Who are all these buyers?

Not only the home are cheaper here to those Asian, cars, branded stuffs like LV and BMW, Mercedes ..... Asian love those.

Plus the America Dream, freedom of speech ( not running over by Tanks).

Well off Asian Kids like independent lifesytle like the American Kids that have to get out their folk home at 16. When they came here to get their degree which easily cost their parent 100k for that few years and work for a big company in Irvine.
They don't want to go back and their rich parent, Their parent will have to buy a house for them and lot of Asian parent are here to look after their grandchildren .....  and bought another home here to stay close to their kids.

 
waitin4ever said:
IHO,

just a curious question. Considering all your arguments towards the stability of Irvine housing
what is really preventing you from putting a big chunk down for a irvine home. Like Montecito or Sonoma
etc. It seems to me that you really are not convinced about Irvine housing stability although you claim that
it is only people like IR who are not convinced.

Not to question you openly but I'm just trying to understand peoples perspective. For example I'm still not convinced
about the housing stability but i still bought into the 2010 collection. Mostly because of timing with family needs etc.
And if you are deciding to buy I think buying with as much down as you can afford and paying off as quickly is better
long term unless you want to be the person who takes the system for a ride by suatting or walking away.
Click to expand...
Great question.

One of the reasons I don't want to put a lot down is because we've already lost a big chunk of money in our last Irvine home.

And remember... I don't think real estate as a whole is stable... just that Irvine is more stable than other areas. That doesn't mean there isn't the possibility of future price drops in Irvine, and at the price point I am looking at -- even 10% is a very big number (that's the thing about IR, he doesn't want to admit the demand and stability in Irvine yet his prediction for 2011 is only a 2-5% drop... sounds more bullish than bearish to me).

In addition, I would rather choose to stay more liquid than put most of my savings into an something that I won't be able to pull it out of. I can invest in my 401k and still borrow half... there is no longer such an easy provision against the down payment of my home nowadays. At the price points in Irvine (or actually any OC city), 20% is a lot more than I want to part with a second time around.
 
What if Patrick star didn't have family near LA. even with that he thought so much about
leaving Irvine. what if his family was in Tustin, costa mesa or laguna hills.

Panda said:
PatrickStar, after reading all this garbage, aren't you glad you did not buy in Irvine?
Click to expand...
 
irvinehomeowner said:
Panda said:
PatrickStar, after reading all this garbage, aren't you glad you did not buy in Irvine?
Click to expand...
Easy killer... this "garbage" is what you hope is going to happen in Georgia... right?
Click to expand...

Hey, I bet you $10 bucks that my Georgian neighbors will be 10 times more friendlier than the Woodbury neighbors even though I have my Toyota Mini Van parked outside the drive way. Our new neighbors will give us this southern "Roundcorner" like of love to the new Panda family.

Yeah you are right!, this "garbage" is what is going to happen to Johns Creek, GA too, but not for another 10 years. :) So why worry about it now??
 
Panda your new home is gorgeous a real SF.  :-*

I can't see how my Sonoma shoes box can sell for 1.5 or 2 million in 20 years ....  :'(
It's good that I don't expect to make any money from that house or ever selling it.... most importantly my wife and kid are really happy with the new home.

My neighbors are really nice in my area, I got a lots of gifts from them .... just got some gift tonite again ;) Maybe I'm nice too :-[
It's nice to have good neighbors that can be your friends.














 
Panda said:
irvinehomeowner said:
Panda said:
PatrickStar, after reading all this garbage, aren't you glad you did not buy in Irvine?
Click to expand...
Easy killer... this "garbage" is what you hope is going to happen in Georgia... right?
Click to expand...

Hey, I bet you $10 bucks that my Georgian neighbors will be 10 times more friendlier than the Woodbury neighbors even though I have my Toyota Mini Van parked outside the drive way. Our new neighbors will give us this southern "Roundcorner" like of love to the new Panda family.

Yeah you are right!, this "garbage" is what is going to happen to Johns Creek, GA too, but not for another 10 years. :) So why worry about it now??
Click to expand...

As my Korean friend who grew up in Georgia would say, " People in Gerogia are racist."  Therefore, he spends the rest of his adult life out here in So Cal. 
 
Panda said:
irvinehomeowner said:
Panda said:
PatrickStar, after reading all this garbage, aren't you glad you did not buy in Irvine?
Click to expand...
Easy killer... this "garbage" is what you hope is going to happen in Georgia... right?
Click to expand...

Hey, I bet you $10 bucks that my Georgian neighbors will be 10 times more friendlier than the Woodbury neighbors even though I have my Toyota Mini Van parked outside the drive way. Our new neighbors will give us this southern "Roundcorner" like of love to the new Panda family.
Click to expand...
So the garbage you are referring to is the lack of community? Are you channeling RC?

I thought the garbage you referring to is how Irvine has remained more stable (and overpriced) due to the FCBs. Isn't that what you said is going to happen in John's Creek? Good schools, influx of foreigners = Irvine circa 2000?

Don't start throwing stones from your glass Georgia house!

Yeah you are right!, this "garbage" is what is going to happen to Johns Creek, GA too, but not for another 10 years. :) So why worry about it now??
Click to expand...
I doubt it. You still have bad weather over there and South Georgia <> Southern California.

I predict in 10 years that you will be back here asking me to sell you one of my Irvine homes... because I plan to own 5 of them by 2020.
 
The I-R-V said:
First of all CTNative, I appreciate your well written positions.  You clearly have well thought out opinions.

The problem I have with the whole "Asian buyer" theory is that we're seeing just as many Korean buyers as we are Chinese.  As you guys are well aware, these are two entirely different cultures with different mentalities.  We're seeing the Persians as well as the Indian buyers too.  All different.  Some are savers, some are gamblers.  Some pool money from the family, others don't have money to pool so they take risk on their own.  Some want the comfort of their churches, others have never set foot in one.  Some work for big companies, others open retail shops selling junk.  Bottom line is, this is the mix of "Asian buyers" in Irvine.  Pretty much the same mix we'd see for any other race in Irvine.

BTW, many of these Asians HATE other Asians races (competitive history) and would rather live among "white" neighbors.  (living in a white neighborhood is perceived as successful and also safer from an investment standpoint)

I'm not entirely convinced about the influx of cash buyers but a stronger $ may reverse the trend.  Interesting thing is that Irvine doesn't seem to have many buyers from Japan and the European nations despite their home currency strength vs. the $.
Click to expand...

Good point. Yep...if the pool is diversified like that...that is a good point. 

*head scratching*

I mean...at that point...I'd have to tighten the noose to the point of some data analysis that said "this" or "that" nationality of Asian that tends to have all cash is buying in Irvine at $900K while "them" and "those" that don't have cash, but are still Asian, are going after foreclosures in Santa Ana with FHA loans and the money in their wallet.

That would show a majority of buyers being Asian, but a specific Asian nationality being cash buyers, and at that point, beyond the scope of my original question for this thread, even though that's an interesting new question... ;)

Maybe the inverse of my original question is the way to go, what percentage of buyers are white versus all others and of those white buyers, how many are using cash?
 
It's not just Asian, there is a large pool of Middle Eastern (caucasian?) and Indian.

There are some places in Irvine where it's less Asian and more Persian.
 
For Korean who lived in Seoul or near to Seoul and own his apartment there, typical his apartment value is around half million or in expensive area 1 million US dollar.
Also, Korean spends a lot of money for their kid. I heared many Korean spend 30% ~ 50% of income to send kid to private after school institution. Becase in Korea, your salary will be determined by which University did you graduated they invest so much money for kid. There are so many English institution which has native english teacher and you have to expect to pay a lot of money to send your kid.

If you have been to Korea, you will know what is typical Korea apartment it is. It is 15-30 story building, so you can't expect any yard at all, even some expensive apartment have common yard to share. They can buy much better home here with similar money.

Also, there is North Korea ruled by Jeongil Kim which is constantly attck South Korea. Seoul is in less than 30 miles from North Korea border. If there is war between to Korea, Seoul area will be totally destroyed.

So, if you have half million in Korea and skill to find job here with BS or MS degree, want to move to USA, Irvine will be best location becation Irvine is well known in Korea, partially due to Seekhee Kang. Also Irvine is close from LAX.
 
@Green sky:

Thanks for your post... it's always interesting to hear other perspectives and why they think Irvine is chosen by FCBs*.

*I like to joke about it... and it was really just hyperbole by me when I first started using that acronym in 2008 on the IHB, but since studying real estate and demographics more (because graphrix made me)... it does seem there is a bit of truth to this theory.
 
Stumbled on this, and I have not had time to review all of it yet...but some interesting graphs...

http://www.bis.org/publ/work312.pdf?frames=0  June, 2010

Page five shows the top four savings rate countries to be China, India, Japan and Korea, with the U.S. coming in dead last at #14. I feel sorry for the report writers, they probably only wanted to compare Asia to the U.S. but had to crunch the numbers for nine other countries before they got to us.  ;D

Now I know this includes other types of savings, like corporate and government, but still an interesting analysis.

Looking at the Household Savings Rate chart specifically on page seven, China and India are tops with only the Philippines beating out the U.S. for the bottom spot.

The study cites the one-child policy in China as ramping up the working-age share of the labor force which has recently migrated labor from farms to factories, en masse. Sounds like a structural savings rate increase as opposed to a cultural one but someone told me something once that is part of the reason I have this opinion...

They told me that in countries like China, where instability has been the norm, their is a natural desire to "save for a rainy day" as it tends to "rain" a lot where instability rules; and this is more ingrained and taught more than in countries that are used to a stable political, religious and economic environment.

I imagine farmers, living hand-to-mouth for so many generations within a totalitarian government, saved as much as they could of whatever they could.

The fact that they then, and only recently, moved to factories would not, I think, change that mentality. They would still have a penchant for savings, and of course have much more money now to choose to save, and teach that to their children and upon traveling to the U.S., maintain that philosophy...at least for a few generations...before they learn to destroy themselves with debt, like we have.

I might even go so far as to say, they have not had enough time yet to be trained properly on being "good little consumers." It would take some time after moving from a rural farm environment to a factory urban environment to be properly taught that you are not capable of surviving without an iPod, LCD widescreen TV, an LV bag and a Mercedes.

In the meantime, you live as frugally as you did before but with more income than you need (until you learn about iPod's) and as such, save everything else.
 
Greensky, Thank you for your input. As you know Koreans make up the 2nd largest ethnic group among the total Asian population of 38% in Irvine.

As a Korean native, I wanted to ask you a question as it is a topic of interest of many of the curious members from this forum. I've heard that in Korea when a man gets married from a well to do family, the husband's parents would purchase an apartment for the son where the wife's family will be responsible for purchasing the furniture to furnish the home. As you know the "KangNam" area, apartments would range from $700,000 to $5 and up. Is this culture still live and true to today in Korea? If a young Korean family were to move to Irvine, how likely would be that the parents will put a substantial down payment or buy the home in cash for their son?

Many of us, including IHO would be curious to the truth if this is myth or a reality for the native Korean buying in Irvine.

Thanks.



Green sky said:
For Korean who lived in Seoul or near to Seoul and own his apartment there, typical his apartment value is around half million or in expensive area 1 million US dollar.
Also, Korean spends a lot of money for their kid. I heared many Korean spend 30% ~ 50% of income to send kid to private after school institution. Becase in Korea, your salary will be determined by which University did you graduated they invest so much money for kid. There are so many English institution which has native english teacher and you have to expect to pay a lot of money to send your kid.

If you have been to Korea, you will know what is typical Korea apartment it is. It is 15-30 story building, so you can't expect any yard at all, even some expensive apartment have common yard to share. They can buy much better home here with similar money.

Also, there is North Korea ruled by Jeongil Kim which is constantly attck South Korea. Seoul is in less than 30 miles from North Korea border. If there is war between to Korea, Seoul area will be totally destroyed.

So, if you have half million in Korea and skill to find job here with BS or MS degree, want to move to USA, Irvine will be best location becation Irvine is well known in Korea, partially due to Seekhee Kang. Also Irvine is close from LAX.
Click to expand...
 
I left Korea 10 years ago, so I don't know current trend in "Kangnam" area.
But population in Seoul is 10M and including all near city 20M.

Among them I can say for upper 10%, I'm sure parent will buy 100% cash. Next 10%, probably parent can give 50%. For others, % will be lower, still they will get a help from parent.

So, if 20-30% of young people in late 30's in Seoul with BS or MS degree who is working good paid company, they can have enough money to downpay 50% to buy SFR here.

If you are in that position and can find a job here, wouldn't you consider to move here?
Anyway this story make sense to upper 30% in Seoul and near city area.
30% of 20M is hugh number but small portion of them will move to Irvine though.
 
I am a Chinease immigrant. From my experience, there is a lot misinformation about Foreign Cash Buyers, especially Chinese Cash Buyers. Most of Chinese buyers like me came to the US to study, got a job and stayed here. We are highly educated with M.S. or Ph.D. degrees from the US in engineering, finance, chemistry. We have high paying jobs. Also both wife and husband work. After a few years, annual family income will be $250k+, which makes a $800k Irvine house easily affordable. Some people like me have our own business (not restaurant cash business) and make $500k+ annually. A few lucky friends worked for Broadcom before its IPO in 1998 and made close to $10M from stock options. In summary, most of our money is earned in the US, not from China.

We have more Chinese buyers here because local companies are growing and hire more US educated Chinese immigrants. Broadcom and Allegan alone have hundreds of them. In our New Year's party of eight families, three husbands work for Broadcom. Yet they haven't met before as there are so many Chinese working in Broadcom.

Irvine is not famous in China. Real rich Chinese overseas is not competing with you for a normal Irvine house. They will go for Newport Beach or Shady Canyon. In my daughter's Sunday Chinese class, one family paid $5M for a Newport Coast house and another family paid $7M for a Shady Canyon house.  For Chinese overseas to buy real estate in the US as an investment, they will go for distressed properties in Riverside or San Bernadino.
 
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