still much less then sdr so he is still on the hook for drinks) with a wife who also has her business, 2 kids and grandma at home. Renting now and have a pretty good sum in cash for a downpayment for a home.

SD Realtor

[sdrealtor]

If there are several dozen folks on this board with incomes between 100k and 400K and plenty of assets sitting on the sidelines, could there be more that arent on this blog? This thread brought 2 thoughts to mind.

1.) There are plenty of folks on the sidelines with the assets and income to buy at today’s prices who are waiting for lower prices and/or a mor epostive market psychology.

2.) After seeing those income figures SD R, renewed his committment to this board and selling RE to as many of you as possible over the next several years. Looks like he should be buying the beer, the bourbon, the scotch etc…

Heck, I think those income figures got Ozzie back on board also!

[bubble_contagion]

It seems that there is plenty of people with high incomes and large savings waiting on the sidelines. Some will wait for a 5%-10% drop to get in, driving prices up again. This is what is happening now. It seems, without an additional catalist like massive job losses, real prices will stay were they are. Nominal prices will erode with inflation at a snail pace. The US economy may have achieved the dreaded soft-landing.

BTW, mid-30s, married, no kids, $150K/yr, no debt and enough savings for a 20% down even at today’s prices.

[patientrenter]

When I first saw this topic, I thought it was asking for information that was too private to share, especially if I ever meet others in person through Piggington. But I am benefiting from seeing how others came to the prevailing real estate outlook here on Piggington from very different ages, living situations, and income and asset amounts, so I’ll contribute mine.

I’m 46, and live in a $1425 2+1+garage Orange County rental apartment on my own with no family obligations, and make $250-500K per year, mostly from a traditional full-time job. I limit my spending to equity investment income, currently about $45-50K after tax, and intend to buy ultimately using cash.

I was tempted to buy in 1996, but the places I could afford for cash were unpleasant, so I (foolishly, as it turned out) didn’t buy then. I didn’t invest much in equities either until very recently, so my housing budget now is very limited. Eventually, I will either move out of state (even though I love it here) or buy when my cash savings exceeds the price of a 2+1+garage condo or better here in Southern CA. That’ll be at least a year from now, and more likely 2-4 years down the road. I’m just trying to lock in my cost of living, so I may buy pretty quickly after the crossover occurs, unless the neighborhood I’m targeting is dropping really badly.

Patient renter in OC

[cyphire]

I’m an owner of a turnkey software company. We employ over 150 people almost all of whom have college degrees except for yours truly (and one of my other partners). My partner and I started the company in the mid-80’s. The company is not located in CA. So i’m up there in compensation with a bunch of multiples – but I’m not one of those people who make insane money. i.e. I could not buy a nice house on the water.

[SD Transplant]

31 (almost 32) married recently
Just got my MBA
60K base + 15k(school reimbursment benefits/year)
wife 30 w/ part time work & working on her accounting degree here (converting some unitfrom EU & learning the GAAP rules here)
30K /year
90K total/year family income

I have a contract with my organization until January 2008 because they’ve paid 80% of my MBA,so it was one of the main reasons I’ve been working there. After January 2008, I’m ready to move on. Company offered me better jobs in Los Angels, Sterling, VA, CT..etc (I’ve turned them down for the time being….I’ve got my parents and brother in San Diego…..and I’m not ready to relocate for just a few more $$$)

[Carlmichael]

22 Single
Former Marine
full time student
transfering to UC Berkeley next year
30k self employed

[Anonymous]

One last thing

About the RE in the southeast US. You don;t just get a house that is unfinished and a dirt yard with your NEW house. You get 100% finished and turnkey, including huge moldings, crown molding, hardwood flooring, tile bathrooms, 100% finished yards with sprinkler systems, even the garages are finished and include molding. finally, don’t buy stucco here it has a really bad name and resell is difficult, brick is the best and lasts forever! however, we like light colored brick as red brick stays hot into the evening and costs slightly more for AC. you can always paint it.

:)lol

[blue_sky]

Painting brick is pretty much a one way trip.

You can’t get paint off brick (quickly) with anything less than sand blasting. It’s super tedious to do it by hand, but you have to, because if you sand blast you will remove the glaze / hard outer portion of the brick, rendering it succeptable to erosion. I guy who lives down the street from my brother pretty much wrecked his 100% brick house doing that.

[Reality]

It must be mostly folks with high incomes answering this thread (bragging?).

[Reality]

It must be mostly folks with high incomes answering this thread (bragging?).

[blue_sky]

Painting brick is pretty much a one way trip.

You can’t get paint off brick (quickly) with anything less than sand blasting. It’s super tedious to do it by hand, but you have to, because if you sand blast you will remove the glaze / hard outer portion of the brick, rendering it succeptable to erosion. I guy who lives down the street from my brother pretty much wrecked his 100% brick house doing that.

[Anonymous]

One last thing

About the RE in the southeast US. You don;t just get a house that is unfinished and a dirt yard with your NEW house. You get 100% finished and turnkey, including huge moldings, crown molding, hardwood flooring, tile bathrooms, 100% finished yards with sprinkler systems, even the garages are finished and include molding. finally, don’t buy stucco here it has a really bad name and resell is difficult, brick is the best and lasts forever! however, we like light colored brick as red brick stays hot into the evening and costs slightly more for AC. you can always paint it.

:)lol

[Anonymous]

2 kids, 1 wife, 50K, living on ramen in CV 🙂

[(former)FormerSanDiegan]

Thanks PD. I guess that also applies to post-college roomies as well. Now I get it, duh!

[avidsaver]

Divorced mother, 1 kid, $97K

USC Grad, non-caucasian

[PD]

College students live together and don’t earn much.

[Anonymous]

I’m guessing that ‘household’ is composed, mostly, of that lovely liberal living arrangement called ‘shacking up.’

[slackerboy]

Two adults, college educated, household income around 200k, but we only work part-time and take three months off, we have been saving and investing for a number of years so now our work income is around 120k and our investment income is 80k. We paid cash for our very modest condo, have no debt, and drive a 2000 Toyota. We live on around 60k a year, the rest we put away so we can retire in a couple of years at age 52.

[slackerboy]

Two adults, college educated, household income around 200k, but we only work part-time and take three months off, we have been saving and investing for a number of years so now our work income is around 120k and our investment income is 80k. We paid cash for our very modest condo, have no debt, and drive a 2000 Toyota. We live on around 60k a year, the rest we put away so we can retire in a couple of years at age 52.

[Anonymous]

I’m guessing that ‘household’ is composed, mostly, of that lovely liberal living arrangement called ‘shacking up.’

[(former)FormerSanDiegan]

That family and household thing has me perplexed as well. It’s a 17% difference, and Family income is higher than household. Here are the Census Bureau’s definition of family and household.

Family
A group of two or more people who reside together and who are related by birth, marriage, or adoption.

Household
A household includes all the people who occupy a housing unit as their usual place of residence.

If household income were higher than family income I would get it. BUT, family income is somehow higher than household income.

So, riddle me this : How can a group of related people reside together, but not occupy the same housing unit ?

Source :
http://factfinder.census.gov/home/saff/main.html?_lang=en

[NotCranky]

I take the value added approach to life..LOL
Actually all things considered about 100K a year for wife and self ,10 year average including some realized sweat equity (not bubble money). She has a 4yr degree I quit school(not the 4th grade JG!) No pension money yet.
We are adjusting to family and both want to be near our kids until and after they start school and beyond. We both,roughly speaking, work part time and won’t hit that average for a while, maybe.

[Trojan4Life]

Family and household income for the purpose of this thread are interchangable.

Freddie, Proud USC Trojan

[bobby]

regarding formersandiagan’s post, what’s diff b/t family and household income??

[(former)FormerSanDiegan]

Here’s a less-intrusive way to ask.

According to the US Census Bureau, the following are the median income levels in San Diego County for 2005 (in 2005 dollars) :

Per capita income : 28,329
Median Household Income: 56,335
Median Family Income : 66,178

Please answer the following:

1. Is your family income greater than or less than the median ?

2. Is your household income greater or less than the median ?

3. Is your per capita income less than or greater than the median ?

By the way, just curious …
Is your moniker intended to encourage the use of a certain brand of prophylactics to avoid life-threatening disease, or are you a USC grad ?

[Coronita]

Two income in early 30ies, 1 kid. One ivy undergraduate(me), one with a masters. Both in software roughly compensated the same.
We’re slightly above gross household income multiplied by an odd digit. Income from investment provides an additional even multiple of the household income.

[Coronita]

Two income in early 30ies, 1 kid. One ivy undergraduate(me), one with a masters. Both in software roughly compensated the same.
We’re slightly above gross household income multiplied by an odd digit. Income from investment provides an additional even multiple of the household income.

[POZ]

Immigrant 32 Married 2 kids no degree mostly single income 80k

[drunkle]

median household income is the total of both family households and nonfamily households.

income, median household: 56k
median family: 66k
median nonfamily: 38k

of the total households (1.04 mil), nonfamily is about 1/3 (.35 mil).

that clears my confusion on why the two different data sets; one is a subset of the other. whereas, i was previously under the assumption that “median household” excluded family households.

the non family households number is what i was really interested in. under my previously incorrect assumption that “household income” excluded family households, i thought the median income to be fairly high and therefore, more than 2:1 wage earners per home. the non family household median income is much more in line with both a 2:1 residency and individual wages.

[Bugs]

I get paid in meatballs. I’ve been getting 2 meatballs a week but the talk is I might be able to hold out for 3 meatballs.

[cr]

I get paid in meatballs. I’ve been getting 2 meatballs a week but the talk is I might be able to hold out for 3 meatballs.

MMMMMmmmmm……..Meatballs…..arglagrlagrlarglarglral

That was funny bugs. I can’t top that.

[little lady]

My husband makes 45k taxable 30k nontaxable(active duty military with out of state residency so pays NO state tax.) I am working part time as a cashier at grocery store 12k.
So roughly 87k (but with more take home $ due to less taxes)

Oh yeah, 3 kids..1 in high school 2 in grade school….ttfn

[little lady]

My husband makes 45k taxable 30k nontaxable(active duty military with out of state residency so pays NO state tax.) I am working part time as a cashier at grocery store 12k.
So roughly 87k (but with more take home $ due to less taxes)

Oh yeah, 3 kids..1 in high school 2 in grade school….ttfn

[cr]

I get paid in meatballs. I’ve been getting 2 meatballs a week but the talk is I might be able to hold out for 3 meatballs.

MMMMMmmmmm……..Meatballs…..arglagrlagrlarglarglral

That was funny bugs. I can’t top that.

[Bugs]

I get paid in meatballs. I’ve been getting 2 meatballs a week but the talk is I might be able to hold out for 3 meatballs.

[drunkle]

median household income is the total of both family households and nonfamily households.

income, median household: 56k
median family: 66k
median nonfamily: 38k

of the total households (1.04 mil), nonfamily is about 1/3 (.35 mil).

that clears my confusion on why the two different data sets; one is a subset of the other. whereas, i was previously under the assumption that “median household” excluded family households.

the non family households number is what i was really interested in. under my previously incorrect assumption that “household income” excluded family households, i thought the median income to be fairly high and therefore, more than 2:1 wage earners per home. the non family household median income is much more in line with both a 2:1 residency and individual wages.

[POZ]

Immigrant 32 Married 2 kids no degree mostly single income 80k

[Anonymous]

My girlfriend and I, no kids. Her 84K salary, me 72K salary plus incentives, about 15K. Total Household 171K. Currently renting 2/2 in LaCosta, $1500 month. I don’t feel we can afford the median priced home(720k in Carlsbad), even at our income level and with 20% down.

[LookoutBelow]

 Me. retired early from primary occupation, with full private pension, small business, 1 employee (me) and 2 telephone lines….. wife, private practice ….Many times over median income…Currently renting in La Jolla for 3,500 per mo. Sold off all property back in 03…..Circling like a buzzard waiting….waiting….Not sure if we will ever get back into the ownership game again…It would have to be pretty compelling, tax incentive is not enough of a reason…Taxable income exposure is minimal

 

Both of us USC grads. Wayyyy back in the time when dinosaurs still roamed the planet

[Dr Kevin]

Sounds like there’s a lot of USC grads, either in San Diego or on this board.

And btw, the ppl who said the average SAT score at USC is 1300 is really off. It’s been 1350+ for last several years. GPA was around 4.0 weighted i believe.

[Anonymous]

Just remember when looking at recent SATs that the scores were ‘renormed’ upward 10 years ago or so by ~100 points; e.g., 1300 today equals 1200 then.

Also, the new SAT is an achievement test (test of knowledge), not an aptitude test (intelligence test) as it once was. Today, you can study for the SAT and improve your scores.

The SAT was created to discover diamonds in the rough (e.g., poor but smart Jewish kids from the Bronx in the ’30s). Now, like many things, it has been watered down and dumbed down.

[Anonymous]

I am in my mid 30’s and married with two kids. Income of 350k a year working as an Investment Advisor.

[sdrealtor]

I guess all the people making big bucks hang out around here while everyone else is stuck at the median income level;)

[sdrealtor]

I guess all the people making big bucks hang out around here while everyone else is stuck at the median income level;)

[JJsqueeze]

Married, both mid 30’s, two wonderful rug rats, one income earner (me), one combination chef, laundress, maid, teacher, valet, vixen (her), $110K family income not including bonus or loose change in the couch cushions. Renting condo in Carlsbad for $1500/mo. Saving 12-15% not including 401k.

[wantobuy]

me $100k, wife $90k, each has about 10% bonus, one baby.
Looking from this forum, money-wise my difficult years in the ph.d program at ucsd were not well spent…

[KIBU]

Me, 4 kids, 3 wives (divorced, married, divorced, maried, divorced, married), 2 step kids, 2 grandsons.

Each kid is supporting me with money that I will save for a sizable down payment.

I am a USC graduate too. Go Trojan!!!

[recordsclerk]

graduated from Madison. High not University.
Records clerk doesn’t mean I like to keep records. I’m actually a clerk (very limited income) good benefits, retirement program, goverment job.

[recordsclerk]

graduated from Madison. High not University.
Records clerk doesn’t mean I like to keep records. I’m actually a clerk (very limited income) good benefits, retirement program, goverment job.

[KIBU]

Me, 4 kids, 3 wives (divorced, married, divorced, maried, divorced, married), 2 step kids, 2 grandsons.

Each kid is supporting me with money that I will save for a sizable down payment.

I am a USC graduate too. Go Trojan!!!

[wantobuy]

me $100k, wife $90k, each has about 10% bonus, one baby.
Looking from this forum, money-wise my difficult years in the ph.d program at ucsd were not well spent…

[JJsqueeze]

Married, both mid 30’s, two wonderful rug rats, one income earner (me), one combination chef, laundress, maid, teacher, valet, vixen (her), $110K family income not including bonus or loose change in the couch cushions. Renting condo in Carlsbad for $1500/mo. Saving 12-15% not including 401k.

[Anonymous]

I am in my mid 30’s and married with two kids. Income of 350k a year working as an Investment Advisor.

[Anonymous]

Just remember when looking at recent SATs that the scores were ‘renormed’ upward 10 years ago or so by ~100 points; e.g., 1300 today equals 1200 then.

Also, the new SAT is an achievement test (test of knowledge), not an aptitude test (intelligence test) as it once was. Today, you can study for the SAT and improve your scores.

The SAT was created to discover diamonds in the rough (e.g., poor but smart Jewish kids from the Bronx in the ’30s). Now, like many things, it has been watered down and dumbed down.

[Dr Kevin]

Sounds like there’s a lot of USC grads, either in San Diego or on this board.

And btw, the ppl who said the average SAT score at USC is 1300 is really off. It’s been 1350+ for last several years. GPA was around 4.0 weighted i believe.

[LookoutBelow]

 Me. retired early from primary occupation, with full private pension, small business, 1 employee (me) and 2 telephone lines….. wife, private practice ….Many times over median income…Currently renting in La Jolla for 3,500 per mo. Sold off all property back in 03…..Circling like a buzzard waiting….waiting….Not sure if we will ever get back into the ownership game again…It would have to be pretty compelling, tax incentive is not enough of a reason…Taxable income exposure is minimal

 

Both of us USC grads. Wayyyy back in the time when dinosaurs still roamed the planet

[Anonymous]

My girlfriend and I, no kids. Her 84K salary, me 72K salary plus incentives, about 15K. Total Household 171K. Currently renting 2/2 in LaCosta, $1500 month. I don’t feel we can afford the median priced home(720k in Carlsbad), even at our income level and with 20% down.

[startingout]

Our household is me and my husband (both 25 yo), no kids, 1 cat. 🙂

I make about $32k as an Executive Assistant, my husband is a rock crusher service tech, and brings home about $60k, so $92k total.

Currently renting 2bd/1.5ba apt for $1,300 in Riverside. Believe it or not that’s cheap rent for Riverside. Both have 401k’s at 10%, and a little cash savings.

Hopefully not too bad for a couple of youngins.

[Dr Kevin]

How are some people renting for 1300 in riverside while others are renting 1300 in carlsbad??? That’s too bizarre.

[lostkitty]

We make plenty. About 4x’s the median (husband’s career), not counting my little 8 hr/wk 9 mo per year business +/-$12k (which all goes to paying for my kids’ extracurricular interests). I basically just stay home with kids.

Paid 330k for our big beautiful house in an unbelievably excellent public school system, gorgeous location. San Diego is beautiful (I grew up in Sol Beach/RSF/Del Mar so i know it well) – but it’s gone a bit manic depressive.

[Artifact]

We have 1 income (mine) of 75K to 80K depending on bonuses. That covers me, 1 wife (who stays home) and 2 young kids – I have a PhD from UCSD and my wife has a BA – but the only degree she needs at the moment is in patience.

So I guess that puts us over median household and family, but under median per capita – we rent in Carlsbad/Encinitas for roughly 1500. We have savings for 20% down on a “normally” priced starter home, but doubtful that will be in North County. Makes it look appealing to move (within my current employer, so same pay level) to a more affordable market. But for now we are just waiting semi-patiently to see what the market does in the next year.

[Artifact]

We have 1 income (mine) of 75K to 80K depending on bonuses. That covers me, 1 wife (who stays home) and 2 young kids – I have a PhD from UCSD and my wife has a BA – but the only degree she needs at the moment is in patience.

So I guess that puts us over median household and family, but under median per capita – we rent in Carlsbad/Encinitas for roughly 1500. We have savings for 20% down on a “normally” priced starter home, but doubtful that will be in North County. Makes it look appealing to move (within my current employer, so same pay level) to a more affordable market. But for now we are just waiting semi-patiently to see what the market does in the next year.

[PD]

My husband is also a USC alum. I’m looking forward to the day when his pay is no longer constrained by government pay scales. However, he keeps threatening to become a Forest Ranger.
I’m the official Investment Advisor for our family. My performance hasn’t been as good this year the year before as I’ve been too bearish.

[PD]

My husband is also a USC alum. I’m looking forward to the day when his pay is no longer constrained by government pay scales. However, he keeps threatening to become a Forest Ranger.
I’m the official Investment Advisor for our family. My performance hasn’t been as good this year the year before as I’ve been too bearish.

[lostkitty]

We make plenty. About 4x’s the median (husband’s career), not counting my little 8 hr/wk 9 mo per year business +/-$12k (which all goes to paying for my kids’ extracurricular interests). I basically just stay home with kids.

Paid 330k for our big beautiful house in an unbelievably excellent public school system, gorgeous location. San Diego is beautiful (I grew up in Sol Beach/RSF/Del Mar so i know it well) – but it’s gone a bit manic depressive.

[startingout]

How are some people renting for 1300 in riverside while others are renting 1300 in carlsbad??? That’s too bizarre.

Dr. Kevin, I think it is too. 🙂 We’ve been living at this complex since 2004, when we originally rented a 1 bd/1ba 715 sq. ft. for $890 or something like that. In Feb. 2007 (still in the same 1 bd. 1 ba., but then at $1090), we decided we needed to upgrade to a 2 bd (we were just really feeling cramped).

I’m tellin ya, we looked at every complex in Riverside and Moreno Valley that didn’t look like the cops visited it every night, and we found that our complex was the best deal around (i.e. lowest rent in a decent complex). The thing is, most of the older complexes with the more reasonable rents have fallen into disrepair, and are usually in VERY questionable neighborhoods. Newer complexes are obviously newer and are generally in better shape, but the rent at these newer complexes for a 2bd starts at at least $1400. There is one particular complex called diRenzo whose rents start at $1550.

So, we stayed at our complex, but moved up to the 2bd/1.5ba model, 975 sq ft., $1,285 (I rounded up in my earlier post). And we only got the rent at $1,285 because they were running a special at the time (which strangely all the other complexes were doing too), the rent would have normally been $1325. And soon our rent will be going up by $50 because they are going to install washers/dryers in each unit (which I am happy for, but $50 seems high).

[KIBU]

Gee, no body even laughed at my joke. Maybe they even believed that I had 3 wives for real or more likely nobody cares.

Anyway, I need to clarify for my own sake since I am going to post more posts here to ask you a lot more questions…. Here is my real me: I have only 1 wife, I am 30 years old. I also calculated that until I am 65 years old, all we could afford is complete payment of a house (hasn’t bought yet).

[KIBU]

Gee, no body even laughed at my joke. Maybe they even believed that I had 3 wives for real or more likely nobody cares.

Anyway, I need to clarify for my own sake since I am going to post more posts here to ask you a lot more questions…. Here is my real me: I have only 1 wife, I am 30 years old. I also calculated that until I am 65 years old, all we could afford is complete payment of a house (hasn’t bought yet).

[startingout]

How are some people renting for 1300 in riverside while others are renting 1300 in carlsbad??? That’s too bizarre.

Dr. Kevin, I think it is too. 🙂 We’ve been living at this complex since 2004, when we originally rented a 1 bd/1ba 715 sq. ft. for $890 or something like that. In Feb. 2007 (still in the same 1 bd. 1 ba., but then at $1090), we decided we needed to upgrade to a 2 bd (we were just really feeling cramped).

I’m tellin ya, we looked at every complex in Riverside and Moreno Valley that didn’t look like the cops visited it every night, and we found that our complex was the best deal around (i.e. lowest rent in a decent complex). The thing is, most of the older complexes with the more reasonable rents have fallen into disrepair, and are usually in VERY questionable neighborhoods. Newer complexes are obviously newer and are generally in better shape, but the rent at these newer complexes for a 2bd starts at at least $1400. There is one particular complex called diRenzo whose rents start at $1550.

So, we stayed at our complex, but moved up to the 2bd/1.5ba model, 975 sq ft., $1,285 (I rounded up in my earlier post). And we only got the rent at $1,285 because they were running a special at the time (which strangely all the other complexes were doing too), the rent would have normally been $1325. And soon our rent will be going up by $50 because they are going to install washers/dryers in each unit (which I am happy for, but $50 seems high).

[Dr Kevin]

How are some people renting for 1300 in riverside while others are renting 1300 in carlsbad??? That’s too bizarre.

[startingout]

Our household is me and my husband (both 25 yo), no kids, 1 cat. 🙂

I make about $32k as an Executive Assistant, my husband is a rock crusher service tech, and brings home about $60k, so $92k total.

Currently renting 2bd/1.5ba apt for $1,300 in Riverside. Believe it or not that’s cheap rent for Riverside. Both have 401k’s at 10%, and a little cash savings.

Hopefully not too bad for a couple of youngins.

[Anonymous]

Me = $335K, girlfriend = $65K. Rent a 1BR/1BA in Del Mar for $1550. Moved here from LA last year. Don’t want to but into a falling market. Colleagues think I’m a weirdo because I’m a loser RENTER. They all need to get over the whole home “ownership” thing. The only people I know who acually “own” their home are my retired parents, who taught me that the best path to happiness and security is to work hard and ALWAYS live well BELOW your means.

[sd_resident]

Submitted by Shawny on June 8, 2007 – 11:03pm.
Me = $335K, girlfriend = $65K.

shawny,

wow. don’t mind me asking…what do u do for living?

[sd_resident]

Submitted by Shawny on June 8, 2007 – 11:03pm.
Me = $335K, girlfriend = $65K.

shawny,

wow. don’t mind me asking…what do u do for living?

[Anonymous]

Me = $335K, girlfriend = $65K. Rent a 1BR/1BA in Del Mar for $1550. Moved here from LA last year. Don’t want to but into a falling market. Colleagues think I’m a weirdo because I’m a loser RENTER. They all need to get over the whole home “ownership” thing. The only people I know who acually “own” their home are my retired parents, who taught me that the best path to happiness and security is to work hard and ALWAYS live well BELOW your means.

[beanmaestro]

Me: 32 yo PhD Engineer ~100k
Wife: 25 yo Materials grad student ~25k
Colleges: Cornell, UCSB
Rent: $1650 for 2-1 half-duplex
Total Expenses (inc rent): ~50k

We can afford to buy, but it would take most of our assets and most of our future income (especially when my wife takes 5 years off to have kids), and would demolish any hope we have of retiring young. And though I can see that some people can afford to buy at current prices, I seriously doubt that anyone would be able to buy from US in a decade such that we could escape with a reasonable profit. Until that changes, the opportunity cost (in money and flexibility) of buying a house is just too bloody high.

[cyphire]

Good for you beanmaestro… DON’T make the mistake of sinking all your green and your potential green into a house at the top of a falling market. We still are close to the top in my opinion, and I’m sure that someone with your academic credentials can do a little trend analysis with imperfect data!

[cyphire]

Good for you beanmaestro… DON’T make the mistake of sinking all your green and your potential green into a house at the top of a falling market. We still are close to the top in my opinion, and I’m sure that someone with your academic credentials can do a little trend analysis with imperfect data!

[beanmaestro]

Me: 32 yo PhD Engineer ~100k
Wife: 25 yo Materials grad student ~25k
Colleges: Cornell, UCSB
Rent: $1650 for 2-1 half-duplex
Total Expenses (inc rent): ~50k

We can afford to buy, but it would take most of our assets and most of our future income (especially when my wife takes 5 years off to have kids), and would demolish any hope we have of retiring young. And though I can see that some people can afford to buy at current prices, I seriously doubt that anyone would be able to buy from US in a decade such that we could escape with a reasonable profit. Until that changes, the opportunity cost (in money and flexibility) of buying a house is just too bloody high.

[CMcG]

I’m stunned at how much some of you make. Me? Divorced mom, putting a kid through college. I have a bachelor’s degree. Make about $80K through a job and a side business. Varies every year; am expecting to make more this year.

[CMcG]

I’m stunned at how much some of you make. Me? Divorced mom, putting a kid through college. I have a bachelor’s degree. Make about $80K through a job and a side business. Varies every year; am expecting to make more this year.

[North County Native]

We are in our late 20’s, had 2 kids while still in college. Now we have 3 (one is a newborn!) Since we had 2 kids while going to school, it took longer to finish so my husband is at the beginning of his career. I stay home with the kids, he makes around $45K as a CSUSM (under represented on here!) grad, will also be starting on his Master’s in the fall.
We rent a 3 bedroom, 2 bath apartment in a nice area for $500 a month! We got into this apartment when he was making less money and qualified for “affordable housing.”
Although apartment living is not the greatest, we can’t rationalize paying $1500 more each month just for a garage and a small yard – to rent. We go to the area parks to play and that works out just fine! I’d rather be raising my kids than have a house I can’t afford.
We look forward to the time when we will buy a home and know that we just have to be patient. I know that my husband is at the bottom of the totem pole so its going to take time to make work his way up! He is a brilliant man and I know that the money situation will improve. For now, the goal is to pay off our debts first and then start saving!
Also, almost all of our immediate family members are in SD county so we would like to stay here.

[Ozzie]

Dropped out of Big Ten school 20 years ago. Did well in several software companies in the 80’s/90’s. Stopped working to invest/slack off (which I’m good at – slacking that is). Made over $500k last year but will probably make less than 100k this year.

Live below my means. Think North County is prety much Heaven compared to where I grew up.

[cyphire]

Ozzie – are you a programmer? Designer? I just sold my software company… And also dropped out of school about 25 years ago.

I’ve been slacking for a few years also!

[Ozzie]

Cyphire,

My major was CS but that was programming in FORTRAN and goofy stuff like that. I went into sales with a small software company and we kept getting bought out and I kept outselling everyone. Perfect path if you are hyper competitive about 10% of the time and lazy the other 80%. See I can’t even do math.

[Ozzie]

Cyphire,

My major was CS but that was programming in FORTRAN and goofy stuff like that. I went into sales with a small software company and we kept getting bought out and I kept outselling everyone. Perfect path if you are hyper competitive about 10% of the time and lazy the other 80%. See I can’t even do math.

[cyphire]

Ozzie – are you a programmer? Designer? I just sold my software company… And also dropped out of school about 25 years ago.

I’ve been slacking for a few years also!

[Ozzie]

Dropped out of Big Ten school 20 years ago. Did well in several software companies in the 80’s/90’s. Stopped working to invest/slack off (which I’m good at – slacking that is). Made over $500k last year but will probably make less than 100k this year.

Live below my means. Think North County is prety much Heaven compared to where I grew up.

[North County Native]

We are in our late 20’s, had 2 kids while still in college. Now we have 3 (one is a newborn!) Since we had 2 kids while going to school, it took longer to finish so my husband is at the beginning of his career. I stay home with the kids, he makes around $45K as a CSUSM (under represented on here!) grad, will also be starting on his Master’s in the fall.
We rent a 3 bedroom, 2 bath apartment in a nice area for $500 a month! We got into this apartment when he was making less money and qualified for “affordable housing.”
Although apartment living is not the greatest, we can’t rationalize paying $1500 more each month just for a garage and a small yard – to rent. We go to the area parks to play and that works out just fine! I’d rather be raising my kids than have a house I can’t afford.
We look forward to the time when we will buy a home and know that we just have to be patient. I know that my husband is at the bottom of the totem pole so its going to take time to make work his way up! He is a brilliant man and I know that the money situation will improve. For now, the goal is to pay off our debts first and then start saving!
Also, almost all of our immediate family members are in SD county so we would like to stay here.

[Anonymous]

I was born and grew up in So Cal, lived there for 35 years but have moved to the southeast, the land of milk and honey! (Compared to So cal) We are a family of four, CSULB BSME and Univ of Tenn MBA, $140K/yr income from my job, side consulting business and rental income. Wife is stay home mom since the birth of our second child. Put $280K earned from Kalifornia RE gains in 1991-2003 on our $500K home in Greenville, SC. Both kids are in the best private school in the area at $15K/yr (there is no such thing as good and safe public schools), house payments are 1350, + 350 for taxes and insurance. We live in 3800 sq ft 100% brick, on 0.6 acres, that’s more than 20,000 sq ft for you people who measure land by the sq ft. I drive 5 miles to work and it takes 7-8 minutes, even with single lane roads. We live 30 minutes from a lake, 3 hours from the Atlantic and 10 minutes from the mountains. Charlotte and Atlanta are close by, so is Asheville. Crime: what’s that? Energy costs are low, gasoline 50 cents lower, peak bill of 250 for electric and gas, insurance is half of CA. We are within 2.5 hours of more than 20 of the top universities in the nation! Wife is finishing school to work in the medical field now that the kids are in middle/high school, should push us over $200K/yr income. Have a 401K at around $200K, which I stuff to the max, 40K in the kids college fund at Scottrade. Have lived the high life and now prefer the lower speeds of the southeast. We currently save around $1K/month and are looking to save 2-3K/mo again when the wife starts work so that we can retire early in 10 years at 55-57.

Come join us. No bubbles, top quality of life, least expensive cost of living, lots of time to spend with your family, no commute, early retirement. Companies here are hiring and can’t get enough good people, big companies too! By the way, the athletics at the SEC make the west coast look stupid, UT showed CAL total defeat; second that for Florida vs Ohio and that’s only football, then look at basketball; UT and UF on top again! No wonder so many people are leaving CA for greener pastures.

[(former)FormerSanDiegan]

steveno –
Come on admit it, there has to be something wrong with the place. No traffic, no wildfires, no earthquakes to speak of, no crime, no grafitti, no bubble. Is it boring there ?

[sdrealtor]

Lynchings?

[sdrealtor]

Lynchings?

[(former)FormerSanDiegan]

steveno –
Come on admit it, there has to be something wrong with the place. No traffic, no wildfires, no earthquakes to speak of, no crime, no grafitti, no bubble. Is it boring there ?

[Anonymous]

I was born and grew up in So Cal, lived there for 35 years but have moved to the southeast, the land of milk and honey! (Compared to So cal) We are a family of four, CSULB BSME and Univ of Tenn MBA, $140K/yr income from my job, side consulting business and rental income. Wife is stay home mom since the birth of our second child. Put $280K earned from Kalifornia RE gains in 1991-2003 on our $500K home in Greenville, SC. Both kids are in the best private school in the area at $15K/yr (there is no such thing as good and safe public schools), house payments are 1350, + 350 for taxes and insurance. We live in 3800 sq ft 100% brick, on 0.6 acres, that’s more than 20,000 sq ft for you people who measure land by the sq ft. I drive 5 miles to work and it takes 7-8 minutes, even with single lane roads. We live 30 minutes from a lake, 3 hours from the Atlantic and 10 minutes from the mountains. Charlotte and Atlanta are close by, so is Asheville. Crime: what’s that? Energy costs are low, gasoline 50 cents lower, peak bill of 250 for electric and gas, insurance is half of CA. We are within 2.5 hours of more than 20 of the top universities in the nation! Wife is finishing school to work in the medical field now that the kids are in middle/high school, should push us over $200K/yr income. Have a 401K at around $200K, which I stuff to the max, 40K in the kids college fund at Scottrade. Have lived the high life and now prefer the lower speeds of the southeast. We currently save around $1K/month and are looking to save 2-3K/mo again when the wife starts work so that we can retire early in 10 years at 55-57.

Come join us. No bubbles, top quality of life, least expensive cost of living, lots of time to spend with your family, no commute, early retirement. Companies here are hiring and can’t get enough good people, big companies too! By the way, the athletics at the SEC make the west coast look stupid, UT showed CAL total defeat; second that for Florida vs Ohio and that’s only football, then look at basketball; UT and UF on top again! No wonder so many people are leaving CA for greener pastures.

[CA renter]

Good topic because we should be aware of who the new buyers are/will be.

Us: Married, three kids, one wage-earner + some investments for a total of $100K-$120K (depending on O/T and investment returns). We have enough for 20-40% down at current prices (depends on what/where we eventually decide to buy), but will not buy until exotic loans have been out for at least a year (or three).

Agree with those who say the lurkers/posters here are not the norm. This also goes to show that “rich” people are not inclined to throw money away on overpriced homes.

[Anonymous]

cyphire, you must be married to a saint. You set up a Bahamian double-interlocking, generation-skipping backward-plus-forward trust, now that you’ve sold your business, and you’re worried about saving a few hundred thousand by holding off from buying a house, now?

Jeez, all of my filthy rich friends continue building on their tear-down lots.

Are you a skinflint, man?

[jennyo]

I grew up in NE SD County (Valley Center) in a modest home my parents built on a large lot in the 70s. Now live in Sacramento working for the state, I make $114,000 and my husband makes about $68,000. We are both 38, no kids but we have 3 90-lb dogs which makes home ownership a must. We manage to save a little but will both have 60 percent state pensions when we retire. We bought a small post war bungalow (1200sf) here in 2000 for $115,000 and sold it in 2003 for $250,000. After that we purchased a larger (small by today’s standards at 1600sf) house in 2003 for $319,000. I still think we paid a little too much for the house we are in but our mortgage is about $200K and we really wanted a second bathroom. We make decent wages for this area, but we wouldn’t even be able to sniff at a house in SD without $300k-$400k in cash.

[jennyo]

I grew up in NE SD County (Valley Center) in a modest home my parents built on a large lot in the 70s. Now live in Sacramento working for the state, I make $114,000 and my husband makes about $68,000. We are both 38, no kids but we have 3 90-lb dogs which makes home ownership a must. We manage to save a little but will both have 60 percent state pensions when we retire. We bought a small post war bungalow (1200sf) here in 2000 for $115,000 and sold it in 2003 for $250,000. After that we purchased a larger (small by today’s standards at 1600sf) house in 2003 for $319,000. I still think we paid a little too much for the house we are in but our mortgage is about $200K and we really wanted a second bathroom. We make decent wages for this area, but we wouldn’t even be able to sniff at a house in SD without $300k-$400k in cash.

[Anonymous]

Man-of-the-people, cyphire, I have a question for you: did you grant stock options to your employees? Any of your employees? All of your employees?

The thought crossed my mind as I’m preparing stock option grant paperwork for our new hires. At all three of my startups, we have granted stock options to 100% of our employees. Assemblers to Accounting Clerks to VPs of Sales and Marketing, all would make money if the founder and CEO made money.

Just curious.

[cyphire]

My company wasn’t a work 12 hours a day, fly by night, vc based, high growth company. I started it with my partner 20.5 years ago. The core of people who were with us from the beginning (and are still with us) are very, very happy with what they got. They were designated as key employees and each got enough to buy a house (or at least most of one!) Our new CEO got a 500K kicker for just being in the company for the last 5 months.

I think that options are a great idea for new startups. High growth potential, high risk. Hard work and they have a stake in the company.

Our business was a nice size and was very profitable, but not growing in profitability. People came in and worked 9-5. Different story. Generally there is a trade off between stability and salary requirements and options given. I would venture to guess that the assemblers won’t get enough to buy a mustang, if the VP of sales and marketing gets a Aston Martin.

[cyphire]

My company wasn’t a work 12 hours a day, fly by night, vc based, high growth company. I started it with my partner 20.5 years ago. The core of people who were with us from the beginning (and are still with us) are very, very happy with what they got. They were designated as key employees and each got enough to buy a house (or at least most of one!) Our new CEO got a 500K kicker for just being in the company for the last 5 months.

I think that options are a great idea for new startups. High growth potential, high risk. Hard work and they have a stake in the company.

Our business was a nice size and was very profitable, but not growing in profitability. People came in and worked 9-5. Different story. Generally there is a trade off between stability and salary requirements and options given. I would venture to guess that the assemblers won’t get enough to buy a mustang, if the VP of sales and marketing gets a Aston Martin.

[Anonymous]

Man-of-the-people, cyphire, I have a question for you: did you grant stock options to your employees? Any of your employees? All of your employees?

The thought crossed my mind as I’m preparing stock option grant paperwork for our new hires. At all three of my startups, we have granted stock options to 100% of our employees. Assemblers to Accounting Clerks to VPs of Sales and Marketing, all would make money if the founder and CEO made money.

Just curious.

[cyphire]

Nope, my wife is awesome, but not a saint. I would think that you would have more financial sense to buy a 2+M house if it is losing 100K per year or more. Are just baiting me? or would you do something that stupid?

If you have a tear down lot and are building on it, it’s a lot different then going out and buying a house which is poised to topple… Some friends of mine just bought a 3.5M house in OC… I think they are regreting buying it last year.

I spend money like water, quite the opposite from being a skinflint! I’m just not an idiot!

People don’t get rich by making bad investments. Why buy at the top of the market?

My trust isn’t a Bahamian whatever, it’s just a standard trust. It still pays estate taxes, but it avoids probate and as stated before sets up reasonable dollars for my family if and when I die.

[cyphire]

Nope, my wife is awesome, but not a saint. I would think that you would have more financial sense to buy a 2+M house if it is losing 100K per year or more. Are just baiting me? or would you do something that stupid?

If you have a tear down lot and are building on it, it’s a lot different then going out and buying a house which is poised to topple… Some friends of mine just bought a 3.5M house in OC… I think they are regreting buying it last year.

I spend money like water, quite the opposite from being a skinflint! I’m just not an idiot!

People don’t get rich by making bad investments. Why buy at the top of the market?

My trust isn’t a Bahamian whatever, it’s just a standard trust. It still pays estate taxes, but it avoids probate and as stated before sets up reasonable dollars for my family if and when I die.

[Anonymous]

cyphire, you must be married to a saint. You set up a Bahamian double-interlocking, generation-skipping backward-plus-forward trust, now that you’ve sold your business, and you’re worried about saving a few hundred thousand by holding off from buying a house, now?

Jeez, all of my filthy rich friends continue building on their tear-down lots.

Are you a skinflint, man?

[CA renter]

Good topic because we should be aware of who the new buyers are/will be.

Us: Married, three kids, one wage-earner + some investments for a total of $100K-$120K (depending on O/T and investment returns). We have enough for 20-40% down at current prices (depends on what/where we eventually decide to buy), but will not buy until exotic loans have been out for at least a year (or three).

Agree with those who say the lurkers/posters here are not the norm. This also goes to show that “rich” people are not inclined to throw money away on overpriced homes.

[kw3393]

28, married with 115k/yr. No debt. Since we don’t have family connection in southern CA, it makes no sense to live here and buy a home. Instead, we’re moving out of state and buying a 4br 2000sqft single family home for 200k. We love sunny SD, but 4-seasons ain’t bad either.

FYI – for a 30yr fixed mortgage at 6.5%:

180k loan will cost you $410k in principal & interest over life of loan.

500k loan will cost you $1.2MM in principal & interest over life of loan. Plus, more in taxes & insurance compared to the Midwest.

[nla]

Very sad but true, 115K per annum is not that much in San Diego IF you didn’t buy a house before the BUBBLE.

[nla]

Very sad but true, 115K per annum is not that much in San Diego IF you didn’t buy a house before the BUBBLE.

[kw3393]

28, married with 115k/yr. No debt. Since we don’t have family connection in southern CA, it makes no sense to live here and buy a home. Instead, we’re moving out of state and buying a 4br 2000sqft single family home for 200k. We love sunny SD, but 4-seasons ain’t bad either.

FYI – for a 30yr fixed mortgage at 6.5%:

180k loan will cost you $410k in principal & interest over life of loan.

500k loan will cost you $1.2MM in principal & interest over life of loan. Plus, more in taxes & insurance compared to the Midwest.

[Anonymous]

42 yr old MD, 240-300K per year. Wife stays at home with the baby but used to bring in about 60K

Renting for 3K a month, and hope to buy fall 08 or 09 in the 900-1 million range

[Anonymous]

Steveno
MD,

I started out in Premed too, but was a lot better at Math and Physics, make a lot less because of it.

MD’s on the east coast also make the same amount as your quote. My neighbors, 2 of them are MD’s, are in this range. For the 900-1M range in TN, SC, GA, NC will buy you a mansion and acres, or the best upscale area on the golf course in any large metro. Everything will be in walking distance. One of my neighbors came from CA, that sucking sound is everyone leaving!

The first thing you notice when moving here is that on the highway people actually move over to let you go by. When you go to the supermarket, people are actually nice to you and start up conversations with you. When you are out and about everyone (even toital strangers) says “hi” when you approach. Bottom line, people are more trusting and friendly when the population is not crowded and balkenized like So Cal.

You’all (lol) should escape while you still can and make a better life for yourselves and your families. they will certainly appproeciate spending more time with you!

Good Luck,

StevenO

Yes we miss some of the LA stuff, I miss the surf, but you can still have earthquakes in West TN, but fires are difficult to start, that’s why we have awesome 1st class fireworks for sale! Don’t need to go to crowded venues and drive an hour to see good displays, we band together with neighbors and collect about $500 and have our own party, while our kids light off the fireworks (the real stuff too!)

[sdrealtor]

Yeeehhhaaawwww!!!

[sdrealtor]

Yeeehhhaaawwww!!!

[Anonymous]

Steveno
MD,

I started out in Premed too, but was a lot better at Math and Physics, make a lot less because of it.

MD’s on the east coast also make the same amount as your quote. My neighbors, 2 of them are MD’s, are in this range. For the 900-1M range in TN, SC, GA, NC will buy you a mansion and acres, or the best upscale area on the golf course in any large metro. Everything will be in walking distance. One of my neighbors came from CA, that sucking sound is everyone leaving!

The first thing you notice when moving here is that on the highway people actually move over to let you go by. When you go to the supermarket, people are actually nice to you and start up conversations with you. When you are out and about everyone (even toital strangers) says “hi” when you approach. Bottom line, people are more trusting and friendly when the population is not crowded and balkenized like So Cal.

You’all (lol) should escape while you still can and make a better life for yourselves and your families. they will certainly appproeciate spending more time with you!

Good Luck,

StevenO

Yes we miss some of the LA stuff, I miss the surf, but you can still have earthquakes in West TN, but fires are difficult to start, that’s why we have awesome 1st class fireworks for sale! Don’t need to go to crowded venues and drive an hour to see good displays, we band together with neighbors and collect about $500 and have our own party, while our kids light off the fireworks (the real stuff too!)

[Anonymous]

42 yr old MD, 240-300K per year. Wife stays at home with the baby but used to bring in about 60K

Renting for 3K a month, and hope to buy fall 08 or 09 in the 900-1 million range

[Author]

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