What's going into escrow - Irvine and maybe some Tustin too

[quyenlnxihb_IHB]

I agree with everybody here. My neighbor who is Japanese bought his house last year but he rarely lives there. He bought his house so he can practice golf on weekend(because of the big backyard). I remember in the 90's, the Japanese also bought a lot of real estate at the peak. His house lost 7% value since he bougth it.

 

[EvaLSeraphim_IHB]

I think the key word here is "foreign". I'm an Asian, but work and live in IR. What I offer see is people from other country pump in their money to Irvine real estate which they have no business or intention of living here. It drives the home price up and price-out a lot of the middle income people who actually live and work in Irivne, who provides a services to the community. We can all thank the weak US dollar and the lack of some form of restriction to this.

Let the foreign Chinese and Korean knife catchers buy these homes at the $700,000 range. We will then buy their home for $450,000.

FYI: I dropped my Irvine real estate agent like a fly because I was getting sick and tired of her lies. i.e. inventories levels are at one month supply and we in a sellers market in Irvine.

Look&checking,

I could not agree with you more. If we americans wanted to purchase land or real estate in Korea, we are not allowed to because we are not korean citizens. I'm sure it is difficult to buy real estate in China as well. Why does Irvine make it so easy for rich foreign asians to buy a home here, driving the price up and pricing-out the middle income americans who deserve these homes. I also wish that the government would do something to restrict foreigners to buy the homes in Irvine or atleast a priority should be given to U.S. Citizens and Permanent Residents. If a foreigner and an american both want to buy the same $1M home in Irvine and the Rich foreign China man is willing to pay 100% cash, the home should be given to the american who can put $200,000 down and take a $800,000 mortgage.

On a larger scale, I have personal issues with the U.S. government. I feel that they have messed up pretty bad and the worst part of it is that they don't want the americans to know how bad this recession is going to be. We are in a trillion dollar deficit and we are completely hopeless in paying it back. The FED is cranking up the printing press making monopoly money, making our dollar practically worthless. The FED will try to inflate its way out of this mess and avoid deflation at all costs. Who will suffer from the mistakes of our government, we the Americans will.

At the same time, the Chinese currency RB will appreciate the most out of all asian currencies against the weakening dollar. This makes Irvine homes look very cheap in the eyes of "Rich Foreign China Man." And "YES" Panda does FEAR the buying power of the "Rich Foreign China Man."

I know you have been in Georgia only for a short time Panda, but really, it's time to stop hanging out with Lou Dobbs. ;-)

 

[PANDA DREAMING OF IRVINE_IHB]

Eval,

Frankly, to be honest, I have never heard of Lou Dobbs before. I am just expressing my opinion that I feel very strongly about.

Panda

 

[irvine123_IHB]

Panda, I do have to admit that you did sound like Lou Dobbs.

By the way, in regards to to "rich Foreign Chinese man" coming here to buy homes: unless they already have US passports and Greencards, it is not easy for them to even get visa to come here. I doubt there will be enough of them to make any material difference here in Irvine.

 

[reid_IHB]

Would someone care to explain why any wealthy foreign national would care to buy residential real estate in Irvine of all places? It just doesn't fit the image of an ideal vacation destination. Are we talking about a purely speculative play? If that's the case, it really does sound like the 80's all over again.

 

[ipoplaya_IHB]

An entertaining recent close on a big place in Tustin Ranch... Someone lost over $400K since their late 2005 purchase. Man that's gotta hurt!

Updated IPO-Shiller

 

[QHBruin_IHB]

Would someone care to explain why any wealthy foreign national would care to buy residential real estate in Irvine of all places? It just doesn't fit the image of an ideal vacation destination. Are we talking about a purely speculative play? If that's the case, it really does sound like the 80's all over again.

I'll take a stab at this.

It doesn't make much sense to purchase in Irvine if it's for a vacation home.

However, Irvine is known for its good school district. So.. this could attract foreign families looking to educate their children. With home prices down 20% and with the US dollar off around 30%, US investments are immensely more financially attractive. Put into another prospective, a foreign buyer who was looking to buy a $1mm dollar home at the peak 3-4 yrs ago would now be paying the equivalent of $560,000 ($1mm x 80% x 70%). That's a pretty good discount.

 

[graphrix_IHB]

OMG! There are no more "rich foreigners" buying here in Irvine, or OC for that matter than there was in 1990, 1996, 2001, or 2008. The idea that there are more buying here now is just ludicrous. There has always been foreign buyers in Irvine and OC, and anyone who thinks that it is different than before is just smoking Kool-Aid. Sorry, but it is just stupid, and if there is any increase in buyers, then they should ask the Japanese if they are buying. Why? Because they are not buying, because they remember what it was like to lose their a$$ and have to sell for pennies on the yen for the overpriced properties they bought. They got hosed, and they got hosed hard, just like any other sucker foreigner who buys property here.

Please, please stop this ridiculous statement, just like asking what mello roos is, it is a dumb question/statement.

I know... five years from now I will do a blog post on all the foreigners who get hosed, and get hosed hard, because the dollar is up and their economy at that time makes our current economy look like heaven because it was no where near as bad as their's. I learned something a long time ago from economist Pierre Rinfret, never, never ever, under estimate the American economy. OMG... I sound bullish.

 

[acpme_IHB]

graphrix is right. what's impt is volume. in 2004 if there were 100 buyers, let's say 35 of them were foreigners. today there's only 40 buyers and 30 of them are foreigners. everyone is leaping up and down at the foreigners here to save the day. anyone else see the flaw in that logic?

secondly, this rich foreigners taking over irvine idea is getting out of hand. there will always have foreigners moving here because the town provides diverse businesses and services, and neighborhoods that make immigrant families feel welcome and safe. this did not happen overnight and therefore doesn't justify housing prices growing at any diff rate than they did in earlier periods.

thirdly, 20 yrs ago the japanese owned every piece of avail real estate in los angeles. today it's saudi and chinese sovereign funds. i personally don't think they're going to fare any better than the japanese did. if you really believe they're the only ones that will afford to buy in irvine in the future, you should do what they're doing and load up on oil and chinese equities. it's just more bubble mentality.

 

[southoctracker_IHB]

The foreigners argument is not surprising whatsoever...and it's almost exactly the same arguments that were made in the 90s for how they were going to save the day. I'll believe it when I see it...

 

[acpme_IHB]

somehow the idea of rich foreigners saving the day isn't strengthened when i hear that these people are also developing/buying multi-million dollar properties based brad pitt's architectural designs and the endorsements of race car drivers.

Celebrity Endorsers Help Lure the Rich to Dubai

By STEFANIA BIANCHI

June 9, 2008; Page B10

DUBAI, United Arab Emirates -- Property developers in this Persian Gulf sheikdom, famous for its grandiose projects, are increasingly turning to American and European celebrities to help sell the properties to wealthy consumers.

The latest luminary to lend his name to a development here is Hollywood star Brad Pitt, who will design a five-star hotel and resort for Zabeel Properties, a relatively new company in the lodging industry. The 800-room hotel will feature "environmentally friendly architecture," Mr. Pitt said in a prepared statement. The actor will work with Graft LLC, an architecture firm based in Los Angeles.

Mr. Pitt joins Wimbledon champion Boris Becker, fashion designer Giorgio Armani and golfers Greg Norman and Tiger Woods, among others, who have staked their reputations on helping Dubai property agents lure wealthy foreigners.

"Real-estate branding involving global celebrities is here on a scale that doesn't happen in markets anywhere else," Blair Hagkull, managing director of Jones Lang LaSalle's Middle East unit, told Zawya Dow Jones. "Developers are going to huge extents to attract investors" as competition rises, he says.

Glitzy marketing that uses celebrities to sell homes and fill hotel rooms and office space is no guarantee that the developments will be successful -- and in some cases can even hint of problems ahead. A few years ago in Las Vegas, several splashy condominium projects associated with celebrities -- including Hall of Fame baseball slugger Reggie Jackson and actor George Clooney -- were canceled when it became clear that the market was overbuilt. These days, Las Vegas is one of the worst housing markets in the U.S.

That said, there are few signs that investors are shying away from the region's real-estate market. According to Dubai-based research firm Proleads, about $2.4 trillion in real-estate projects are currently under construction in the oil-rich Gulf Cooperation Council region, which includes Saudi Arabia, Kuwait, Bahrain, Qatar, the United Arab Emirates and Oman. Dubai alone, the second-largest emirate in the U.A.E., after Abu Dhabi, expects $50 billion in real-estate investment by 2010.

The obsession with celebrity in Dubai's real-estate industry is such that even B-list stars are in demand. The face of Niki Lauda, made famous by a near-fatal racing-car accident in 1976 on the Nurburgring in Germany, will be emblazoned across one of three office towers in Dubai planned by ACI Real Estate.

According to ACI's blurb, the Niki Lauda Twin Towers will cover 16,000 square feet of space and stand alongside similar offices named after Boris Becker and retired racing driver Michael Schumacher in Dubai's latest swanky property project called Business Bay.

"Celebrity endorsements make sense where they clearly add value to a project and there's a direct correlation between the celebrity and the development," said LaSalle's Mr. Hagkull.

 

[skek_IHB]

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[graphrix_IHB]

What if the government decides that there are too many pandas in Irvine and doesn't allow you to buy here? You'd be a very sad panda.

Nooooo... sad pandas, only HAPPY pandas, pandas must be EXCITED and HAPPY! Only happy pandas in Irvine, no sad pandas allowed.

 

[PANDA_IHB]

What if the government decides that there are too many pandas in Irvine and doesn't allow you to buy here? You'd be a very sad panda.

Nooooo... sad pandas, only HAPPY pandas, pandas must be EXCITED and HAPPY! Only happy pandas in Irvine, no sad pandas allowed.

Skek, if the government decides that there are too many pandas in Irvine and doesn't allow any Pandas to buy here. Panda would CRY.

Graph, only time will tell who is right.

 

[caycifish_IHB]

What if the government decides that there are too many pandas in Irvine and doesn't allow you to buy here? You'd be a very sad panda.

Nooooo... sad pandas, only HAPPY pandas, pandas must be EXCITED and HAPPY! Only happy pandas in Irvine, no sad pandas allowed.

Skek, if the government decides that there are too many pandas in Irvine and doesn't allow any Pandas to buy here. Panda would cry....

Graph, only time will tell. In 2013, let's revisit this and see who is right.

There's nothing to be afraid of...the Irvine government shouldn't worry.

 

[caycifish_IHB]

 

[Anonymous_IHB]

Pandas fit right in with the San Diego Wild Animal Park (http://www.sandiegozoo.org/wap/index.html)

And maybe someone will give you their "get one free" house in Escondido ...

 

[ipoplaya_IHB]

Hey Ipo, I think 11792 Red Hill has closed. It's dropped off my Redfin list, at least. Can you check if a final price is available yet? BTW, 3 more properties I've been watching went into escrow this past week in the $1.1-1.6M range.

It's pending sale status doc. Not closed yet. Will post here when it does...

Hey doc, Red Hill closed today. Went for $1.74M...

 

[PANDA DREAMING OF IRVINE_IHB]

I think the key word here is "foreign". I'm an Asian, but work and live in IR. What I offer see is people from other country pump in their money to Irvine real estate which they have no business or intention of living here. It drives the home price up and price-out a lot of the middle income people who actually live and work in Irivne, who provides a services to the community. We can all thank the weak US dollar and the lack of some form of restriction to this.

Caycifish,

Now Stop that....

Panda didn't mean any harm. He was just trying stick up for "looking&checking" who seems to be a good middle class Asian American who lives and works in Irvine. Panda was also trying to express his concerns for the future of the U.S. economy and he's getting shot at in all directions.

Anonomous, I don't want to live in a Big Free Cage in San Diego Zoo, I want to live in a big, nice, beautiful 2500 square feet Irvine SFR with FAT a lot and I am willing to pay for it. Ahhhh, I can smell that Irvine beauty already....... "Irvine homes are to Panda what young, Beautiful, hot, sexy, OC blondes are to TEN"

I better get by butt out there and buy a Irvine home before Arnold Schwarzenegger passes a new California law that Pandas are forbidden to buy property in Irvine.

What if the government decides that there are too many pandas in Irvine and doesn't allow you to buy here? You'd be a very sad panda.

 

[bkshopr_IHB]

This is a single story home. It occupies the largest lot and and the price is all in the land. Please do not compare it to the price of a McMansion on a postage stamp size lot. Value ratio should be different for homes with different density. You are expected to pay more for a single story home.

Well, the banks better get used to it because $550k price is still in the WTF price range in my eyes for a tiny 1750 sq/ft BOX. The correct non-bubble price for this Camelia tract should be at $437,500 - $450,000 range. That is the price we will see in Northwood II in 2010 and that is the price PANDA will pay.

I can tell you no way the bank will approve this, the agent purpose drop the price by $300k just to get all the attention, they are NOT interest in sell it at this price, I know from the agent. http://www.redfin.com/CA/Irvine/21-Grape-Arbor-92620/home/5931550