Mety said:
Burn That Belly said:
Mety said:
Mety said:
Burn That Belly said:
ochawk said:
What will be the expected price range? Will they really may start from $1.2M+?
Will it be a good buy for $1.2M+ (2300+ sqft)? Especially similar houses in Orchid hills will be little cheaper & Orchid hills is a guard gated community.
Please share your thoughts.
Everything is a good buy in Irvine. And it's Orchard Hills. Not Orchid Hills. Just say OH. Just make sure to bring your wallet.
They will start selling from 1.2M+ and then there will be a crash then the price will drop to 700K.
So they are selling $1.4m. Then in case of market crash, it will be around $850k*
*For entertainment purposes only.
The 85C bakery -and- the hello kitty cafe at Spectrum will help drive sales. FCBs might not sell homes at a loss so they'll ride out the high tide till the waves calm down, however long it may take. After all, RE always performs in the long, long run, as long as one keeps their expenses low (MR/HOA). And besides, the kids have to attend high school, then UCI, etc. that's more than 8 years worth of time to ride out any downturn.
Yes, if you keep the house, it will appreciate long run.
Isn't that how boomers are sitting on that RE money?
We had a 30 year run of declining interest rates. Who is to say that same trend emerges if we go through an opposite situation (an extended run of increasing interest rates). Not saying that will be what happens but I wouldn't be surprised if you look over a 20 year window and see a pretty extended run of higher interest rates (that said I can't fathom a scenario that rates would be as high as they were during parts of the 80's...but than again, I don't think if you went back 10-15 years people would have ever fathomed scenarios with rates as low as they are now).
The difference is in a declining rate environment, existing owners and new owners can both benefit from lower rates (existing owners refi, etc). In rising rate scenario, you do impact supply since people would have to have more incentive to move out from existing mortgages (to extent you had material variances in rates). On the flip side from a demand perspective, have to wonder what demand is without pricing adjusting (to some extent) for rising rates) and the increased costs for individuals to own a home.
All that said, while the short-end of the curve has ramped up a lot...the longer ends of the curve haven't moved that much and we are potentially getting closer to an inverted yield curve (which is essentially the surest indicator of a pending recession you can get). Last 7 US recession were preceded with an inverted yield curve (typically in that 6-12 month window). Globally we've already seen yield curves invert.
Of course I'm not an economist and monetary policy post-great recession has differed from past recoveries so it could very well be flatter to inverted yield curves don't spell the impending recession that it previously did.
I'm not going to argue one way or the other, but I will continue to maintain my stance that for a personal resident you need to first and foremost enjoy the house and obviously be able to cover the costs, including within various stress scenarios (i.e., temporary loss of job...reduction in income, etc). You obviously like some form of appreciation because you don't want to be caught off-guard by a liquidity situation (where you aren't able to relocate because you are under-water and be a forced-seller, etc), that said, to me you want to invest your actual wealth in more liquid assets than an asset that will be leveraged for your own personal use (big believer in rental properties combined with equity investments, etc).
Obviously appreciation of personal residence is nice, but I still go back to my view that for the general OC economy we need to have affordable housing. I do not believe the appreciation we have seen over the past few years is actually good for the overall health of our local economy.
