What do you guys think....

Shooby_IHB

Shooby_IHB

New member
So quite frankly, I am tired of living in a place with shared walls. Hearing my neighbor's every step or hearing what tv show they are watching, i just need a detached home with a backyard and hopefully a driveway. Screw these CC&R's and inconsiderate neighbors parking their cars in the guest spaces while turning their garages into home entertainment areas.



/end rant.



Currently I'm on track to save about $150K in roughly 5 years (not considering pay or cost of living increases or inflation).



That gives me a down payment of 20% for a $750,000 house. I'll probably sell my place in Columbus Square in order to have a cash reserve again.



Given that, do you think I will be able to get a 2,000 - 2,500 sq ft home in either Irvine or Tustin Ranch in about 5 years? I know we all say the market is coming down, but I'm looking for a newer detached home, and I wanted to make sure my aspirations were on the right track. If not, I'll just go blow it on a new car. Haha just kidding.
 
[quote author="Shooby" date=1244612285]

That gives me a down payment of 20% for a $750,000 house. I'll probably sell my place in Columbus Square in order to have a cash reserve again.



Given that, do you think I will be able to get a 2,000 - 2,500 sq ft home in either Irvine or Tustin Ranch in about 5 years? I know we all say the market is coming down, but I'm looking for a newer detached home, and I wanted to make sure my aspirations were on the right track. If not, I'll just go blow it on a new car. Haha just kidding.</blockquote>


So, you want to know if you can find a house for between $300 - $375 per square foot. Correct me if I'm wrong, but isn't that what we're seeing now? That is what I see when I look at <a href="http://www.ipoplaya.com/">Ipop's</a> site. (Example: What is described as "the newest homes in Tustin Ranch" at Rawlings & Tea Leaf... 2569 Tea Leaf recently closed at $278/sqft.)
 
If I was in a home right now that I didn't want to be in for the next 10 years and had the equity stake to sell it now, I would. If I really didn't care for the place today and had the equity stake, I'd also sell it now. Attached are getting battered more than detached. Frankly, I could not stand the situation you just described if it were anything other than a rental at FAR below market rents in an area that I really loved.
 
[quote author="halfnote19" date=1244614671]Why such a large home?</blockquote>


2000-2500 isn't such a large home, but what I think of as a standard home. 3000+ is large and 4500+ is huge by my standard
 
Shooby,



You just locked in at 4.75% 30 year fixed right? I am assuming you can rent out your columbus townhome and be cash flow positive. If i were you, I would save up (preferably in Gold) and buy your second home with 100 ounces of Gold down and rent out your columbus townhome and rent it out for a very long time and have your tenant pay down your mortgage. When the mortgage rates spike and the recession deepens, the demand for rentals will be strong as borrowing costs will be high. I think in the next 2-5 years, $500,000 - $600,000 for 2000-2500 square feet Irvine home is definitely within reach. You locked in at the bottom and I don't think we will ever see 4.75% for a very very long time. (congratulations on that lock as mortgage rates are only going to get higher). I couldn't sell my townhome so i borrowed as much cheap money as i possibly could from 90% equity/10% loan to 30%equity /70% loan so that 1) I could dollar cost average out of dollar as quickly as i can and 2) i would be cash flow positive if I were to rent it out. If you haven't sold yet, and you have no problem making your mortgage payments, I wouldn't sell your Columbus townhome right now.
 
[quote author="PANDA" date=1244630036]Shooby,



You just locked in at 4.75% 30 year fixed right? I am assuming you can rent out your columbus townhome and be cash flow positive. If i were you, I would save up (preferably in Gold) and buy your second home with 100 ounces of Gold down and rent out your columbus townhome and rent it out for a very long time and have your tenant pay down your mortgage. When the mortgage rates spike and the recession deepens, the demand for rentals will be strong as borrowing costs will be high. I think in the next 2-5 years, $500,000 - $600,000 for 2000-2500 square feet Irvine home is definitely within reach. You locked in at the bottom and I don't think we will ever see 4.75% for a very very long time. (congratulations on that lock as mortgage rates are only going to get higher). I couldn't sell my townhome so i borrowed as much cheap money as i possibly could from 90% equity/10% loan to 30%equity /70% loan so that 1) I could dollar cost average out of dollar as quickly as i can and 2) i would be cash flow positive if I were to rent it out. If you haven't sold yet, and you have no problem making your mortgage payments, I wouldn't sell your Columbus townhome right now.</blockquote>


Actually Panda, the refi process was screwed up and my rate was never officially locked even though I was told it was. I'm still pissed about the situation, but what can I do about it now. I still have my 5.75 rate so i'll just keep paying that off.



I agree, 2000-2500 isn't a large home in my perspective. I don't want to sound greedy, but i do think it's a very reachable size home that would be perfect to live in for many, many years. Of course, $750K is my maximum budget, but if there are homes that size with lower cost per sq ft, then it will make dealing with neighbors and an attached house all worthwhile right now.



Ideally i'd like to keep the townhome, especially with prices dropping as they are. If I can rent it for high enough to offset my mello roos/property taxes, then I may take that into consideration. Thanks guys.
 
[quote author="Roo" date=1244626489][quote author="halfnote19" date=1244614671]Why such a large home?</blockquote>


2000-2500 isn't such a large home, but what I think of as a standard home. 3000+ is large and 4500+ is huge by my standard</blockquote>
For 1 person with no kids, IMO its too big.
 
[quote author="halfnote19" date=1244678292][quote author="Roo" date=1244626489][quote author="halfnote19" date=1244614671]Why such a large home?</blockquote>


2000-2500 isn't such a large home, but what I think of as a standard home. 3000+ is large and 4500+ is huge by my standard</blockquote>
For 1 person with no kids, IMO its too big.</blockquote>
 
I'd hate to suggest mandatory garage inspections, but it's getting close to that point. When you have a flat screen installed in your garage it makes me scratch my head.



Hopefully in 5 years I'll have a family.....so 2,000 will be plenty of space. :)
 
[quote author="Shooby" date=1244684577]I'd hate to suggest mandatory garage inspections, but it's getting close to that point. When you have a flat screen installed in your garage it makes me scratch my head.



Hopefully in 5 years I'll have a family.....so 2,000 will be plenty of space. :)</blockquote>


If you're a single dude looking for a 2k sq ft Irvine SFR, you should get it in a gated community to stop all the desperate women following you home.
 
[quote author="halfnote19" date=1244678292][quote author="Roo" date=1244626489][quote author="halfnote19" date=1244614671]Why such a large home?</blockquote>


2000-2500 isn't such a large home, but what I think of as a standard home. 3000+ is large and 4500+ is huge by my standard</blockquote>
For 1 person with no kids, IMO its too big.</blockquote>


Mine's 1,750ish, and it's certainly larger than I need as a single guy. I have uses for the space, but it's much larger than I was looking for-I just happened to find a place that cost 20% more than the ones I was looking at but had 60% more space, so I couldn't pass it up. But this would be the absolute maximum I would buy-I wouldn't want a place larger than this.
 
[quote author="Shooby" date=1244676440][quote author="PANDA" date=1244630036]the refi process was screwed up and my rate was never officially locked even though I was told it was</blockquote>Brokers try to place both sides, they "say" you are locked, hope rates go down, and pocket the difference.
 
Shooby, I remember when you bought the place; then you were thinking about buying a high rise condo; then you lost your job but found a new one. So, one question, knowing all that you were going to go through, do you regret buying at Camden?



Thank you for your honest perspective on a tri-level attached townhouse. I?m just glad we could all learn from you actions. We would have probably made the same mistake, but let?s just say, I would have probably settled for the attached townhouse lifestyle, if prices would have stayed out of reach. We are just so glad that we can aspire to a detached, two story starter home, even if it?s a detached condo.



I agree with Panda, try to keep it if you can; you sound like you make a decent amount of income, to only put 20% down on a $750k house. You are looking at a payment of over $3,600 (mortgage only @ 6%). How stable is your new job? Brushing up on your excel skills? I remember that post also?



As Bix and IR2 would say? good luck?
 
1500 sf is a good size home. The key is proper layout. In 1500 sf, you'll have a decent sized kitchen, a large dining area a good living room and three decent sized bedrooms. 2000 is large and 2500+ is very large.



What you won't have is a 30 x 30 master bath with massively wasted space, roman tub, shower, vanity area, twin separate sinks, and two giant walk in closets.



Frankly, I look at some of the new 3000 square foot homes and I barely more useable space than a well laid out 1500 ranch. When they go big, they add a bedroom which is no more than 150 sf and tend to add a 'den' and other basically unuseable room. You'll have a 3000sf place and spend 99% of your time in the 1500sf that is the core living area. The new homes in FV are a prime exampe of it as is Portola Springs, poor layouts that have very large homes that feel small due to layout.
 
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