Today's featured property is a beautiful Shady Canyon mansion.

Irvine Home Address … 66 GOLDEN EAGLE Irvine, CA 92603

Resale Home Price …… $9,950,000

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Come out upon my seas

Cursed missed opportunities

Am I a part of the cure?

Or am I part of the disease?

Coldplay — Clocks

IHB News

Today's featured property uncovered a subtle error in my post calculations. Properties where the loan is in excess of $1,000,000 cause the income tax deduction to be larger than it really is. I modified the formula to catch that and cap the interest deduction.

I find multi-million dollar properties amusing from a financing standpoint because you quickly realize that owning a property like this does not come from obtaining an 80% loan. Can you imagine spending more than $50,000 a month on housing? I don't spend in housing costs each year what the owner of this house will pay in property taxes. In other words, I couldn't even own this property free-and-clear because I couldn't afford the taxes.

This weekend, we will be updating our graphics to incorporate the new IHB logo. We are keeping the current colors.

Housing Bubble News from Patrick.net

House Valuation Tools

From Housing Crisis Information and Tools (housingcorrection.com)

Case Shiller House Price Index – Compares 20 U.S. cities and two composites. (standard Case Shiller Index)

Case Shiller Absolute House Price Index – Compares 20 U.S. cities and two composites. (values shown in absolute prices)

Case Shiller Absolute House Price vs Median Household Income (U.S. Census version) – Compares 20 U.S. cities and two composites. (Compares House price to Median Household Income)

Case Shiller Absolute House Price vs Median Household Income (Office of Financial Management version) – Compares 20 U.S. cities and two composites. (Compares House price to Median Household Income)

Median Home Price Charting Tool – Compares median home prices in 330 U.S. cities (1985 to present).

Median Home Price vs. Mortgage Rates vs. GDP Charting Tool – Compares median home prices in 330 U.S. cities to Mortgage Rates to GDP.

Median Home Price vs. Compound Interest Charting Tool – Compares median home prices in 330 U.S. cities to annually compounded interest.

RealtyTrac Interactive Foreclosure Map – Dynamic map of United States foreclosures by county. Courtesy of reatlytrac

New York Times buy vs. rent calculator – Buy vs Rent calculator to check affordability in your area. Courtesy of nytimes

Zoyzoy Interactive Housing Maps – Excellent set of interactive house price valuation tools. Courtesy of zoyzoy

Chart of Alt-A and Option-ARM resets – Chart showing upcoming 2nd wave of mortgage resets could be worse than the subprime nightmare. Courtesy of Credit Suisse

Dynamic Map of Unemployment Rates – Dynamic map of U.S. unemployment rates January 2007 to present. Courtesy of Latoya Egwuekwe

Dynamic Map of Moody's Jobs Forcasts Through 2012 – Courtesy of USAToday

Dynamic Chart of Global Insight's Economic Outlook Index and It's 11 Component Indicators – Courtesy of USAToday

Dynamic Map of Non-Prime Mortgages – Dynamic map of the United States showing the rate of high-risk mortgages per state. Courtesy of Federal Reserve Bank of New York

Home Prices in Selected Cities – Dynamic chart of home prices in 20 U.S. cities, historical to present. Courtesy of New York Times

In Deep: Underwater Borrowers – Dynamic map of the U.S. showing the percentage of borrowers with negative equity in the 3rd quarter of 2009. Courtesy of Wall Street Journal

PNC economic reports – Ongoing monthly economic reports. Courtesy of PNC

Irvine Home Address … 66 GOLDEN EAGLE Irvine, CA 92603

Resale Home Price … $9,950,000

Home Purchase Price … $4,550,000

Home Purchase Date …. 10/25/2005

Net Gain (Loss) ………. $4,803,000

Percent Change ………. 118.7%

Annual Appreciation … 17.8%

Cost of Ownership

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$9,950,000 ………. Asking Price

$1,990,000 ………. 20% Down Conventional

5.01% …………… Mortgage Interest Rate

$7,960,000 ………. 30-Year Mortgage

$2,062,591 ………. Income Requirement

$42,780 ………. Monthly Mortgage Payment

$8623 ………. Property Tax

$800 ………. Special Taxes and Levies (Mello Roos)

$829 ………. Homeowners Insurance

$600 ………. Homeowners Association Fees

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$53,632 ………. Monthly Cash Outlays

-$3584 ………. Tax Savings (% of Interest and Property Tax)

-$9547 ………. Equity Hidden in Payment

$3881 ………. Lost Income to Down Payment (net of taxes)

$1244 ………. Maintenance and Replacement Reserves

============================================

$45,626 ………. Monthly Cost of Ownership

Cash Acquisition Demands

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$99,500 ………. Furnishing and Move In @1%

$99,500 ………. Closing Costs @1%

$79,600 ………… Interest Points @1% of Loan

$1,990,000 ………. Down Payment

============================================

$2,268,600 ………. Total Cash Costs

$699,400 ………… Emergency Cash Reserves

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$2,968,000 ………. Total Savings Needed

Property Details for 66 GOLDEN EAGLE Irvine, CA 92603

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5 Beds

7 full 1 part baths Baths

10,500 sq ft Home size

($948 / sq ft)

37,113 sq ft Lot Size

Year Built 2007

674 Days on Market

MLS Number U8002042

Single Family, Residential Property Type

Turtle Rock Community

Tract Shdc

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With panoramic views of the canyon and the golf course, Villa Monticello may well be the finest estate on the market in Shady Canyon. This three-level, 5 bedroom grand villa, masterfully built on a large private lot is breathtaking. The front exterior highlights are courtyards, beautiful stonework and red terra cotta colored walls, an elevated terraced garden, petite vineyard with citrus trees and 500 white roses flowering as hedges. The side/rear grounds offer covered loggias, water features, fountains, fire pit and an exquisite pool & spa with full kitchen and bath under the cabana's roof. The interior offers 5 full bedroom suites including a private guest quarters, a chef's dream kitchen, theater, gym & sauna with private massage suite, a grand elevator & 5 fireplaces. Special touches are hand laid antique demi tile mosaics in the entry, ceiling murals done by European Artisans, beam and vaulted ceilings, custom cabinetry, seasonal closets and designer lighting fixtures.

Virtual Tour #1 (External Link)

The virtual tour is well done.