I hope you are enjoying your weekend. i have a condo for you to look at… from a few different angles….
Irvine Home Address … 195 TAROCCO Irvine, CA 92618
Resale Home Price …… $320,000
{book1}
never cared for what they do
never cared for what they know
but I know
So close, no matter how far
Couldn’t be much more from the heart
Forever trusting who we are
and nothing else matters
Nothing Else Matters — Metallica
Housing Bubble News from Patrick.net
The Real Cost Of California Houseownership (doctorhousingbubble.com)
Vegas vacant land prices tumble 50% (lvrj.com)
Mind paying your neighbor’s mortgage for him? (theautomaticearth.blogspot.com)
Bair Weighs Loan Principal Cuts to Fight Foreclosure (bloomberg.com)
What the FHA’s New Criteria Mean for Housing (usnews.com)
U.S. housing market meltdown not over yet (reuters.com)
House buyers may have to lay out more cash for FHA mortgages (latimes.com)
Is “Helping Houseowners” Washingtonspeak for Bailing Out Banks? (ourfuture.org)
Las Vegas House Prices Fall 34% on Foreclosure Sales (bloomberg.com)
English central banker calls for ‘bubble tax’ on houses (telegraph.co.uk)
The housing speculators return (blogs.reuters.com)
Readers weigh in on walking away from a mortgage (azstarnet.com)
Soros: Major Bloodletting Ahead (moneynews.newsmax.com)
The Next Bubble to Burst: Commercial Real Estate (gather.com)
Housing Bubble News
What Caused The Financial Crisis?
Bernanke Forgot About His Role In Causing the Great Recession
Maybe its the new tasty kool aid the Federal Reserve is serving up? Are you ready for homedebtor’s prison?
Irvine Home Address … 195 TAROCCO Irvine, CA 92618
Resale Home Price … $320,000 
Income Requirement ……. $65,958
Downpayment Needed … $11,200
3.5% Down FHA Financing
Home Purchase Price … $186,000
Home Purchase Date …. 7/20/2001
Net Gain (Loss) ………. $114,800
Percent Change ………. 72.0%
Annual Appreciation … 6.2%
Mortgage Interest Rate ………. 4.96%
Monthly Mortgage Payment … $1,650
Monthly Cash Outlays ………… $2,320
Monthly Cost of Ownership … $1,880
Property Details for 195 TAROCCO Irvine, CA 92618
Beds 2
Baths 1 full 1 part baths
Size 951 sq ft
($336 / sq ft)
Lot Size n/a
Year Built 1983
Days on Market 3
Listing Updated 11/24/2009
MLS Number P712200
Property Type Condominium, Residential
Community Orangetree
Tract Othr
DESIRABLE LOWER UNIT WITH A PRIVATE PATIO AND GREEN BELT
NEARBY.LARGE MAIN LIVING AREA. INSIDE LAUNDRY UNIT. STORAGE UNIT IN THE
PATIO AREA. LIGHT AND BRIGHT WITH THE MASTER BEDROOM OPENING TO
THE PATIO.COMMUNITY POOL AND SPA. WALKING DISTANCE TO IRVINE VALLEY
COLLEGE. WASHER AND DRYER INCLUDED
ALL CAP
Does it seem reasonable that a low end condo would appreciate 6.2% a
year since 2001? The affordability based on payments looks much better
on this one, but this $220,000 condo is elevated to $320,000 thanks to
the Federal Reserve.
We all know interest rates are artificially low, and buying under
those conditions is likely to result in being underwater for 3-5 years
while this disaster plays itself out. Do you want to be in a condo in
Orangetree for a decade? I heard they are opening a new condo
development in San Francisco…
Although this does not apply to most areas of Irvine it is an interesting article;
http://www.dailywealth.com/index.asp?subscribed=yes
Hmm.. all he said was that RE can be a hedge for inflation. He did not really lay out a reason that real estate will out do inflation -thus making the invesment appreciate above inflation.
The theory is pretty simple. Rents tend to increase over time due to inflation. But if you buy a house, your payment remains constant, assuming a 30-year fixed loan. (Now, there are other expenses that may increase but the main one is stable.) So, house ownership works out to be an inflation hedge. In twenty years, you will still pay the same monthly payment, but rents on a similiar property may have doubled or tripled. If you live in the property, you save money that you would have paid in rent, if you rent out the property, you pocket the difference.
I am quite aware about the rents.
But, you forget to take into account the maintenance and insurance costs which are not insignificant. And if you are outside of California, real estate taxes also go up.
In twenty years, you will still pay the same monthly payment, but rents on a similiar property may have doubled or tripled.
YEA HUH, Geotpf! Just ask those Japanese folks who have been staring at depreciating real estate prices for something like 15+ years now. So simple! WHOOPS!
I almost ended up buy one in this track back in 2005. That was close!!!
Good point. I do not necessarily think that he would argue it will appreciate above inflation, I think that’s where his point regarding leverage comes in. The main point that I took from the article is that there are areas that have rental parity. It will be great when we see that in Irvine.
Oh, hey, look! An apartment for $320K! ::shakes head:: Yeah, that ought to bring in the
knife-catchersflippers.Living in that particular lower unit can be very noisy, depending upon who is living above you. Little kids running around sound like a heard of hippos. You better enjoy whatever TV and radio programs they like listening to, up above, too. And I hope your daily routine matches theirs, ie… you all get to bed/wake up at the same times. Otherwise, you’re going to feel like you are trapped down there. Just saying.
What happened to the forums? They seem to be missing
Aww, so disappointed to see the forum go.
I am looking to buy a rental property and this one popped up. I am not a big fan of the Orangetree area but I know I should not be emotional about this business deal.
I unexpectedly inherited about $60k and would like to invest in the only city I am familiar with, Irvine. I would love to have some suggestions which part of Irvine should I buy? I will be able to comfortably cover mortgages for my own house and the rental should it not rent out. I know absolutely nothing about being a landlord but I do know the money is earning nothing in the bank. I would very much appreciate if someone can point me to the right direction
TIPS
I’ve been away. What all happened to the forums? Were there discussions on it? Tell me, please, someone?
I am able to access the forums: irvinehousingblog.com/forums
Try making a post. They are “Read Only”.
Well that hugely sucks!! Why in the world would they do that? I certainly hope it’s temporary and due to some technical issue.
If it was intentional and just part of the gradual transition away from Irvine Housing Blog towards Ideal Home Brokers, I’m very disappointed, as the IHB forums were an extremely useful resource.
I can’t imagine that the numbers of daily visitors that Larry and Shevy crow about in the “Thank you from the IHB” post from the other day will stay as high if we’re no longer allowed to have discussions here.
IHB got a mention in the comments on the big story on buying REOs and SSs in today’s NYTimes.