Ravello

trematix

Member
Don't really see much info on Ravello or anything on the Reserve side of OH. Most of the stuff I read is on the groves side. What's the biggest difference between the 2? I know one is the school district as Ravello is on the IUSD side. I see Ravello pricing seems to be higher than some of the stuff on the Grove side especially Cetara. Is it because of the views? Any input on Ravello and/or Reserve side would be great!
 
When I talked to Jerry, he said phase 28 view lots will start at $3m.  No, these are not model homes.  I don?t know why 3400 sq feet homes on a 5000 sq ft lot will cost this much.  Good luck selling it.
 
I honestly feel like the Reserve is one giant fail. The location is great and the setup is nice, but they should have added some variety like the homes at the Groves. The Ravello pricing is a joke. Is Ravello really worth what they're charging compared to the homes in the Groves? I don't get the hype.
 
Reserve side is all IP builds. Not particularly good floor plans or higher build quality, they just charge more per sqft.

lovingit said:
When I talked to Jerry, he said phase 28 view lots will start at $3m.  No, these are not model homes.  I don?t know why 3400 sq feet homes on a 5000 sq ft lot will cost this much.  Good luck selling it.

They have second to none marketing, they will sell. To top it off they have huge cash reserves And no stock holders to appease, they will to let them sit until they are sold.
 
Dr. CA Real Estate said:
Reserve side is all IP builds. Not particularly good floor plans or higher build quality, they just charge more per sqft.

lovingit said:
When I talked to Jerry, he said phase 28 view lots will start at $3m.  No, these are not model homes.  I don?t know why 3400 sq feet homes on a 5000 sq ft lot will cost this much.  Good luck selling it.

They have second to none marketing, they will sell. To top it off they have huge cash reserves And no stock holders to appease, they will to let them sit until they are sold.

The attitude of IP is that if you don't want to buy it because you don't like it or think the price is too high they could care less because they know a buyer will come eventually. They are lucky that inventory levels are low so buyers don't have a whole lot to pick if they want new and Irvine schools without the the high Mello Roos of The Great Park.
 
lovingit said:
When I talked to Jerry, he said phase 28 view lots will start at $3m.  No, these are not model homes.  I don?t know why 3400 sq feet homes on a 5000 sq ft lot will cost this much.  Good luck selling it.

They'll sell those view lots quickly, there are plenty of deep pocket buyers who are waiting for those and IP knows it.
 
USCTrojanCPA said:
Dr. CA Real Estate said:
Reserve side is all IP builds. Not particularly good floor plans or higher build quality, they just charge more per sqft.

lovingit said:
When I talked to Jerry, he said phase 28 view lots will start at $3m.  No, these are not model homes.  I don?t know why 3400 sq feet homes on a 5000 sq ft lot will cost this much.  Good luck selling it.

They have second to none marketing, they will sell. To top it off they have huge cash reserves And no stock holders to appease, they will to let them sit until they are sold.

The attitude of IP is that if you don't want to buy it because you don't like it or think the price is too high they could care less because they know a buyer will come eventually. They are lucky that inventory levels are low so buyers don't have a whole lot to pick if they want new and Irvine schools without the the high Mello Roos of The Great Park.

I heard the tax rate (including MR) at GP is 1.8% vs 1.4% at OH, is that true? If so, I really don't think it is that bad for GP relative to OH.
 
talkirvine said:
USCTrojanCPA said:
Dr. CA Real Estate said:
Reserve side is all IP builds. Not particularly good floor plans or higher build quality, they just charge more per sqft.

lovingit said:
When I talked to Jerry, he said phase 28 view lots will start at $3m.  No, these are not model homes.  I don?t know why 3400 sq feet homes on a 5000 sq ft lot will cost this much.  Good luck selling it.

They have second to none marketing, they will sell. To top it off they have huge cash reserves And no stock holders to appease, they will to let them sit until they are sold.

The attitude of IP is that if you don't want to buy it because you don't like it or think the price is too high they could care less because they know a buyer will come eventually. They are lucky that inventory levels are low so buyers don't have a whole lot to pick if they want new and Irvine schools without the the high Mello Roos of The Great Park.

I heard the tax rate (including MR) at GP is 1.8% vs 1.4% at OH, is that true? If so, I really don't think it is that bad for GP relative to OH.

It?s true.
Got to remember talkirvine is not actually all of Irvine. People on here tend to drink the same kool-aid. General consensus on here is that GP is a nonsensical criminal amount of tax, but really the difference is a non factor if you can afford the house.
 
MR is never really a %, it?s a dollar amount.  I suppose you can calculate the %, but that?s misleading.  The dollar amount (for GP at least), is usually based on the sq footage of the home.  You can probably ask the sales office for the doc with the table that show the $ amount for that neighborhood, and it will have a sq footage range something like 2000-2400 sq ft = $6k/yr, and so on for other sq footage amounts.

Final home prices can change based on lot premiums, structural upgrades, etc. Which skews the % of MR.  If you buy a house in GP you can get that Tax rate down to 1.25% (including MR) if you buy the house with the huge lot premium and get $600k in upgrades.
 
Dr. CA Real Estate said:
I heard the tax rate (including MR) at GP is 1.8% vs 1.4% at OH, is that true? If so, I really don't think it is that bad for GP relative to OH.

It?s true.
Got to remember talkirvine is not actually all of Irvine. People on here tend to drink the same kool-aid. General consensus on here is that GP is a nonsensical criminal amount of tax, but really the difference is a non factor if you can afford the house.

Not sure if it?s a ?non factor? because it is absolutely factored in when contemplating the $ of house you can afford in the GP relative to areas with zero/way less MR.

+1 to aqua. MR is a whole number. Looking at it as a % is misleading and a one time capture.
 
I see his point. And It?s easier to just use the % as an approx. Im with talkirvine and kris on the difference. Unless I were really stretching myself on home budget, strictly from a finance point the tax difference isn?t keeping me from being able to afford the house. I?m currently looking to get in OH or Altair.

As for Ravello. I?ll pass. All the IP builds seemed designed to make the house look bigger than it is while sacrificing actual floor space efficiency.
 
Nguyen80 said:
I see his point. And It?s easier to just use the % as an approx. Im with talkirvine and kris on the difference. Unless I were really stretching myself on home budget, strictly from a finance point the tax difference isn?t keeping me from being able to afford the house. I?m currently looking to get in OH or Altair.

I think that's fair.  If you're looking to drop $2m at Altair vs. OH, then the MR is probably not a huge deal.  But for the $1m buyer looking at PS, CVE, GP, the MR probably plays a bigger role.
 
If today you started with a mello Roos  of 8,000 that increases by 2% per year and you are 40 years old, by the time you are 60 the mello Roos payment would be 11,654 per year. The total increases of 2% per year would end up costing you about 34k. 34k spread over 20 years isn?t a big number but it?s still 34k.

By the time you are 70, that 8k payment is 14,490. So eventually it adds up to some decent money.

A good experiment would be to put the same amount of your mello Roos, 8k in this case in a brokerage specifically so the gains could cover the MR increase and see how it does. I?m sure everybody here already has money in a brokerage but it would be interesting to just have one specific account for the MR.
 
aquabliss said:
MR is never really a %, it?s a dollar amount.  I suppose you can calculate the %, but that?s misleading.  The dollar amount (for GP at least), is usually based on the sq footage of the home.  You can probably ask the sales office for the doc with the table that show the $ amount for that neighborhood, and it will have a sq footage range something like 2000-2400 sq ft = $6k/yr, and so on for other sq footage amounts.

Final home prices can change based on lot premiums, structural upgrades, etc. Which skews the % of MR.  If you buy a house in GP you can get that Tax rate down to 1.25% (including MR) if you buy the house with the huge lot premium and get $600k in upgrades.

I thought the Melloroos was already set depending on the square footage. So you're saying in theory, you can lower the melloroos by purchasing certain upgrades??
 
Dr. CA Real Estate said:
Reserve side is all IP builds. Not particularly good floor plans or higher build quality, they just charge more per sqft.

lovingit said:
When I talked to Jerry, he said phase 28 view lots will start at $3m.  No, these are not model homes.  I don?t know why 3400 sq feet homes on a 5000 sq ft lot will cost this much.  Good luck selling it.

They have second to none marketing, they will sell. To top it off they have huge cash reserves And no stock holders to appease, they will to let them sit until they are sold.

but what is it about the reserve or ravello that the pricing is at a premium compares to the grove side? Is the IUSD that much of a price difference?
 
1) It is a set amount. He was trying to say that you can make representing the CFD with a % inaccurate because if you purchased a million in upgrades to make the house more expensive then the all in tax rate would be a lower % of the house, correctly so.

2) Simple answer is because they can. Martin and I pretty much said it all. IP always charges more $/sqft than other builders in every neighborhood they build in.
 
trematix said:
Dr. CA Real Estate said:
Reserve side is all IP builds. Not particularly good floor plans or higher build quality, they just charge more per sqft.

lovingit said:
When I talked to Jerry, he said phase 28 view lots will start at $3m.  No, these are not model homes.  I don?t know why 3400 sq feet homes on a 5000 sq ft lot will cost this much.  Good luck selling it.

They have second to none marketing, they will sell. To top it off they have huge cash reserves And no stock holders to appease, they will to let them sit until they are sold.

but what is it about the reserve or ravello that the pricing is at a premium compares to the grove side? Is the IUSD that much of a price difference?

Reserve has better elevation/view.  All builds are owned by IP and owns their land at a lower cost basis.  They are a private company and can better control the pricing/inventory and can sit on their inventory longer.  Like others have mentioned, better marketing and IP homes usually sell at a premium $ per sqft for those reasons.
 
so once sold out and for resell purposes, would you assume ravello and/or the reserve side would still command the premium because of the IUSD?
 
trematix said:
so once sold out and for resell purposes, would you assume ravello and/or the reserve side would still command the premium because of the IUSD?

For the better elevation/view, location (opinions can differ), and better home sqft to land ratio, Reserve will likely command slightly higher premium $ per sqft. after the sell out.  In regards to IUSD vs. TUSD, good example is looking at Terrazza and Strada sells between TUSD side and IUSD side and the difference is $0/negligible.  They both sell at the comparable prices.  Thus, no real premium strictly from IUSD/TUSD in OH village.

 
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