Starter Homes 2022

Liar Loan said:
irvinehomeowner said:
Mety said:
irvinehomeowner said:
Mety said:
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.
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So what you're saying is it's always good to buy in Irvine. :)
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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.
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Not according to Liar "I love Irvine" Loan.
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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.
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please define terms for shit talking.  Are you talking about comparably priced or median priced, are we talking absolute dollars or percentage for putting 20% or what? 

Also, where do you live?
 
Liar Loan said:
irvinehomeowner said:
So there is a catch with that low price.
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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.
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I forgot to reply to this post.

What you wrote all makes sense, but it actually sold for $549k (closed 9/28) which is quite a bit below non-leased land homes with the same features/size. So the new owners did seem to get a "land-lease" discount for it.

If you're buying to rent this out, does it make sense? Even as a owner occupant, if you don't plan to stay for many years, does this make sense as a "starter home"?

Just wondering because starter home prices are ridiculous even around/outside Irvine and if someone want to start in this area, maybe they need to look at these "alternative" products to get in and move up from there even if it means very little equity building. I am going to assume that the rent for a similar place is not much less than financing this.
 
irvinehomeowner said:
Liar Loan said:
irvinehomeowner said:
So there is a catch with that low price.
Click to expand...

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.
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I forgot to reply to this post.

What you wrote all makes sense, but it actually sold for $549k (closed 9/28) which is quite a bit below non-leased land homes with the same features/size. So the new owners did seem to get a "land-lease" discount for it.

If you're buying to rent this out, does it make sense? Even as a owner occupant, if you don't plan to stay for many years, does this make sense as a "starter home"?

Just wondering because starter home prices are ridiculous even around/outside Irvine and if someone want to start in this area, maybe they need to look at these "alternative" products to get in and move up from there even if it means very little equity building. I am going to assume that the rent for a similar place is not much less than financing this.
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I looked at some land lease condos years ago when I was buying my first place.  The ones I looked at were in a very nice complex, but the HOA's were exorbitant - like $800/mo back in 2006.  So the mortgage + monthly lease + exorbitant HOA meant the rent was not anywhere close to what I would be paying.  Although to be fair, owned-land condos were priced out-of-whack with comparable rents back then as well.

To me, a land-leased condo is on par with living in a trailer park -- you own the trailer and are responsible for maintaining it, but you are still just a renter serf when it comes down to it.  It's the worst of both worlds.
 
Is this one of the cheapest detached homes in Irvine? A 3/2 for $1.05m?

www.redfin.com

17641 Manchester Ave, Irvine, CA 92614 - 3 beds/2 baths

(CRMLS) Sold: 3 beds, 2 baths, 1054 sq. ft. house located at 17641 Manchester Ave, Irvine, CA 92614 sold for $985,000 on Jan 5, 2023. MLS# OC22184621. .
www.redfin.com www.redfin.com

Prices are ridiculous... and it's not much better outside of Irvine.

There is this on in Costa Mesa but close to the freeway:


And if history is any indication, prices are not going to resettle back to where they were during the last drop. I think they've reset to a higher low each cycle.

All I remember is that our starter home was less than $200k... then they were less than $300k... then $500k... I must have been asleep when they jumped to $1m.
 
irvinehomeowner said:
Is this one of the cheapest detached homes in Irvine? A 3/2 for $1.05m?

www.redfin.com

17641 Manchester Ave, Irvine, CA 92614 - 3 beds/2 baths

(CRMLS) Sold: 3 beds, 2 baths, 1054 sq. ft. house located at 17641 Manchester Ave, Irvine, CA 92614 sold for $985,000 on Jan 5, 2023. MLS# OC22184621. .
www.redfin.com www.redfin.com

Prices are ridiculous... and it's not much better outside of Irvine.

There is this on in Costa Mesa but close to the freeway:


And if history is any indication, prices are not going to resettle back to where they were during the last drop. I think they've reset to a higher low each cycle.

All I remember is that our starter home was less than $200k... then they were less than $300k... then $500k... I must have been asleep when they jumped to $1m.
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the irvine listing looks like a flip, not sure I would buy a house form a flipper who sometimes only does the cosmetic updates and like to cover up defects to maximize their ROI.
 
The Motor Court Company said:
the irvine listing looks like a flip, not sure I would buy a house form a flipper who sometimes only does the cosmetic updates and like to cover up defects to maximize their ROI.
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It is a flip, I showed that home to a buyer a month ago and the quality of the upgrades wasn't all that great and they cut corner hence why it's still on the market.
 
Irvine (and its surrounding cities) needs way more supply of homes, especially some smaller side 2bd product for emerging professionals.
 
How tough are 2BRs for resale? I've contemplated one for our OC pad as it's all we really need but always thought they performed poorly in the resale market.
 
OCtoSV said:
How tough are 2BRs for resale? I've contemplated one for our OC pad as it's all we really need but always thought they performed poorly in the resale market.
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Just depends, the lower end and the higher end turnkey homes are moving quickly now.
 
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