USCTrojanCPA said:
sleepy5136 said:
USCTrojanCPA said:
sleepy5136 said:
Hi guys,
I am planning to move to the OC from LA. I am a first time home buyer looking at finding a place for ~900k. I'm leaning towards buying new at the moment because there are not many inventory for homes around the price range I have. It seems like the ones that are available will require me to pay 700k+ and I would still have to do some remodeling to make it look a bit more modern. Its definitely a task finding something more modern that doesn't have crazy mello roos involved in Irvine/Tustin. I feel like Tustin may be do-able but I also want to have a decent school district. Question for you guys is the following:
1. Is buying new in lake forest a good idea? I'm intrigued by this because there isn't mello roos.
2. How is the rental and resale market in Lake Forest and Tustin?
3. Do you guys feel its better to buy in Irvine instead of Lake Forest if I plan to stay in the home for 5-10 years? I've been told many times owning a home in Irvine will have no issues with rental or resale.
4. I see some new homes for a cheaper price new John Wayne Airport and it seems like its due to the poor school district (Santa Ana) there. Would you say that reselling/renting would be difficult in that area?
Any insight would be greatly appreciated.
Welcome to the forum sleepy. There's only a two newer home developments in Lake Forest at the moment so not a lot to pick from but could be a good option. What are your thoughts about buying a resale condo in Baker Ranch or a smaller single family home in Foothill Ranch? Remember that we are in the seasonal low point of inventory and you'll begin seeing more and more homes listed on the market as we get to the end of the month. Both resale and rental prices are lower in Tustin and Lake Forest (both cities have more desirable areas like Tustin Ranch and Baker Ranch/Foothill Ranch so it can be location specific). Historically Irvine home prices have outperformed neighboring cities like Tustin and Lake Forest in general. It's also important to purchase a good floor plan in a good location. Irvine rents tend to be stronger financiallly from what I've seen renting out my clients' properties. Those newer homes by the Airport are 3-level condos and have high HOAs (plus being zoned to Santa Ana schools) will limit the potential upside in pricing due to a smaller buyer pool. Remember there is no free lunch...if you buy something for less today, it'll sell for less in the future and don't be afraid to bid more aggressively on desirable properties. With your budget, you should focus in on 3+ bedroom detached properties. Let me know if you have any other questions.
Thanks! Wanted to get your thoughts on Levity Tustin vs Serrano Summit? I'm specifically looking at homes in the high 700s which currently exist in both communities. Wondering the pros/cons of each. I feel like the main selling point in Levity would be the modern look + location. Lake Forest is a great value for the buck, but would require at least 10-20 minutes of driving every time I need to go out. Good thing is no mello roos and low property tax.
The biggest pro with Levity is the central location while the big negatives are the high HOA, significant Mello Roos, and they are 3 levels. Serrano Summit has the benefit of no Mello Roos but the negatives are also the high HOA, not as good of a location as Levity, and they are also 3 levels. I would recommend that you avoid 3 level condos (where the living area is on the 2nd floor and bedrooms on the 3rd floor). Is there a reason why you are only considering a new home? You can easily find an attached 2-bedroom condo below $700k in Irvine/Tustin Ranch and you can even buy a 3-bedroom condo below $700k in Baker Ranch and Foothill Ranch. Yes, resale inventory is low right now but part of that is because of the time of the year that we are in right now...more inventory is coming.
Sorry for being MIA. Great to see so much input from everyone. To give you more context on why I want something newer is because buying a home to me means living comfortably. I want my home to look nice as well. Otherwise I would argue that I should continue to rent instead. Maybe my philosophies of home ownership is different than others, but it makes me sad when I see people with homes that look worse than my rental.
In the current market, I will need to spend 700k+ to buy a property that needs repairs or needs to be remodeled. Being a first time home buyer in this market is already tough as it is and the last thing I want to do is spend even more money on an arguably inflated market right now. Not to mention the fact that I'll need to compete with people that have the cash to win bidding wars and are waiving appraisal and inspection contingencies which is ludicrous. With Serrano Summit, I can pocket out 730k and get a 3bed 3.5bath 1736 sq. ft that is brand new with NO mello roos, no bidding wars, and can still get an inspector to inspect the property without worrying about losing a home because of this request. Yes, there is a relatively high HOA but is $400 HOA even considered high in Irvine for attached condos? I find it extremely difficult right now to find anything that is in the 700-800s that doesn't need repairs/remodels, no mello roos, and low HOA.
You can argue that putting money into renovations may not be that much of an issue, but I value quality of work. That is the most important thing to me when it comes to renovations. I rather pay a slightly higher premium to ensure the quality is there than some cheap person that takes cash and ends up doing a crappy job. With the current real estate market, this is going to be tough as I'm not only paying more for the home itself, I'll also need to pocket out more $$ for renovations. More stress for me in this market is a no go and not worth it for me financially.
Anyway, this is my first home so while it would be nice to buy in Irvine, I did some evaluations and felt it isn't needed right now. I'd rather take the time to build up some equity and have my second property be in Irvine. For what I can afford, I don't think I can be picky in Irvine and paying that premium for a home that needs remodeling does not entice me at all. I'd rather buy something in Lake Forest despite it being a step child to Irvine.