Monthly Archives: February 2012

Buy or rent at Liberty in West Irvine

26 Bowie Pl is a 4 bedroom, 2.5 bath single family detached home in the Liberty tract in the Independence section of West Irvine. Click the picture below for a closer view.

There are three main floor plans in the Liberty tract and at 1,755 square feet, 26 Bowie is the middle plan.

There are two other Plan 2's on the market that are in the Accepting Backup Offers status:

111 Confederation – Listed at $571,700

31 Halifax – Listed at $549,000

As far as Plan 2 Closed Sales, I found these:

9/23/11 155 Church Place $585,000

9/19/11 162 Church Place $585,000

Given the actual closed sales and the status of the two accepting backup offers, I'll use a price of $570k for the analysis.

Purchase Price $570,000
Closing costs $17,100 3%
Total price $587,100
Down payment $131,100 20%
Loan Amount / Percentage Of Price $456,000 80%
Interest Rate / Period (months) 4.00% 360
Monthly Yearly
Mortgage Payment $2,177 $26,124
Interest Component $1,520 $18,240
Property Tax $503 $6,039 1.06%
Special Assessments $96 $1,147 0.20%
Effective Tax rate 1.26%
Insurance $50 $600
HOA 1 $0 $0
HOA 2 $0 $0
Cash Out $2,826 $33,910

There are some possible adjustments that may apply to your situation. Be sure to also consider how long you may own the property (average is around 6 years), what kind of financing you actually qualify for, how much you put down, the effect of giving up the standard deduction, potential price declines, costs to sell the property, etc. The NY Times Buy or Rent calculator is a great tool that helps with some of these.

Possible Adjustments
Interest paid $18,240
Property tax $6,039
Total deductible $24,279
Tax benefit $506 $6,070 25%
Opportunity cost of down payment -$219 -$2,622 2%
Principal paid in mortgage payment $657 -$7,884

What do these Plan 2s rent for? I didn't find any recent closed leases for Plan 2s. There is a Plan 3 (~2000 sq ft) at 27 Halifax which is asking $2650/month.

Would you buy 26 Bowie for $570k or rent it for $2650/month?

A Review of the Santa Maria Tract at Stonegate

Santa Maria is the second smallest tract in the Village of Stonegate. These residences are considered townhomes. I’m going to come right out and say it: I didn’t really like these floor plans. If I had to choose between Santa Maria and Santa Clara, I’d choose Santa Clara. The Santa Maria properties are larger, but I thought that they lacked charm and were overpriced.

Estimated Property Taxes and Special Assessments:

Base Property Tax: 1.05% of sales price

AD Tax: $1,607 per year

CFD Tax: $1,700 per year

Other Taxes: $156 per year

Overall Effective Tax Rate: Approximately 1.8%

Floorplans

Pricing

Options

Residence 1

Number of bedrooms: 2 bedrooms + den

Number of bathrooms: 2

Square footage: 1,386 sq. ft.

Garage: 2 cars

Base price: $432,000

The Residence 1 model had a most unwelcoming entrance. The model displayed a feature where you had to be buzzed in through a door. Once inside door 1, you see the front door. I felt like I was trapped in between the two doors and the walls extend up so high that it made the entrance dark. I was expecting a portcullis to drop down and be taken prisoner in the castle. This is not how I want to welcome guests into my home.

When you enter Residence 1 you’re greeted by three doors. I felt like Alice in Wonderland wondering which door to choose: laundry, garage or coat closet. Walking up the stairs was a big disappointment, because I was immediately confronted by the deal breaker—you must choose between a butcher block island or a dining room table. Granted, the island is large enough to function as a table and that’s how the model presents it. You’re almost forced to choose the island. If you opt for a table instead of the island, you’re losing counter space and your table is smack dab in the center of the kitchen. I give this floor plan the big NO.

The kitchen has tall cabinets. I was satisfied with the storage capacity. You have an optional built in desk that you can select in lieu of more cabinetry. I envision this desk becoming a junk collector and I’m not sure it belongs in the kitchen. Needless to say, my review of the kitchen is two thumbs down. I can’t get past the island—butcher blocks require maintenance and I just don’t like the concept of having my food prep area the same as where I eat. Unacceptable.

The den is petite. You would definitely have to turn it into an office. The guest bathroom is sufficient. It reminds me a little of a hotel. The vanity isn’t full sized, and it only has two drawers. It’s a tub/shower combo. It serves its purpose with no bells and whistles.

I found the second bedroom small, but it wasn’t surprising after seeing Santa Clara’s floor plans. The closet isn’t big, but perhaps you can fit a child’s wardrobe in it. The closet has hanging wooden doors that slide on a track. I had this closet setup in my last apartment and I hated it. Maybe I had a bad experience that turned me off of sliding doors forever.

The master bedroom is a decent size. I actually really liked the master bedroom. The walk-in closet is ok. I don’t think there’s enough bar space, but you can always configure your hardware to suit your needs. I thought the master bathroom was small. The dual vanity is acceptable space-wise, and the toilet is in a separate area. There’s a nice walk-in shower, but no tub.

Final Thoughts:

Overall I think that the floor plan was poorly designed. I wouldn’t live here.

Residence 2

Number of bedrooms: 2 bedrooms

Number of bathrooms: 2.5

Square footage: 1,483 sq. ft.

Garage: 2 cars

Base price: $458,000

When you walk into Residence 2, you have an open view of the kitchen and great room. The great room is spacious and you can easily define the living room from your dining space. The model showcases an optional hutch in the dining room area, and I think I’d choose this upgrade for the house. It helps extend the kitchen.

I wasn’t impressed with the kitchen. It felt a little small and short on counter space. It had plenty of cabinet storage. The microwave, however, was built into a corner between the cabinets and countertop. It seemed like such a waste of space and it was a very awkward placement. It’s the first thing I saw when I walked through the door…an oddly configured microwave.

There is an enclosed outdoor atrium. Perhaps they were trying to mimic the Roman villas with the atrium in the center of the household. I’m not quite sure how I feel about this space. On the one hand, it is kind of cool. On the other hand, you’re walled in. When you look up at the extended walls it gives off the vibe that you’re in the bottom of an endless pit—but at least you can see a patch of blue sky. Private or claustrophobic? You decide.

The downstairs powder room contains a toilet, vanity and miniature door leading to a storage area. I think that having an under the stairs storage space is a bonus to the house, it just looks odd in the bathroom and once again I felt like I was wandering through an Alice in Wonderland house.

Down the hallway past the powder room are the stairs. The model showcases an optional basket storage/home management desk in the landing. I actually liked the basket storage and home management setup. I’d consider adding this feature. I think it’s a great place for it. There’s a lot of linen cabinet space down the hallway, which is very nice.

I wasn’t disappointed in the second bedroom. I think it could easily accommodate a Full bed, although a Queen might be a stretch. Every square foot counts! There is a very tiny ensuite in this bedroom. It has a shower/tub combo and a small vanity. I couldn’t live in this space, but a child could.

The master bedroom was suitable. It had a nice walk-in closet and showcased the optional organizer. The master bathroom had a tub separate from the stand alone shower. The toilet is in a separate room, which is a huge plus in my book. The dual vanity is standard and would accommodate my arsenal of beauty products. The master bedroom with ensuite passed my inspection.

Final Thoughts:

After my initial walk through of Residence 2 I decided that it wasn’t for me. The storage, atrium and tub in the master bathroom are unique features, but not enough to win me over.

Residence 3

Number of bedrooms: 3 bedrooms (or optional den at bedroom 3)

Number of bathrooms: 3

Square footage: 1,614 sq. ft.

Garage: 2 cars

Base price: $505,000

When you walk into Residence 3, you have an open concept view of the great room and kitchen. The first thing I noticed in the model was the awkward placement of the dining room table. It’s sandwiched between the kitchen and the living room. I feel like it blocks the flow of traffic. On the flip side, instead of eating your meals at the coffee table so you can watch television, you can now actually sit at your kitchen table and enjoy your quality programming.

The kitchen was suitable, and I don’t have any complaints. The island has a lot of surface area, there’s plenty of counter space and lots of cupboard storage. If I had one piece of advice to tell the builders, I would recommend that they offer a double oven in the kitchens. Maybe they could make it optional, but around the holidays a double oven is always appreciated.

The courtyard, or patio, is accessed off the kitchen. The homebuyer can make it into a decent space. It’s large enough to have some patio furniture, including a 6 seater table, and a grill. Remember, the courtyard will come pre-packaged as a mound of dirt, and you’re probably looking between $3000-$5000 to make the courtyard into the pretty paradise showcased in the model.

Residence 3 offers a bedroom on the first floor. You have the option of turning it into a loft, which I would recommend. I won’t lie: I don’t like having a bedroom on the first floor, just off the entry. I don’t feel like it’s private and I have an issue with security. However, in this floor plan I will admit that it is nice to have a full bathroom across from the downstairs bedroom. The bathroom is tiny, but it has everything you need—with the exception of a tub!

At the top of the stairs is an optional desk with low linen storage unit. I don’t think there’s really much else you can do with this space, so you may want to think about opting for the upgrade.

The second bedroom can accommodate a twin or daybed. The closet is acceptable. It would be a challenge to fit my wardrobe in there, but for a child it could work. I liked that the second bedroom had an ensuite. It’s a shower tub combo with a medium-sized vanity. It looks like your typical apartment bathroom. It passes the test.

I was pleasantly surprised with the master bedroom. It’s a decent size, and the model showcased an optional recessed crown moulding in the ceiling. It adds depth to the room and makes it unique, so you may want to consider upgrading. There are glass double doors that lead to the deck. It’s not a huge deck, but it might be nice to walk out there on early Summer mornings. The walk-in closet is enough to house my clothes, so I’m satisfied with the space. The ensuite has a double sink vanity and a stand-alone shower adjacent to a spacious tub. The toilet is in a separate room and you can choose to have extra storage cabinet built in. I like the large linen cabinet in the master bathroom. I’d rather see a linen closet in a common area, but if you opt to have the low linen cupboard built in the landing at the top of the stairs, that would solve the problem of having others come in your bathroom to snatch a towel or set of sheets.

Final Thoughts:

I strongly feel that this model felt like apartment living. It’s very chic, but I just couldn’t get attached to it. I didn’t like the cramped dining area, and I’d be forced to turn the 3rd bedroom into a den because I prefer not to have a bedroom on the first floor. I can’t justify paying $500,000+ for a townhome I wouldn’t be happy in.

Discuss below or at Talk Irvine.

Culver Divides

Culver Drive, Irvine.

Did you know Culver Drive is named after the farmer Frederick Culver and his wife Agnes who built a house at the intersection of Highway 5, Culver Drive and Trabuco Road? The street was so busy and dangerous at that time, Agnes used to treat the crash victims at their house at the intersection. A century has passed and Culver is still one of the busiest streets in Irvine, serves as the main street for many Villages of Irvine as well as entries and exits to Highway 5 and Highway 405.

Today we will look at two communities, Northwood and Northpark on either side of Culver. Both have the same number of bedrooms and bathrooms, same square feet area, almost same listing price and great schools with a perfect ten API. Both are gated communities.

Which one would you buy?

Zipcode Sales Analysis in the past year:

In the past year, homes in Northwood have listed for a median price of $394/SF, and the homes in the 92620 zip code have listed for a median price of $367/SF.

In the past year, homes in Northpark have listed for a median price of $350/SF, and the homes in the 92602 zip code have listed for a median price of $348/SF.

Home 1: 46 NORTH MIDDLEBURY LN Irvine, CA 92620

List Price: $789,000

3 Bedrooms/ 2.5 Bathrooms

2308 SF, $342/ SF

Year Built: 1998

Community: Northwood

Estimated payments, assuming a Down-payment of 20%, and a 30 YR fixed mortgage at 3.75%:

Northwood Point monthly payment: $3498.00

Mortgage : $2923 + Property Tax: $5289 for 2011 + HOA 1 : $94 + HOA 2: $40

Home 2: 106 SPRING VLY, Irvine, CA 92602

List Price: $798,800

3 Bedrooms/ 2.5 Bathrooms

2300 SF, $347/ SF

Year Built: 2001

Community: Northpark

Estimated payments, assuming a Down-payment of 20%, and a 30 YR fixed mortgage at 3.75%:

Northpark monthly payment: $3878

Mortgage: $2959 + Property Tax: $9177 for 2011 + HOA 1: $155

The Northwood home will work out $380 cheaper per month than the Northpark home.

Community information:

Both of the communities have around 80% White Collar workforce residents, and around 85% of the residents have college education. On the income range, the median for 92620 is $108,483, while the median for 92602 is $90,555. Median age of the residents doesn’t differ much, 92620 is at 33, and 92602 is at 35. Housing inventory shows that there is 4.9% vacant homes in 92620, and 6.1% in 92602.

While both the zipcodes have low crime, keeping in line with the City of Irvine statistics, 92620 scored 1.54 on robbery and 92602 scores a 6.6. Both are gated communities, but 92602 is a “guard” gated community. Does that make a difference? Statistics seem to agree on that fact.

Schools:

Elementary School:

For Northwood: Canyon View Elementary School

For Northpark: Hicks Canyon Elementary School

The schools have a perfect 10 API, Great Schools website rates them a perfect ten and the parent rating are five stars. API growth score for Canyon View is 966 while Hicks lags behind at 942. Canyon View kids did better than Hicks Canyon kids in CST testing for language arts, but Hicks Canyon has a slight upper hand in math scores. Sorting by ethnicity, both have Asian population at the top followed by White. Teachers in both the schools have full credentials. The list of Hicks Canyon’s extracurricular activities is almost thrice the size of Canyon View’s.

Middle School:

For Northwood: Sierra Vista Middle School

For Northpark: Orchard Hills Middle School

Both schools have the perfect 10 API, perfect 10 Great Schools rating. Orchard Hills has a perfect five stars from the parents, but Sierra Vista has four stars. (Orchard Hills has only one review). Sierra Vista parents are not very pleased with the teachers, administrative staff and overcrowding. Orchard hills has a new building to house the 1200 kids. Orchard Hills also leads the API growth numbers at 952 vs. Sierra Vista’s 948. Other information like test scores, and teacher credential, student ethnicity could not be compared as the data is still unavailable for Orchard Hills.

High School:

For Northwood: Northwood High School

For Northpark: Arnold Beckman High School

High School is almost the same story. A perfect 10 API score, and perfect 10 Great School rating, and a four star from parent reviews. Beckman High scored 866 on API growth, and Northwood High scored 908. The test scores for Northwood High (99% for Grade 10 CAHSEE) are significantly higher than the test scores for Beckman (92% for Grade 10 CAHSEE). Ethnicity of the students is slightly different too, Beckman has -White 34%, Asian 29% and Hispanic 28% where as Northwood High has Asian 45%, White 43% and Hispanic 5%. Classroom size works in Northwood High’s favor with 26 students per class against the 31 at Beckman High.

Beckman High SAT Scores for 2011:

Critical Reading 548

Math 588

Writing 571

Northwood High SAT Scores for 2011:

Critical Reading: 579

Math 640

Writing 603

Personal Observations:

Personally, I would prefer 106 Spring Valley in Northpark (Mendocino North, MND2, according to the MLS). The house has interesting exterior features like the gated driveway to the courtyard. Laundry is upstairs, and there is a small study that could be converted into a nice home office. The small balcony off the master bedroom adds a romantic touch too. The linen closet and the corridor to the other side of the master bedroom turn me off, and the house has a linear feel to it.

I didn’t like the garage for 46 North Middlebury Lane (Carlyle at Lanes End Model Code 5, according to the MLS). What’s with the garage! For anything above 400k, I would want a nice and wide two car garage, and not tandem parking. Agreed, there are two exits, but there is something very unappealing about a long and narrow garage. The rest of the floor plan is functional and the home office with a deck is a nice touch. I don’t usually comment on the wall/ floor finishes, or anything that could be customized later, but I will make an exception and say that the homeowner worked really hard on the wall finishes. But the house lost me at the garage.

Without choosing a particular home, if I were to settle down in one of those two villages, I would choose Northwood. Northwood sales data is also in better than the Northpark. Northwood High is definitely more attractive than Beckman High based on the stats.

Which side of Culver would you choose? Would you buy in North Park or Northwood? Why?

Which house appeals more to you? Is garage a decisive factor to you?

When all schools have 10 API and a very good API growth score, does the slightly better option influence your decision? Why?

Discuss below or at Talk Irvine.

Closed Sales from 2/02/2012 to 2/08/2012

Date Sold Address Zip Tract Sold Price Beds

SqFt

Northwood
2/2/2012 79 Lakepines 92620 The Lakes $169,000 1 934
2/3/2012 42 Van Buren 92620 Horizon $292,000 2 1052
2/8/2012 18 Longstreet 92620 Shadow Run $620,000 4 2077
Oak Creek
2/2/2012 6 Redberry 92618 Cypress $570,000 3 1750
2/7/2012 66 Ivywood 92618 Kelsey Lane $749,000 4 2386
Orange Tree
2/7/2012 349 Orange Blossom 92618 Lake Condos $160,000 1 639
Turtle Ridge
2/3/2012 35 Clouds Pt 92603 Amberhill $1,980,000 3 3100
University Town Center
2/2/2012 57 Wellesley 92612 Cambridge Court $384,500 2 1455
West Irvine
2/4/2012 15 Emory 92602 Andover $415,000 3 1498
2/8/2012 17 Bradford 92602 Sheridan Place $450,000 3 1569
Westpark
2/3/2012 18 Del Azul 92614 Borgatta $455,000 2 1139
2/6/2012 17 Del Roma 92614 Borgatta $580,000 3 1762
2/7/2012 1502 Solvay Aisle 92606 Brio $350,000 2 1028
Woodbridge
2/3/2012 3 Winterhaven 92614 Seasons $399,000 3 1117
Woodbury
2/3/2012 2 Iceberg Rose 92620 Bowen Court $282,000 1 1100

Happy Birthday Zovall!

Irvine Racks Up Another First: Great Park Chosen as the Next Site for DOE's Solar Home Competition

“We are, in fact, at the Great Park creating a living laboratory for innovation.”—Beth Krom, Irvine’s Mayor Pro Tem

Photo courtesy energy.gov

As I’ve said and written many times before, Irvine is always on the cutting edge of development. This spirit of innovation is in Irvine’s DNA. It goes back to the ranch days and continues today. Some love the results; others hate it. But whatever side of this divide you fall on, it’s the cutting edge. It’s innovation.

Today Irvine is adding another first: The Great Park in Irvine will be the first site outside of Washington D.C. to host the U.S. Department of Energy’s Solar Decathlon. The DOE Solar Decathlon consists of students from schools of higher education, both U.S. and international, competing to build homes that are not only energy efficient but also marketable. In other words, potential buyers like the look of them and are comfortable with the price. This biennial competition was launched in 2002 and has attracted more than 100,000 visitors.

Here is how the DOE describes the event:

“The 20 teams from colleges and universities across the United States and from around the world will now begin a two-year process to build solar-powered, highly energy-efficient homes that combine affordability, consumer appeal and design excellence. Throughout the two-year process, the teams will design, construct and test their homes before reassembling them at the Solar Decathlon 2013 competition site. As part of the Solar Decathlon, teams compete in ten different categories – ranging from best architecture and engineering to energy production for heating and cooling – while gaining invaluable real-world experience in a growing global industry.”—Energy.gov

And here are some of the benefits that local officials expect to reap by hosting the DOE Solar Decathlon:

“We’re looking at this being a really huge thing not just for Irvine, not just for Orange County, not even for the region. We can really showcase California as a hotbed of innovation for renewable energy.”—Tim Shaw, manager of external affairs at the Great Park

“Staging the 2013 Solar Decathlon at the Great Park will focus worldwide attention on the entire solar renewable energy industry in Orange County and throughout California. The event will also greatly stimulate the local economy by bringing in tourism dollars from those attending.”—Mike Elzey, Great Park CEO

One more comment on the benefits of “going green”: Not only does the City of Irvine and the U.S. Department of Energy see benefit in adopting innovations in energy efficiency, so does the U.S. military. As these links show, the U.S. military see it as a way to save money and as a national security issue:

Sources: