Declining Rents

[CalBears96]

The low interest rates during 2020-2021 really screwed over first time home buyers that did not get in during that time. We now have a situation where people with those low rates are not going to move and hog up those homes. So much so that even if those people were to up-size, they might just rent it out and cash flow. That will only create less inventory and push prices up longer term.

My wife has taken a liking to Cielo 3. We'll give ourselves 1.5-2 years to earn enough for 40%-50% down payment from the proceeds selling our Eastvale and Lake Elsinore homes to see if we can buy one. That really depends on how the housing market fares. Now I'm hoping for a 20% drop.  ;D If we can somehow afford to buy it, and by the time we move in the housing market has recovered, we'll sell the Bluffs home. Otherwise, we'll rent it out for 3 years and then sell.

Hopefully you wait at least 2 years to collect the 500k tax exemption

That's why we're giving ourselves 1.5-2 years before buying. With the 6 months or so construction time, we'll pass the 2 years period.

We love our current home, but it has its flaws. At least, it lets us to be in Irvine, so it's going to be a lot easier to upsize. If things don't work out with Cielo 3, we still have this one. If it works out, then great.

Already thinking about buying new place? That was fast. You have barely lived in Bluff 2 for less than 3 months.  What flaws do you see?

Cielo 3 is nice but current price is outrageous.

Yeah, the price is outrageous right now, but so is the market.  If it drops 10%, then it's reasonable. If it drops 20%, then great. I think $2.1M to $2.4M range is pretty good.

It's not that we want to buy a new place. It's just that my wife had been watching too many Youtube videos from real estate agents on Cielo and she really likes Cielo 3.  ;D

As much as we love Bluffs 2, the one thing that I start disliking even more is the lack of driveway. Two of my neighbors haven't moved in yet and most of the street parking is full. It's especially bad on garbage day. And my wife really loves the volume ceiling (vs. vaulted ceiling). And Cielo's master closet and bathroom is huge compared to ours.

I guess I would say that the flaw is lack of driveway and the others are more desirable features. But then again, once our landscaping is done, we could park both cars in the garage, so the flaw isn't really bad that. It's more accurate to say that Cielo 3 has a lot of additional features that we could check off our dream house boxes.

 

[The Motor Court Company]

once you go 3CWG + driveway + single loaded street it is hard to go back...also nice to play indoor badminton with the kids in the great room when it is raining outside...

The low interest rates during 2020-2021 really screwed over first time home buyers that did not get in during that time. We now have a situation where people with those low rates are not going to move and hog up those homes. So much so that even if those people were to up-size, they might just rent it out and cash flow. That will only create less inventory and push prices up longer term.

My wife has taken a liking to Cielo 3. We'll give ourselves 1.5-2 years to earn enough for 40%-50% down payment from the proceeds selling our Eastvale and Lake Elsinore homes to see if we can buy one. That really depends on how the housing market fares. Now I'm hoping for a 20% drop.  ;D If we can somehow afford to buy it, and by the time we move in the housing market has recovered, we'll sell the Bluffs home. Otherwise, we'll rent it out for 3 years and then sell.

Hopefully you wait at least 2 years to collect the 500k tax exemption

That's why we're giving ourselves 1.5-2 years before buying. With the 6 months or so construction time, we'll pass the 2 years period.

We love our current home, but it has its flaws. At least, it lets us to be in Irvine, so it's going to be a lot easier to upsize. If things don't work out with Cielo 3, we still have this one. If it works out, then great.

Already thinking about buying new place? That was fast. You have barely lived in Bluff 2 for less than 3 months.  What flaws do you see?

Cielo 3 is nice but current price is outrageous.

Yeah, the price is outrageous right now, but so is the market.  If it drops 10%, then it's reasonable. If it drops 20%, then great. I think $2.1M to $2.4M range is pretty good.

It's not that we want to buy a new place. It's just that my wife had been watching too many Youtube videos from real estate agents on Cielo and she really likes Cielo 3.  ;D

As much as we love Bluffs 2, the one thing that I start disliking even more is the lack of driveway. Two of my neighbors haven't moved in yet and most of the street parking is full. It's especially bad on garbage day. And my wife really loves the volume ceiling (vs. vaulted ceiling). And Cielo's master closet and bathroom is huge compared to ours.

I guess I would say that the flaw is lack of driveway and the others are more desirable features. But then again, once our landscaping is done, we could park both cars in the garage, so the flaw isn't really bad that. It's more accurate to say that Cielo 3 has a lot of additional features that we could check off our dream house boxes.

 

[CalBears96]

once you go 3CWG + driveway + single loaded street it is hard to go back...also nice to play indoor badminton with the kids in the great room when it is raining outside...

3CWG is great to have, but not a necessity. Driveway, on the other hand, is something I feel I must have. Sometimes.

 

[Danimal]

The low interest rates during 2020-2021 really screwed over first time home buyers that did not get in during that time. We now have a situation where people with those low rates are not going to move and hog up those homes. So much so that even if those people were to up-size, they might just rent it out and cash flow. That will only create less inventory and push prices up longer term.

My wife has taken a liking to Cielo 3. We'll give ourselves 1.5-2 years to earn enough for 40%-50% down payment from the proceeds selling our Eastvale and Lake Elsinore homes to see if we can buy one. That really depends on how the housing market fares. Now I'm hoping for a 20% drop.  ;D If we can somehow afford to buy it, and by the time we move in the housing market has recovered, we'll sell the Bluffs home. Otherwise, we'll rent it out for 3 years and then sell.

Hopefully you wait at least 2 years to collect the 500k tax exemption

That's why we're giving ourselves 1.5-2 years before buying. With the 6 months or so construction time, we'll pass the 2 years period.

We love our current home, but it has its flaws. At least, it lets us to be in Irvine, so it's going to be a lot easier to upsize. If things don't work out with Cielo 3, we still have this one. If it works out, then great.

Already thinking about buying new place? That was fast. You have barely lived in Bluff 2 for less than 3 months.  What flaws do you see?

Cielo 3 is nice but current price is outrageous.

Yeah, the price is outrageous right now, but so is the market.  If it drops 10%, then it's reasonable. If it drops 20%, then great. I think $2.1M to $2.4M range is pretty good.

It's not that we want to buy a new place. It's just that my wife had been watching too many Youtube videos from real estate agents on Cielo and she really likes Cielo 3.  ;D

As much as we love Bluffs 2, the one thing that I start disliking even more is the lack of driveway. Two of my neighbors haven't moved in yet and most of the street parking is full. It's especially bad on garbage day. And my wife really loves the volume ceiling (vs. vaulted ceiling). And Cielo's master closet and bathroom is huge compared to ours.

I guess I would say that the flaw is lack of driveway and the others are more desirable features. But then again, once our landscaping is done, we could park both cars in the garage, so the flaw isn't really bad that. It's more accurate to say that Cielo 3 has a lot of additional features that we could check off our dream house boxes.

Driveway is so useful in so many ways.  We learned a hard lesson with our old home not having one and sharinf courtyard. 
I actually dont mind smaller bathroom and closet in master bedroom. In fact, i wish IP have option for removing bathtub. We have not used it once since the move. 1/2 of the closet sits empty and the one  in the downstair suite is collecting dust.

 

[CalBears96]

Driveway is so useful in so many ways.  We learned a hard lesson with our old home not having one and sharinf courtyard. 
I actually dont mind smaller bathroom and closet in master bedroom. In fact, i wish IP have option for removing bathtub. We have not used it once since the move. 1/2 of the closet sits empty and the one  in the downstair suite is collecting dust.

Yeah, driveway is nice. It's something that I really want now.

My wife likes the big space in the Cielo 3 master closet. And trust me, my wife uses up all closet space. She'd find a way to do it.  ;D I 100% agree with you about having the option to remove the bathtub in master bath. We never used it.

So we went to look at the models again. I think now Cielo 1 has become the front runner. For some reason, only Cielo has the stacked kitchen cabinets upgrade option. Cielo 2 and 3 and all Azul plans don't have this option. The thing my wife doesn't like about Cielo 3 is the shower in master bath. It has glass on 2 sides and the shower head sprays water toward one of the glass pieces. It's a lot of glass cleaning for her.

I would say our current preference is Cielo 1 > Cielo 3 > Azul 3 > Cielo 2. Cielo 3 and 2 seem to be the more popular ones, so that would give us a good chance at Cielo when the time is right.

 

[sleepy5136]

Driveway is so useful in so many ways.  We learned a hard lesson with our old home not having one and sharinf courtyard. 
I actually dont mind smaller bathroom and closet in master bedroom. In fact, i wish IP have option for removing bathtub. We have not used it once since the move. 1/2 of the closet sits empty and the one  in the downstair suite is collecting dust.

Yeah, driveway is nice. It's something that I really want now.

My wife likes the big space in the Cielo 3 master closet. And trust me, my wife uses up all closet space. She'd find a way to do it.  ;D I 100% agree with you about having the option to remove the bathtub in master bath. We never used it.

So we went to look at the models again. I think now Cielo 1 has become the front runner. For some reason, only Cielo has the stacked kitchen cabinets upgrade option. Cielo 2 and 3 and all Azul plans don't have this option. The thing my wife doesn't like about Cielo 3 is the shower in master bath. It has glass on 2 sides and the shower head sprays water toward one of the glass pieces. It's a lot of glass cleaning for her.

I would say our current preference is Cielo 1 > Cielo 3 > Azul 3 > Cielo 2. Cielo 3 and 2 seem to be the more popular ones, so that would give us a good chance at Cielo when the time is right.

Yeah, I was quite surprised when you moved from having a driveway to not having one. I came from no driveway and now that I have one, ain't no way I'm buying another house without one.

That's why those baker ranch SFH with no driveways dropped from 1.4m to now 1.15m. I knew those homes wouldn't do well once the market turned.

 

[nosuchreality]

Actually, your neighbors having proper driveways is the must have.

 

[CalBears96]

Actually, your neighbors having proper driveways is the must have.

Only if they actually park their cars in their driveways instead of parking on the street.

 

[irvinehomeowner]

The neighbors I had in 3 different houses never parked in their garages. The 1st 2 used their garages as a living room (had a couch and TV in there) and the 3rd on had so much junk in theirs they couldn't park their cars in it. And at least one of them didn't like to park on their driveway so they took up the street parking in front of our house too.

 

[CalBears96]

The neighbors I had in 3 different houses never parked in their garages. The 1st 2 used their garages as a living room (had a couch and TV in there) and the 3rd on had so much junk in theirs they couldn't park their cars in it. And at least one of them didn't like to park on their driveway so they took up the street parking in front of our house too.

Yeah, one of my neighbors have a 4-car garage, and park all 4 cars they have in their driveway or on the street. I normally don't mind that they park one of their cars in front of my house, but I absolutely hate it when they do it on garbage day. That's one of the reasons I would love to buy Highland. No street parking.

 

[Liar Loan]

Yeah, a whopping 0.13% decrease after 12.3% increase. Scary!!! Really bad news!!! Housing price will fall by 0.13%. Run for the hills.

A -1.6% annualized decline with inflation running at 10%.  Landlords are getting squeezed by higher costs and lower rents, and this is just the first of what will be many months of bad news. 

Your new neighbors were smart to rent because their costs are fixed, if not declining, while yours are steadily increasing.

Ask LL, he rents in Irvine.

Yep, rent free though. 

The declining in a 20 % YOY increase, WTF is LL smokin'?

The posters here are literally losing their minds.

I hope they didn't rent in the past 6-9 months because rents are up over 25% in Irvine in the past year and if they rented a home earlier those tenants can expect a rent hike upon lease expiration.  I bought 2 rentals in 2021 with a client and our fixed rate is 2.99% so how are our costs going up?

It's strange that I would have to explain this to a CPA, but ok, here goes:

Depreciation + Taxes + HOA + Maintenance + Repairs + Management + Rent Collection costs are all going up.  Of course, depreciation will be your biggest expense going forward as the value of these properties declines.  Financing a money losing venture only multiplies the losses.

 

[Liar Loan]

You're not alone CalBears:

Homebuyer?s remorse: most people who bought a house recently have regrets
https://fortune.com/2022/09/07/home...o-bought-a-house-recently-regret-the-process/

 

[Ready2Downsize]

I have a regret.

I should have bought the model. Then I wouldn't have to get a pool installed after escrow.

I have another regret. I probably could have gotten more from my legacy sale but in the end, the people who bought my place will be paying $33K in property taxes and won't be able to sell for what they paid for a very long time.

Do I have any regrets with what I bought? Nope.

 

[CalBears96]

You're not alone CalBears:

Homebuyer?s remorse: most people who bought a house recently have regrets
https://fortune.com/2022/09/07/home...o-bought-a-house-recently-regret-the-process/

How dumb are you, LL?

What part of "I HAVE NO REGRET" do you not understand?

Yeah, I want a driveway, but that doesn't mean I regret buying Bluffs 2. Moving from Eastvale to Irvine was the best decision we made. Even though my wife has a longer drive now, she loves living in Irvine. She only goes to the office 3 days a week and she drives against traffic, and there's practically no cars on 241. And my commute has been cut down from more than an hour to 10-12 minutes AND I can go to or leave office any time.

 

[CalBears96]

Yeah, a whopping 0.13% decrease after 12.3% increase. Scary!!! Really bad news!!! Housing price will fall by 0.13%. Run for the hills.

A -1.6% annualized decline with inflation running at 10%.  Landlords are getting squeezed by higher costs and lower rents, and this is just the first of what will be many months of bad news. 

Your new neighbors were smart to rent because their costs are fixed, if not declining, while yours are steadily increasing.

Ask LL, he rents in Irvine.

Yep, rent free though. 

The declining in a 20 % YOY increase, WTF is LL smokin'?

The posters here are literally losing their minds.

I hope they didn't rent in the past 6-9 months because rents are up over 25% in Irvine in the past year and if they rented a home earlier those tenants can expect a rent hike upon lease expiration.  I bought 2 rentals in 2021 with a client and our fixed rate is 2.99% so how are our costs going up?

It's strange that I would have to explain this to a CPA, but ok, here goes:

Depreciation + Taxes + HOA + Maintenance + Repairs + Management + Rent Collection costs are all going up.  Of course, depreciation will be your biggest expense going forward as the value of these properties declines.  Financing a money losing venture only multiplies the losses.

It's really strange that you just make shit up.

Depreciation has NO effect on expense at all.
Property tax will go down if property value declines.
HOA stays the same for years.
Maintenance and repairs do happen, but not as often as you think.
Again, property management fees stay the same for year. And what the hell is rent collection cost if you use a property management company?

It's like you don't understand anything. You really are just dumb.

 

[Ready2Downsize]

You're not alone CalBears:

Homebuyer?s remorse: most people who bought a house recently have regrets
https://fortune.com/2022/09/07/home...o-bought-a-house-recently-regret-the-process/

How dumb are you, LL?

What part of "I HAVE NO REGRET" do you not understand?

Yeah, I want a driveway, but that doesn't mean I regret buying Bluffs 2. Moving from Eastvale to Irvine was the best decision we made. Even though my wife has a longer drive now, she loves living in Irvine. She only goes to the office 3 days a week and she drives against traffic, and there's practically no cars on 241. And my commute has been cut down from more than an hour to 10-12 minutes AND I can go to or leave office any time.

I have some regrets. I wish I had NEVER sold a single property I have owned because in the long term they are worth much more than what I paid.

Except the last sale. I have no regrets selling that. The new owners will have a problem selling it for more than what they paid but it's because of the floorplan and the particular market that it appeals to (property taxes will be a huge issue).  It worked for me but I brought my basis with me and bought it much lower. I knew when I bought it, I would need a seller's market to sell it, so the mania worked out perfect for me. Good thing the buyers absolutely love the property. They will need to own it for a long time to break even, imo.

 

[Ready2Downsize]

You're not alone CalBears:

Homebuyer?s remorse: most people who bought a house recently have regrets
https://fortune.com/2022/09/07/home...o-bought-a-house-recently-regret-the-process/

How dumb are you, LL?

What part of "I HAVE NO REGRET" do you not understand?

Yeah, I want a driveway, but that doesn't mean I regret buying Bluffs 2. Moving from Eastvale to Irvine was the best decision we made. Even though my wife has a longer drive now, she loves living in Irvine. She only goes to the office 3 days a week and she drives against traffic, and there's practically no cars on 241. And my commute has been cut down from more than an hour to 10-12 minutes AND I can go to or leave office any time.

Messing with us again. LOL! LL looks at short term and losses on paper, negating that you must live SOMEWHERE.

What about going on vacation? That leaves u with pix and memories. Lots of money gone.

What about buying a car? Does LL buy some beater car because it's cheaper or a decent car that depreciates?

Doesn't he worry about the money he lost when he buys a bagel and eats it? Maybe forgo the cream cheese to save money or how about go to Costco and live on samples? LOL!

I'm going to take a guess here. LL is a "value" kind of person. The one who always says well this floorplan is "better" because it's got a lower cost per sq foot. Wife says but i LIKE this one and he says......... this is the better "value" and they argue about which to buy. After that comes well this lot is a better "value" because it's x sq feet even though it backs to a street and the wife says but I wanted the one with a view and he says well how often do you look out there and it's "not worth it". He's the one who sees Irvine as completely over priced anyway.

This is the kind of person who won't go out to eat because it's cheaper to cook at home. I don't go out to eat much either but that is because it's healthier to eat at home, I know what is in the items I'm cooking, I love to cook and I have worked at a food place and know what happens there (there's a reason health inspectors don't go out to eat). But to LL this isn't why. It all comes down to "value" and spending the least possible.

There is no hearse with a uhaul in tow LL.

 

[Liar Loan]

Yeah, a whopping 0.13% decrease after 12.3% increase. Scary!!! Really bad news!!! Housing price will fall by 0.13%. Run for the hills.

A -1.6% annualized decline with inflation running at 10%.  Landlords are getting squeezed by higher costs and lower rents, and this is just the first of what will be many months of bad news. 

Your new neighbors were smart to rent because their costs are fixed, if not declining, while yours are steadily increasing.

Ask LL, he rents in Irvine.

Yep, rent free though. 

The declining in a 20 % YOY increase, WTF is LL smokin'?

The posters here are literally losing their minds.

I hope they didn't rent in the past 6-9 months because rents are up over 25% in Irvine in the past year and if they rented a home earlier those tenants can expect a rent hike upon lease expiration.  I bought 2 rentals in 2021 with a client and our fixed rate is 2.99% so how are our costs going up?

It's strange that I would have to explain this to a CPA, but ok, here goes:

Depreciation + Taxes + HOA + Maintenance + Repairs + Management + Rent Collection costs are all going up.  Of course, depreciation will be your biggest expense going forward as the value of these properties declines.  Financing a money losing venture only multiplies the losses.

It's really strange that you just make shit up.

Depreciation has NO effect on expense at all.
Property tax will go down if property value declines.
HOA stays the same for years.
Maintenance and repairs do happen, but not as often as you think.
Again, property management fees stay the same for year. And what the hell is rent collection cost if you use a property management company?

It's like you don't understand anything. You really are just dumb.

Depreciation is what happens when a house goes down in value.  You know this from the Lake Elsinore debacle.
If property tax goes down, that means you are losing money.  Think.
HOA stays the same for years?  That has not been my experience.
Maintenance is an ongoing thing.  How do you not know that?
Repairs happen when they happen, but that has no bearing on whether the cost is going up or not.  A percentage of rents will go towards repairs no matter what.
Property management is a an expense that fluctuates when you self-manage.  Again, think.
Rent collection / delinquency costs go up during downturns whether you self-manage or not.

 

[Liar Loan]

You're not alone CalBears:

Homebuyer?s remorse: most people who bought a house recently have regrets
https://fortune.com/2022/09/07/home...o-bought-a-house-recently-regret-the-process/

How dumb are you, LL?

What part of "I HAVE NO REGRET" do you not understand?

Yeah, I want a driveway, but that doesn't mean I regret buying Bluffs 2. Moving from Eastvale to Irvine was the best decision we made. Even though my wife has a longer drive now, she loves living in Irvine. She only goes to the office 3 days a week and she drives against traffic, and there's practically no cars on 241. And my commute has been cut down from more than an hour to 10-12 minutes AND I can go to or leave office any time.

Messing with us again. LOL! LL looks at short term and losses on paper, negating that you must live SOMEWHERE.

What about going on vacation? That leaves u with pix and memories. Lots of money gone.

What about buying a car? Does LL buy some beater car because it's cheaper or a decent car that depreciates?

Doesn't he worry about the money he lost when he buys a bagel and eats it? Maybe forgo the cream cheese to save money or how about go to Costco and live on samples? LOL!

I'm going to take a guess here. LL is a "value" kind of person. The one who always says well this floorplan is "better" because it's got a lower cost per sq foot. Wife says but i LIKE this one and he says......... this is the better "value" and they argue about which to buy. After that comes well this lot is a better "value" because it's x sq feet even though it backs to a street and the wife says but I wanted the one with a view and he says well how often do you look out there and it's "not worth it". He's the one who sees Irvine as completely over priced anyway.

This is the kind of person who won't go out to eat because it's cheaper to cook at home. I don't go out to eat much either but that is because it's healthier to eat at home, I know what is in the items I'm cooking, I love to cook and I have worked at a food place and know what happens there (there's a reason health inspectors don't go out to eat). But to LL this isn't why. It all comes down to "value" and spending the least possible.

There is no hearse with a uhaul in tow LL.

Haha... How many times are you going to edit this comment?

I can see by your actions that you too regret your purchase(s).

 

[Ready2Downsize]

You're not alone CalBears:

Homebuyer?s remorse: most people who bought a house recently have regrets
https://fortune.com/2022/09/07/home...o-bought-a-house-recently-regret-the-process/

How dumb are you, LL?

What part of "I HAVE NO REGRET" do you not understand?

Yeah, I want a driveway, but that doesn't mean I regret buying Bluffs 2. Moving from Eastvale to Irvine was the best decision we made. Even though my wife has a longer drive now, she loves living in Irvine. She only goes to the office 3 days a week and she drives against traffic, and there's practically no cars on 241. And my commute has been cut down from more than an hour to 10-12 minutes AND I can go to or leave office any time.

Messing with us again. LOL! LL looks at short term and losses on paper, negating that you must live SOMEWHERE.

What about going on vacation? That leaves u with pix and memories. Lots of money gone.

What about buying a car? Does LL buy some beater car because it's cheaper or a decent car that depreciates?

Doesn't he worry about the money he lost when he buys a bagel and eats it? Maybe forgo the cream cheese to save money or how about go to Costco and live on samples? LOL!

I'm going to take a guess here. LL is a "value" kind of person. The one who always says well this floorplan is "better" because it's got a lower cost per sq foot. Wife says but i LIKE this one and he says......... this is the better "value" and they argue about which to buy. After that comes well this lot is a better "value" because it's x sq feet even though it backs to a street and the wife says but I wanted the one with a view and he says well how often do you look out there and it's "not worth it". He's the one who sees Irvine as completely over priced anyway.

This is the kind of person who won't go out to eat because it's cheaper to cook at home. I don't go out to eat much either but that is because it's healthier to eat at home, I know what is in the items I'm cooking, I love to cook and I have worked at a food place and know what happens there (there's a reason health inspectors don't go out to eat). But to LL this isn't why. It all comes down to "value" and spending the least possible.

There is no hearse with a uhaul in tow LL.

Haha... How many times are you going to edit this comment?

I can see by your actions that you too regret your purchase(s).

I REGRET SELLING my purchases.

I REGRET NOT BUYING the model because now I have to put in a pool after escrow.

Where do u get REGRET buying?

And I edited my comment because I thought of more ways you are probably a cheapskate and rather than write more posts, I combined it into one.