roundcorners_IHB
New member
Shooby said:
I don't get it either, how can the builder charge $30-$50k more for an unit when a 1-2 year old resales are much cheaper? Plus, don't they have better upgrades?
Villages of Columbus - Columbus Square - Camden Place
- Thread starter zovall_IHB
- Start date
NEW -> Contingent Buyer Assistance Program
I don't get it either, how can the builder charge $30-$50k more for an unit when a 1-2 year old resales are much cheaper? Plus, don't they have better upgrades?
Do you know where I can search for some of the 1-2 year old homes for sale?
Humm 405 and 479 isnt that much better arnt they listed at 423 and 480 now? The older homes might have better upgrades but I think the incentives can cover the upgrades right?
Yup, you have subtract out the mello roos and additional taxes, so at a 160x GRM, the place is worth about $300k. Now, you find me someone who is actually paying $2500, because you can rent larger SFRs for that, so that seems a bit high. True rent would be more along the lines of $2000 to maybe $2200. Making it worth around $225k to maybe $260k.
I think for a 3/3 you can get $2500 a month at least what I'm seeing. A friend rents an older 3/3 that's smaller than a Camden place for $2500 a month in Oak Creek in Irvine. This being newer and larger but in Tustin should be somewhat comparable. When you run the numbers a 3/3 in Camden at $450k would be about $2500 with a 4.75% interest rate using the IHB Calculator after all factors are weighed in. I'm with you though and think these should fall below $400k easily. We were looking at an open house two weeks ago for $479k. Realtor said bank would take $450k , which to me means $425k or lower but when we went back the next week he claimed there was an offer around $460k so the market still has knife catchers in it. Regardless it will set a new comp for the area.
Can anyone confirm the differences between the current units vs the old units?
- no granite counters
- no refrigerator
- downgraded appliances
- no fiber optic wiring
- no tub in master bath
Congratulations, Wolvie.
Thank you for sharing. If you don't mind, I'm curious about several other items regarding these homes in particular, in all seriousness.
What incentives did they throw in to close the deal with you?
Do you mind sharing the terms?
What other homes did you consider as alternatives? (Did you have a second-favorite, etc.)
Why now, rather than earlier, or later?
What are your biggest concerns with the home/neighborhood?
Any feedback is appreciated. It helps me stay informed on the current pulse of buyer mentality.
Thank you,
-IR2
Congrats on your purchase. Now, I hope you don't take offense, but I am going to break down your purchase and see if the math of the lower rate works out best for you over 5 years.
$490k
$10k incentive for flooring (This was built into the price since they threw it out, and since they make 80% profit on the flooring, this was a smart choice)
$25k for closing costs (They built this into the price to cover the closing costs and your rate buy down, so you are paying for it. Please see above for proof.)
At a $480k purchase price you put down $96k
At a rate of 4% your payment for a 30 year fixed is $1833 a month.
You pay $440 a month in regular property taxes.
Approximately $440 a month in mello roos.
And $290 a month for HOA.
For a total of $3003 a month.
After five years you would have spent $180,180 and have a principal balance of $347,320.
If you knocked off the $25k in closing costs to the price, you would pay $455k, and only have to put $91k down.
At a market rate of 5.25% your payment for a 30 year fixed is $2010 a month.
You pay $417 a month in regular property taxes.
Approximately $440 a month in mello roos. (Keep in mind, mello roos never change due to the purchase price, and they are a set number every month for 30-40 years)
And $290 a month for HOA.
For a total of $2717 a month.
After five years you would have spent $163,020 and have a principal balance of $335,424.
Figure the closing costs would be about $7k for a rate of 5.25%, but you saved 5k in down payment which is now worth $6k in five years, so really it only cost you $1k more.
So lets say after 5 years the place is worth $550k. If you were to sell with the deal you currently have, you would net $22,500 (-$180+-$347,320+$550,00=$22,500)
Now, if you took the other deal and the place were worth $550k, and you were to sell it, you would net $51,576 (-$1000+-$163,020+-$335,424=$51,576) Even if you knock an additional $1k off, or even $7k you still net more $.
I'm not trying to rain on your parade, but merely show you the math. It costs a sh*t load more to finance $25k over 30 years at 4%, than it does to finance $25k less at 5.25% over 30 years. Plus, your tax break would be about the same or greater at 5.25%. Maybe you should tell them to give you the better price, it's up to you.
I don't get it either, how can the builder charge $30-$50k more for an unit when a 1-2 year old resales are much cheaper? Plus, don't they have better upgrades?
RedElmo_IHB
New member
roundcorners said:
Do you know where I can search for some of the 1-2 year old homes for sale?
roundcorners_IHB
New member
RedElmo_IHB
New member
roundcorners said:
Humm 405 and 479 isnt that much better arnt they listed at 423 and 480 now? The older homes might have better upgrades but I think the incentives can cover the upgrades right?
RedElmo_IHB
New member
Looks like they sold A LOT of homes this past week. i went back and checked over the weekend and a lot were marked sold.
Perspective_IHB
New member
Nice, # 1 above is my next door neighbor!
Perspective_IHB
New member
How much would a Plan 2 rent for? New 3 room 2.5 bath townhomes with attached garages rent for at least $2,500 in this area, no? At 160x rent, $400k looks like an attractive rental parity price for # 1.
4walls4me_IHB
New member
I don't think so...not when you factor in the HUGE mello roos and association fees. Still too pricey.
graphrix_IHB
New member
4walls4me said:
Yup, you have subtract out the mello roos and additional taxes, so at a 160x GRM, the place is worth about $300k. Now, you find me someone who is actually paying $2500, because you can rent larger SFRs for that, so that seems a bit high. True rent would be more along the lines of $2000 to maybe $2200. Making it worth around $225k to maybe $260k.
sonicko_IHB
New member
graphrix said:
I think for a 3/3 you can get $2500 a month at least what I'm seeing. A friend rents an older 3/3 that's smaller than a Camden place for $2500 a month in Oak Creek in Irvine. This being newer and larger but in Tustin should be somewhat comparable. When you run the numbers a 3/3 in Camden at $450k would be about $2500 with a 4.75% interest rate using the IHB Calculator after all factors are weighed in. I'm with you though and think these should fall below $400k easily. We were looking at an open house two weeks ago for $479k. Realtor said bank would take $450k , which to me means $425k or lower but when we went back the next week he claimed there was an offer around $460k so the market still has knife catchers in it. Regardless it will set a new comp for the area.
asianinvasian_IHB
New member
roundcorners said:
Can anyone confirm the differences between the current units vs the old units?
- no granite counters
- no refrigerator
- downgraded appliances
- no fiber optic wiring
- no tub in master bath
Polarbecca_IHB
New member
Actually Phase 12 had granite countertops, refrig/dishwasher,convection oven oven, fiber optic wiring, but no tub in master bath (This had been a downgrade for a while though i believe
asianinvasian said:
Polarbecca_IHB
New member
I think our closing costs for our plan 2 was between 6-7K if i'm remembering correctly. Then we got a check back after escrow for around 400 because they always overestimate costs.
cj723 said:
Polarbecca_IHB
New member
Shooby
There is a Plan 2 in my phase going for 423,000 and 2 Plan 3's going for 490,000. I know for a fact the original couple that got into contract on one of the plan 3's got really nice flooring ordered then backed out so lennar payed for and still put in the nice flooring in the unit so whoever buys it has a nice upgrade package built in.
There is a Plan 2 in my phase going for 423,000 and 2 Plan 3's going for 490,000. I know for a fact the original couple that got into contract on one of the plan 3's got really nice flooring ordered then backed out so lennar payed for and still put in the nice flooring in the unit so whoever buys it has a nice upgrade package built in.
Shooby said:
Polarbecca_IHB
New member
Actually the Plan Three has 3 Full Baths
heatherung said:
Polarbecca_IHB
New member
In Phase 13? It's sad there are at least 2 Plan 3's that aren't sold in Phase 12.
RedElmo said:
wolvie3421_IHB
New member
The last of the plan 3's in phase 12 and 13 sold this weekend. I bought the last one in phase 13 this past weekend.
IrvineRealtor_IHB
New member
wolvie3421 said:
Congratulations, Wolvie.
Thank you for sharing. If you don't mind, I'm curious about several other items regarding these homes in particular, in all seriousness.
What incentives did they throw in to close the deal with you?
Do you mind sharing the terms?
What other homes did you consider as alternatives? (Did you have a second-favorite, etc.)
Why now, rather than earlier, or later?
What are your biggest concerns with the home/neighborhood?
Any feedback is appreciated. It helps me stay informed on the current pulse of buyer mentality.
Thank you,
-IR2
wolvie3421_IHB
New member
Thanks IR.
I had been searching in Irvine for the last 2 months. Looked at over 10 foreclosures and actually put an offer on an REO in University Place. After 2 weeks of not getting back an executed contract and a not so nice home inspection I decided to look around and this thread actually peaked my interest. I originally thought Columbus Square was out of my price range but after considering that I would be spending just as much remodeling the REO, I could buy a new town home and not worry about fixing anything for a while. The very next day I took off of work early and zoomed over there to meet Clayton (super awesome sales guy), toured 4 homes (2 camdens and 2 meriweathers) and fell in love with the camden plan 3. One of the 2 remaining ones was scheduled to sell this past weekend and I did the same for the last one.
Original asking was:
$490k
$10k incentive for flooring
$25k for closing costs
I offered $480 with 20% down and they took away the $10k for flooring which is no biggie for me. I'm going with standard flooring. I was really interested in this plan 3 since each floor has it's own bedroom & bathroom, may make a good college rental later on. I toured the last 2 meriweathers (2 bed/2 bath) but weren't impressed with the living quarters being right above 3 garage doors. The long stairway from the garage to the 2nd floor living quarters was also funky.
I am a little concerned with the toxic soil issues, but then again there isn't any land to plant anything anyways so I kind of waived that off.
Oh and I guess I should mention the 3.99% 30-year fixed through UAMC. That totally sealed the deal. But then the ~$1k/month in HOA+Taxes kind of makes it a wash.
So if everything goes as planned with escrow:
Camden Plan 3
$480k
No Closing Costs
3.99% 30-year fixed
Maybe some extra plume colored hairs.
I had been searching in Irvine for the last 2 months. Looked at over 10 foreclosures and actually put an offer on an REO in University Place. After 2 weeks of not getting back an executed contract and a not so nice home inspection I decided to look around and this thread actually peaked my interest. I originally thought Columbus Square was out of my price range but after considering that I would be spending just as much remodeling the REO, I could buy a new town home and not worry about fixing anything for a while. The very next day I took off of work early and zoomed over there to meet Clayton (super awesome sales guy), toured 4 homes (2 camdens and 2 meriweathers) and fell in love with the camden plan 3. One of the 2 remaining ones was scheduled to sell this past weekend and I did the same for the last one.
Original asking was:
$490k
$10k incentive for flooring
$25k for closing costs
I offered $480 with 20% down and they took away the $10k for flooring which is no biggie for me. I'm going with standard flooring. I was really interested in this plan 3 since each floor has it's own bedroom & bathroom, may make a good college rental later on. I toured the last 2 meriweathers (2 bed/2 bath) but weren't impressed with the living quarters being right above 3 garage doors. The long stairway from the garage to the 2nd floor living quarters was also funky.
I am a little concerned with the toxic soil issues, but then again there isn't any land to plant anything anyways so I kind of waived that off.
Oh and I guess I should mention the 3.99% 30-year fixed through UAMC. That totally sealed the deal. But then the ~$1k/month in HOA+Taxes kind of makes it a wash.
So if everything goes as planned with escrow:
Camden Plan 3
$480k
No Closing Costs
3.99% 30-year fixed
Maybe some extra plume colored hairs.
graphrix_IHB
New member
wolvie3421 said:
Congrats on your purchase. Now, I hope you don't take offense, but I am going to break down your purchase and see if the math of the lower rate works out best for you over 5 years.
$490k
$10k incentive for flooring (This was built into the price since they threw it out, and since they make 80% profit on the flooring, this was a smart choice)
$25k for closing costs (They built this into the price to cover the closing costs and your rate buy down, so you are paying for it. Please see above for proof.)
At a $480k purchase price you put down $96k
At a rate of 4% your payment for a 30 year fixed is $1833 a month.
You pay $440 a month in regular property taxes.
Approximately $440 a month in mello roos.
And $290 a month for HOA.
For a total of $3003 a month.
After five years you would have spent $180,180 and have a principal balance of $347,320.
If you knocked off the $25k in closing costs to the price, you would pay $455k, and only have to put $91k down.
At a market rate of 5.25% your payment for a 30 year fixed is $2010 a month.
You pay $417 a month in regular property taxes.
Approximately $440 a month in mello roos. (Keep in mind, mello roos never change due to the purchase price, and they are a set number every month for 30-40 years)
And $290 a month for HOA.
For a total of $2717 a month.
After five years you would have spent $163,020 and have a principal balance of $335,424.
Figure the closing costs would be about $7k for a rate of 5.25%, but you saved 5k in down payment which is now worth $6k in five years, so really it only cost you $1k more.
So lets say after 5 years the place is worth $550k. If you were to sell with the deal you currently have, you would net $22,500 (-$180+-$347,320+$550,00=$22,500)
Now, if you took the other deal and the place were worth $550k, and you were to sell it, you would net $51,576 (-$1000+-$163,020+-$335,424=$51,576) Even if you knock an additional $1k off, or even $7k you still net more $.
I'm not trying to rain on your parade, but merely show you the math. It costs a sh*t load more to finance $25k over 30 years at 4%, than it does to finance $25k less at 5.25% over 30 years. Plus, your tax break would be about the same or greater at 5.25%. Maybe you should tell them to give you the better price, it's up to you.