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June 21, 2007 at 1:24 AM #60956June 21, 2007 at 8:02 AM #60941
Anonymous
Guestcyphire, 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?
June 21, 2007 at 8:02 AM #60977Guestcyphire, 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?
June 21, 2007 at 9:47 AM #60975jennyo
ParticipantI 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.
June 21, 2007 at 9:47 AM #61012ParticipantI 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.
June 21, 2007 at 9:48 AM #60979GuestMan-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.
June 21, 2007 at 9:48 AM #61016GuestMan-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.
June 21, 2007 at 11:26 AM #61021cyphire
ParticipantNope, 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.
June 21, 2007 at 11:26 AM #61058ParticipantNope, 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.
June 21, 2007 at 11:37 AM #61027ParticipantMy 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.
June 21, 2007 at 11:37 AM #61064ParticipantMy 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.
July 22, 2007 at 5:41 PM #67035kw3393
Participant28, 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.
July 22, 2007 at 5:41 PM #67100Participant28, 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.
July 23, 2007 at 9:34 AM #67131nla
ParticipantVery sad but true, 115K per annum is not that much in San Diego IF you didn’t buy a house before the BUBBLE.
July 23, 2007 at 9:34 AM #67195ParticipantVery sad but true, 115K per annum is not that much in San Diego IF you didn’t buy a house before the BUBBLE.
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