How do you value very high end homes? I don’t know. The person who is buying a $15,000,000 property probably isn’t getting a subprime option ARM with 100% financing and a 1% teaser rate. In fact, people who buys homes at these price levels often don’t use financing at all.
I do have to wonder, would you pay $15,000,000 to live in Irvine?
Price: $15,000,000
72 GOLDEN EAGLE
IRVINE, CA 92603
Beds: 6
Baths: 6.5
Sq. Ft.: –
Lot Size: 0.94 acres
Type: Single Family Residence
Style: Other
Year Built: 2007
Stories: Three or More Levels
View(s): Golf Course
Area: Shady Canyon
County: Orange
MLS#: U7001252
Status: Active
On Redfin: 156 days
Unsold in 90+ days
A pleasing departure from other Shady Canyon custom homes. This uniquely elegant 6 bedroom, 6 and 3 half-bath residence, modeled after the famed La Suvera in Tuscany, boasts a dramatic 3-level sunken central courtyard and the area’s best views. Theater, library, 9 car garage, wine cellar, pool, spa and best golf course view. Home to be completed in early 2008.
.
.
Nice place. What do you think?
Maybe things have changed since I lived there, but Irvine has never struck me as a place to drop $15 million. For that matter, it’s never struck me as a place to drop $1.5 million either. In fact, for $1.3 million LESS, you can live here immediately.
Both are overpriced, but if I’m going to fork over that kind of money, it’s not going to be for less than an acre in cattle country.
—–
Off-topic, but today’s NY Times has two or three pretty good articles on housing, including an “inside” look at Countrywide and how they bamboozled first time borrowers by offering them loans with terrible terms, when there were better loans available to them.
Also, the paper has an article about how the median price of a home nationally will decline for the first time ever…a major shock to people living in areas that have not seen huge run-ups in home prices (Chicago, Minneapolis, Houston, etc.).
Wow.
For $15 million, you can buy a monster mansion with a few acres of land….in the Malibu hills!
No offense to Irvine – but when has it ever been more pricey than Malibu?
Nine car garage – and no heliport. Pass!!
Who would pay 15 million in Shady Canyon, Mark McGuire is one person, he’s lived there for about five years now. Shady Canyon is right next to Newport Coast where you’ll find numerous sports stars and rich internationals, it’s not like they’re buying a 15 million tract home many are custom built and comparable to what you’d find in Beverly Hills.
That said 15 million is high for that house.
you can buy any of dozens of homes that sit right on the coastline for $15 mil. why live in a canyon when you could live on the beach or a harbor for the same money or even less?
Chicago, Minneapolis, etc have seen extreme run-ups, almost as bad as OC. The cities proper, instead of suburbs, a little less so, but inner city Minneapolis & St. Paul, and inner city Chicago aren’t much different than South Central.
I have contemplated this topic for some time, and the only thing I can think of that sets Shady Canyon apart is the private golf course. That is a pretty big draw (i suppose), and offers a level of exclusivity not easily matched. It is a very nice development, I just don’t think it should have prices rivalling (sp?) coastel properties. There are some people who actually prefer properties just inland from the coast because you tend to have more sunny days.
$15mm is a whole lot of money but a comparable house in Bev Hills, Palos Verdes, and Malibu would fetch much higher prices. Would I drop $15mm on a house in Irvine? Well, I guess it depends how much money I have. If I could afford it, then I absolutely would.
Great schools, safe city, friendly people…compare that to Bev Hills where surprisingly the schools suck and there are pockets of seedy areas bordering the city, Irvine is a much more attractive option.
Now, I’m not comparing Irvine to other cities in the U.S. because I’m aware that for $15mm you can probably buy a whole community in Texas (exaggerating). What I’m saying is that Irvine is a great place to live and the high demand/appeal to live here is one of many factors that have caused property value to increase so much over the years.
I’m a casual reader of this blog and, for the most part, all I see is people ripping Irvine. If you guys dislike the city so much, why don’t you move out? Nobody is holding you to Irvine/Orange County.
I’m a proud Irvine resident and I think it’s one of the best cities/areas to live in Southern California. I know affordability may be an issue but don’t rip something just because you can’t afford it. I can’t afford a Ferrari but I don’t rip people who drive them.
If I had $15M to blow on a house, I’d be on Harbor Island, or Linda Isle. You can get a great historic estate on 3 acres in the Tustin Hills for half – and no Mello Roos or HOA.
“I do have to wonder, would you pay $15,000,000 to live in Irvine?”
I was asking myself the same question.
This bubble has become stupid. 15m in Irvine is laughable. I hope it rots on the MLS.
Shady Canyon is a whole hell of a lot nicer than Tustin.
Yes, there were some great NYTimes articles. I’ve linked them at the end of the Gimmie Shelter topic, here are the links again for convenience. Check out the Schiller Psychology lesson too, that’s an itneresting read as well.
Drop Foreseen in Median Price of U.S. Homes
http://www.nytimes.com/2007/08/26/business/26housing.html?pagewanted=1&_r=1
Inside the Countrywide Lending Spree
http://www.nytimes.com/2007/08/26/business/yourmoney/26country.html?pagewanted=1
A Psychology Lesson From the Markets
By ROBERT J. SHILLER
http://www.nytimes.com/2007/08/26/business/yourmoney/26view.html?ex=1345780800&en=f22bc73ddd26445e&ei=5124&partner=permalink&exprod=permalink
‘Underpriced’ at $100 Million
Five houses are vying to be the most expensive ever sold, market slump notwithstanding. Ben Casselman and Christina S.N. Lewis handicap the race.
http://online.wsj.com/article/SB118791696265107415.html?mod=most_viewed_day
$15 Million sunk all at once into a home? Personally, I’d rather take 1/3rd of that and buy a coastal home, then invest the remaining balance and live off the interests.
Wonder if this has been going on in California too
Migrants fleeing as hiring law nears
Immigration hard-liners cheer, but economic fallout begins
http://www.azcentral.com/arizonarepublic/news/articles/0826sanctionsimpact08260.html
She pointed to three of her West Valley listings that are owned by illegal immigrants who want to leave Arizona.
One was a brick four-bedroom selling for $167,000 in the historic district of Avondale. Another was a beige stucco house selling for $210,000 in a new subdivision in southwest Phoenix. One was a blue townhouse selling for $95,000 in west Phoenix.
“A lot of people are selling because of the uncertainty,” she said. “They have one or more family members who are undocumented, and without that extra money, they can’t make the mortgage.”
Going to redfin.com and looking at all the dots in 92603 (no search restrictions) is crazy.
Zooming in on Shady Canyon, same pattern, not many folks willing to pay those prices. Lots for sale.
I agree with you. I personally don’t think there’s anything better about LA than Orange County. I avoid going in to LA at all cost. The last time I was there was 2 years ago when I flew out of LAX.
I also agree that Irvine is a great city, and a great place to raise a family. However, that does not dismiss the fact that Irvine has a day of reckoning coming in the future.
BTW, I suspect there’s several bitter renters that frequent this venue that can actually afford a Ferrari, but are too prudent to buy one. These people are never going to buy a Ferrari for the same reason they’re never going to buy a vastly overpriced home, that’s presently in decline mode. People with less income, less savings, less FICO score, and less brains have been allowed to inflate real estate. This is not hard to understand. Now we patiently watch as the inevitable happens.
I’m glad you made the point Sue. I would just be ridiculed by the people here for pointing out the obvious: That immigrants and their liberal enablers are responsible for all the foreclosures taking place across this great nation of ours. It is the first part of their plan to topple the United States and form a racially intolerant country called Aztlan. We need to kick these people out before they succeed in spreading their bigotry!
Yeah, let’s make a magic wardrobe so we can deport Aztlan and all his followers!
Housing Crash Update
https://www.youtube.com/watch?v=lEj80hTVHyc
Magic? Not only would that be ineffective, but it would also be blasphemous. I’ll stick with old fashioned prayer thank you very much. You may lack logic, but at least your spirit is in the right place.
“It is the first part of their plan to topple the United States and form a racially intolerant country called Aztlan. We need to kick these people out before they succeed in spreading their bigotry!”
As opposed to the bigotry you’re spreading, Kirk?
It’s hard to judge the value of Irvine from here in Chicago.
But Irvine looks desirable from here, and it could be that the canyon might have some advantages over the coast.
$15MM is beginning to look cheap for the coast, judging from what I’m seeing. I see stuff listed for $45MM and in a couple of cases, over $100 MM, in the exclusive coastal suburbs of L.A.
Not that they always get what they ask. What strikes me about these trophy houses costing $45 MM or more is that when the person who conceived it goes to sell it, he takes a big bath. When a person builds a house like this, he wants his own dream, not someone elses.
Most of all, the market for these houses is so tiny it doesn’t even rate, and people in this bracket can usually buy only one such palace. When they discover how much it costs to operate a place like this, they want out.
Here in Chicago, a large no. of houses costing $10MM or more have been built in Lincoln Park, just north of the fabled “gold coast”. Previously, LP was a moderately rich neighborhood of extreme refinement and lack of ostentation.
Now that the bubble has burst, I wonder who will buy those houses on Howe St, because only once per century is there a fad for these magamansions. Now it’s over, and the hedge fund managers who bought them most likely won’t be able to afford them anymore.
If I had $15M to blow on a house, I’d be on Harbor Island, or Linda Isle
I’d settle for a modest place on the Cote d’Azur myself…
As a city dweller, I’m more amazed by a 9 car garage for a 6 bedroom house. Can you rent out the garage to students? It would help cover the mortgage.
Of course, Irvine has anteaters.
Kirk, get the joke before you make yourself look sillier. For example, try googling Aslan and the Lion, the Witch, and the Wardrobe. It’s got magic but also a bible connection. Should be right up your alley. You Silly, Silly man.
The comps are all under 5 million. This place better have a golden toilet.
Hey, guess what is going on over on the other side of the hill in Corona? 3300 homes for sale in that city alone.
Yeah, liberal enablers, like, the Chamber of Commerce and small and large business owners.
I think the second part of the plan is to change the names of all the great cities in California to Spanish ones!
considering that I have Florentine roots, I might be tempted to pay $15 million for this particular house.
But for $15 million, you can buy a real Tuscan villa in Tuscany, even at the perpetually hyper-inflated prices there.
To answer the question, with no slight meant to Irvine or OC, no. No way and frankly, I would question the judgment of anyone who did think so. $15M is a lot of jack. Before I sunk fifteen very large into a 6 bedroom, sub one acre home, I’d have to find ten or so million hidden underneath the platinum floorboards.
Honestly, when you start spending that kind of money, it’s all about location. Irvine, no matter how nice, isn’t that location. Either that or $15M buys a lot less than it used, even in southern California.
Aztlan is no joking manner and if you think it is then you are the “silly” one. By “silly” I mean a raving lunatic unaware of what is going on around them. Look around you… what do you see? Immigrants everywhere! I’m not talking about European immigrants. I’m talking about the others. They are easy to spot, yet you are blind to them. That speaks volumes of your value system and everyone here can see who the nutcase is.
If you give me $15 million, I’d buy some nice income property, retire, and travel the world.
Cathy Pacific has a nice deal that I’ve always wanted to use:
http://www.cathayusa.com/offers/allasiapass/subdefault.asp
I’d pay $400 more to extend from 21 days to 90 days. Then I’d be surfing from a laptop in a hotel in Thailand, browsing the Irvine Housing Blog and wondering why people would sink $15 million into a house.
I agree with points 1b and 2. I disagree with points 1a and 1c.
Why wouldn’t you just buy this one instead?
http://homes.realtor.com/search/listingdetail.aspx?source=a15696&ctid=2206&ml=3&mnp=44&mxp=46&typ=1&sid=6b80970f902749d989dae19d54feb563&pg=6&lid=1075352662&lsn=51&srcnt=107#Detail
I’m sorry if I didn’t make it clear, but I am against Aztlan. That was actually the whole point of my comment. Either you are drunk or a troll if you didn’t get that out of it.
Irvine, and most of Orange County has to be the most boring, and fake parts of California. We call it “behind the orange curtain” for a reason. And people think that having access to a private golf course is reason to live somewhere? How about something like, oh I dunno, culture? nightlife? something to do besides watching the grass grow on your fake lawn? Apparently some people like being so completely shut-off from the world, that strip-malls, TGIF’s and bloomingdales is all they need til they die.
blech
For 15M I’d rather buy a castle: http://www.viviun.com/AD-80209/
“have been allowed to inflate real estate.”
I’d go so far as to say ‘encouraged’ to…
I can tell you are joking, Kirk.
or, like Kirk, a drunk troll.
get a life, guy.
Heck, for $15 million I can buy a 25-acre island in the Bahamas, with its own airstrip….
http://www.privateislandsonline.com/leaf-cay.htm
No.
Yeah, with $15M I’d head back up to WLA and live comfortably in the culture- and beach-close community of Brentwood. Schools not as good, but with that kind of money I could also afford the private schools. Mmmmm…I could also have decent thai, mexican, chinese and peruvian food any day of the week. I’m not knocking Irvine and am pretty comfortable here, but with my options pretty wide open with that kind of cash that’s what I’d do.
BTW, does anyone know of a great Thai place around here?
A humor this dry requires a martini….
moi aussi!, Cannes anyone?
The OC is the armpit of CA. The only things going for it are the beaches and the large immigrant populations. The prefab mcmansions and incestuous hollow bling which permeates the basin is an epidemic root rot; whatever was beautiful about the area is diseased by vapid materialistic freeway culture and stepford conformity.
Great place to raise a family? That’s some messed up values right there.
A nine car garage would be cool, though.
I just heard that the jackpot for the Mega Millions lottery is $250 million (145 if taken in a lump sum), so I was trying to figure out what I’d do if I won. I’m guessing after paying Fed and CA taxes, that would leave me with only 75 or so million.
That’s not a whole lot is it if I wanted to buy this 15 million dollar home. I’m guessing around 35k for property taxes alone, and I’m sure the association fees in Shady Canyon are astronomical. Can you imagine what the electric bill would be trying to keep the place air-conditioned and the gas bill in the winter? Not to mention the water bill.
I would have to have at least 5 full-time maids just to clean the place. Then you would have to pay the gardener, the pool cleaner, my personal assistant, my attorney, my accountant, my drug supplier (did you read about the Broadcom CEO in the LA Times & Register), my chauffeur, my helicopter pilot. Just think if I had kids, then I would have to pay 3 nannies as well. I haven’t even mentioned who’s going to care for my 9 cars.
It’s a good thing I didn’t waste my dollar on a lotto ticket or I would be in debt in less than 5 years.
OC is the armpit of CA? Have you ever been to Fresno? Modesto? Sacramento? Bakersfield? San Bernardino? Riverside?
Though not in Irvine here’s a property that makes Shady Canyon look like an absolute bargain in comparison:
http://www.redfin.com/stingray/do/printable-listing?listing-id=1035231&utm_source=craigslist&utm_medium=post&utm_nooverride=1
Yes.
The thing is that for 15 MIL, you’ll still be very crowded in Harbor Island, Linda Isle, Beverly Hills, Malibu, Bel Air….. etc…. And if you look at homes in Cameo Shores and Spyglass hill…. they ain’t got that much lot.
That said, 15 mil is a new high…. but figure out that it’s got almost a FULL ACRE and that some of those lots are right on the edge of a greenbelt with very, very nice views.
That part of Irvine is really very nice. Don’t compare with anything on the “other side” of University Blvd. That’s where the “masses” live.
Really the wrong time to put this property in the market.
I’d guess that long term, this particular property and most on Shady Canyon along Bommer Canyon will do just fine. They are pretty exclusive and very well located. Much less traffic than NB, better weather, etc….. But short term this is gonna be a hard sell.
Now then, note that I still think that anything over 3 mil in nearby Turtle Ridge is NUTS.
I once sat next to this older woman in a Corona del Mar sushi bar who I had followed in my wife’s brand new CRX Si.
The lady in question was driving a brand new Rolls Corniche convertible.
As the onikoroshi flowed I asked her why did she buy the Rolls instead of a nicer, more reliable (then) Benz SL and put the rest of the money in the stock market.
Her question was an eye opener, and very obvious in hind sight.
“Dear, you can only own so many stocks, bonds and real state”.
So, it comes down that the people who buy very expensive homes are no longer in it for the value. They got plenty of money and their only limitation is their time on earth. They’re into enjoying it.
So why hoard the money when they got more they can possibly use?
BTW- The lady I referred to was a widow. Her husband built up a big company, made LOTS of money and died of a heart attack in his 50s… at work. So she sold the company and enjoyed life.
Hmm…
Time to return California to the King of Spain.
And, since it was the Catalans who were taxed to death to fund that Castilian Hegemonist expansion into New Iberia…
It should be the Catalans who truly recover what we paid for.
So. All Hail Me. Count Antonio d’Irvine y Barcelona.
Kirk.. Kneel in front of a proper Catholic. Repent your heinous sins and prepare for the Inquisition. Monty Python style no less.
The rest of you, don’t worry. The Catalan Administration will open up the spigot on jumbo rates…. I figure a nice 3%, 30 year fixed with 95 LTV and no PMI will do wonders for the wealth of our New Catalonian California.
Rejoice.
Nouveau Riche Americains… fools…. everyone knows that Cannes is passe.
How about a nice place in Perpignan and another one in Cadaques?
Troll..
But of course… the nightlife and strip malls in Tarzana, Whittier and are sooo much better. And there are no TGIFs anywhere in LA.
Jeez.. where have you been for the last 20 years?
Wrong! A shallow statement culturally bereft of any historical depth!
Lompoc is the armpit of California. WC Fields said so eons ago.
Go back to your dorm, read your history and stop trolling the internet.
I would never consider living in Perpignan. Too many Catalans – as a group, some of the most obnoxious people I’ve ever encountered. I would move to Biarritz or San Sebastian. The Basque are so much more friendly and the coast and countryside are spectacular.
Actually, property taxes will be about $165,000 each year. Or about the same as a new Bentley.
Shame on you negative people! You are so limited by your personal life experience. Can you not fathom situations and desires belonging to people who have an entirely different life than you? Who died and made you judges of what is desirable for all types of people? You have no idea what it would be like to have enough wealth such that $15 mil is actually a relatively small portion of it and a reasonable amount to spend for your abode. Jeez…lighten up and realize you have not walked in these peoples shoes. If you were brilliant…either in business or investing or sports…and you built wealth as a result of your brilliance (or even luck), would you not enjoy it? Many of these Shady residents still work very hard at their crafts and want to be near their businesses and relatives. They want good schools for their children. They want a quiet, safe neighborhood. They can’t just up and move to Tuscany – their brilliance is needed here. It takes all kinds people!!
Please tell me you are not serious.
Yes you are right I am just a poor bitter renter who doesn’t have any talent to make money. I’m just a mediocre golfer and my fastball on a good day never reached 85 mph. So why should I feel entitled to such great things in life like a $15mil house? I don’t deserve it so I will just complain because I am part of the havenots.
I couldn’t make a smart investment decision if it fell on my lap. It’s not like I shorted lenders, builders and home improvement retailers in the last year. If I did that would mean I listened to these crazy bubble heads. Heck I might have even bought some gold if I listened to them.
BTW it is geez not jeez. Maybe if you are a rap artist or a Realtard it is but in the real world it isn’t. And I would love to move to Tuscany but the taxes suck and I do not speak the language well enough. So your desperation to bash us is about a year late. Get over it you chose a job that is going to be a thing of the past. Good luck in selling that home. I will see you at the foreclosure auction. Buono giorno perdente.
Man…how do you live in the negative aura you’ve created?
Brilliance is not in shorting stocks and profiting from other peoples’ misfortune. You came to that conclusion in your negative state of mind.
Open your mind graphrix and the rest will follow…you can find your own happiness, rather than garnering happiness from others’ misfortune.
I found my way to this blog because I was researching my new surroundings. Why are you here graphrix?? “Schadenfreude” is a German word meaning ‘pleasure taken from someone else’s misfortune’.
Relax, it’s all good.
Obviously you haven’t followed my comments enough to know that they can be filled with sarcasm in which the one above is overfilled with.
The reason why I am here is because the majority of the people here are intelligent and highly educated people who are capable of having a realistic opinion. Being brilliant means having the knowledge of how to make the best of a situation regardless of whether it is positive or negative. I am here to share my experiences and to learn from others good or bad.
Just because I take advantage of the negatives does not mean that I am negative or not a happy person. In fact if you actually knew me you would know that I am very happy and quite the optimist. I am fortunate that I have met some of the other happy and optimistic people here who can attest to this.
I think if you were to remove your preconceived perception that myself and the people here are negative then your mind might open up to a whole new world. Judging me by one comment does not paint a true picture of who I am.
I am relaxed and enjoying my lazy Sunday.
I believe in optimism. So, we have something in common 🙂
It was hard not to judge your thoughts as negative as you expressed them:
Graphrix wrote…”So your desperation to bash us is about a year late. Get over it you chose a job that is going to be a thing of the past. Good luck in selling that home. I will see you at the foreclosure auction.”
But I’ll take your word that you were taken out of context. No harm, no foul.
FYI…Many who buy in Shady are not looking for an investment. They are looking for a great place to live among people who “get them”. If a home there costs an extra few million, or if the market drops and they have lost a million, so be it. Their lives won’t change a bit. You may be intelligent and educated, but until you have the wealth that some of these people do, you cannot understand their decisions.
I have met many there who bought one home (or built a home) in Shady just to be near the building of their dream home on a more desirable lot. Imagine that – the ability to afford two homes at Shady! When the second home is complete, the first home will be sold. Yes, they would prefer a gain on sale, but no biggie if they have to sell at some loss as the first home served its purpose. Chances are the construction costs of the new house fell as the value of the old house was falling. It could be a wash. And most of these people are smart enough to hedge in other ways to offset any loss on real estate in a falling market.
future – Do you think that short sellers are mostly negative type people? Do you think short sellers make money from other people’s misfortunes?
I try not to think “mostly this” or “mostly that” about people. But it is a fact that short sellers spend that time thinking about the downside of a company or sector. I prefer to find companies about which I am very excited and for which I see a bright future.
Seems as though I’ve struck a chord in you? Are those fightin’ questions?
I do think that many posts for this Shady topic have been expressing glory over losses by perceived fools. My whole perspective, beginning from my first post, is that many posters have not walked in the “Shady shoes” and it is a shame that they take glee in the supposed pain of wealthy people.
I am fortunate and wish fortune to you too.
“Brilliance is not in shorting stocks and profiting from other peoples’ misfortune. You came to that conclusion in your negative state of mind.”
I am curious. Why are you an expert in determining brilliance in stock trading? And how do you know Graphrix’s state of mind? Are you mind reader? Are you an expert in trading? What do you know about shorting stocks and short sellers? How many short sellers do you actually know? My guess is that you don’t actually know any. Yea, it is just a guess. And it is further my guess that you will now pretend that you do know some short sellers, but you know the truth, and that is that you are speaking of something you know nothing of. It is also my guess that you don’t even know anybody who lives in Shady Canyon. Yeah, you know the truth, don’t you? Or very possibly you don’t.
If you actually knew anything about short sellers, you would know that it is not “a fact that short sellers spend that time thinking about the downside of a company or sector.” They don’t have to. Generally speaking, short sellers are good at what they do because they are good at discerning the truth. And they are good at discerning the truth, because they are good at not lying to themselves or others. Generally speaking, those who are good at lying to themselves and others are those who like to label themselves as optimists.
Do you know how experts in the Secret Service are trained to recognize counterfeit federal reserve notes?
Oooh…you’re too good for me. I’m exiting this blog. I’m off to finish a glorious house and have a positive, happy existence.
Those who are belssed surround themselves with blessed people…
Best wishes.
Sadly you missed my point that you shouldn’t judge who I am. How do you know that I don’t have the “wealth” to buy in Shady? Maybe I do and maybe I don’t but instead I chose to be more humble and have a very nice house that I live very comfortably in. If the people in Shady are as judgmental and have preconceived notions about people without knowing them then I am surely happier where I live.
“Blessed are those that surround themselves with blessed people.”
I agree and I must be very blessed because I chose to surround myself with happy and humble people who live well. Some could afford a $15mil home and some live paycheck to paycheck. But what they all have in common is they do not judge me and are humble enough to know that money doesn’t buy happiness.
So enjoy your house. Too bad you won’t see me there because I do seem to “get them” and I would rather be around less ignorant and more humble people. No offense to all the people that live there as I am sure there are people that are humble and open minded.
For those in Shady who have accumulated enough due to their contributions to the world (ie. money follows usefulness), that is cool.
Having said that though, looking on refdin.com at Shady Canyon section of 92603, there is a awful lot for sale. A lot more than, say in Turtle Rock where people bought long ago at more reasonable prices than those in Shady/TurtleRidge/Quail Hill ….