What's my best bet for a home in Irvine under $600k?

[newPParker]

Undecided - you should educate yourself regarding the new proposed tax plan.

Like I said, it's my personal opinion.  You may be right about a price drop.  But hear me out before you write me off.

As far as the tax plan, I've actually read through quite a bit of it.  Both the House and Senate versions.  No state income tax deduction is bad for CA residents.  Property tax deduction is either eliminated or capped at $10k.  Mortgage interest could be limited to loan balances of $500k, so the excess may not be deductible.  The $500k personal residence gain exemption may require a longer holding period (5 out of 8 years instead of 2 out of 5).  We're losing personal exemptions.  Medical expense deductions and student loan deductions are going away.  I know my personal taxes are going up.

But this thread is about homes under $600k.  How many homes in Irvine are selling for under $600k?  For that matter, how many homes under $1MM?  The demand far outpaces the supply for this price target.  Yes the tax plan sucks for the middle class, and many will get hammered.  But the draw of homeownership is more than a tax write-off.  It's a watershed moment for some people, a big piece of the American Dream.  And to be able to afford to buy in Irvine?  It's not an easy accomplishment.  There are more reasons to buy a home than simply for the tax write-off.

Even without the tax breaks, I'd still buy my current home, just for the fact that I am looking for stability.  I want to stabilize my housing costs.  I don't want to see my rent payment go up 5% every year for the next 30 years.  I agree that house prices above a certain price point may suffer, but I just don't see it in the sub $1MM market here, and definitely not the sub $600k market.  Especially because a good portion of buyers here are FCBs with cash for whom tax deductions do not come into play when deciding on buying a home.

If I'm wrong and prices do drop for homes in this price range, investors should take a good look, because prices will bounce back.  But I'm skeptical.  Maybe homes over 1.2MM or 1.5MM will be somewhat impacted, but I think there will be a healthy appetite for starter homes in Irvine for the foreseeable future.

Senate version amended the 10k property tax.

 

[usctrojancpa]

Thank you for your input everyone. I think my wife and I are going to try and stretch our budget a bit and try to get one of the new 3 bedroom townhomes at Brisa in Portola Springs. Their grand opening is next week so hopefully we can get in on one of the early phases.

If you're serious about it, don't wait until the grand opening, take an agent (would suggest USC) and go now to the sales office and put your deposit in.

Don't know about this community but there were usually incentives being offered to agents that bring in clients. 

And some agents provide an incentive back to the buyer via a commission rebate. 

 

[usctrojancpa]

Undecided - you should educate yourself regarding the new proposed tax plan.

Like I said, it's my personal opinion.  You may be right about a price drop.  But hear me out before you write me off.

As far as the tax plan, I've actually read through quite a bit of it.  Both the House and Senate versions.  No state income tax deduction is bad for CA residents.  Property tax deduction is either eliminated or capped at $10k.  Mortgage interest could be limited to loan balances of $500k, so the excess may not be deductible.  The $500k personal residence gain exemption may require a longer holding period (5 out of 8 years instead of 2 out of 5).  We're losing personal exemptions.  Medical expense deductions and student loan deductions are going away.  I know my personal taxes are going up.

But this thread is about homes under $600k.  How many homes in Irvine are selling for under $600k?  For that matter, how many homes under $1MM?  The demand far outpaces the supply for this price target.  Yes the tax plan sucks for the middle class, and many will get hammered.  But the draw of homeownership is more than a tax write-off.  It's a watershed moment for some people, a big piece of the American Dream.  And to be able to afford to buy in Irvine?  It's not an easy accomplishment.  There are more reasons to buy a home than simply for the tax write-off.

Even without the tax breaks, I'd still buy my current home, just for the fact that I am looking for stability.  I want to stabilize my housing costs.  I don't want to see my rent payment go up 5% every year for the next 30 years.  I agree that house prices above a certain price point may suffer, but I just don't see it in the sub $1MM market here, and definitely not the sub $600k market.  Especially because a good portion of buyers here are FCBs with cash for whom tax deductions do not come into play when deciding on buying a home.

If I'm wrong and prices do drop for homes in this price range, investors should take a good look, because prices will bounce back.  But I'm skeptical.  Maybe homes over 1.2MM or 1.5MM will be somewhat impacted, but I think there will be a healthy appetite for starter homes in Irvine for the foreseeable future.

Senate version amended the 10k property tax.

Like I mentioned, people need to wait until the dust settles before they start analyzing things. 

 

[mikebruin]

I respect your opinion USCTrojanCPA, but part of the problem is that the senators are voting on something they don't understand completely, and they are pushing the legislation through at breakneck speed.  Take a look back at the last time the Internal Revenue Code was changed this drastically back in 1986.  How many sessions of debate were held in Congress at that time.  At least it was more thoroughly vetted.  How many of these senators do you think have actually read the bill they are voting on?

I can absolutely guarantee, before the dust settles, that this is a no win for me and many others in a similar situation (main source of income is wages, not business income).  Yes the Senate bill repealed the 10k cap, but the House bill still includes it, so that will be a point of contention before the final bill is passed.

But I'm not worried about 10k.  The bill is a fundamental shift of taxes from businesses to individuals.  At least make it a bit more fair, like I said.  I'm all for business owners getting tax deductions.  They generate jobs.  But to give them a 50% tax deduction and then I get a 5-10% increase?

I'm independent, not democrat or republican.  I like the idea of cutting taxes.  The problem I have is the allocation of the tax cut.  At least cut me in on some of it.

Combine the tax bill with the upcoming potential repeal of net neutrality, and I just see very bad things coming this way for our country.  Great if you are already a multimillionaire, you'll get a bump in the net worth of your portfolio.  But the effects of this tax bill on the middle class will suck, and the results will be hidden or written off as fake news and squashed, the way Fox news hides everything negative about Trump.  Except without net neutrality, Fox won't be the only one.  All of our news sources will be controlled, and true independent journalism will be nowhere to be found.

---

I stand corrected on the 10k property tax comment.  The original version of the Senate bill eliminated this, but seems the most recent version aligns with the House bill.  Still hurts me, but wanted to acknowledge my mistake.  Thanks to those smarter than me for pointing this out.

 

[eddieuclabruin]

Thank you for your input everyone. I think my wife and I are going to try and stretch our budget a bit and try to get one of the new 3 bedroom townhomes at Brisa in Portola Springs. Their grand opening is next week so hopefully we can get in on one of the early phases.

If you're serious about it, don't wait until the grand opening, take an agent (would suggest USC) and go now to the sales office and put your deposit in.

Thanks for the advice!
I tried contacting their office but nobody answered/got no response. I?m not even certain that they actually have a sales office open yet?

 

[marmott]

Your first steps should be to register on the interest list and to get pre qualified through their preferred lender.

You can contact Cal Pac customer service to see if the pre qualification is open already or not. If the opening is next week it should be.

 

[usctrojancpa]

Your first steps should be to register on the interest list and to get pre qualified through their preferred lender.

You can contact Cal Pac customer service to see if the pre qualification is open already or not. If the opening is next week it should be.

Yup, getting loan pre-approved with the builder's lender is what puts you on the list...not when you go to the sales office and/or register with an agent.

 

[momopi]

Thank you for your input everyone. I think my wife and I are going to try and stretch our budget a bit and try to get one of the new 3 bedroom townhomes at Brisa in Portola Springs. Their grand opening is next week so hopefully we can get in on one of the early phases.

Do you have to buy in Irvine?  The HOA and mello roose on new build attached homes tend to be high.  If you can accept an older SFR in nearby city such as Mission Viejo, you might be able to afford something up to $700K for the same monthly payment.  Examples:
https://www.redfin.com/CA/Mission-Viejo/24142-Sprig-St-92691/home/4841346https://www.redfin.com/CA/Mission-Viejo/22536-La-Vina-Dr-92691/home/5083776

There are some SFR's priced from high 500K to 700k in MV on the market.  They tend to have very low HOA and if not part of lake membership, you have option to join.

 

[eddieuclabruin]

Thank you for your input everyone. I think my wife and I are going to try and stretch our budget a bit and try to get one of the new 3 bedroom townhomes at Brisa in Portola Springs. Their grand opening is next week so hopefully we can get in on one of the early phases.

Do you have to buy in Irvine?  The HOA and mello roose on new build attached homes tend to be high.  If you can accept an older SFR in nearby city such as Mission Viejo, you might be able to afford something up to $700K for the same monthly payment.  Examples:
https://www.redfin.com/CA/Mission-Viejo/24142-Sprig-St-92691/home/4841346https://www.redfin.com/CA/Mission-Viejo/22536-La-Vina-Dr-92691/home/5083776

There are some SFR's priced from high 500K to 700k in MV on the market.  They tend to have very low HOA and if not part of lake membership, you have option to join.

Thanks for the info! We're definitely open to an SFR/detached condo in a non-Irvine, south O.C. city, however we do not want to go toofar south because my wife works in North O.C. We are actually sort of considering Rancho Mission Viejo since the value is still pretty good down there (for a new home), however it would literally be a 30 mile commute for my wife.

 

[Kangen.Irvine]

RMV is really far unless you are planning to take the 241/ Los Patrones. It really depends where your wife commutes if considering South OC. Anything in northwest OC would be quite far, but anything within reach of the 241/261/73 could be worth considering. Be mindful of CUSD, as their Board and teachers seem to be always in conflict.

 

[paydawg]

[/quote]

Thanks for the info! We're definitely open to an SFR/detached condo in a non-Irvine, south O.C. city, however we do not want to go toofar south because my wife works in North O.C. We are actually sort of considering Rancho Mission Viejo since the value is still pretty good down there (for a new home), however it would literally be a 30 mile commute for my wife.
[/quote]

That 30 mile commute from RSM to North OC will be painful.  I'm guessing it's at least 60 minutes each way in rush hour traffic. 

 

[eyephone]

Thank you for your input everyone. I think my wife and I are going to try and stretch our budget a bit and try to get one of the new 3 bedroom townhomes at Brisa in Portola Springs. Their grand opening is next week so hopefully we can get in on one of the early phases.

Do you have to buy in Irvine?  The HOA and mello roose on new build attached homes tend to be high.  If you can accept an older SFR in nearby city such as Mission Viejo, you might be able to afford something up to $700K for the same monthly payment.  Examples:
https://www.redfin.com/CA/Mission-Viejo/24142-Sprig-St-92691/home/4841346https://www.redfin.com/CA/Mission-Viejo/22536-La-Vina-Dr-92691/home/5083776

There are some SFR's priced from high 500K to 700k in MV on the market.  They tend to have very low HOA and if not part of lake membership, you have option to join.

Thanks for the info! We're definitely open to an SFR/detached condo in a non-Irvine, south O.C. city, however we do not want to go toofar south because my wife works in North O.C. We are actually sort of considering Rancho Mission Viejo since the value is still pretty good down there (for a new home), however it would literally be a 30 mile commute for my wife.

Maybe you should look in north OC area. Los Alamitos/Rossmore, Cerritos, good part of Fullerton.

Just remember you have a $600k budget scratch the Los Alamitos/Rossmore from the list.

 

[momopi]

Thank you for your input everyone. I think my wife and I are going to try and stretch our budget a bit and try to get one of the new 3 bedroom townhomes at Brisa in Portola Springs. Their grand opening is next week so hopefully we can get in on one of the early phases.

Do you have to buy in Irvine?  The HOA and mello roose on new build attached homes tend to be high.  If you can accept an older SFR in nearby city such as Mission Viejo, you might be able to afford something up to $700K for the same monthly payment.  Examples:
https://www.redfin.com/CA/Mission-Viejo/24142-Sprig-St-92691/home/4841346https://www.redfin.com/CA/Mission-Viejo/22536-La-Vina-Dr-92691/home/5083776

There are some SFR's priced from high 500K to 700k in MV on the market.  They tend to have very low HOA and if not part of lake membership, you have option to join.

Thanks for the info! We're definitely open to an SFR/detached condo in a non-Irvine, south O.C. city, however we do not want to go toofar south because my wife works in North O.C. We are actually sort of considering Rancho Mission Viejo since the value is still pretty good down there (for a new home), however it would literally be a 30 mile commute for my wife.

What city does your wife work in?  From Rancho MV you can board the train at San Juan Capistrano station:https://www.metrolinktrains.com/rider-info/general-info/stations/san-juan-capistrano/

However since these are new builds, I would be wary of high HOA and mello roose.

 

[momopi]

Maybe you should look in north OC area. Los Alamitos/Rossmore, Cerritos, good part of Fullerton.
Just remember you have a $600k budget scratch the Los Alamitos/Rossmore from the list.

For Cerritos you'll need $800K+, Rossmore $1 Million+.  La Palma is still avail in 700K-800K range.