Irvine: Rent vs Buy

[Burn That Belly]

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[Liar Loan]

We bought a home in Irvine during that same time frame (the "peak") and now it's worth at least 20% more than back then (real sell prices). During the "crash", its value never dropped more than 10% despite the calls of 40%+.

Also, our property had a cumulative drop of 60% during the downturn, followed by a 125% increase in value to get back to what we sold it at.  Anybody else like rollercoasters?

If you sold it for 25K less than what you paid in 2006, you must have over paid for it like mad in 2006. Most homes that I seen, (take for example woodbury homes built in 2005/2006) have already appreciated beyond their builder price today.

I'm not sure which neighborhood you bought but it must've been a frenzy.

Even these 1 bedrooms sold for $479k in 2006 sold today for $529k. Every home SHOULD be beyond their 2006 prices. If not, my opinion is, the buyer overpaid like mad!
https://www.redfin.com/CA/Irvine/101-Costa-Brava-92620/home/12253625

The property in question was a condo in HB so it doesn't abide by the same rules as Irvine real estate.  Not saying I didn't overpay compared to rents, but relative to other comps in the neighborhood it was in line with recent sales at the time.  Several sold for higher prices.

On the plus side, those that purchased at the bottom of the market have done insanely well.  My friend purchased an investment property in the same neighborhood in 2011 at my urging, and he has yet to even buy me a beer.  Not only has he made a boatload on appreciation, but it is cash flowing like crazy.

 

[Burn That Belly]

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[usctrojancpa]

Buying a home is not just about numbers. 

Agreed, not sure if the op has family/kids, but that was a huge consideration for myself and many others.  Do you want to uproot your kids every few years after they've gotten comfortable?

That is one big intangible to consider when buying versus renting.  As a renter, you are at the mercy of your landlord (especially if you rent a private rental).  There's also an intangible value to have the home exactly how you want it (upgrades, paint, etc).  Obviously it's important to make sure you don't stretch too much to buy a home but it comes down to more than just numbers to most everyone.  Also, historically real estate has shown that it has performed well as an asset class in the longer term in the more desirable areas.  Hence why I tell my buyers today that if they plan on living in the home for the next 7-10+ years they will most likely come ahead in terms of what the value of the home will be compared to what they bought it for today.

 

[Irvine Dream]

Just buy. Based on my unscientific notes (spreadsheet >) from Redfin, this is the fastest I have seen homes in Irvine, Tustin (92782) areas getting into Escrow.

 

[irvinehomeowner]

I would only rent for a few reasons:

1. Unsure of job/location stability
2. Unsure of where in the city I would like to live (knowing my job is stable and I know I that's the city I want to be in)
3. Economically makes more sense but has to be a wide margin

We've bought during peaks, dips and in-between and in all cases, with hindsight, each was better than renting.