Recent content by Mawesome Sauce

Irvine is designed and marketed towards rich Chinese. There are people in mainland China that aspire to live here because they have sales staff there to sell homes here. Thats why it is on par with coastal cities. The moment we have an excuse to make it not appealing to Chinese, it will perform...

Yes.

People who can’t buy homes will be affected by a downturn least. They don’t have much exposure to appreciating assets and instead rely on fixed income and wages. Deflation benefits them while screwing over everyone else. If they benefited from this inflation economy, they would have a house too.

If you have cash, Irvine is always within reach. If you are financing… probably not. Not going to lie… I hope we get another crisis and prices get cut 25%+. I know what that means… and I don’t care.

They also pay a higher tax. Students buying homes because their parents buy it for them for tax benefits will also pay it. Everyone pays the higher tax until you actually live here for 3 years. If they don’t like it they can rent. Homeowners benefits are only for those who have shown commitment...

That’s why you don’t prove primary residence. You make the person prove they are a California resident. Show me those tax forms. Foreigners and out of state should pay the higher taxes

Chinese Yuan is closely pegged to USD. So it isn’t the cause. There is money laundering and investment money in OC. Politicians and agents look the other way cause there’s money for them. That’s why nothing will change until something very bad happens, like war or political turmoil

Prices won’t come down in Irvine until we tax non resident owners more… specifically the Chinese buyer. And we all know that won’t happen with our current leadership. Don’t expect home prices to fall too much. They’ll just bring in a rich group of investors from around the world to buy them.

It’s not a home. It’s a money laundering and a wealth holding mechanism. No different than people not insuring bars and coins.

Is insurance easier with condos since HOA covers exterior? I know HOA struggling with insurance too

Nothing a recession or tax on Chinese investors can't fix. Both will happen if prices don't come down across the state soon. These are just luxury homes, and the builders deserve to go bankrupt relying on a foreign buyer of questionable legality to as the buyer. They are more surprised I am not...

Like I said… you think gen z and alpha are going to accept the terrible state of opportunities for them just so home owners can stay rich at their expense? They will have a revolution. Better to have peaceful wealth transfer than to have violent wealth confiscation like all those countries you...

I hope we get a depression just to prove you right. Either that or gen z/a will revolt and forcibly take homes for themselves.

I don’t think it matters. Anything 6 months to 3 years pays pretty well right now. That’s about the term for a tenant lease. The high yields in treasuries just took out SVB. I’m wondering if some regional banks may have this issue in the next few months. That may cause lending spreads to widen...

The market rate of rent will fall below the upkeep cost. So your net cash flow will be negative. Yes, I’m envisioning very tough times ahead, including double digit rates. The alternative is a very deep recession on an election year eve, which is unlikely but would save us the high rate...