You’re ready to buy a house. You have $800,000 in your pocket (give or take), and you’re looking to purchase a place in either University Park or Turtle Rock in Irvine. Since the housing market took a dive, you figure $800K is going to get you into something decent. It’s a large chunk of change and a relatively big commitment, so you want to make sure you’re getting the best bang for your buck. So what exactly will $800K get you in Turtle Rock? The answer is: not much. University Park however, comes with a less expensive price tag—around a couple hundred thousand dollars cheaper. So what’s the difference and can I get a Turtle Rock house on a University Park budget? Well, let’s take a look.
Current listings in the Turtle Rock area are upwards of $900,000 with the majority of properties beginning in the $1 million dollar range. It’s not surprising. Turtle Rock is one of Irvine’s most prestigious locales. But don’t let the large price tag bum you out. If you know what you want, do your homework, and have patience, the stars might align and you could end up in a Turtle Rock neighborhood. There are lower priced options in the area, but you’ll have to make sacrifices on size. But before you let that $800K burn a hole in your pocket, let’s take a step back and make an informed decision about the housing in Turtle Rock. We need to know what’s available, and what we’re getting for the price.
The two villages are divided by University Drive. Turtle Rock sits further back from the 405 freeway against Shady Canyon. Turtle Rock can offer more picturesque views. While still close to UCI and Concordia, Turtle Rock has a separate feel to it. The deeper you go into Turtle Rock, the less you feel the presence of the universities. Turtle Rock has a mixture of housing and condo communities, combined with a great outdoor atmosphere. If I had to choose between the two areas just based upon location criteria, I’d choose Turtle Rock. But let’s be realistic. A great location is definitely on my “must have” checklist, but I also want to make sure I’m maximizing my money.
If we take a look at square footage alone—Turtle Rock would be king. On average, the residences are larger and can range anywhere from 1,600-4,000+ square feet. The properties in University Park, on the other hand, are typically mid-sized ranging from 1,100—2,000+ square feet. So we’ve resolved our first mystery in the price disparity between the two areas—square footage.
What about the number of bedrooms? As you have surmised, the number and size of the bedrooms has a direct relationship to the square footage. You can easily find 2-5 bedroom places in both University Park and Turtle Rock. University Park can offer you 4 and 5 bedroom properties below your $800K budget. If you’re married, with two children and need a home office, University Park fits your price range. If you want 4-5 bedrooms in Turtle Rock, you’re putting yourself in the red, or a very tiny living space. Don’t fall into the trap in thinking that more square footage equals larger bedrooms. That’s not always the case.
Let’s do some comparisons. Here’s a property that just sold in University Park:
Address: 2 Almond Tree Ln
Sale price: $635,000
Residence Type: SFR
Square Footage: 2,234
Bedrooms: 4
Bathrooms: 2.5
Year built: 1973
Lot size: 5,000 square feet
Price per square foot: $284
Here’s a property that just sold in Turtle Rock for around the same price:
Address: 18692 Paseo Cortez
Sale price: $640,000
Residence Type: SFR
Square Footage: 1,450
Bedrooms: 3
Bathrooms: 2
Year built: 1969
Lot size: 4,200 square feet
Price per square foot: $441
It’s obvious that the University Park property offers more bang for your buck based upon the price per square footage ratio. The University Park property also has a bigger lot.
When I look at homes, I imagine myself standing in 1 square foot. In that square foot is the $/sq ft price tag. Each time I take a step into another square foot, I’m subtracting cash out of my wallet—paying the price for each square foot. If I can continue to walk in the house, stepping on each square foot, feeling my wallet become thinner without regret, I know that I’ll be happy with my purchase. I can step on each square foot and feel comfortable that I’m paying a fair price. Personally, I’d rather come in under budget with a larger interior square footage. I can’t imagine stepping on a $441 square foot in a house that only offers me 1,450 square feet of living space. I’m feeling over crowded just thinking about it! In my opinion, it’s not worth the price.
Ultimately, there are many factors to consider when buying a home. The purchase price and size are not always the determining factors. Both University Park and Turtle Rock are excellent communities. I’d live in either one. Now that you’re informed you can choose what’s right for you. Remember: It’s your decision. You have to live in it. What would you do? What factors matter most to you?
Well written, interesting, and I think you picked a good match-up (age, style of home) to make a good comparison.
IrivineRenter used to talk about the substitution effect, which must come in to play here… The areas border each other.
I’d go with UP, given this comparison. 🙂
Here is a news item for you in the linked article on REOs to Rentals.
Bob Chapman writes, Knowing this all too well, the Treasury Department, Federal Reserve, HUD, FDIC, Fannie Mae and Freddie Mac, with their conservator, the Federal Housing Finance Agency (FHFA) at the helm, are engaged in a collaborative effort to face this new wave of foreclosures head on and figure out a way to keep these properties from sitting on the books of the government and sitting empty in the nation’s neighborhoods.
As the Federal Reserve alluded to in its white paper on housing last week, “A government-facilitated REO-to-rental program has the potential to help the housing market and improve loss recoveries on reo portfolios.” REO’s (Real Estate Owned) are bank-owned properties, or, in this case, properties owned by the government-sponsored enterprises and the FHA. Three Fed governors pushed for similar plans in speeches last week, as well.
A pilot sales program will be starting in the very near future, according to administration officials. They are working on what the market potential is, what pricing would be, how government can partner with private investors, and who has the operational experience to manage so many properties.
“I think there is a fair amount of money in the wings waiting to buy, investors doing cash raises to buy properties on a large scale,” says Laurie Goodman of Amherst Securities. “But that means they have to build out a rental organization; it means they build out a management company, because if you’re accumulating a hundred homes in Dallas that’s very different than running a multifamily building.”
Nice article. Certainly cost is a major factor. I lived in University Park, my wife’s grandmother lives in Turtle Rock. Another major consideration is that it takes several more minutes to go anywhere when you live in Turtle Rock. That combined with much higher pricing pushes me straight into University Park or Woodbridge. Now let’s get those prices down so that I can justify buying. It is still much cheaper to rent. Just remember, if you put down $100,000 then try to compare the purchase to renting that it is not a fair comparison. Find out what it would cost if you put down a minimal downpayment, equal to your move in costs to a rental. Then compare.
The school test scores explain some of the premium.
STAR test results 2010-2011
Bonita Canyon elementary (Turtle Rock)
English-Language Arts 91
Math 92
Science 94
University Park Elementary (University Park)
English-language arts 68
Math 79
Science 76
Sources:
http://iusd.org/schools/documents/2011_School_Accountability_Report_Card_K-6_Bonita_Canyon_Elementary_School_20120104.pdf
http://iusd.org/schools/documents/2011_School_Accountability_Report_Card_K-6_University_Park_Elementary_School_20120104.pdf
That seems to be a good point. I wonder how it applies to people with older children – junior high and high school?
Of course Turtle Rock has always had the mystique of being so wonderful a place to live too.
Of course this wouldn’t apply at all for people looking to buy in Turtle Rock that do not have kids.
Did investors make $50 million on Irvine tower?
http://lansner.ocregister.com/2012/01/12/did-investors-make-50-million-in-irvine-tower/157052/
The TRock home looks more like a home.
University Park is a strange mix of housing. Some homes have those detached garages with flat roofs and others are in neighborhoods with zero curbs (thoes xxx Tree streets). They have a nice infill tract by Standard Pacific with 3CWG homes.
Also… KB is planning on building another infill project on the old Vista Verde Elementary site.