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Pre construction prices were about 400-600 per sqft depending on size.  Its fallen quite alot, but I think it will fall alot more.  If you can get the price down to something like 350-375 per sqft. Then it might be worth it.  Add to that your few dollars down and you might have a decent price.  But still all you will be doing is getting under the negtative equity bar.  It doesn’t mean you won’t lose some equity in the process. 

If you want to just purchase a place, i think you may find a few better alternatives, like Watermarke (which have already depreciated alot)....  anyways good luck and don’t work too hard.
-bix

Thx bix,

What is happening at Ave One these Days? I remember the 600 sq ft ones going for $385K quite a while back, anyone have any insight?

From what I can tell based on Redfin, there were a lot of speculators and investors who bought a good amount of the Ave One homes.  There’s a 2bd/2ba going for $300K (taking a $265K+ loss).  My wife and I were considering buying back in 2007.  We didn’t care for the layout, the asking price $480K 2bd/2ba, the high HOA, but we loved the location.  I’m glad we passed on it and decided to rent.  The prices still have a good ways to fall and that HOA makes ownership less than desirable.  It seems like it would be a good investment to rent out to UCI grad students, but the rent and HOA would be set too high.

It’s so great to revisit these threads.  The first post is about a 1 BEDROOM for $385k and now they have 2/2s going for $300k.  Hey, it was a horrible deal in 2007, and it’s still horrible.

He asked about a 385k condo but mentioned buying a slightly smaller one. So, 325k?

He also mentioned that the home was purchased with 1031 funds, meaning that, if you don’t spend it, you get taxed 15%. In essence, he had the choice of throwing the money away by paying to IRS (At 15%, thats $48750), or, buy the property, and hope it doesnt depreciate more than $48750. A similar 1BR in AveOne is asking for $250k right now. So I would speculate, he’s down a little bit, but not all that much.

But, he also has a long term, stable tenant, which balanced out the monthly cash flow for the place. As long as rental market doesn’t plummet, it will be OK

In hindsight, if the gov’t doesn’t push these funky laws (1031, 250k exemption) that inflated the real estate bubble, the bubble burst probably would be a bit more mild. For me, I’m glad that I was able to deduct income down to a point where my mind doesn’t meander towards using tax deduction as an excuse to make a bad business decision

kwong7 - 10 March 2009 07:36 PM

From what I can tell based on Redfin, there were a lot of speculators and investors who bought a good amount of the Ave One homes.  There’s a 2bd/2ba going for $300K (taking a $265K+ loss).  My wife and I were considering buying back in 2007.  We didn’t care for the layout, the asking price $480K 2bd/2ba, the high HOA, but we loved the location.  I’m glad we passed on it and decided to rent.  The prices still have a good ways to fall and that HOA makes ownership less than desirable.  It seems like it would be a good investment to rent out to UCI grad students, but the rent and HOA would be set too high.

Hah!  grad students?  the ones living on $25k/year if they are lucky?  the ones getting on campus apartments for $800/month?

maybe you mean medical, law, and MBA students?  of course, these folks are racking up $25k/year in tuition, so may not be so into luxury living prices, either

Shadax - 10 March 2009 08:32 PM

It’s so great to revisit these threads.  The first post is about a 1 BEDROOM for $385k and now they have 2/2s going for $300k.  Hey, it was a horrible deal in 2007, and it’s still horrible.

I know, it’s sometimes good to look back…

I use Ave One for a reference as to how prices are dropping, the 600 sg ft @ $385K sticks in my mind for some reason, can’t remember which year though..

You don’t even get a garage! Ridiculous.

biscuitninja - 19 January 2007 08:50 AM

I have the opportunity to buy in Avenue One.  The cost for a 1B (- 725sqft -) is 385, down a significant amount from last year.  The incentives currently are 5,000 in closing costs and 2 years worth of association fees (~310 month).  What is the community recommendiation?
Thank
-bix

That’s AT LEAST $100K overpriced.  Do some research, those babies are not selling fast.

norcaljeff - 13 March 2009 04:33 AM

biscuitninja - 19 January 2007 08:50 AM

I have the opportunity to buy in Avenue One.  The cost for a 1B (- 725sqft -) is 385, down a significant amount from last year.  The incentives currently are 5,000 in closing costs and 2 years worth of association fees (~310 month).  What is the community recommendiation?
Thank
-bix

That’s AT LEAST $100K overpriced.  Do some research, those babies are not selling fast.

He posted that January 2007….they will probably pay you to move in now…

PeterUK - 13 March 2009 07:26 AM

norcaljeff - 13 March 2009 04:33 AM

biscuitninja - 19 January 2007 08:50 AM

I have the opportunity to buy in Avenue One.  The cost for a 1B (- 725sqft -) is 385, down a significant amount from last year.  The incentives currently are 5,000 in closing costs and 2 years worth of association fees (~310 month).  What is the community recommendiation?
Thank
-bix

That’s AT LEAST $100K overpriced.  Do some research, those babies are not selling fast.

He posted that January 2007….they will probably pay you to move in now…

Actually I’ve been keeping a steady look at these and they are indeed coming down… alot.  The only part to making these units have a positive cash flow is the VERY expensive association fee.  We will see.
Take it easy
-bix