homeless:  Thanx for the info!  These prices are way too high for me, but they are very nice homes.

Homeless—I must be too Irvine-ized.  I thought the yards at Serra were pretty big. 
Is it just me, or do they have the air freshener cranked to 10 in these places?  I almost gagged when I walked in.  They can’t still be trying to mask smoke smell from the fires?  That was Halloween, IIRC?

Yeah… One of the plan3 was priced at 1,365.000 (includes $150,000 upgrades and originally priced at around $1,600.000.)
This was the lowest price I could find for plan3.
but…it is already sold out.  

I think plan 3 floorplan is very nice.  I am interested in buying plan 3 (4277 ft^2) for $1.36M which has over $150K upgrade.  It’s about $319/ft^2.  Do you think I should wait until it drops down to $1M (~$250/ft^2)  in one year?

IrvineOwner - If you think a house is going to drop 300K in one year, do you think you should buy it?  That’s a lot of equity to burn in a short time.  If you don’t buy it now but still feel like giving the 300K away, the OC Mission is a great choice!

Some guys in this forum have predicted that property in Irvine will drop down to $250/ft^2 in a few years.  I am not really sure if it will or not.  That was why I wanted to query opinions of some others.

I think that we still have a downside…especially in an unfinished community like PS with lots of inventory.  I’ve been throught the Serra models and they are gorgeous.  I guess if you are planning to stay in the home for a long time and finance it responsibly then you should do what makes you happy.  Just know that there is a significant downside risk.  Just ask yourself if you would be OK if a worst-case scenario happens with the value of the home…if so, then pull the trigger.

Have you tried a low ball offer with the builder first…worst thing that can happen is they say no.

irvine owner,

My wife and I have also toured the plan 3 model as it is absolutely gorgeous. We probably can’t afford a house like until much later in our lives, when our kids are in junior high or high school. irvine owner, I am curious on how wealthy people like yourself finance these $1.3 million homes? Do you put $300,000 down and mortgage $1M or put $1M down and mortgage $300,000. I mean for me personally, I don’t know how i would be able to sleep at night with a $1 million mortgage with a mortgage payment of $10k a month. If don’t mind, since you are anonomous, can you share with me how income your household makes? It would be a good benchmark for me to know that i don’t try to buy a home like this before i can afford it.

Regarding prices bottoming out. None of us can really know for sure. It can bottom at $315, $300, $275, and again, Serra may go up to $1.4 next year.

I am sorry that I don’t want to disclose our household income even we are all anonymous.  We put enough down payment to get a good conforming loan (30-year fix at 5.375% with 0 point).  The mortgage payment for our home is about $2330 a month.  We can live confortably with this payment and MR/taxes.

>>We probably can’t afford a house like until much later in our lives, when our kids are in junior high or high school.

Generally, kids get more expensive as they get older, so you’re probably looking at a time when they are out of college and out of the house.

>>I mean for me personally, I don’t know how i would be able to sleep at night with a $1 million mortgage with a mortgage payment of $10k a month. If don’t mind, since you are anonomous, can you share with me how income your household makes? It would be a good benchmark for me to know that i don’t try to buy a home like this before i can afford it.

Try the search function and look for the term “DTI,“ which is debt to income ratio.  I can recall the exact number, but IR and others have discussed how much of your income your house payment should be.  Also, some folks get large downpayments from their parents, from savings, or from inheritances, which may bring the mortgage amount down.

Are these the prices for homes in Irvine or Bermuda?

“The mortgage payment for our home is about $2330 a month.“

You sure about this? Are you talking about your current mortgage, or what you expect to pay for Serra?

How much of a down payment are you putting down?! A $2300/month mortgage payment w/a 30yr fixed on a $1M+ home sounds awfully low unless you are putting down a monster down payment…

I personally would not want to buy a house for 1.4 mill plus in that part of Irvine. I just don’t think it will turn out to be a good investment.  In this market there are much better deals to be had on resales instead of buying overpriced new homes. I think a lot of people get suckered in by the models and later find out the tremendous added costs of upgrades.

BLUE FIRE - 06 April 2008 11:04 AM

“The mortgage payment for our home is about $2330 a month.“

You sure about this? Are you talking about your current mortgage, or what you expect to pay for Serra?

How much of a down payment are you putting down?! A $2300/month mortgage payment w/a 30yr fixed on a $1M+ home sounds awfully low unless you are putting down a monster down payment…

Yes, that is what I expect to pay for our *new home* at Serra.  It is a monster down payment.  If you use stardard mortgage calculator, use $417,000 as loan amount with 5.375% as interest rate, you will find that the monthy mortgage payment is $2335.08 to be exact.

socalmd - 06 April 2008 11:29 AM

I personally would not want to buy a house for 1.4 mill plus in that part of Irvine. I just don’t think it will turn out to be a good investment.  In this market there are much better deals to be had on resales instead of buying overpriced new homes. I think a lot of people get suckered in by the models and later find out the tremendous added costs of upgrades.

I am not sure if you know.  Standard Pacific has cut their price significantly.  All their homes including next phase (move-in time is 11/08) have been almost sold out.  Specifically, the one we are buying has significant upgrade and it’s pretty close to the Model Home except the landscaping.  It has over $165K upgrade.  Technically, subtracting the upgrade amount from the price we are paying, the house with standard features is about $1.16M for 4277 ft^2.  It’s about $271/ft^2.  I agree that other areas (e.g Quail Hills, Turtle Rock, Northwood, etc..) of Irvine are nicer.  I don’t think we can get the same house for that price in those areas in the current market.  It probably can be had if housing marking in Irvine will drop another 20% to 30% in a few years as others have predicted.

irvine owner,

You are in a great financial position, that most of us are not in. You are also setting a very good example for many us considering to purchase a home that is over a million dollars. Personally, I thinking having a $1 million mortgage is crazy, so you are definitely doing the right thing. I believe it all boils down to affordability, and from what you are telling me you can easily afford this house. To be honest, you should be shopping in New Port Coast and Shady Canyon, but you are shopping in PS for its value and for the future potential for the area. If i were you, I would take this opportunity at a heart beat. In year 2020, when portola springs and OC Great Park is all built out, with modest appreciation, your 4000 square feet Serra home should be worth atleast $2.5 - $3 million. Now, if your home is worth this much, would it really matter to you if you bought the home for $300 square feet or $250 square feet? Not me.

By the way, to lock in a mortgage at 5.375% for $417,000 it seems like an excellent rate? Would you mind sharing with me which bank you are using for your mortgage? My wife and I are also looking to buy very soon.

JPX

but you are shopping in PS for its value and for the future potential for the area. If i were you, I would take this opportunity at a heart beat. In year 2020, when portola springs and OC Great Park is all built out, with modest appreciation, your 4000 square feet Serra home should be worth atleast $2.5 - $3 million. Now, if your home is worth this much, would it really matter to you if you bought the home for $300 square feet or $250 square feet? Not me.

Anyone else think this sounds…ummm….errrr…...TROLLISH? 

Trollish? Perhaps.  Foolish? Definitely.

lending maestro? Foolish ? why? can you explain?

Trooper. What do you mean by trollish? I’m a little confused.

lendingmaestro - 06 April 2008 04:17 PM

Trollish? Perhaps.  Foolish? Definitely.

I think that JPX’s view was perhaps too optimisitic.  I don’t expect the house’s value will appreciate to 2M-3M in 2020 either.  But I don’t think his view was foolish, however.  BTW, you must be very smart and successful in life to call someone foolish.   

Do I think I am buying my home at bottom of real state market? Hell, no.  I think it will go down some more in the next couple of years.  I am not sure how much the correction will be though. That was why I posted the questions to query others’ views. 

At least, we know we are buying it at 22%+ below the peak.  My wife and I love the floor plan so much and we believe that we will enjoy the house every moment of it.  Life is just too short you know.  The most important thing is that we do plan to live in the house for many years (probably 18+).  We also believe that the equity of the house will be enough for our children’s college tuition 18+ years from now.

Trooper. What do you mean by trollish? I’m a little confused.

I’m saying that you sound like a realtor.

Hey if you can afford it, go for it.  I wish you and your family the best of luck.  I guess I am jaded after seeing so many people in the last 3 years get in over their head.  I also grew up in the midwest, and after 5 1/2 years in CA I still cannot believe the prices out here.  They will always be at a premium of course, but much lower than what they are right now.

JPX - 06 April 2008 03:07 PM

By the way, to lock in a mortgage at 5.375% for $417,000 it seems like an excellent rate? Would you mind sharing with me which bank you are using for your mortgage? My wife and I are also looking to buy very soon.

JPX

I got a few Good Faith Estimates from some lenders.  The lender affiliated with builder (Standard Pacific) provided the best quote.  Other lenders just couldn’t beat it.  In addition, builder also provides $2000 incentive if I go with theirs.  The loan fee is about $1600 so I don’t have to pay a single penny for the loan cost.

We also believe that the equity of the house will be enough for our children’s college tuition 18+ years from now.

Not to be nosy irvineowner, but can i ask you how old you are? if you are in your early 30s, brother what do you do for a living to be able to purchase a home like Serra at your age? You aren’t one of those chinese or korean immigrants who have a rich dad in Asia who is making a $1M down payment for you are you? I am hearing this is more common than people think in Irvine.

Trooper, I am not a realtor and will never become one. I love my current job too much.

JPX