Beacon Park- Buy Now or Wait!?

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tabz

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Hi. New to the community. Thinking of making the jump and buying a 2500 sq ft SFR for around 1.115 million in Beacon park with upgrades we really like. Getting this price after a 35K price drop from the builder. Will also try to get around 20 K rebate from realtor. Do you guys think this is an okay "deal" or do you think the way the market is right now, we could get better pricing in 6 months to a year? Currently own a town home in South OC not in Irvine, so if I buy this beacon park property, I will simultaneously list the town home in early spring and would hopefully be able to sell at a better price than say if the market drops post summer. Advise please. Thank you in advance  :)
 
Got kids?  BP school is opening next fall, when's move in on the house?  Or is it standing inventory?  You're close to $450/sq ft with upgrades.  Still too rich for me for this neighborhood.  It better have a huge yard, no neighbor behind, end of CDS, no '4's in the house number, does not back a major street, etc. for me to pony up that money and have the privilege of paying $7,500 a year in mello alone (goes up to $9k when junior finishes school, assuming starting with kinder).

Since sales at BP has been slow, any chance the school opening will be delayed?  At least the PP kids will be ready. 
 
Yup so its standing inventory- 4bed/4bath. I was thinking of putting doors in the existing california room to make a kind of den/sun room and that would push up the sq ft to around 2700 (can this even be done?) Yep There's a house in the back and lot is 4700 sq ft  :-\ but its flat so feels decent and the house in the back kind of sits in the middle between this house and the house next door. Will be putting money in for window coverings and back/front yard. Paint, floors, upgraded quartz and back splash in kitchen is all already done and included in price as well as upgraded appliances but no fridge. 
 
BP elemantary is still set to open Fall 2016. Yes I have kids, but would rather move middle of school year 2017 than see my newly purchased home price crash drastically, therefore confused about buying now at the price being offered or waiting  ??? If prices will only drop by a small margin I would rather buy now than wait. BP builders like Khov, Ryland Oakmont and Pulte Juniper were offering incentives for their SFR homes at yr end. Apparently Ryland sold 4 homes after offering incentives. Juniper has been unable to move their plan 1,other 2 plans are selling despite higher price point.
 
tz said:
Hi. New to the community. Thinking of making the jump and buying a 2500 sq ft SFR for around 1.115 million in Beacon park with upgrades we really like. Getting this price after a 35K price drop from the builder. Will also try to get around 20 K rebate from realtor. Do you guys think this is an okay "deal" or do you think the way the market is right now, we could get better pricing in 6 months to a year? Currently own a town home in South OC not in Irvine, so if I buy this beacon park property, I will simultaneously list the town home in early spring and would hopefully be able to sell at a better price than say if the market drops post summer. Advise please. Thank you in advance  :)
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I would say to sell your house NOW, wait 6month-12 months to buy at BP.  I think prices are going to fall more hence those recommendations.
 
If you have a pressing family need (kid turning five/starting kinder) and you're buying something well below your means (closer to 20% front-end DTI than 30%), then take the deal now. If not, there's no pressure to buy now. Beacon Park is just barely getting started and they're resorting to these deals. It's reasonable to bet that better deals in Beacon Park lie in the coming months/years.
 
Tough to get all your assets to match up at the same time. 

For lack of better term, if you're a strong hand (ie, sole proprieter, have pretty good control/confidence where your job will reside), probably takes some risk off the table. 
 
FWIW we are waiting. I want to see how economy and housing pan out a little while longer. Also, I like BP but don?t want to live so close to an elementary school and kiddie park (assuming a ?forever home? purchase). My children will just outgrow them. Not worth the 1.8% tax and compounding MR to me. In the 5P master plan, I?d rather take my chances with the future neighborhood south of BP. 

All that said, I?d still consider buying in BP if I had enough $$ to comfortably ignore those risks/personal issues. It is a great location overall IMHO.
 
A good real estate agent can spin the mello roos into a positive emphasizing the following points:
1. MR communities look nicer
2. It keeps out financial posers (exclusivity)

I remember a post from a few years back talking about how in Taiwan the apartment buildings have a high HOA, but after years of owners complaining, the due actually goes down, but so does the exterior look and amenities.

So paying the high MR has some benefits and seems to be more of a consumption decision than an investment decision.
 
zubs said:
A good real estate agent can spin the mello roos into a positive emphasizing the following points:
1. MR communities look nicer
2. It keeps out financial posers (exclusivity)

I remember a post from a few years back talking about how in Taiwan the apartment buildings have a high HOA, but after years of owners complaining, the due actually goes down, but so does the exterior look and amenities.

So paying the high MR has some benefits and seems to be more of a consumption decision than an investment decision.
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I understand how HOAs keep a community looking nicer but not MRs.

It's just a way to get around Prop 13 and it really only benefits the city, the school district and round about the builder as they don't have to bear those costs.

It's funny to me how places like Tustin and Irvine put MRs on new homes that have very little infrastructure costs or are comparable to places like Lake Forest that have no MRs.
 
The high MR at BP bothers me but then when I go see homes in places like Columbus Grove and Rancho Mission Viejo, the MR are comparable or worse. For that kind of MR I would rather be in Great Park.  I am not sure about what is the next community in Great Park and where will it be located? I heard some talk that it will open this fall. But will it be close to the potential cemetery and will there be single family homes or more attached homes? I am still confused about waiting another year or moving forward right now  :o :o  :'(
 
zubs said:
A good real estate agent can spin the mello roos into a positive emphasizing the following points:
1. MR communities look nicer
2. It keeps out financial posers (exclusivity)

I remember a post from a few years back talking about how in Taiwan the apartment buildings have a high HOA, but after years of owners complaining, the due actually goes down, but so does the exterior look and amenities.

So paying the high MR has some benefits and seems to be more of a consumption decision than an investment decision.
Click to expand...

Bottom line the developer can pay the infrastructure costs up front, which there will be no Mello Roos assessment for individual homeowners.

Business case example: Lambart Ranch
 
I thought BP has higher MR than Columbus Grove and Rancho Mission Viejo, esp. with the +2%/year clause. Something like 1.8% tax vs 1.6%. I would love walking to BP school, park, sports fields. Just a little too rich for my finances right now.

Here is a map of GP neighborhoods + cemetery. I don't know what's next or what gets built off Trabuco below BP, but willing to wait and see.


image hosting free

The high MR at BP bothers me but then when I go see homes in places like Columbus Grove and Rancho Mission Viejo, the MR are comparable or worse. For that kind of MR I would rather be in Great Park.  I am not sure about what is the next community in Great Park and where will it be located? I heard some talk that it will open this fall. But will it be close to the potential cemetery and will there be single family homes or more attached homes? I am still confused about waiting another year or moving forward right now  :o :o  :'(
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So my understanding is that Esencia in Rancho Mission Viejo is at 2% and the Columbus square, and Tustin field homes I looked at were at around 1.7/1.8%  :o
I just called and asked and the sales people at beacon park community center said most likely the community south of Beacon Park is expected to be mostly condos and town homes. They said they can not say for sure, since there is no official word on the next phase yet.
Also called Juniper, they finally sold their first plan 1 at 1.229 mil that has been sitting in the market for what 6 months now!? Builders seem very reluctant to drop prices any more- apparently in decemeber there have been 4 sales at Juniper. And just spoke to Lennar at larkspur, they had 7 sales. Who is buying these expensive homes...or is this the new normal ?!! Slow sales but no major price drops ???
 
Huh. Didn't know RMV % was so high. In Tustin Field though my tax rate is only 1.5-1.6%. I will be curious what happens to standing inventory if the stock market really tanks. I imagine future developments would simply be postponed.

tz said:
So my understanding is that Esencia in Rancho Mission Viejo is at 2% and the Columbus square, and Tustin field homes I looked at were at around 1.7/1.8%  :o
I just called and asked and the sales people at beacon park community center said most likely the community south of Beacon Park is expected to be mostly condos and town homes. They said they can not say for sure, since there is no official word on the next phase yet.
Also called Juniper, they finally sold their first plan 1 at 1.229 mil that has been sitting in the market for what 6 months now!? Builders seem very reluctant to drop prices any more- apparently in decemeber there have been 4 sales at Juniper. And just spoke to Lennar at larkspur, they had 7 sales. Who is buying these expensive homes...or is this the new normal ?!! Slow sales but no major price drops ???
Click to expand...
 
I went to Beacon Park this weekend to check out legend.  Surprised that the place was pretty crowded, lots of people home shopping (or lookie-loos perhaps).
 
Yes I also noticed a lot of foot traffic right after new yrs. Wonder what is going to happen with the stock market. If it does actually crash, housing will most likely go down as well. Haha so many variables at play right now. If only I had a crystal ball  :-X
 
Have a question, can any of you guys give me some insights as to how much Irvine market dropped during housing crises. Based on my understanding it fell around 20% and the homes that were on the market would have multiple offers and bidding wars. Is this correct?
 
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