dmac

Ditto. Maybe we should be a separate category.

rome

Not sure where this research comes from but it seems way off to me. In a Business Week article from several years ago, Porsche CEO Wiedeking was quoted as saying that average income of 911 owners is $310,000 and average income of Boxster owners is $243,000. Link is below


http://www.hss.caltech.edu/~mcafee/C...04/Porsche.pdf

Even these higher income numbers seem way off to me, especially considering that a lot of these cars are bought as 3rd cars (i.e.toys), and considering how much housing costs have gone up over the past few years... but I suppose people have their weaknesses.

GT3BB

Boy, I am radically underpaid!

robbonds

found the article - from HVB global mkts research...target customer for 911 is
46 yrs old
annual net income is $144 uero - thats aboyut $176k US

boxster is
42 yrs old
95k euro

cayman
45 yrs old
106k euro

cayenne
45 yrs old
$180k euro

boolala

Now that's more believable. There's no way that the average is $310,000 unless we all make about 200 K and someone here makes a trillion dollars a year (maybe on the CGT forum).

Median income would probably be a more accurate measure and likely considerably less.

Paul523

Ditto, and it's unfortunate. Had my 997S windows tinted partially so that it was less likely that my co-workers would recognize me cruising into work, as it would only cause problems.

Pardon the pun but I think Ben is on solid ground, for the 20 years following 2010 there should be a surge of migration of recently retired dual-career baby boomers to high amenity areas.

Crazy Canuck

I think we are focusing too much on income and forgetting about wealth. A high net worth with low debt (and debt service) with a lower income will enable people to purchase items that they shouldn't necessarily purchase given their incomes. Many people inherit wealth from parents etc. While this isn't technically income it certainly helps the cashflow situation and increases net worth.

I too agree that tapping a home equity loan to buy a car is nuts just from a personal comfort point of view. I love the fact that my home is paid for. It isn't the biggest but it does house 2 cars inside (4 with lifts eventually) and I'm single. My only costs are utilities, insurance and property taxes. Everything else is discretionary income. I don't **** it all away but some is for play, some is investing etc.

I think a lot of the comfort from buying real estate comes from the fact that it is not a depreciating asset like most cars. Of course there will be peaks and valleys but add the fact that you have to live somewhere and it becomes more palatable. Paying a mortgage can be thought of as a forced savings plan. Your equity increases as time goes on. $1.25 million is a lot of coin but then again you can't live in a Bugatti - at least not comfortably.

OCBen

If you guys were to see a picture of this house you would fall off your chairs right now and say, "OMG - That's insane! ... What's the world coming to!" ... I think I'd be too embarrassed at this point to show you anyways. I keep telling my wife that if she wants to get a really nice home with a big yard for about half what we're paying now we would need to move somewhere like Texas or the Midwest.

Crazy Canuck

My sister and her husband just bought a new nicely equipped 4500 square foot house with 2 car garage on a 60 x 100 lot for about $450k Canadian. That's up here in the great white north though.

We have a bit more land to spare than Orange County.

OCBen

This relatively modest house by comparison is only approx 2900 sq ft, 4 bdrm and not much of a lot size to speak of. From the sidewalk to the front of the house it's about 10 ft. From the side of the house to the wall that separates the properties there is barely enough room to walk through.

It's all about location, location.

Snoopy

OC Ben -- I hear what you are saying. It is insane here. Million dollar two bed room fixer uppers in West LA.

pl

LOL, this is EXACTLY what i am using right now. got those paper window shead from homedepot, works great
well, new house will have problems, let it settle for 2~3 years before wife starts "mods"

rome

Boolala-- I'm confused about a couple of your posts. In one you said house expense should be 28% of gross income. In another you said 3 months gross income (i.e. 33%) for car expense. This would leave you with only 39% of your gross income BEFORE even paying taxes. After tax income would be negligible.

Applying these figures to the supposed "target buyer" making only 175 thousand bucks a year, after paying his/her taxes, the hypothetical buyer would have to live on only a few thousand dollars...I suppose he/she could eat Ramen noodles for every meal?

Also, if you applied a median figure, it would be higher, not lower, if your assuption about the demographics is correct.

I think that the report I attached from Porsche Ag is much closer to the truth, AND that BW article was from 6 years ago. I'll bet now the income figures are even higher.

Edgy01

Ben,--that's Orange County! And it's WORSE in Santa Barbara! But the equity clock just keeps running and running. I really don't see an end to it.

Dan

rotthaus

Nice to see that I am underage.

Greg
2005 Carrera S Coupe, Lapis Blue Metallic, Carrera Classic Wheels, PCCB, Bose, Sport Shifter, Sport Seats
Rennlist member #050419-5832