Lifestyle of an Orange County Millionaire

How likely is it for an OC millionaire to live in a house that is worth equal to less than $600,000 in OC? Again i am not counting equity from primary residence. would you say it is very likely or unlikely. Looking at several homes from IR2's stats there are many who bought million dollar homes with a mortgage of $800,000 plus. I doubt these guys have a networth of million dollars, but probably make $200k plus income.



If you buy a house for $1M dollars, your taxes are super expensive, maintenance cost is expensive, and you have spend a lot $$$ just to furnish the place. You now have to spend money to fit in with the lifestyle of living in the $1M home like luxury cars, luxury clothes, luxury toys. Also all the guys mowing your lawn and maintaining your home will also jack up their rates because you live in a $1 Million dollar home and you look rich so why not??



The reason i started this thread was because I am really interested to find out if there is a lifestyle difference between a millionaire living in the midwest compared to a millionaire living in Orange County. I've met several millionaires in Cook County, but I have never personally known or met a millionaire living in Orange County. Suprisely, many of the millionaires I met in Cook County live the lifestyle of the book "Millionaire Next Door" from Thomas Stanley.



Panda
 
[quote author="skek" date=1217307803]For what it's worth, the SEC excludes the value of your primary residence when determining net worth for purposes of determining when an investor is accredited -- I agree with graph's reasoning, there may be value in the primary residence, but I'd exclude it from net worth calcs.</blockquote>


Ipop never got the memo.

When his place hit $750K, he was too busy applying for membership at Pelican Hill.

At least back then he'd take the family to Buca di Beppo on occasion.
 
[quote author="ERPguy" date=1217304639]The US economy would collapse if we didn?t invest in our production. </blockquote>


That's why all good people need to invest in quality tickers like SKF. Because Amurica is strong! It's our patriotic duty to keep her that way.
 
[quote author="tenmagnet" date=1217308748][quote author="skek" date=1217307803]For what it's worth, the SEC excludes the value of your primary residence when determining net worth for purposes of determining when an investor is accredited -- I agree with graph's reasoning, there may be value in the primary residence, but I'd exclude it from net worth calcs.</blockquote>


Ipop never got the memo.

When his place hit $750K, he was too busy applying for membership at Pelican Hill.

At least back then he'd take the family to Buca di Beppo on occasion.</blockquote>


I hate the food at Buca. We took a bunch of friends there to sample the food as a precursor to selecting a site for our rehearsal dinner. I think two or three people ended up with stomach aches the next day... We went with Tommy B's instead. The outside patio there is a nice place to have a group dinner.
 
[quote author="tenmagnet" date=1217306299][quote author="ipoplaya" date=1217303203]



It's all about the net worth baby... If they are living in $1M homes and own them free and clear, they are millionaires (at least for today) in my book.



I remember when our condo was driving towards the $750K price range back in 2006 and our net worth calc was going up and up every month by leaps and bounds... I had visions of the coveted $1M mark. Alas, reality stepped in and slap us with a lovely 20% decline in home prices and the ole net worth calc headed down, down, down.</blockquote>


That?s my point exactly.

What percentage of people in Irvine in that $1M home category own it free and clear?



Unless I?m mistaken, you didn?t pay all cash for a $300K condo back in ?01.

Like most people in Irvine at the time, you took a Heloc and bought lifestyle (SUV, etc.) with the appreciation.

IR?s daily posts on the main blog confirm it.</blockquote>


Quite right Tenster. I only put down $50K and it has produced quite a nice return...



With our HELOC, we didn't buy lifestyle, we bought life. The HELOC funded years off work for the wife to be with the babies after they were born while still allowing us to max our tax-deferred investment savings and live comfortably.
 
[quote author="ipoplaya" date=1217310710]



I hate the food at Buca. We took a bunch of friends there to sample the food as a precursor to selecting a site for our rehearsal dinner. I think two or three people ended up with stomach aches the next day... We went with Tommy B's instead. The outside patio there is a nice place to have a group dinner.</blockquote>


Just working the jab on you, where?s Tommy B?s?
 
[quote author="tenmagnet" date=1217311858][quote author="ipoplaya" date=1217310710]



I hate the food at Buca. We took a bunch of friends there to sample the food as a precursor to selecting a site for our rehearsal dinner. I think two or three people ended up with stomach aches the next day... We went with Tommy B's instead. The outside patio there is a nice place to have a group dinner.</blockquote>


Just working the jab on you, where?s Tommy B?s?</blockquote>


Tommy Bahamas dude... PCH and MacCarthur.



Last time I was there for drinks I ran into Graph shoppin' for some clothes.
 
[quote author="ipoplaya" date=1217310978]



Quite right Tenster. I only put down $50K and it has produced quite a nice return...



With our HELOC, we didn't buy lifestyle, we bought life. The HELOC funded years off work for the wife to be with the babies after they were born while still allowing us to max our tax-deferred investment savings and live comfortably.</blockquote>


No surprise, pretty much anyone who bought in Irvine in ?01 made money.

Much like yourself, some of my co-workers sold, took their gains and traded up quite nicely.

Others, pulled out a ton of equity, lived way beyond their means, and are under-water now.

Like those profiled daily on the main blog.



It?s all relative.

You opted for family/quality of life, while some traded up, and others spent it on lifestyle.
 
[quote author="ipoplaya" date=1217312718]



Tommy Bahamas dude... PCH and MacCarthur.



Last time I was there for drinks I ran into Graph shoppin' for some clothes.</blockquote>


Take it easy, I know the place.

My dad gets his buttoned up shirts there.

It?s in the same center as Sprinkles.

Thought you were referring to an Italian joint.
 
[quote author="tenmagnet" date=1217313141][quote author="ipoplaya" date=1217312718]



Tommy Bahamas dude... PCH and MacCarthur.



Last time I was there for drinks I ran into Graph shoppin' for some clothes.</blockquote>


Take it easy, I know the place.

My dad gets his buttoned up shirts there.

It?s in the same center as Sprinkles.

Thought you were referring to an Italian joint.</blockquote>


Damn, I haven't been to Sprinkles in a long time. Need to head that way for lunch soon...
 
panda, just an observation... i would suspect that the more you care about how others are living, the more likely you're going to end up keeping up with the Jones, instead of being them.
 
[quote author="acpme" date=1217371499]panda, just an observation... i would suspect that the more you care about how others are living, the more likely you're going to end up keeping up with the Jones, instead of being them.</blockquote>


PANDA aka Eternal Window Shopper LOL
 
[quote author="optimusprime" date=1217376341][quote author="acpme" date=1217371499]panda, just an observation... i would suspect that the more you care about how others are living, the more likely you're going to end up keeping up with the Jones, instead of being them.</blockquote>


PANDA aka Eternal Window Shopper LOL</blockquote>


Nice one, Book ?em Dano!
 
<blockquote>How likely is it for an OC millionaire to live in a house that is worth equal to less than $600,000 in OC? Again i am not counting equity from primary residence. would you say it is very likely or unlikely. Looking at several homes from IR2?s stats there are many who bought million dollar homes with a mortgage of $800,000 plus. I doubt these guys have a networth of million dollars, but probably make $200k plus income.



If you buy a house for $1M dollars, your taxes are super expensive, maintenance cost is expensive, and you have spend a lot $$$ just to furnish the place. You now have to spend money to fit in with the lifestyle of living in the $1M home like luxury cars, luxury clothes, luxury toys. Also all the guys mowing your lawn and maintaining your home will also jack up their rates because you live in a $1 Million dollar home and you look rich so why not??



The reason i started this thread was because I am really interested to find out if there is a lifestyle difference between a millionaire living in the midwest compared to a millionaire living in Orange County. I?ve met several millionaires in Cook County, but I have never personally known or met a millionaire living in Orange County. Suprisely, many of the millionaires I met in Cook County live the lifestyle of the book ?Millionaire Next Door? from Thomas Stanley.



Panda



</blockquote>


Panda, I do know of people who are living the millionaire lifestyle you describe above. I think in 401K alone, they probably have a few millions, not including savings, and investments. Their primary house is less than $600K, which was bought very low in the 90s and now it's all paid for. These people don't even own a fancy grill.
 
[quote author="WestparkRenter" date=1220071794]<blockquote>How likely is it for an OC millionaire to live in a house that is worth equal to less than $600,000 in OC? Again i am not counting equity from primary residence. would you say it is very likely or unlikely. Looking at several homes from IR2?s stats there are many who bought million dollar homes with a mortgage of $800,000 plus. I doubt these guys have a networth of million dollars, but probably make $200k plus income.



If you buy a house for $1M dollars, your taxes are super expensive, maintenance cost is expensive, and you have spend a lot $$$ just to furnish the place. You now have to spend money to fit in with the lifestyle of living in the $1M home like luxury cars, luxury clothes, luxury toys. Also all the guys mowing your lawn and maintaining your home will also jack up their rates because you live in a $1 Million dollar home and you look rich so why not??



The reason i started this thread was because I am really interested to find out if there is a lifestyle difference between a millionaire living in the midwest compared to a millionaire living in Orange County. I?ve met several millionaires in Cook County, but I have never personally known or met a millionaire living in Orange County. Suprisely, many of the millionaires I met in Cook County live the lifestyle of the book ?Millionaire Next Door? from Thomas Stanley.



Panda



</blockquote>


Panda, I do know of people who are living the millionaire lifestyle you describe above. I think in 401K alone, they probably have a few millions, not including savings, and investments. Their primary house is less than $600K, which was bought very low in the 90s and now it's all paid for. These people don't even own a fancy grill.</blockquote>


Renter,

I'm with you on this. It just depends on what their goal is. I think alot of people who are "keeping up" tend to not have any real goals... Ok maybe accumulation of material items.



I know quite a few people who look exceedingly wealthy, but live a normal lifestyle.... Now with the amount of people they support... that's good question.



-bix
 
California has largest population of millionaires at 663,394. Out of 359 U.S. billionaires, 77 of the billionaires (21.44%) reside in the state of California. Interestly, Orange County lost its 3rd place to Maricopa County, AZ for millionaire households.



Rank County Millionaire Households

1 Los Angeles Co., Calif. 261,081

2 Cook Co., Ill. 168,422

3 Maricopa Co., Ariz. 126,394

4 Orange Co., Calif. 115,396

5 Harris Co., Texas 107,513

6 San Diego Co., Calif. 100,727

7 King Co., Wash. 75,616

8 Santa Clara Co., Calif. 72,932

9 Nassau Co., N.Y. 71,869

10 Suffolk Co., N.Y. 71,343



Countries with Fastest-Growing Number of Millionaires and # of billionaires



1. India 123,000 millionaires - up 22.7% from 2006 (1.2% of worldwide millionaires) - 24 billionaires

2. China 415,000 millionaires - up 20.3% (4.1%) - 28 billionaires

3. Brazil 143,000 millionaires - up 19.1% (1.4%) - 13 billionaires

4. South Korea 118,000 millionaires - up 18.9% (1.2%) - 4 billionaires

5. Indonesia 23,000 millionaires - up 16.8% (0.2%) - 5 billionaires

6. Slovakia 4,000 millioniares - up 16% (.04%) - billionaires - none

7. Singapore 77,000 millionaires - up 15.3% (0.8%) 2 billionaires

8. UAE 78,000 millionaires - up 15.3% (.08%) - 6 billionaires

9. Czech Republic 17,000 millionaires - up 15.1% (0.2%) - billionaires - none

10. Russia 136,000 millionaires - up 14.4% (1.3%) - billionaires - 32
 
<img src="http://i46.tinypic.com/35n4jyf.jpg" alt="" />



These are pretty recent stats from 2007. I find it pretty amazing that someone with a average networth of $1,493, 804 would live in a average home value of $404,240 which would equate to 27% of their networth. That is pretty impressive even for midwestern standards. Approximately 4 in 10 physicians have an annual realized income of $200,000 or more. That equates to almost 13 times the percentage for the total household population in America. Even though this large percentage being in the high-income producing group, only about 1 in 10 is a millionaire and has financial assets of $1 million or more.



When I see stats like that, sometimes I wonder if there are more millionaire households living in West Irvine than Turtle Ridge. Turtle Ridge residents probably do make up the high income producing group (making upwards of $200k - $300k a year). Perhaps 1 in 10 Turtle Ridge household have financial assets of $1 million or more.
 
In Irvine the ratio is inverted. Net worth 404k, home value $1.5 m.



These are pretentious people.



Hugo Boss on the outside and Hane underwear with holes on the inside.



Louis Vuitton bag with full line of accessories but only $5 in the wallet.
 
Bk, I wouldn't say $1.5m. The $404,240 is probably more like a typical nice home in the suburbs of Chicago (Like Naperville). Perhaps a $404k equates to $600 - $700 in Irvine.
 
[quote author="PANDA" date=1259139684]Bk, I wouldn't say $1.5m. The $404,240 is probably more like a typical nice home in the suburbs of Chicago (Like Naperville). Perhaps a $404k equates to $600 - $700 in Irvine.</blockquote>


I am serious. This was true in Irvine during the subprime era.
 
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