It's a Peach

I am out playing golf today, so I thought I would share with you my favorite golf movie set to residential real estate.

17296 PEACH Irvine, CA 92612 inside

Irvine Home Address … 17296 PEACH Irvine, CA 92612
Resale Home Price …… $479,000

{book1}

Do what you like,
Doing it nat’rally
But if it’s too easy
They’re gonna disagree

It’s your life
And isn’t it a mystery
If it’s nobody’s bus’ness
It’s everybody’s game

I’m All Right — Kenny Loggins

I will not be able to participate in the astute observations today. I am playing golf in the 1st Annual Charity Golf Tournament sponsored by Pardee Homes to benefit the Boys and Girls Clubs of San Gorgonio Pass. I will be enjoying East Valley Golf Course, home of the PGA of Southern California. I don’t know which of the 18s I am playing, but they are both great golf courses. I don’t need much of a reason to play golf.

There is a scene in Caddyshack where a very old couple is playing golf. After the woman hits a horrible shot into the water the old man exclaims, “It’s a peach, Hon.” It got me thinking….

I want to leave you with something interesting to consider today, so I thought I would bring you the Caddyshack homebuying experience. Enjoy.

17296 PEACH Irvine, CA 92612 inside

Irvine Home Address … 17296 PEACH Irvine, CA 92612

Resale Home Price … $479,000

Income Requirement ……. $88,765
Downpayment Needed … $95,800

Home Purchase Price … $210,000
Home Purchase Date …. 12/17/1999

Net Gain (Loss) ………. $240,260
Percent Change ………. 128.1%
Annual Appreciation … 8.6%

Mortgage Interest Rate ………. 5.06%
Monthly Mortgage Payment … $2,071
Monthly Cash Outlays ………… $2,760
Monthly Cost of Ownership … $2,090

Property Details for 17296 PEACH Irvine, CA 92612

Beds 2
Baths 2 baths
Size 1,224 sq ft
($391 / sq ft)
Lot Size 3,500 sq ft
Year Built 1974
Days on Market 6
Listing Updated 11/9/2009
MLS Number U9004859
Property Type Single Family, Residential
Community University Park
Tract Tr

LOVELY 2 BED PLUS LOFT 2 FULL BATHS PATIO HOME IN UNIVERSITY PARK CLOSE TO UCI,FASHION ISLAND, SHOPPING, THEATERS,& RESTAURANTS plus easy access to 405 Frwy. Fabulous LOFT serves as office is professionally done but not permitted. New carpet in LR, Newer tile roof, windows, garage door and other upgrades. Well cared for home with inviting sunny back yard with lush vegetation and lots of privacy. Cathedral ceilings, gas fireplace. Lg master with walk in closet. Second bedroom has own full bath. Private courtyard entry with flowers and plants. Award winning schools. Most sought after floorplan. Property surrounded with lovely greenbelts and many trees inside tract location. STANDARD SALE NO BANKS TO DEAL WITH. YOUR OFFER WILL BE HEARD IMMEDIATELY AND RESPONDED TO IN A TIMELY MANNER. LISTING AGENT RELATED TO SELLER.

Irvine Housing Blog No Kool Aid

This owner is an equity seller. They have increased their debt like everyone else did, but they didn’t go crazy. If they can get their asking price, they will have more than doubled their money in 10 years. Bubbles are great if you time them right.

I hope you have enjoyed this week, and thank you for reading the Irvine Housing Blog: astutely observing
the Irvine home market and combating California Kool-Aid since
September 2006.

Have a great weekend,

Irvine Renter

😉

35 thoughts on “It's a Peach”

  1. Freetrader

    “Danny [or IR]: be the ball.”

    “The world needs ditch diggers too.”

    “I’ve sentenced boys younger than you to the gas chamber. I didn’t want to do it — I felt I, owed it to them.”

  2. winstongator

    Did they really double ‘their’ money? Say they bought at $200k w/$40k down. For a $160k loan, they’ve only paid down about $30k of principal – so $70k of equity is ‘their’ money. If they sold for $400k, they would get a check for roughly $270k, or a 4X’ing of ‘their’ money. That leverage is the real sword of real estate investing, what generates the huge returns, and what completely wipes out positions.

    1. IrvineRenter

      I was looking for the clip on Youtube, but apparently that scene wasn’t memorable enough to make the Youtube cut. I’ll take your word on the exact language.

  5. lowrydr310

    Absolutely loved that when the movie came out, I always thought about doing that. For some insightful commentary about the game of golf, look up George Carlin’s work.

    Personally I’d be happy if *ALL* golf courses were turned into motocross tracks, or at least let us ride them after hours.

    1. matt138

      You can ride them after hours. The trail 90 seats two and on a full moon you dont even need lights. So I’ve heard…

    2. tonye

      I use to ride my bike to work at my summer job at the US Navy Commissary in Pearl Harbor. On my ride home I’d go by the Navy Marine Officer’s Gold Course.

      My step dad, of course, was NOT an office.

      I had this very big, very LOUD horn on my handlebars. The ride went along a few of the greens and tee offs for the Really Big Shots in the local Swabbie and Jarhead population….

      So…

      The older the gentleman about to put or tee off… the slower I rode my bike and the louder I’d honk when they took their shot. ;-DDDDD

      I’d be on the other side of the fence, usually about 50 feet or less.. which mean my airhorn really did its trick!

      Then, then, I’d ride home like an entire batallion of MPs was after me.

      What an exhilarating time that was. ;-DDDDD

  6. thrifty

    Today’s Redfin has a sudden jump in San Clemente SFH (newer and older) opening escrow in the low to mid $200s. I think this is just the beginning.

  9. Socalappraiser

    IR,

    A more appropriate line for this market would be the dialogue between Ty Webb (Chevy Chase) and Danny where Ty asks – “Do you do drugs Danny?” and Danny -“Yes, everyday”, Ty – “Good”.

    Foreign cash buyers, Wall St. flying high again, etc. will do nothing to stop the eventual return to fundamentals. Do we think that U.S. taxpayers in Austin,TX / Omaha,NE or Richmond,VA will support a CAL E FORN E A bailout so our houses can stay at bubbly prices? I’m not good at links but check out Peter Schiff’s video on the cost of higher education. The jist of it was that 1920’s a year at Yale was equal to the cost of about 35 days of wages for a blue collar worker. Today – ha! Henry Ford built cars so that the man in the factory could afford them. The expansion of unfounded credit has put us where we are. The contraction of credit will continue to the point that only those that qualify after a thorough financial colonoscopy will get it. Now if Irvine will only be home to smiling, post colonoscopy folks – prices will hold. Enjoying major schadenfreude after seeing a RE agent I’m unfortunately familiar with, working the makeup counter in Macy’s. Wonder how that arrogance she used to parade around is working out now?

  10. AZDavidPhx

    UCLA Students protesting 32% Tuition hike to pay for California’s spending indulgences.

    Good for them! Let the school CEO take a 1.00$ salary instead, I say. Or take it from the sports franchises they are all running.

    I am surprised it is only reported to be 150 students. Probably the only ones at the school not paying with borrowed money.

    It’s starting to get ugly out there.

    1. Socalappraiser

      AZ David,

      Exactly,

      I am really not in tune with what professors and department heads make but I am pretty sure it has to be a significant part of any operating university budget. Once they attain tenure for many of them it is “HA HA see if you can fire me”. Couple this with some non world wise college kids protesting that the janitor’s wage needs to be able to support a family of 5 with full benefits and here is where we’re at.

      Hopefully, this “reset” in U.S. and abroad will work itself out without major violence and tragedy. History suggests otherwise.

      1. AZDavidPhx

        All these Economic Pyramid schemes finally crashing down as the little people stop playing along and rightfully so.

        At ASU, they are now charging economic recovery fees on top of tuition costs which have increased 50% in the last 3 years and everybody just rolls over while the CEO and coaches enjoy superstar executive compensation. Ridiculous.

        I am all for a shared sacrifice, but I have had it to here with executives not participating and having everyone else sacrifice so they don’t have to.

        1. matt138

          When I graduate and start my career at Starbucks, I will question the massive amount of debt incurred to get a watered down college degree. I will most likely pay a minimum amount forever or just not pay unless they modify my loan.

        2. norcal

          Hi AZDavidpix,

          I agree – universities shouldn’t run big sports teams unless they’re self-funding.

          You’ll be pleased to know that UCI runs on those lines, and the mighty anteater, the university’s mascot, is not known for its athletic prowess.

          So does anyone know why university costs have incraesed so dramatically over the last 20 years? Aside from state budget woes?

    2. Freetrader

      I don’t know — one the one hand I enjoyed a decent education at the University of California, but on the other hand, there is something a little bit naseating about middle-class kids protesting because they feel they are owed a ‘free’ university education, courtesy of the taxpayers. If I were a guy who hadn’t gone to UC I am not sure how I would feel about paying yet another tax increase to fund undergraduate education at UC. There are no simple answers here, except to point out that everything needs to be paid for, eventually, by someone. So who’s gonna pay?

      Regarding college football, my understanding has been that typically the football program throws off cash that funds other sports.

      1. thrifty

        Freetrader:
        Having gone to a state supported university and enjoyed in-state tuition, my take on the demonstrators is this: the students like you and me who enjoyed heavily subsidized tuition, etc. enjoyed a significant financial advantage that ended abruptly with the 30% tuition increase just announced at UC schools. I’d be mad, too, although demonstrating wouldn’t be my approach. It won’t solve the financial problem.

        1. Freetrader

          I worked my way through UC without a penny to my name, so I understand your point. But that doesn’t answer the question of why we should ask the taxpayers — most of whom DIDN’T go to UC, and of those who went to college, many more went to the much-less-well funded State University system — to pay more money to keep the UC fees down.

          UC specifically is intended to compete with other name-brand universities — in fact, the only public schools which match up to the UCs are the Universities in Taxas and Michigan. The competition for UC students is the Ivy League. So the school is still a bargain.

          I’m not saying that the UCs shouldn’t remain mostly publicly funded. But in my opinion, most of the truly needy students go to CSU. I would rather some more funding went there, rather than to the UC’s, which are self-conciously intended to educate the “elite” who be definition have many other options.

  11. Dean

    Hey IrvineRenter,

    You write about real estate AND are quoting Caddyshack WITHOUT mentioning perhaps the greatest builder / real estate mogul of his generation?

    I am talking about, of course, Mr. Al Czervik, as portrayed by Rodney Dangerfield.

    You must recall his wisdom from the film: “Golf courses and cemeteries are the biggest wastes of prime real estate in America.”

    Hey Ms. Realtor, wanna make 14 dollars the hard way?

  12. Socalappraiser

    Dean,

    Rodney was a classic. You just can’t do that much blow over the age of 50 and live long. Sort of like the realt whores and their Kool Aid up to 2006.

    Cheers!

    1. tonye

      We saw Rodney live at Caesar’s Palace in ’85.

      Since we were staying at the hotel they sat us almost front row…. the guy was funny.

      I was 25 then so I could survive it. Today, at 50 I think I’d get a heart attack.

      He kept the crowd going for half an hour before cracking into his “I get no respect”.

      It felt like a bomb went off… you could feel the energy that had been held up just go off.

      Jesus, Rodney in TV was funny. Live, he was heartstopping. I mean, he really, really was self deprecating and you felt with him, for him.

      Unlike Don Rickles that picked at people, Rodney picked at himself.

      Along with George Carlin, the funniest comedian I’ve ever seen.

      1. Dean

        Agree. No one like him – except maybe Jeff Ross – working today.

        My short anecdote; On one of our first trips to NYC I bribed a doorman to get a good table at Dangerfield’s comedy club. As luck would have it that night was his Rodney’s son’s birthday – and the man himself was featured. His table was about 5 feet from mine! We were fortunate to have a brush with his genius.

  13. emilie

    I’ve had a headache all day.

    I think watching Caddyshak tonight would be just the think to take it all away…..

  14. MalibuRenter

    I’m buying a condo in Dallas next week (for investment). 20% off of list, 1/3 off of peak. Distressed seller, mildly below recent sale comps.

    Aftertax cap rate around 5%. No problem getting it to cashflow. My guess is a slight drop in value over the next two years. Maybe 10-15%. Nothing like the (additional) implosion I’m expecting in CA.

    By the way, anyone notice anything changing for you personally due to the State’s budget crisis?

    1. thrifty

      Malibu Renter:
      If you move back to Malibu, who will replace you as the property manager? Good ones are very, very hard to find – and not cheap! That may put your cap rate underwater.
      I’ve been an absentee landlord more than once; it very, very rarely works.
      Good luck!

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