Villages of Columbus - Columbus Square - Camden Place

Thnx Shooby.



Me and my friend bought the last two Plan-3's in Phase-10.

Price was $489000 and they agreed to reduce the price instead of using the $20,000 for Upgrades/Points.

So the final price is $469000 with incentive of $6000 towards closing costs if i go with UAMC.



The Rep was not taking any offers and we liked the home , so we signed immediately.

This was on Friday (first day of 3-day sale event they had last month).
 
<p>According to the initial posts, the highest price a residence 3 reached was about $586K. . .Camdenresident's price indicates a 20% cut from the high. </p>

<p>Good deal but I wonder if 20% is enough?</p>
 
That can be debated IrvineCommuter.





In my opinion what can't be debated is that lowering prices has moved units in this particular development.





The builders should take heart. People don't want perks, kickbacks, or whatever. They want lower principal.
 
I think one major factor in helping the decision to buy is not only the lower prices since we are coming toward the end of the fiscal year for Lennar, but also that the interest rates are also dropping. Since the feds cut the rate last week, it's looking pretty optimistic that I'll be locking in a good rate. That was also a factor in deciding whether to go with this or not.
 
Wow... $470K for a newly built condo... that sounds like a pretty good deal. It's true that Tustin may not have the best schools in the county, but with the influx of new homeowners, I'm pretty sure the demographics will change for the better. Congratulations on your purchase!
 
<p>I think the only real concern is how much more prices will drop. But with Lennar halting construction that becomes a non-issue. When they finally break ground on phase 11 then we will know what's up.</p>

<p> </p>
 
Yeah I was hoping to go back into the sales office and see that the prices for the next phase have dropped before my escrow closes. However it doesn't look like that'll be happening. oh well.
 
Shooby, what type of loan are you looking for and what rates are you getting from UAMC. I agree with you - prices falling and rates falling were another reason I jumped in. If you haven't already, take a look at penfed.org. They have the best rates on a unique 5/5 arm. 5.375% no points, no closing costs. I'm going to be refi since i doubt UAMC can come close to that rate on a similar product.





Just for fun, I thought i'd run a simply rent/own calc on the plan 3 based on a 469K purchase price and 10% down. Assuming tax deduction around 25%, 5.5% rate, net is roughly 2500/month. I may be off slightly, but you get the idea. I'm currently renting a brand new/never lived in 2 bedroom 1200 sqft apt with 1 car attached garage in orange with appliances and washer dryer for 2300/month. Comparing these two, I think the people who bought at 469K have nothing to worry about. No brainer to buy if you value the intangibles of owning that don't figure into the calculation.
 
Here's what I came up with:





Selling cost: $414,000


20% down: $82,800


Principal: $331,200


Best average rate for a 30 year conforming fixed (any arm is toxic): 5.91%


Monthly payment: $1966.59





Monthly tax/mello expenses: $617


HOA: $350


Mandatory Insurance (need help on this one) what, $150 per month?





Total monthly: $3,083.59





Subtract the tax deduction, and it would be what in the end, $2700 per month?





Of course none of that includes startup costs for the house (flooring, appliances, whatever) or ongoing maintenance issues.
 
I guess that depends on the lending standard.





If you were conservative like IR recommends (and I agree with) at tops 33%, *deleted, wrong* (This is wrong, someone much smarter than me please give a hand with the income requirement).





It all seems fairly affordable and doable. I think the most difficult part of the equation is finding buyers that can come up with the $82,800 down. But I know a lot of people are still lending at 10%. It all really depends on how tight the lenders get. With all the recent news and lack of investors, I'd bet pretty tight.
 
<p>To me, VOC is actually well-price (relatively speaking) but the HOAs are crazy!!! I think the housing price decrease also helps with the property tax equation. My understanding of Mello Roos is that it actually a static number and not dependent upon the purchase price. </p>

<p>I think prices are getting more in line with reality but one is still at 2003/2004 prices. The boom started end of the 2001 and beginning of 2002 thus I believe we have another 10-30% to go. I believe that a 3 story 3-bd bedroom condo will fall to about $350K to 400K before it is all said and done. Not to mention, I do not believe that prices will go up for a while thus buying is not different than owning. </p>

<p>My parents bought in a 4-bd SFH (2200 sq. ft) in 1989 for approx. $270K in a pretty decent neighborhood in the Bay Area (analogous to Tustin). It was in a planned hillside community and had HOAs of around $50 bucks. That house remained at around $300K for between 1992 and 1999/2000. Then, the value of their place shot up to approximately $900K in 2004/2005 and now it is about $800K. The house has dropped about 15 percent but I do not believe that it is worth more than a half million tops. </p>
 
If this is an attached product, the lender likely won't require insurance because the HOA insures the structure. The owner would want liability and contents insurance, which, depending on limits desired and other risk factors would be about $300/yr.
 
<p>Is it just me, or is $900/mo for HOA dues and taxes/fees absolutely ridiculous? I qualified for Camden through the affordable hosuing program last year and passed when told of the massive additional fees. Now that I make much more money, I would still pass. This is a major quality of life issue that doesn't get nearly enough attention.</p>

<p>The Kool Aid is indeed flowing when smart people agree to fork over nearly $1000/mo. in HOA dues and taxes/fees when excellent housing in other neighborhoods is available without these outrageous costs. I don't care how nice the greenbelt, clubhouse, landscaping or pool is, I'd rather have a brand new Maserati and live in an older, established neighborhood where I wouldn't be sharing a wall(s), have my OWN yard/pool, and don't have to answer to an all-powerful HOA that tells me where I can park my car or what I can have in my garage...</p>

<p> </p>
 
<p><em>>>the carrying costs are paid for by the high HOA fees. That's why the HOA fees gradually come down as you get closer to build out. So the builders are not really losing anything by not building.</em></p>

<p>JPMF, I don't think that's right. The HOA fees are high because there are fewer units to pay for landscaping, insurance, management fees, reserves, upkeep of any common amenities, etc. Read the CC&Rs to be sure, but I don't think nonprofit HOAs can subsidize a private for-profit entity.</p>
 
CM - I concur with you, BUT everyone has their own priorities. If Camden meet the buyers needs and wants and they can afford it, then they should go for it. That you or I would spend our money differently shouldn't mean anything to them.
 
<p>Eva,</p>

<p>Agreed, and good friends of mine with young kids insist on new housing despite my arguments against the high additional costs.</p>

<p>When non-loan related costs equal fully 50% of the actual loan costs, as detailed above by JWBrown, the lunatics are running the asylum, in my opinion. </p>

<p>Another way of looking at it would be to think of how much more home you COULD buy with that extra $1000/mo. That $424k condo could very well be a $600k SFR elsewhere. Please excuse my sloppy math - I majored in poli sci and have trouble with long division...</p>
 
CM_Dude, you hit on why I could never buy one of these.





I actually really like the 3 story layout of this development. I could see myself in them for a while.





But I think all these builders really overshot their expectations by thinking everyone would be willing to pay $600 for just HOA and Mello-Roos (that excludes the standard property tax).





$600 per month is 42% of my rent payment.
 
You must log in or register to reply here.
Back
Top