rental value of a 3/2.5 detached 1700 sq ft. condo portola

[irvinehomeowner]

It's an easy question to answer really... location, location, location.

*Sigh*.  I have to give up on you, IHO.  You were the only reason I came and visited here from time to time, and I see I have now also lost you to the powerful forces of Dan Young's marketing team.  He is too powerful for the little people like me.  His minions have convinced even you that not spending 10 minutes on the toll road from Ladera is worth $300k.

Well... allow me to respond at least (and apologies in advance to Ladera owners):

Uhh... I said elevation... not depression. Ladera is a huge bowl and have you seen the MRs and HOAs? That probably covers the $300k alone (not to mention gas/toll fees/etc). And the problem with those toll roads... they really don't take me where I need to go... I still have to get on a regular freeway.

Best rule for routes from home to work... if you can take either freeway or side streets with only a 5 minute difference... you're good.

Again... I really like Mission Viejo, Aliso Viejo, Laguna Niguel and Las Flores... but although similar homes are a $300k difference, for the home in Irvine I can live with, it's only $50k or less... so why not?

And with that, and as soon as I go delete one post to get back to a lucky 8, I bid you farewell, IHO.  Even Little Miss Star waves goodbye from atop her bike on the guard-gated cul de sac.  Hopefully she does not run into all the cars parked on the street as she pedals away.  Oh, wait -- you need a special permit to park on the street because everyone has a 3CWG full driveway.

Hey... no credit for not even using "schools" as an answer? I hope you will be back... the frenzy at Woodbury is now going to be spread out among several neighborhoods for 2011... which gives me hope because since things have slowed down... it might mean softer prices.

I realize I'm stubborn... I like new and I like Irvine... if only I had a bankroll like mikeirvine.

 

[irvinehomeowner]

Again... I really like Mission Viejo, Aliso Viejo, Laguna Niguel and Las Flores... but although similar homes are a $300k difference, for the home in Irvine I can live with, it's only $50k or less... so why not?

I would type the reasons, but I'm fearful of carpal tunnel syndrome.

 

Yeah... well... I chalk it up to us being more rooted in Irvine than you guys. The deeper the ties the harder it is to cut them. The funny thing is my wife always wanted to get out of Irvine since she grew up here... so we lived in South County for a while... now she's the one who doesn't want to move out of Irvine.

 

[mikeirvine]

"Rental property in Irvine" to me seems synonymous with "burning money in a wood fire". can be apply to "Stocks market Investment" to me seems synonymous with "burning money in a Paper fire".

We are here to talkIrvine not talkStock market ..... I still wonder why the people that dislike Irvine stay in this forum, telling people that their house is a burning fire place and someone dream home location sucks. At least, I'm happy living in Irvine for now and I won't bother to go to another forum to tell them what they like is not what I like.

I don't think you are investing you time wisely .... time is money, don't waste time here talking about things that you don't believe in.

Regards,
Mike

"Rental property in Irvine" to me seems synonymous with "burning money in a wood fire". I don't get it. Is there something I'm missing?

well, i'm not looking to rent it.. but i do think that prices will float to "near" rental parity... and i know i may be over paying, just trying to figure how much and how long before it gets there...

so just using rough numbers here.. and let's assume sevilla plan 1...

532k - ~30% down (that's how much i'm putting down because of dti and cause i want the best rate)
that will leave me with roughly a 372k loan 30yr @5% = 1997
+ 443 prop tax + 310 mello roos + 40 insurance + 244 hoa
PITI = 3035
- 445 principle (forced savings?)
- 388 (1552 in interest @25% tax deduction)
- 110 (443 prop tax @25% tax deduction)
+ 206 (opportunity cost, ~1.5% int. on savings, after tax on 165k)

~ $2300 (my rent parity)

i know about maintainence reserves, but this is a new home... so i hope w/ the 10yr warranty i won't have to worry about that... am i missing something?  did i do the calcs wrong?

I'm getting about the same numbers. Your opportunity cost are slightly off though. Any gain from investing that 445 principle number, and loss from not being able to invest the tax and interest, should be added to the opportunity cost column. Also, your opportunity cost on 165k are only 1.5% if you're simply saving the money in a bank.

To put a more succinct point on it I had more than you are putting into a Sevilla condo into boring blue chip.  Altria (MO) paying 6.2% (horribly undervalued because people shy away from tobacco companies),  Alliance resource (ARLP) at 5%, Brystol Meyers (BMY) at 4.8% (gotta have a good drug company in the portfolio), and Verizon at 6%. I made over $20,000 just sitting my money into stable, boring companies. The chances of you turning a $20,000 profit per year from renting a Sevilla Plan 1 are about 0 to none.

I'm no day trader either, I'm simply someone who likes boring, stable investments like any fiscally conservative person.

 

[test]

"Rental property in Irvine" to me seems synonymous with "burning money in a wood fire". I don't get it. Is there something I'm missing?

"Rental property in Irvine" to me seems synonymous with "burning money in a wood fire". can be apply to "Stocks market Investment" to me seems synonymous with "burning money in a Paper fire".

We are here to talkIrvine not talkStock market ..... I still wonder why the people that dislike Irvine stay in this forum, telling people that their house is a burning fire place and someone dream home location sucks. At least, I'm happy living in Irvine for now and I won't bother to go to another forum to tell them what they like is not what I like.

I don't think you are investing you time wisely .... time is money, don't waste time here talking about things that you don't believe in.

Regards,
Mike

IndieDev is just a bitter renter day dreaming he lived in Malibu and drove a used Porsche.  Maybe he should go troll the Malibu or Porsche forums.  Wait, he already does.  LOL

 

[villiagepeople]

It's an easy question to answer really... location, location, location.

i agree with you here IHO, i looked for a year in aliso, ladera, las flores and foothill ranch, and had my mind set on living in one of these cities... and tried to hang out as much as i could in those cities... but we just didn't like it as much, we always found things we wanted to do in north county or in irvine... and we would be only getting a 10-14% discount for a comparable home vs new in irvine... on a monthly basis, it's about $500 a month... so i'm paying $500 a month for lack of toll road fees to get to work, convenience to places we frequent, closer to family and better schools... and the kicker, it's "new".

 

[usctrojancpa]

"Rental property in Irvine" to me seems synonymous with "burning money in a wood fire". can be apply to "Stocks market Investment" to me seems synonymous with "burning money in a Paper fire".

We are here to talkIrvine not talkStock market ..... I still wonder why the people that dislike Irvine stay in this forum, telling people that their house is a burning fire place and someone dream home location sucks. At least, I'm happy living in Irvine for now and I won't bother to go to another forum to tell them what they like is not what I like.

I don't think you are investing you time wisely .... time is money, don't waste time here talking about things that you don't believe in.

Regards,
Mike

Mike, I think Indie's point is that it may not be the wisest investment strategy in buying a home in Irvine as a pure investment (not to live in) because there may be better investment options out there.  Given where prices are and the rent you can expect to get, there are better real estate investment options in other cities in Orange County.  I've lived in Irvine for the past 10 years or so and used to own a condo in Quail Hill for about 4 years so I know what the pros and cons are living in Irvine.  A good forum will have different viewpoints and perspectives which will hopefully spur good and interesting conversation on here.  I sure wouldn't want all of TI to be full of Irvine fanboys and girls because that would really make the forum very boring.  In my mind, there are a pluses and minuses about buying a home in Irvine.  I may or may not buy a home in Irvine in the next year or two because there are other options outside of Irvine that have me weighing my options.

 

[usctrojancpa]

It's a good down payment on a used Porsche though. I've been looking at a dark blue Carrera at Power Porsche in Newport to replace my somewhat aging 528i.

I recommend you get a GT3 instead.  Carrera is like a Honda Civic, everyone has one.

Ah yes, a 997 GT3...a streetable cup car that I hope to have in my garage within the next few years.

 

[usctrojancpa]

It's an easy question to answer really... location, location, location.

i agree with you here IHO, i looked for a year in aliso, ladera, las flores and foothill ranch, and had my mind set on living in one of these cities... and tried to hang out as much as i could in those cities... but we just didn't like it as much, we always found things we wanted to do in north county or in irvine... and we would be only getting a 10-14% discount for a comparable home vs new in irvine... on a monthly basis, it's about $500 a month... so i'm paying $500 a month for lack of toll road fees to get to work, convenience to places we frequent, closer to family and better schools... and the kicker, it's "new".

I dunno Village, some of the newer products that TIC is putting out there is just not appealing to me.  Is it too much to ask for a full driveway and no motorcourts???  haha

 

[IndieDev]

It's an easy question to answer really... location, location, location.

i agree with you here IHO, i looked for a year in aliso, ladera, las flores and foothill ranch, and had my mind set on living in one of these cities... and tried to hang out as much as i could in those cities... but we just didn't like it as much, we always found things we wanted to do in north county or in irvine... and we would be only getting a 10-14% discount for a comparable home vs new in irvine... on a monthly basis, it's about $500 a month... so i'm paying $500 a month for lack of toll road fees to get to work, convenience to places we frequent, closer to family and better schools... and the kicker, it's "new".

I dunno Village, some of the newer products that TIC is putting out there is just not appealing to me.  Is it too much to ask for a full driveway and no motorcourts???  haha

$500,000+, and no driveway to park on after a long day of work? That's irrelevant. This is Irvine. You should be proud to pay only $500,000 for a motorcourt, and 2,700 sqft lot. The schools, 85 degrees, and the Irvine Spectrum all within arms reach! This is worth more than half a million. It might be worth 1 quadrillion...

 

[irvinehomeowner]

IndieDev is finally getting it... resistance is futile.

 

[IndieDev]

I got cold called by TIC this morning. They were wondering whether I was interested in Phase II or III of Sevilla. I made up a story about wanting to save up more money for a down payment. The TIC person on the other line immediately suggested I use an FHA loan, and that I should probably act soon because Phase I had sold out.

Do you guys think I should act now or be priced out?

 

[irvinehomeowner]

You should test them... ask if they have broker co-op, design center incentives and financing discounts.

 

[IndieDev]

I'd trade all of that for a driveway. I might ask for it.

 

[irvinehomeowner]

I'd trade all of that for a driveway. I might ask for it.

Driveway AND street.

Here I am worrying about my 3rd car garage and TIC is taking away much more.

 

[IndieDev]

don't waste time here talking about things that you don't believe in.

What does it mean to "believe" in Irvine? Sounds almost cultish to me.

I honestly don't get the sensitivity. Someone asked about the rental value of a property, a business inquiry, and I gave my business opinion. I'm not sure how that can be construed as a personal attack on someone, or their preference for home location, or even my personal feelings for Irvine as a location to live. As an investment, which rental properties are classified as, it's a non-performing one in Irvine. That's all I've said.

I remember in 2003 when I was in China, and a supplier told me to my face that my pricing per unit figure was off, and she could tell I was a "cheat". That's personal, and I could understand someone reacting to that type of personal attack.

But reacting in such a way as mike did to the statement that "Irvine rentals aren't a great investment" just seems peculiar, and somewhat juvenile. That being said, I apologize to anyone on here who has been hurt by my comments. I don't wish to step on your delicate sensibilities any longer.

 

[IndieDev]

It's a good down payment on a used Porsche though. I've been looking at a dark blue Carrera at Power Porsche in Newport to replace my somewhat aging 528i.

I recommend you get a GT3 instead.  Carrera is like a Honda Civic, everyone has one.

Ah yes, a 997 GT3...a streetable cup car that I hope to have in my garage within the next few years.

I just looked at a used GT3, and those cars still go for 90k+. I couldn't do it. I'm even having trouble justifying a used $68,000 "regular" Porsche.

 

[usctrojancpa]

It's a good down payment on a used Porsche though. I've been looking at a dark blue Carrera at Power Porsche in Newport to replace my somewhat aging 528i.

I saw a dark blue 2007 with 20k miles in Northern SD for sale on autotrader.com that was $79k.  I'm waiting until they into the mid-70s.

I recommend you get a GT3 instead.  Carrera is like a Honda Civic, everyone has one.

Ah yes, a 997 GT3...a streetable cup car that I hope to have in my garage within the next few years.

I just looked at a used GT3, and those cars still go for 90k+. I couldn't do it. I'm even having trouble justifying a used $68,000 "regular" Porsche.

 

[rickr]

It's a good down payment on a used Porsche though. I've been looking at a dark blue Carrera at Power Porsche in Newport to replace my somewhat aging 528i.

I recommend you get a GT3 instead.  Carrera is like a Honda Civic, everyone has one.

Ah yes, a 997 GT3...a streetable cup car that I hope to have in my garage within the next few years.

I just looked at a used GT3, and those cars still go for 90k+. I couldn't do it. I'm even having trouble justifying a used $68,000 "regular" Porsche.

I just had this discussion with by brother and GT3 was included in the conversation.

Of all the cars manufactured today, what will be considered a classic 20-25 years from now? What would be the best car to buy purely as an investement point of view. Well maybe not just investement, I'm sure you will have some fun driving it also.

The problem with the 911 now a these days is they are making so many damn versions of them now. 911, 911S, 911 Turbo, Turbo S, GT3, GT3RS, GT2, GT2 S, GTS, Speedster, etc... I think the speedster will be the most exclusive.

Obviously Ferraris and all other super exotics will be collectible. Anyway our consesus was the Ford GT as the best car. I know they don't make them anymore but it was pretty recent when they stopped. It seems the value of these cars are already starting to go up.

 

[IndieDev]

You guys like really expensive cars. I just want something classy, sporty, and not too high maintenance. Porsche seemed to fit all those categories for me. I like Corvette's too.

 

[irvinehomeowner]

I'm not sure how that can be construed as a personal attack on someone
[...]
That's personal, and I could understand someone reacting to that type of personal attack.

Did someone delete a post? I don't recall anyone saying you made a personal attack.

I don't wish to step on your delicate sensibilities any longer.

Hey... isn't that like saying "I didn't say I don't like your ugly face"?