Is it the Right Time to Buy or Rent?

M

meameame12

New member
Hello--I am relocated to a company based in Irvine, I reside at this moment in NJ, and we have just returned from house hunting in Irvine, and are still considering whether to buy or to rent. So, I am posting this for further "insight."

Our current status is 4 kids (ages 9,8,4,3), with a house in escrow here in NJ. ETA for closing is August 21.

Mortgage rates being what they are -- at 30 y fixed, conventional -- we are locked in at 4.35% w/25% down for estimated purchase @ 850,000.

Problem with renting is
a) cost of monthly house mortgage versus cost of monthly rental fee
b) hardly any places rent a month at a time
c) # of kids -- esp. LOUD kids -- will annoy tenants at such close proximity

And yet...there seems to be a strong sellers market in Irvine--less I am mistaken. I've read that most asking prices will sell to within 98% of listed price.
Also it seems that the prices are now highest they've been over the past decade.

We are looking to get an "older" home so as to NOT have to pay Mello Roos. HOA is OK though, and is welcomed, as we really would love to enjoy the amenities that come along with it.

Thanks
Would anyone please advise?

 
I would recommend renting (for a year since most landlords are looking for 12+ month leases for private rentals) as it's a a cheaper way to get to know a neighborhood before buying a home since you are relocation from another state.  The last thing you want to do is rush into buying "something" because of time pressure.  Most leases with private rentals after 12 months go month-to-month so that will provide you flexibility in terms of finding the right home.  Irvine is currently in a strong neutral market where homes that are priced near comps do sell quickly but the days of multiple offers on every home are over.  My guess is that prices will remain relatively flat for the near term so I doubt you'll get "priced out forever".  haha  Anyhow, if you would like to see the private rentals on MLS just shoot me a PM with your email address and I'll send them over. 
 
Check out Baker Ranch. $850k will get you 4 or 5 bedrooms at Ridgewood, no mello-roos, real backyard and driveway, brand new HOA pools and parks.

Where in Irvine is your office? Baker Ranch is potentially closer than some Irvine neighborhoods if you happen to be in the Spectrum area.

Baker Ranch is no Irvine, but it is a very very good option in that price range.
 
Thanks to you both, for your replies. Am still considering rent v buy option so will await the MLS listing.

Also--my wife wishes to reside only in Irvine at this point due to the tremendous amenities for young moms and the way the city is structured.  ;)

I am a "telecommuter" so really, can work anywhere physically--though I do need to go to the office approximately 1 day a week for a few hours. However its on Theory Drive.
 
If you are not from the area or not familiar with Irvine, I would consider renting first.

Then once you determine what village in Irvine you like most (or even a non-Irvine location), that is when you should buy.

To me, location is paramount, even within the boundaries of Irvine as each village has a different set of pros/cons depending on who you are.
 
irvinehomeowner said:
If you are not from the area or not familiar with Irvine, I would consider renting first.

Then once you determine what village in Irvine you like most (or even a non-Irvine location), that is when you should buy.

To me, location is paramount, even within the boundaries of Irvine as each village has a different set of pros/cons depending on who you are.
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This.

Rent a house and get to know the city and the vibe of each neighborhood.  It sucks to move often but better than making a poorly informed decision.
 
OCgasman said:
irvinehomeowner said:
If you are not from the area or not familiar with Irvine, I would consider renting first.

Then once you determine what village in Irvine you like most (or even a non-Irvine location), that is when you should buy.

To me, location is paramount, even within the boundaries of Irvine as each village has a different set of pros/cons depending on who you are.
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This.

Rent a house and get to know the city and the vibe of each neighborhood.  It sucks to move often but better than making a poorly informed decision.
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Yup. Pricing in Irvine is likely to stay relatively flat for the next few years so I would recommend renting as well. I bought when I first moved to Irvine because prices were crazy low otherwise I would have rented for a year. Try www.hotpads.com for rentals.
 
In my case, I did not rent. I came and saw model homes and old homes. In the end, I bought a new home by Irvine Pacific.

Reasons for this is that I did not want to move yet again. All the neighborhoods in Irvine appear to be pretty much the same: track homes that look exactly alike with decent schools and decent public amenities. My thinking is that I did not want to uproot the family multiple times while I watch the home prices continue to march higher.

However, who knows if there is a correction in the housing market looming.
 
BuddyLeo said:
In my case, I did not rent. I came and saw model homes and old homes. In the end, I bought a new home by Irvine Pacific.

Reasons for this is that I did not want to move yet again. All the neighborhoods in Irvine appear to be pretty much the same: track homes that look exactly alike with decent schools and decent public amenities. My thinking is that I did not want to uproot the family multiple times while I watch the home prices continue to march higher.

However, who knows if there is a correction in the housing market looming.
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Pet peeve - it is "tract" not "track"
 
I think it is a royal pain to pack and move.  To do it with 4 small kids is a nightmare and you will have to do it twice if you rent first!

Walk around neighborhoods during the day and at night.  Look into Northwood.  All the schools are great.  No HOA or Mello Roos in some areas.  Older means and no HOA means some neighborhoods are kept up and some are not.

Great area to raise kids.
 
Trav25 said:
I think it is a royal pain to pack and move.  To do it with 4 small kids is a nightmare and you will have to do it twice if you rent first!

Walk around neighborhoods during the day and at night.  Look into Northwood.  All the schools are great.  No HOA or Mello Roos in some areas.  Older means and no HOA means some neighborhoods are kept up and some are not.

Great area to raise kids.
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True, but now that I have lived in Irvine for 2 years I know where I like to shop, eat, etc. and would choose a home closer to where we spend most of our time. I was set on buying a new or relatively new home but now I'd go for a re-sale in a more central location.
 
OCgasman said:
irvinehomeowner said:
If you are not from the area or not familiar with Irvine, I would consider renting first.

Then once you determine what village in Irvine you like most (or even a non-Irvine location), that is when you should buy.

To me, location is paramount, even within the boundaries of Irvine as each village has a different set of pros/cons depending on who you are.
Click to expand...
This.

Rent a house and get to know the city and the vibe of each neighborhood.  It sucks to move often but better than making a poorly informed decision.
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Completely agree. Get to know the area by renting first, especially if you're moving from outside the region. Its only once you live here that you will begin to realize the nuances between the different villages and what is important/not important to you. Its sucks to move rentals, but its even worse to buy a house that you don't like, regret it, and then have to sell again in a short while, while losing 6% transaction costs. Also, selling a house, keeping it staged and ready to show with a large family of kids is a nightmare.


Unless you are sure you're going to stay for the long haul in any house you buy right now, I strongly caution you against buying right now.  From the trends, there appears to be a stand off right now between sellers and buyers.  More and more inventory. More and more price reductions...hard to say which way it will go. For what its worth, if you take my single data point...One year after we sold, I see model matches to my place sitting weeks to months on the market, asking 50K less than what we sold for, and no takers.  The last one closed two weeks ago for 70K less than what we got last summer. A fluke? Maybe. Who knows?

Besides, the rental market is flooded--you shouldn't have a problem finding a nice rental house. There are so many investor buyers in Irvine who immediately put their new purchases on the market to rent out :p




 
For all the reasons mentioned above, rent. It will give you a chance to adjust to the lifestyle here, evaluate your options without any pressure.
 
benjie_Q1 said:
spam5.jpg
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Your link doesn't go to Zillow, it goes to some paycheck loan site.
 
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