How long will it take for Irvine home prices to double if purchased in 2012?

PANDA_IHB

PANDA_IHB

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<a href="http://www.redfin.com/CA/Irvine/29-Plumeria-92620/home/4793026">http://www.redfin.com/CA/Irvine/29-Plumeria-92620/home/4793026</a>



This is the street where one my good friend's uncle lives. He also purchased his 4200 square feet home in mid $600s back in 1998 when new homes were being built in Northwood Pointe. I believe that this home doubled in value in 6 years. Let say that you bought your Irvine home at the bottom in 2012. How many years do you think it will take until your home price doubles in value?
 
Panda is back, with his bizarre questions. Love 'ya, but what the hell? I guess you came back with the surveys in order to make sure that your place as the "King of the Strange Surveys with No Discernible Results" could reign supreme, as poor Roundcorners is relegated to a distant second place.
 
Stop treating a house as an investment, it is shelter, a home, not an investment. No one should care when their shelter doubles in value, because it should have the same intrinsic value today as it does 20 years from now.



Bad question! Bad panda! Haven't you learned anything from IHB yet?
 
by 2012 interest rates should be at approx. 12% and inflation 25%. I flunked basic math so I can't tell you the answer. However, in my basic math class, my teacher, using CDs as an example said that if you put $1,000 in a savings account, it would take 8 years for your investment to double using compounded interest. That was back when interest rates on savings accounts were at least 6-7%.
 
It's quite possible that interest rates on CDs were higher than 7% back then. I don't remember. I just remember 8 was the magical number for doubling your money, according to my teacher.
 
PANDA is back in full force (or is it Hyen?). Anyway, I would like to know when the housing prices is going to quadruple from now? I just want to have a house that I can live in comfortably. Anyone thinking of buying a house and hope the value will go up exponentially like the bubble years is not being realistic.
 
I expect the mortgage market will be working by then, so:



<b>Somewhat longer than it will take for your mortgage payments to add up to more than twice the value of the house.</b>
 
[quote author="graphrix" date=1243258330]Stop treating a house as an investment, it is shelter, a home, not an investment. No one should care when their shelter doubles in value, because it should have the same intrinsic value today as it does 20 years from now.



Bad question! Bad panda! Haven't you learned anything from IHB yet?</blockquote>


No one should care when their shelter doubles in value - But Panda does care that his Irvine shelter doubles in value within ten years

Bad question! Bad panda! Haven't you learned anything from IHB yet? From you - Not a thing, but from IHB - Hell Yeahhhh!!!! I learned that Irvine is the BEST PLACE to live in the world and not to settle for anything less!!!!!
 
[quote author="PANDA" date=1243294106] But Panda does care that his Irvine shelter doubles in value within ten years

</blockquote>


Um...why? What action are you going to take when the house price has "doubled"? How would it change your life as you know it?



Isn't 10 years kinda arbitrary? Why not 12 years? Or 8.5? And why not when the house goes up in price by 164%? Or 206%?
 
[quote author="caycifish" date=1243294902][quote author="PANDA" date=1243294106] But Panda does care that his Irvine shelter doubles in value within ten years

</blockquote>


Um...why? What action are you going to take when the house price has "doubled"? How would it change your life as you know it?



Isn't 10 years kinda arbitrary? Why not 12 years? Or 8.5? And why not when the house goes up in price by 164%? Or 206%?</blockquote>


Panda has some major plans for serial refinancing since his imaginary Irvine property is going to double in no time at all. Or maybe he's going to start with a small Irvine condo and move up within a few years to the mansion in whatever area of Irvine those people live.



If I've learned anything here it's that dreams like that die hard for most people but the bottom line is that the paradigm has changed and I think Panda should know that by now.
 
[quote author="tmare" date=1243295316][quote author="caycifish" date=1243294902][quote author="PANDA" date=1243294106] But Panda does care that his Irvine shelter doubles in value within ten years

</blockquote>


Um...why? What action are you going to take when the house price has "doubled"? How would it change your life as you know it?



Isn't 10 years kinda arbitrary? Why not 12 years? Or 8.5? And why not when the house goes up in price by 164%? Or 206%?</blockquote>


Panda has some major plans for serial refinancing since his imaginary Irvine property is going to double in no time at all. Or maybe he's going to start with a small Irvine condo and move up within a few years to the mansion in whatever area of Irvine those people live.



If I've learned anything here it's that dreams like that die hard for most people but the bottom line is that the paradigm has changed and I think Panda should know that by now.</blockquote>


Tmare, I don't believe in get rich quick schemes, nor do think that home prices in Irvine will double in value like it did in the last bubble. I do know next to owning your own business, investing in real estate is a sound way to build your wealth and become financially free for the long term. I plan to hold each property I buy in Irvine for atleast 10 years. I prefer to acquire a small starter home every two years than to leverage myself than to buy the most expensive home I can afford. I sort of see it as dollar cost averaging starting my investing schedule from 2010, 2012, 2014 etc. Why did I choose 10 years? It seems like this is the national average number for home prices to double in value.
 
Dude, if home prices doubled evert ten years, then they would have averaged 7.2% appreciation per year, which is far above the historical average of being just a tad above the rate of inflation.
 
[quote author="PANDA" date=1243296311] Why did I choose 10 years? It seems like this is the national average number for home prices to double in value.</blockquote>


A national average that is all pumped up on steriods of cheap and easy credit that is now gone - for a long time I hope.
 
Remember when housing was a life time investment you could count on?

Supposedly 2.4% appreciation ( if i remember in my old age) is the expected return per year.

The boom and bust that was created by a totally supplier controlled market could have gone on longer if not for the war debt and other economic factors hitting all at once.... not to mention those same people who created unaffordable as your only choice and bad loans to get you in also hedged their bets in an black market type stock market that it would all fail - bringing it down even faster.



I wouldn't invest in anything that doesn't meet that 2.4 % price criteria or you might see more dip.



I can't see , especially in areas where most were priced out of the market when there was still lots of employment,

and we got resistance to new green tech etc.. creating jobs by politicos - any sustainable rally to the old over inflated prices anytime soon.

WE GOT TO GET SOME mfg and more than just services and retail jobs to come here pronto.



And honestly, i think. if we do see any quick recovery in prices, it's fleeting and just a sign of more trouble to come.



TO GET US in the OC ACTUALLY STABLE and livable/workable the rental market needs its balloon burst too, but good luck against that powerful supplier controlled market and CAR.



Regulation that stops biz is bad but regulation that keeps the market free -balanced and realistic between supply and demand is good.

Don't buy into the no controls over the suppliers is a free market. The 500k homes for 100k people should be a lesson well learned.

This will have an additional damping effect for some time to come unless the glut of empty places are rezoned and re-modeled to dual occupancy or...



but i could be wrong.
 
[quote author="stepping_up" date=1243303383]Dude, if home prices doubled evert ten years, then they would have averaged 7.2% appreciation per year, which is far above the historical average of being just a tad above the rate of inflation.</blockquote>


Remove government sponsored financing and it's lower.
 
[quote author="frank69m" date=1243371343]I thought Panda was going to give these forums up? Guess he is bored and we are his only friends.</blockquote>


According to Facebook, Panda has more than 120 friends --- hardly any sourced from IHB. Guess he does not need your friendship after all, Frank.
 
[quote author="tmare" date=1243253563]Panda is back, with his bizarre questions. Love 'ya, but what the hell? I guess you came back with the surveys in order to make sure that your place as the "King of the Strange Surveys with No Discernible Results" could reign supreme, as poor Roundcorners is relegated to a distant second place.</blockquote>


:long: what can I say, I can't compete with the panda! I hope you can tell the difference between our polls now... I hope my polls are a little more meaningful; the polls for me are a good way of asking very personal and thought provoking questions, it adds another layer of anonymity. As my counselor would say, I hope my questions leave people thinking...
 
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