Today’s OC Register (Marketplace Page 3) runs a modified version of the same story they ran last weekend. It reads more like a builder’s marketing piece than a news article. I wouldn’t be surprised if California Pacific PR people had a hand in its creation.
I was really peeved when I read the first version of this article last week. It stated that Bowen Court (Woodbury) and Vientos (Portola Springs) were designed for singles, part-time parents, and gays and lesbians who wanted to hide their true relationship and appear to be just roommates. I’m not kidding. It really said that! Interestingly, today’s article says nothing about gays and lesbians. Perhaps I was not the only person who was bemused and dumbfounded by that statement?
“Bartender Shaun Karpow didn’t think he could afford to by a house he liked in Orange County, much less Irvine, on his own. He was considering a move to Nevada when a relative told him about a neighborhood in Portola Springs called Vientos, where detached homes are designed for single buyers or a divorced parent who might get the kids on weekends. The homes in the neighborhood range from 990 to 1,405 square feet and are priced from $393,720 to $572,030. Unlike traditional condos and townhouses, buyers own the land the house is on, and there are no shared walls.”
“After choosing some upgrades, Karpow, who is single, paid $450,000 for the 1,087-square-foot “OneXM” model and moved in last month.”
“Homebuilders, real estate experts and marketers said the Vientos project is rare for Orange County.”
“That’s quite unique to find detached homes with that small of a square footage, but that does make it more affordable,” said Linda Mamet, a vice president of sales and marketing for the John Laing Homes’ South Coast Division.”
I find it interesting that Brian Martinez, the author of this article, chose to interview competitor John Laing Homes to provide commentary on this development. I visited John Laing’s “Sendero” in Portola Springs yesterday at their grand opening, and I also visited Laing’s “Four Quartets” when that debuted a few months ago in Woodbury. I found both developments to be ho-hum at best. Many of their floor plans are “carriage-style” with just the garage on the first floor, or just the garage and a tiny study. The kitchens are pretty decent, but the models all felt like upscale apartments to me. I would consider renting one certainly, but I’d never purchase one of these awkwardly-designed townhouses. Sendero’s floor plans run from 1,312 to 1,958 square feet, 2-3 bedrooms, and are listed as starting from $532,880 to $657,880.
All things considered, I like the Vientos/Bowen Court 1,405 square foot Model Four a lot better than any of the Laing offerings. I like the way it offers a small courtyard and, in Woodbury’s version, the builder even offers to open up a wall of the second single car garage to create a loggia off of the living room. That appeals to my desire to enjoy the “indoor-outdoor California lifestyle.” What I don’t like about Model Four is the stupid, stupid, stupid placement of the microwave, at knee level, in the kitchen. They really designed this for part-time parents, huh? Guess the architect, David Ko of Angelino Associates, wasn’t really paying attention when his kids were in the toddler/preschool age. Visions of my pots and pans or, even worse, my cat, being stuck in that kid-friendly-height microwave would keep me from sleeping at night.
Going back to the brochure (oops, I mean the OC Register article), ” ‘One model in Vientos has two equally-sized master bedrooms, which can be purchased by two singles,’ Ko said.”
That was the paragraph that in the previous version of this article, discussed the benefits of such an arrangement for “in-the-closet” homosexuals. I just have nothing at all to say about that selective editing. Good grief.
And finally, “One of the models at Bowen is designed for [part-time parent architect] Ko’s situation. Since the buying power of a single parent tends to be low, Ko looked to cut costs wherever he could. So he designed a two-bedroom house that has a half-bath downstairs and only one full bath upstairs, which the parent shares with his or her children on the days they stay there.”
That would be Residence Two, which is about 1,030 square feet. Back when Vientos first debuted this model was listed from $500,000. Now it’s priced at $445,000.
I am a (almost full-time) single mom. (My son stays with his dad every other weekend.) I do NOT consider my buying power to be all that low. As many readers of our blog already know, I have an MBA and earn $120,000 a year (and will soon earn closer to $130k after my raise next month) in addition to receiving child support every month. I have almost $150,000 stashed in high-yielding CDs from my half of the proceeds of selling our home in January 2006 when we divorced. Given all this, it simply blows my mind that a 20-something BARTENDER paid $450,000 for one of these cramped little units. How the HELL can he afford that much mortgage? Unless mommy and daddy gave him a couple hundred thou as down payment, his monthly payments (including the roughly $1000 per month Mello Roos and HOAs) have got to be close to $3500-$4000! I consider $500,000 to be pushing the top of my sanity limit for a home purchase. And there is no way that ANY of these little units are worth what the builders are asking for them, even after the recent price drops.
Good luck with that creative marketing, friends. Just beware that the majority of the people that I have seen traipsing through your models were moms and dads with little kids. Because whether or not you want to admit it, your little boxes that were not designed for families are still out of reach of most fiscally sane families in Irvine.
The fact that a 20 something bartender can obtain a $450,000 property (probably an 80/20 neg am loan) is what created this bubble in the first place. People with no proven ability to save or make consistent payments should not be buying homes. The sub-prime implosion should at least stop this in the future, but it will take some time for all the foreclosures to flood the market and really drive prices down.
I have been looking for a new rental, and I spoke with a realtor today at a place I was looking to rent. She told me anecdotally that many recent sellers have been taking 10% haircuts off their asking prices to close the deal and moving into rentals. The rental house market is priced lower than the Irvine Companies properties (apartments are at a premium for some reason), but it is still moving quickly because of the former owners becoming renters all over Irvine. For me it means I will probably stay where I am on a month-to-month basis until I can find the deal I want. I was surprised by the realtor’s anecdote, both in its substance and that she would tell me at all. Perhaps she was trying to create some urgency for me to take the rental, but I got the sense she was just telling a simple truth.
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Interesting article, my wife and I (married 3 years) have an infant daughter and we like the homes because of the layout (especially the loggia option for bowen court) and don’t care to host gatherings at our house, we don’t have pets, and we hate cleaning. So these homes appealed to us… but, we definitely don’t fit their target market.
I am glad that someone else said WTF is a bartender buying a box for $450k with herendous hoa and taxes that he can’t afford let alone the mortgage? Oh he has a roommate though.
Thought you might be of interest. I started a blog and in the top post comment section you will find all the headlines from 1987 to 1993 from search of the Register’s archive for “housing market”.
lol… bunch of haters… if the bartender wants to buy the house and can afford it, more power to him… don’t put him down for it…. you all sound like overgrown bitter babies… lol.
Not bitter at all, I think alot of people just realize that taking a 30 y regular mortgage is about the only SANE thing to do. Otherwise going neg-am or a short term interest only is foolhearty at best.
-bix
“if the bartender wants to buy the house and can afford it, more power to him… ”
The problem is he can’t afford it: that’s the whole point.
BTW, I used to be a bartender in college, and I really enjoyed the work.
What do we say to guys that go after girls that are out of their “league”? Dude, she’s out of your league! Does that mean he’s not going to get the girl? He might or might not. He might get her but cant keep her. Etc….
Same goes for housing. Apparently, this guy got the house. He did. How long can he keep it? I dont know. But if you talk about “affordability, he can afford it because he went after it and he has the house. Is he stupid for going after the girl or for buying the house? MAYBE.
For all of you who had the 13th paragraph when irvinesinglemom once again discloses her salary, you win!
Play America’s favorite game and watch out for her next post! And remember, look for $130K now instead of $120K.
If the bartender can afford the $450k box then more power to him. I will wait for him to get foreclosed on, so I can buy it from the bank at $299k in the next 2-3 years. =)
Like Confusious says: “A fool and his money will soon be departed”….
Okay, I get the point. For the record, I have repeated my financial status on this and other blogs in order to put my opinions into perspective for the many obnoxious people out there who believe that the only people who share my negative view of the housing market are bitter renters who make measly salaries with no savings. I wanted to make it perfectly clear that I am neither bitter nor poor.
From your snide comment, it is clear I have made my point. I won’t make it again, until sometime in the future when, I’m almost certain, someone will challenge my bearish outlook and state it’s only because I’m jealous of people with good salaries and savings.
comment for irvinesinglemom: no need to explain yourself, this is your blog… say whatever you want. thank you for creating this blog because it gives me a pulse on the home prices in irvine without having to waste my time visiting model homes or checking out open houses. i appreciate all the info people on this blog give it gives other people who read this blog a perspective of how ridiculous prices are.
comment for homeless: yes i agree, there are a lot of haters on these bubble blog… but i think the hate is not with the invidual, if anything it’s more with the mortgage companies that put these buyers in these homes they know they can’t afford.
comment for “now…”: this is a blog for people who want to express their thoughts, experiences and frustrations with the current housing market… if you don’t like reading how other people may be making more than you, go somewhere else… you add nothing to this blog with your sophmoric comments.
Wow, fallen, thank you SOOOOO much! I hate to admit how thin-skinned I apparently am (kind of hypocritical of me certainly since I’m slamming the poor bartender!) but that comment did make me feel pretty bad! It made me realize that I probably sounded like I was showing off when I really hadn’t intended to.
And to give credit where credit is due, this is Zovall’s blog; he created it and invited me along for the ride. He is doing a FABULOUS job! Go Zovall!!!!!!
sorry to keep harping on this point but by you telling us how much you make it shows us that if you don’t feel comfortable buying a 750k home how can people who make less do it!!! a lot of people don’t know if the house they want buy is too much… info found on blogs like these gives readers a resource or another person’s perspective on what’s affordable. (granted, they shouldn’t use blogs as their sole source for the most important financial decision of their lives.)
zovall… props, for a wonderful site… i don’t go to that other larger housing bubble blog anymore… this site it much more relevant to the market i’m looking at.
It was a joke people…I knew Irvine residents were humorless but this takes the cake. And type in 120K in the blog search engine and you can see a little teasing was warranted.
irvinesinglemom,
Many of us who frequent this blog admire how you put yourself out there. I can understand your reaction to the “bitter renter” label. Several probably remember my little blow up on the Marquee thread over the same accusation. I think those that drank the kool-aid really cannot comprehend why someone in your circumstance would not buy. I too have a friend who told me I am crazy when I told him how much I pay in rent. You do great work on this site. Keep it up; we are all rooting for you.
Wow, irvinesinglemom. You got an MBA, and only make 120K a year. Talk about underachieving…….
MBAs in private equity start at 400K.
I have a bachelors in Electronics Engineering (Manufacturer Rep, Sales Engineer) in CA and make 250K a year. When I start my own Rep firm next year, I’ll make around 400K a year in 2 years….
Wow, do MBAs make that little in CA? Yikes…….. Hardly worth it.
BB —
Only a tiny number of MBAs make that sort of money. Seriously. The best grads of the top programs start like that, but for many an MBA is not a ticket to instant wealth; it merely adds some percentage to what they are already making in business.
Also, given her handle, we should assume that irvinesinglemom is in fact a *single mom* and as such she has time-consuming responsibilities that preclude the 80+ hour workweeks put in by people in those very high-paying MBA jobs.
In other words, you’re being unfair and unkind.
Thanks quietann and everyone else for your wonderful support. For what it’s worth, not everyone who achieves an MBA is interested in pursuing a career in finance, sales, or marketing, where your earnings can really skyrocket but you’re not contributing anything tangible to society. While I am fascinated by economics and finance, my true passion (as geeky as it may be!) is manufacturing operations. My company put me through the FEMBA program at UCI (I didn’t have to spend any of my own money, sweeeeeeet!) and I am using my business knowledge as part of my career in pharmaceuticals and medical devices. Which I love. My hours are very reasonable, my boss is the best, and my staff and colleagues are generally smart, dedicated, and fun. And the products my company makes really do help people. So while my salary will never allow me to buy a house in Shady Canyon, I am very happy nonetheless.