Starter Homes 2022

[irvinehomeowner]

Been looking at Redfin for a bit and shocked by prices but since someone claims they are helpful (not!), I decided to make a thread that might give us an idea of what a starter home would go for in the OC area.

Since everyone's definition of a starter home is different (depending if you're single, couple or family), the range can vary... from my perspective, I'm looking for at least 2 or 3 brs (3+ being ideal so you can have 1 kid plus an office or guest room) and some type of garage.

I'm amazed and how much 2+2s go for.

I saw this in South Coast Metro, even drove by (we were at SCP) and this seemed like a pretty good deal:

3/2/1324sf Townhouse with 2-car garage $549k
https://www.redfin.com/CA/Costa-Mesa/3424-Pinebrook-Cir-92626/home/181367790

Not sure if that was a teaser price but I have no idea what this area comps for.

It has some nice upgrades and it went Pending pretty fast so I'm going to assume it will close above asking. Kind of weird both bathrooms are on the 2nd floor but you have access to a pool.

Area seems okay... not sure how safe it is but it's right across the street from SCP so that's a perk.

 

[usctrojancpa]

Careful, that condo is on a land lease.  Stay away from those at all cost.  When it seems too good to be true, it definitely is.

 

[CalBears96]

Our starter home was a 3bd / 2ba townhouse, with 2-car garage, in San Jose. That was ideal for us as we were planning to start a family.

We put down a 3% deposit in Sept 2003 and moved in June 2004 and our son was born in Sept 2004.

Buying that townhouse was the best decision we ever made.

 

[sgip]

Average 30 fixed rates in 1003 are near where they are today. The difference is that Condo prices in San Jose are on average today well above $500k. Curious what your price was then.

 

[irvinehomeowner]

Careful, that condo is on a land lease.  Stay away from those at all cost.  When it seems too good to be true, it definitely is.

Is that why it's so cheap? So what does that mean? I don't recall how land leases work

 

[irvinehomeowner]

Redfin says this:

Lease / Rental Details
Land Lease Amount: $254.88
Land Lease Amount Frequency: Monthly
Land Lease Renewal Date: Sunday, June 4, 2045
Land Lease

So sell it within 23 years?

 

[CalBears96]

Average 30 fixed rates in 1003 are near where they are today. The difference is that Condo prices in San Jose are on average today well above $500k. Curious what your price was then.

We bought it for $500k. We sold it April 2006 at $650k because we moved to SoCal.

 

[sgip]

I've closed a few condo's on that leased land. There are significant considerations when buying.

1) The new loan must be 5 years less than the lease termination date. With a 2045 end - really, just a renewal is the likely case - the loan would have to be 15-16 years long depending on when you fund and the actual termination date of the lease. That would make the loan pretty spicy!

2) Some leases have COLA adjustments. A few leases in Laguna Beach have COLA's, but I don't recall if all of the South Coast Metro do. Best to check with the lease documents directly, not the owner or realtor, as many lenders are wary of these kinds of lease agreements.

Wouldn't hurt to find out if the loan on the property is assumable, be it an ARM, an FHA, or a VA loan.

 

[irvinehomeowner]

So there is a catch with that low price.

Everything else I see is much higher... this one is in Irvine:

3/2/1223sft condo with a 2-car garage $800k
https://www.redfin.com/CA/Irvine/8-Pierre-92604/unit-18/home/5473293

Basic with no upgrades... has a small outdoor space to a detached garage but older area of Irvine. Still has a community pool.

This is what $800k buys you? So cray-cray.

 

[The Motor Court Company]

and it is El Camino Real?close to bottom of least desirable villages in Irvine.

So there is a catch with that low price.

Everything else I see is much higher... this one is in Irvine:

3/2/1223sft condo with a 2-car garage $800k
https://www.redfin.com/CA/Irvine/8-Pierre-92604/unit-18/home/5473293

Basic with no upgrades... has a small outdoor space to a detached garage but older area of Irvine. Still has a community pool.

This is what $800k buys you? So cray-cray.

 

[Liar Loan]

So there is a catch with that low price.

You don't own the land, so in addition to all the other drawbacks listed, your opportunity for appreciation is severely limited.  All you own is a piece of depreciating building that is hard to finance, and harder to sell.  Although during overheated housing markets like the one just ended, you do get buyers that are desperate enough to own that the price of these land lease condos can go up dramatically for a short time.

 

[momopi]

Right now even a 1 bed condo in Irvine cost high $400K-$600k.  I would simply not buy at this time.

 

[irvinebullhousing]

Right now even a 1 bed condo in Irvine cost high $400K-$600k.  I would simply not buy at this time.

That is why ?Declining Rents? statements is the stupidest statement for this period of time. We have rent rise and continue to rise with high price and high mortgage rate.

Let?s put stupid where stupid goes.

 

[Mety]

Looking at the price history, it?s getting 90 to almost 100% ROI in about 10 years. I say that?s not bad at all. Even the ?close to bottom of least desirable villages in Irvine? gets you that kind of fortune.

and it is El Camino Real?close to bottom of least desirable villages in Irvine.

So there is a catch with that low price.

Everything else I see is much higher... this one is in Irvine:

3/2/1223sft condo with a 2-car garage $800k
https://www.redfin.com/CA/Irvine/8-Pierre-92604/unit-18/home/5473293

Basic with no upgrades... has a small outdoor space to a detached garage but older area of Irvine. Still has a community pool.

This is what $800k buys you? So cray-cray.

 

[irvinehomeowner]

Looking at the price history, it?s getting 90 to almost 100% ROI in about 10 years. I say that?s not bad at all. Even the ?close to bottom of least desirable villages in Irvine? gets you that kind of fortune.

So what you're saying is it's always good to buy in Irvine.

 

[Mety]

Looking at the price history, it?s getting 90 to almost 100% ROI in about 10 years. I say that?s not bad at all. Even the ?close to bottom of least desirable villages in Irvine? gets you that kind of fortune.

So what you're saying is it's always good to buy in Irvine.

Irvine is a good place to buy for its good ROI and also many people enjoy its amenities as well. To live is a completely different story so I?m not bringing that up. Everyone has different tastes and opinions so I totally understand some people just not liking the city. However, you can?t deny it?s a good place to invest. Maybe it?s different for $2m+ homes, but for ?moderate? 2,3, or even 4 bed homes, Irvine probably will give you the best ROI compare to nearby cities.

 

[irvinehomeowner]

Looking at the price history, it?s getting 90 to almost 100% ROI in about 10 years. I say that?s not bad at all. Even the ?close to bottom of least desirable villages in Irvine? gets you that kind of fortune.

So what you're saying is it's always good to buy in Irvine.

Irvine is a good place to buy for its good ROI and also many people enjoy its amenities as well. To live is a completely different story so I?m not bringing that up. Everyone has different tastes and opinions so I totally understand some people just not liking the city. However, you can?t deny it?s a good place to invest. Maybe it?s different for $2m+ homes, but for ?moderate? 2,3, or even 4 bed homes, Irvine probably will give you the best ROI compare to nearby cities.

Not according to Liar "I love Irvine" Loan.

 

[Mety]

Looking at the price history, it?s getting 90 to almost 100% ROI in about 10 years. I say that?s not bad at all. Even the ?close to bottom of least desirable villages in Irvine? gets you that kind of fortune.

So what you're saying is it's always good to buy in Irvine.

Irvine is a good place to buy for its good ROI and also many people enjoy its amenities as well. To live is a completely different story so I?m not bringing that up. Everyone has different tastes and opinions so I totally understand some people just not liking the city. However, you can?t deny it?s a good place to invest. Maybe it?s different for $2m+ homes, but for ?moderate? 2,3, or even 4 bed homes, Irvine probably will give you the best ROI compare to nearby cities.

Not according to Liar "I love Irvine" Loan.

He loves Irvine so much that it?s just not meeting his expectations. Maybe he should run for Mayor here.

 

[Liar Loan]

Looking at the price history, it?s getting 90 to almost 100% ROI in about 10 years. I say that?s not bad at all. Even the ?close to bottom of least desirable villages in Irvine? gets you that kind of fortune.

So what you're saying is it's always good to buy in Irvine.

Irvine is a good place to buy for its good ROI and also many people enjoy its amenities as well. To live is a completely different story so I?m not bringing that up. Everyone has different tastes and opinions so I totally understand some people just not liking the city. However, you can?t deny it?s a good place to invest. Maybe it?s different for $2m+ homes, but for ?moderate? 2,3, or even 4 bed homes, Irvine probably will give you the best ROI compare to nearby cities.

Not according to Liar "I love Irvine" Loan.

It depends on what point in the cycle you buy.  A peak market purchase like CareBears made will probably decline less than a comparable home in Santa Ana, but conversely, a purchase at the bottom of the RE cycle in Santa Ana would provide higher returns on both a cash flow and appreciation basis compared to Irvine during the next up cycle.

 

[CalBears96]

Looking at the price history, it?s getting 90 to almost 100% ROI in about 10 years. I say that?s not bad at all. Even the ?close to bottom of least desirable villages in Irvine? gets you that kind of fortune.

So what you're saying is it's always good to buy in Irvine.

Irvine is a good place to buy for its good ROI and also many people enjoy its amenities as well. To live is a completely different story so I?m not bringing that up. Everyone has different tastes and opinions so I totally understand some people just not liking the city. However, you can?t deny it?s a good place to invest. Maybe it?s different for $2m+ homes, but for ?moderate? 2,3, or even 4 bed homes, Irvine probably will give you the best ROI compare to nearby cities.

Not according to Liar "I love Irvine" Loan.

It depends on what point in the cycle you buy.  A peak market purchase like CareBears made will probably decline less than a comparable home in Santa Ana, but conversely, a purchase at the bottom of the RE cycle in Santa Ana would provide higher returns on both a cash flow and appreciation basis compared to Irvine during the next up cycle.

LL, why are you so ignorantly dumb?