How much are you able to put down?

SoCal78_IHB

SoCal78_IHB

New member
Hi, everyone. This is my first post joining you on the forums. I tried the searchbox for my question first but came up empty-handed so I hope it's ok that I ask. Maybe this is too personal for some... I am just wondering how much cash do you or the average Irvine-buyer have to put down on a home? After looking at ipoplaya I am rather depressed. I have stored away what I thought was an okay amount. I will be paying $100k in cash when I buy (will probably buy in a year). But it seems that is a rather trivial amount compared to what many buyers are putting down. Am I just one of the few who doesn't have more money on hand? Or is this a common difficulty for you guys too? I am thankful that I have at least something. (I am not a first-time buyer. The money came from the sale of my home a few months ago plus some savings.) It just never seems like enough. My main concern is that this will really limit me to a house $500k or under (likely under since our household income is just over $100k/yr.) What difficult and interesting times to be living in. Thanks in advance for any responses.
 
It is unfortunate here in Irvine $500k is a townhome. Anything family detached starts at upper $500k. You may be able to find an older home at your price range but do not expect to find a new detached home in Irvine. All new projects are put on hold right now until the market recovers and by then the prices would be high again. It is a waiting game and the consumers may be getting impatient.



Like I said before developers will wait and wait and wait and wait and the "hungry for a new home" shoppers will buy. There are still cash shoppers out there who only want a new home and not aware of IHB.
 
While you may not be able to find a new, detached home, I bet you will find a lot of somewhat older ones in your price range, even in Irvine.



It won't be very long before all the specuvestors are played out and anyone with $100k cash and a $100k income will be king. I'm hoping this will be next winter/spring, but it may take a bit longer.



Just have patience
 
[quote author="Ambiepants" date=1219806882]Hi, everyone. This is my first post joining you on the forums. I tried the searchbox for my question first but came up empty-handed so I hope it's ok that I ask. Maybe this is too personal for some... I am just wondering how much cash do you or the average Irvine-buyer have to put down on a home? After looking at ipoplaya I am rather depressed. I have stored away what I thought was an okay amount. I will be paying $100k in cash when I buy (will probably buy in a year). But it seems that is a rather trivial amount compared to what many buyers are putting down. Am I just one of the few who doesn't have more money on hand? Or is this a common difficulty for you guys too? I am thankful that I have at least something. (I am not a first-time buyer. The money came from the sale of my home a few months ago plus some savings.) It just never seems like enough. My main concern is that this will really limit me to a house $500k or under (likely under since our household income is just over $100k/yr.) What difficult and interesting times to be living in. Thanks in advance for any responses.</blockquote>


IR2 / Deuce / IrvineRealtor has done some good research on this... The median down payment amount in Irvine, at least for this calendar year so far, is around $170K or 26% or so down.
 
The info is here: <strong><a href="http://www.irvinerealtorsite.com/">www.irvinerealtorsite.com</a></strong>



Click on "<strong>Irvine 2008 Sales History</strong>."



I'm almost complete with last month's updates (Just in time for this month's.)
 
Just a few dollars. The question becomes do I pay the home off (significantly or all) or do I put minimal down and live/pay the rest off the interest? So far I'm leaning to having a rather modest mortgage and rebuild my savings afterwards.



-bix
 
[quote author="IrvineRealtor" date=1219813414]The info is here: <strong><a href="http://www.irvinerealtorsite.com/">www.irvinerealtorsite.com</a></strong>



Click on "<strong>Irvine 2008 Sales History</strong>."



I'm almost complete with last month's updates (Just in time for this month's.)</blockquote>


Thanks IR2! This is exactly what I need/want/desire. I like the filter feature and the fact that you have the builder tract name as well.



One question: What is "CompSell"?



Gracias.
 
[quote author="Ambiepants" date=1219806882]I am just wondering how much cash do you or the average Irvine-buyer have to put down on a home?</blockquote>


Whatever I have left after these bank failures and stock market crash....
 
[quote author="Keanu" date=1219840373][quote author="IrvineRealtor" date=1219813414]The info is here: <strong><a href="http://www.irvinerealtorsite.com/">www.irvinerealtorsite.com</a></strong>



Click on "<strong>Irvine 2008 Sales History</strong>."



I'm almost complete with last month's updates (Just in time for this month's.)</blockquote>


Thanks IR2! This is exactly what I need/want/desire. I like the filter feature and the fact that you have the builder tract name as well.



One question: What is "CompSell"?



Gracias.</blockquote>


<strong>What is "CompSell"?</strong>



<strong>Comp</strong>ensation to <strong>Sell</strong>ing agent (commission to <u>buyer's side</u> offered in MLS). I've included this to give a little more transparency to see what is being offered out there.
 
[quote author="ipoplaya" date=1219812457][quote author="Ambiepants" date=1219806882]Hi, everyone. This is my first post joining you on the forums. I tried the searchbox for my question first but came up empty-handed so I hope it's ok that I ask. Maybe this is too personal for some... I am just wondering how much cash do you or the average Irvine-buyer have to put down on a home? After looking at ipoplaya I am rather depressed. I have stored away what I thought was an okay amount. I will be paying $100k in cash when I buy (will probably buy in a year). But it seems that is a rather trivial amount compared to what many buyers are putting down. Am I just one of the few who doesn't have more money on hand? Or is this a common difficulty for you guys too? I am thankful that I have at least something. (I am not a first-time buyer. The money came from the sale of my home a few months ago plus some savings.) It just never seems like enough. My main concern is that this will really limit me to a house $500k or under (likely under since our household income is just over $100k/yr.) What difficult and interesting times to be living in. Thanks in advance for any responses.</blockquote>


IR2 / Deuce / IrvineRealtor has done some good research on this... The median down payment amount in Irvine, at least for this calendar year so far, is around $170K or 26% or so down.</blockquote>


Great stat. Mind boggling if you think about it. Personally speaking a huge down is bad business practice. I like to operate with "OPM". Conevtional 3% down FHA for me, and not until rates have moved up at least 200 basis points, which will slam prices hard. Asset deflation is the word of the day. The key is having high enough income and no debt. If your income is modest and not likely to experience big jumps as you advance in your career, a larger down is wise for the inflation hedge. This still assumes rental parity.



People will say buying a home is emotional, not an investment. To me money and emotion have no place in the same sentence. And the avg buyer currently with the avg down will watch it all evaporate if they have to sell in the next 10 years.



Take your $100K and put it as a down on a multi unit apt building in flyover country. You'll be cash flow positive and have a piece of property working for you.



Of course all this means nothing if your wife or husband will make your life hell until you agree to buy.
 
I will be buying late this year or early next year. I will be putting about 300K down and buying a house in the 1M to 1,100,000 range.
 
[quote author="hbguybill" date=1219967569]I will be buying late this year or early next year. I will be putting about 300K down and buying a house in the 1M to 1,100,000 range.</blockquote>


I'm looking in a similar price range, but I will be putting at least twice as much down payment.



My question is, is it normal for people in CA to have such a huge mortgage? Unless you have a huge pay check, that doesn't leave much money left over for spending.
 
[quote author="Stuff It" date=1219970866][quote author="hbguybill" date=1219967569]I will be buying late this year or early next year. I will be putting about 300K down and buying a house in the 1M to 1,100,000 range.</blockquote>


I'm looking in a similar price range, but I will be putting at least twice as much down payment.



My question is, is it normal for people in CA to have such a huge mortgage? Unless you have a huge pay check, that doesn't leave much money left over for spending.</blockquote>


Uhh..I'd think you'd have to have a huge paycheck to save up <I>600k</I>....
 
[quote author="25w100k+" date=1219973649][quote author="Stuff It" date=1219970866][quote author="hbguybill" date=1219967569]I will be buying late this year or early next year. I will be putting about 300K down and buying a house in the 1M to 1,100,000 range.</blockquote>


I'm looking in a similar price range, but I will be putting at least twice as much down payment.



My question is, is it normal for people in CA to have such a huge mortgage? Unless you have a huge pay check, that doesn't leave much money left over for spending.</blockquote>


Uhh..I'd think you'd have to have a huge paycheck to save up <I>600k</I>....</blockquote>


Not necessarily (sp?), but it doesn't hurt. :lol: For me and the huge homes its the upkeep as well as the taxes that are going to be the killer. I think its all something to study and how you want to allocate how you spend the money.

Good luck

-bix
 
Gosh I feel like a guppy swimming with great whites. I'm assuming that those who have a large down are hopefully older and more established than I am. If not, then I think I need a career change!



BTW, do others agree that if you have a large down but not a high salary you should put more $ into the down instead of keeping it in some sort of savings/investment? (And therefore not having such a large down payment?)
 
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