The cost per square feet is over $600 bucks….around $641 per sq feet. Are you kidding me? This is an ultimate joke of a place. This flipper needs to get it in the a$$.....for him to learn his lesson. $1850 a month…the person that rented this place is also a sucker….I don’t how many suckers there are in OC, but there are a lot…
Posted by Rob Ranger on 01/29/07 at 07:28 AM
This broker knew what they were getting into with 100% financing. Why did they decide to do it? My guess is GREED! Any other opinions?
Yea, I have. This broker thinks he/she is smarter than everyone else and they think they can market the property better and they think there is greater demand close to the university. In short both arrogance and ignorance. ——-
Posted by Newport Bob on 01/29/07 at 01:27 PM
$400,000 for a 635 sq ft condo with no proximaty to or view of the ocean? All I can say is that anyone who would pay half of that is an idiot. Honestly, how does anyone think that the price would increase from $400,000? I am constantly blown away by the stupidity of these people and their lenders. This is example 1A of how runaway lending, fraud and stupidity have come together to create a mess that will take a decade to recover from. Every time I read a story that makes me shake my head I read another one like this that tops the last.
By the way, the fact the current owner is a realtor should not be surprising. That is not exactly an industry that attracts the best and brightest.
Posted by crucialtaunt on 01/29/07 at 02:36 PM
If you think this is ridiculous, go to the sister site of this blog “Irvine Housing Forums” and see for yourself what people (not just realtors) are thinking that is still driving the housing mania for new construction in Irvine.
Posted by Bill Jones on 01/29/07 at 05:17 PM
Don’t forget the HOA Dues on a condo. I hear that in this complex they are ENORMOUS.
Posted by sarahfan on 01/29/07 at 07:36 PM
What are the HOA fees here? Enormous to me is $1,000/month for the Marquee Towers.
It looks like the HOA is about $300/month. Nothing quite like The Marquee since that is a high rise. I imagine The Plaza will have HOA dues similar to The Marquee.
Posted by momo on 01/31/07 at 09:26 AM
I looked at the kitchen picture and could swear it looks just like the rental apartment interior at corner of Chapman and Harbor in downtown Fullerton! Wonder if same builder built it?
Posted by Kman on 04/19/07 at 05:48 AM
Even at $360k that is still over $551 bucks a square foot….WTF! That is still a ripoff as sq ft price should be around $350 and dropping in the OC….Go to the new home builders and it is around $350-$425…..Probably will drop with the foreclosures and increasing inventory…as all these fools figure out the the resets are underway…....
If this exact plan sold for $367,500 and rented at $1,600, we are at a price rent ratio of 230. This is far better than the 270-300 we have been seeing. Of course, it is still way above the 120 it would need to be at if it is going to be a profitable rental.
If breakeven for a Rent Saver is about 160, this unit is only 45% overvalued. Although, if the fees are high here (which they probably are), the 160 number is too high. These units should sell for about $250,000 or less depending on the fees.
Posted by Bob on 04/19/07 at 06:54 AM
Yes it is still over valued but I look at it this way. Already a 13.6% price drop assuming it sells for 360k. So anyone who claims prices are not dropping is simply in denial. It would indeed be fun to go to another listing of this real estate agent owner and ask if prices are dropping and then when the say “they are stable” or some bs like that, bring up this condo.
Once price momentum starts, it is hard to stop. Just like on the way up, a 13.6% decline on the way down will tend to feed on itself.
Posted by No_Such_Reality on 04/19/07 at 07:19 AM
This is a condo, 120X is too much for an investment, even at $1600, it’ll just cover interest, HOA and property tax. No other expenses and that’s with 100% occupancy and solid $1600 which Villa Siena across the street is going for $1335 (565 sq ft) or 1525 (765 sq ft) and softening. Toscana’s 1B/1Ba are 800 sq ft and going for $1565-$1635. Move a mile around the corner to Parkwest and rent a 750 sq ft 1b/1ba for $1420 and a $400 security deposit.
Factor in a little vacancy, a softer rent and you quickly head to $150K.
Posted by lendingmaestro on 04/19/07 at 07:35 AM
Answer:
If the borrower is a broker he’she probably did the financing themselves and probably had a realtor friend structure the sales contract so the our broker friend here walked away from the purchase with a substantial amount of cash in hand.
Through the purchase and financing transactions I bet that this buyer walked away with 10k + in cash.
Then he’she hoped to sit on that piggybank and sell it for profit 12 months later.
I used to live in villa siena, which is way nicer than watermarke. Why would anyone buy that box of an apartment when they can rent a 2 bedroom at villa siena for much less?
Watermarke, The plaza, and Marquee are all massive money toilets
Posted by lendingmaestro on 04/19/07 at 07:37 AM
Oh yeah! I almost forgot Avenue One
What a joke.
Posted by NanoWest on 04/19/07 at 07:44 AM
There is another web site that lists the number of homes/condos sold in Irvine…...
http://www.ochomereview.com/homewp/chart/
Interesting that this site suggests that only 55 homes/condos sold in the first 19 days of April. This is less than half of what it was last month…....also the $ sq ft. started decreasing steadily from 545 to 515 between January and April.
If this trend of lower sales and lower prices continues at this rate….this summer will be lots of bubbleblog fun !!!!!
This is very disturbing to witness. Overall, stories like these are very poor exposure for real estate agents. I agree with the comment of “arrogance and ignorance”.
People keep reminding me that there are good, trustworthy, non-duplicitous, straight-shooting realtors out there in SoCal. But for love of God, someone please tell me who they are? All we see are sales people with personal motivations attached (both appropriate and inappropriate).
Posted by Wesley on 04/19/07 at 10:02 AM
138% Percent Jump in Orange County Default Notices
http://rancid-truth.blogspot.com/
Posted by Hope To Buy In Irvine Some Year on 04/19/07 at 06:00 PM
Actually Orange County Foreclosures are up 676.1% YOY
California foreclosures near record levels
http://tinyurl.com/2kxkek
Posted by Tyrone on 04/19/07 at 06:21 PM
What kind of moron would pay $367K for a 700 sq ft hole???
3237 Watermarke Place - Plan A - Sold for $367,500 on 3/28/2007
“There are roughly 75 million housing units in the USA. About 25 million of those homes are owned free and clear. That leaves 50 million homeowners sharing (roughly) $10 trillion in total mortgage debt. The risk of “resets” (that is, monthly payments that will go up after the introductory period of time) will affect 75% of all mortgages. (Some reports have already indicated that 80% of sub-prime mortgage holders have said that they will have difficulty paying the newly adjusted payments) ”
Posted by Joe on 04/23/07 at 09:12 AM
To do cash flow analysis to determine the value based on using 100% financing is more than a little off. If you want to buy housing as an investment and have positive cash flow….you simply have to put down a material downpayment. Institutional investors put about 40% to 50% down and finance with 1.2 debt service coverage and have positive cash flow. My guess on the value of this unit as a rental would be 180x rent = $288,000.
Posted by Kman on 01/29/07 at 01:55 PM
The cost per square feet is over $600 bucks….around $641 per sq feet. Are you kidding me? This is an ultimate joke of a place. This flipper needs to get it in the a$$.....for him to learn his lesson. $1850 a month…the person that rented this place is also a sucker….I don’t how many suckers there are in OC, but there are a lot…
Posted by Rob Ranger on 01/29/07 at 07:28 AM
This broker knew what they were getting into with 100% financing. Why did they decide to do it? My guess is GREED! Any other opinions?
Yea, I have. This broker thinks he/she is smarter than everyone else and they think they can market the property better and they think there is greater demand close to the university. In short both arrogance and ignorance.
——-
Posted by Newport Bob on 01/29/07 at 01:27 PM
$400,000 for a 635 sq ft condo with no proximaty to or view of the ocean? All I can say is that anyone who would pay half of that is an idiot. Honestly, how does anyone think that the price would increase from $400,000? I am constantly blown away by the stupidity of these people and their lenders. This is example 1A of how runaway lending, fraud and stupidity have come together to create a mess that will take a decade to recover from. Every time I read a story that makes me shake my head I read another one like this that tops the last.
By the way, the fact the current owner is a realtor should not be surprising. That is not exactly an industry that attracts the best and brightest.
Posted by crucialtaunt on 01/29/07 at 02:36 PM
If you think this is ridiculous, go to the sister site of this blog “Irvine Housing Forums” and see for yourself what people (not just realtors) are thinking that is still driving the housing mania for new construction in Irvine.
Posted by Bill Jones on 01/29/07 at 05:17 PM
Don’t forget the HOA Dues on a condo. I hear that in this complex they are ENORMOUS.
Posted by sarahfan on 01/29/07 at 07:36 PM
What are the HOA fees here? Enormous to me is $1,000/month for the Marquee Towers.
Posted by zovall on 01/29/07 at 08:03 PM
It looks like the HOA is about $300/month. Nothing quite like The Marquee since that is a high rise. I imagine The Plaza will have HOA dues similar to The Marquee.
Posted by momo on 01/31/07 at 09:26 AM
I looked at the kitchen picture and could swear it looks just like the rental apartment interior at corner of Chapman and Harbor in downtown Fullerton! Wonder if same builder built it?
Posted by Kman on 04/19/07 at 05:48 AM
Even at $360k that is still over $551 bucks a square foot….WTF! That is still a ripoff as sq ft price should be around $350 and dropping in the OC….Go to the new home builders and it is around $350-$425…..Probably will drop with the foreclosures and increasing inventory…as all these fools figure out the the resets are underway…....
Posted by IrvineRenter on 04/19/07 at 05:56 AM
If this exact plan sold for $367,500 and rented at $1,600, we are at a price rent ratio of 230. This is far better than the 270-300 we have been seeing. Of course, it is still way above the 120 it would need to be at if it is going to be a profitable rental.
If breakeven for a Rent Saver is about 160, this unit is only 45% overvalued. Although, if the fees are high here (which they probably are), the 160 number is too high. These units should sell for about $250,000 or less depending on the fees.
Posted by Bob on 04/19/07 at 06:54 AM
Yes it is still over valued but I look at it this way. Already a 13.6% price drop assuming it sells for 360k. So anyone who claims prices are not dropping is simply in denial. It would indeed be fun to go to another listing of this real estate agent owner and ask if prices are dropping and then when the say “they are stable” or some bs like that, bring up this condo.
Once price momentum starts, it is hard to stop. Just like on the way up, a 13.6% decline on the way down will tend to feed on itself.
Posted by No_Such_Reality on 04/19/07 at 07:19 AM
This is a condo, 120X is too much for an investment, even at $1600, it’ll just cover interest, HOA and property tax. No other expenses and that’s with 100% occupancy and solid $1600 which Villa Siena across the street is going for $1335 (565 sq ft) or 1525 (765 sq ft) and softening. Toscana’s 1B/1Ba are 800 sq ft and going for $1565-$1635. Move a mile around the corner to Parkwest and rent a 750 sq ft 1b/1ba for $1420 and a $400 security deposit.
Factor in a little vacancy, a softer rent and you quickly head to $150K.
Posted by lendingmaestro on 04/19/07 at 07:35 AM
Answer:
If the borrower is a broker he’she probably did the financing themselves and probably had a realtor friend structure the sales contract so the our broker friend here walked away from the purchase with a substantial amount of cash in hand.
Through the purchase and financing transactions I bet that this buyer walked away with 10k + in cash.
Then he’she hoped to sit on that piggybank and sell it for profit 12 months later.
I used to live in villa siena, which is way nicer than watermarke. Why would anyone buy that box of an apartment when they can rent a 2 bedroom at villa siena for much less?
Watermarke, The plaza, and Marquee are all massive money toilets
Posted by lendingmaestro on 04/19/07 at 07:37 AM
Oh yeah! I almost forgot Avenue One
What a joke.
Posted by NanoWest on 04/19/07 at 07:44 AM
There is another web site that lists the number of homes/condos sold in Irvine…...
http://www.ochomereview.com/homewp/chart/
Interesting that this site suggests that only 55 homes/condos sold in the first 19 days of April. This is less than half of what it was last month…....also the $ sq ft. started decreasing steadily from 545 to 515 between January and April.
If this trend of lower sales and lower prices continues at this rate….this summer will be lots of bubbleblog fun !!!!!
Posted by MarkusArelius on 04/19/07 at 07:47 AM
This is very disturbing to witness. Overall, stories like these are very poor exposure for real estate agents. I agree with the comment of “arrogance and ignorance”.
People keep reminding me that there are good, trustworthy, non-duplicitous, straight-shooting realtors out there in SoCal. But for love of God, someone please tell me who they are? All we see are sales people with personal motivations attached (both appropriate and inappropriate).
Posted by Wesley on 04/19/07 at 10:02 AM
138% Percent Jump in Orange County Default Notices
http://rancid-truth.blogspot.com/
Posted by Hope To Buy In Irvine Some Year on 04/19/07 at 06:00 PM
Actually Orange County Foreclosures are up 676.1% YOY
California foreclosures near record levels
http://tinyurl.com/2kxkek
Posted by Tyrone on 04/19/07 at 06:21 PM
What kind of moron would pay $367K for a 700 sq ft hole???
3237 Watermarke Place - Plan A - Sold for $367,500 on 3/28/2007
Posted by dayday on 04/19/07 at 07:52 PM
I’d consider $267k but not anymore!
Posted by Kev on 04/19/07 at 08:27 PM
Must read article for housing bear.
http://www.dissidentvoice.org/Apr07/Whitney18.htm.
“There are roughly 75 million housing units in the USA. About 25 million of those homes are owned free and clear. That leaves 50 million homeowners sharing (roughly) $10 trillion in total mortgage debt. The risk of “resets” (that is, monthly payments that will go up after the introductory period of time) will affect 75% of all mortgages. (Some reports have already indicated that 80% of sub-prime mortgage holders have said that they will have difficulty paying the newly adjusted payments) ”
Posted by Joe on 04/23/07 at 09:12 AM
To do cash flow analysis to determine the value based on using 100% financing is more than a little off. If you want to buy housing as an investment and have positive cash flow….you simply have to put down a material downpayment. Institutional investors put about 40% to 50% down and finance with 1.2 debt service coverage and have positive cash flow. My guess on the value of this unit as a rental would be 180x rent = $288,000.