Irvine Housing Blog

This is a wild guess:

It could be due to the fact that the monthly cost of ownership with a $400K mortgage is about the same as renting.

Again, a total wild guess.  Some people may like the fact that the mortgage payments of around $2000 a month are fixed and the interest is deductible.  I’m going out on a limb here though, and pondering other wild reasons why someone would consider it.

The $400/month property tax is sort of fixed also (goes up 2% per year)...

Maintenace costs are never fixed… Hey Mr plumber, I hear you need another boat payment… come on over…

HOA fees… Hey guys, sorry we didn’t access enough to cover some needed repairs, how’s about a $2000 special assessment

Sorry dude, there’s a lot more to owning a home then just paying a mortgage.  In my experience, $2500 rent vs $500K for property… RENT

There are a ton of reasons to BUY rather than RENT. Children would be the top on that list. Most parents want their children to have a great education, in Irvine they get that.

Buying with the SUBSIDIZED mortgage deduction, makes it very close to renting, gives you long term stability for the children to grow up in the same neighborhood, and gasp…believe it or not, eventually, you WILL pay off the mortgage if you do not use it as an ATM machine.

And Alan, when you own your own home you either LEARN to fix/build things yourself, or you pay dearly. I learned quite a bit, how to do basic electrical, plumbing (including sweating copper), masonry, and a host of other skills that you will never ever learn renting. Some people would prefer to never learn those skills, but then again, some people love renting, not owning.

1. Are you saying renters’ children don’t get a good education?
2. Having happy parents that don’t stress over a mortgage loan may actually result in more stability for the children.
3. What if instead of fixing the next broken thing in the house, I prefer to spending time playing with my children in my rented house?

I don’t even think 9% interest rates will do it even if income doesn’t rise.

Of course you don’t think that.

Even in the 90s bubble, prices in Irvine didn’t go too far below their base prices and there were 9% rates then too.

I can only hope (and pray) that we get a chance to see if your correct in the near future.

JMO ~ 9% mortgages at today’s prices would kill affordability in Irvine.

Exactly PR, heavy cash down payments are the norm rather than the exception.

It’s an interesting definition of “rental parity” that ignores the oportunity cost of $100K down payment.

You are wrong, opportunity cost are included.

But not all of us are investing in cutting edge big money investments in the Salsa industry.  Your oppotunity cost are understandably exorbitant.

There exist ways of defining “rental parity” such that this property meets the definition at the current asking price. As such, I conceed that someone can call this price “rental parity” without necessarily being disingenuous. I’d contend that such definitions of rental parity aren’t normal or sustainable.

And I don’t know how things are on planet Reality, but on planet Earth making fun of an anonymous internet poster’s handle doesn’t constitute a very good argument.

But, if that is the only argument you got ....