Perspective
Well-known member
yaliu07 said:
So, are ghosts limited to haunting homes within walking distance, or should Pavilion Park residents be concerned as well?
Beacon Park
- Thread starter The I-R-V
- Start date
NEW -> Contingent Buyer Assistance Program
So, are ghosts limited to haunting homes within walking distance, or should Pavilion Park residents be concerned as well?
I think my PITIH is like 80% of my income... but I live in Irvine.
#MoneyPoorIrvineRich
I might be able to add a bit of insight here. I just bought one of those 5K sqft lots in Arcadia and the premium was indeed $25K. The negative is that there's a retainer wall at the back so the usable size is a few feet less, but still leaps and bounds better than the standard lots.
From what I've seen, prices have been mostly stagnant in Arcadia over the last few months, but in the last couple of weeks I did see prices go up by under $5K. They're getting to their last few homes as all the 5K lots have been sold (or so I was told by a salesperson when I last visited), and they're in their last phases.
More to the point, the lot size is great compared to others in the area and the premium was bearable to me. Total tax/Mello Roos rate isn't bad either.
You also have to remember, everyone's lifestyles are different. Kids vs. No Kids. Fancy car vs. Normal car. Luxury clothes vs. normal clothes. Types of vacations / entertainment expenses. Money can go a lot of places. Ultimately you have to decide what fits your life and overall budget and what makes sense. Also, from what I remember, you were looking at some of the bigger properties (3K sq ft) so you could always opt for less home but more money.
Note: I won't put retirement savers vs. non retirement savers in their cause that shouldn't be up for debate, you absolutely need to save. I understand if you are 20 with 3 kids and figuring out every possible way to scrap by, but if you are buying a home in Irvine, you should be able to save (both for retirement and rainy day issues).
I'd also say if you are younger you are probably better prepared to handle a slightly higher DTI vs. if you are older (unless you have significant assets and are truly prepared for retirement, so the actual income needs to fund things are less significant). If you are older and nearing retirement, have low savings, etc, then going high on the DTI of a home would set you back (you'd be better of downsizing and living below your means and dumping cash into your retirement).
Maybe lot of posters here are at different stage of their live.
When I bought my first home shortly after getting my first job, my PITI was around 40% too. Overtime, the PITI keep coming down, and by the time I sold that home just before I move to Irvine, my PITI was down to 4%. It was due to increase in income, home mortgage interest rate coming down, multiple refinance to lower mortgage rate, and finally paid off the mortgage.
With current housing situation with housing price almost at the peak and interest rate at bottom, it would be very difficult for a first time home buyer to duplicate that. If I'm a first time home owner purchase a new home today in Irvine with my old starting salary, my PITI would be over 50% easily and I don't see my PITI will ever drop below 25%.
I can probably vouch for this. I bought my new home for $1.1M. My ratios are right at 25% if you don't include any of my yearly bonuses (which can be significant; we pretend we don't have this). My wife and I both max out our 401k so we are living like we are at 43%. Once you include daycare, tutoring, and sports costs for our son, it's even lower (tiger parents.. RAWR). Luckily, both our cars are paid off and we plan on driving our Honda and Toyota into the ground...unless the new Tesla's in 2017 are really 35k =).
Vacations consists of using work travel points and companion passes. Definitely not a lavish lifestyle, but pretty good so far.
Creditors only use gross income. They don't consider taxes, which for households buying $1M+ homes are more than PITIA.
So, are ghosts limited to haunting homes within walking distance, or should Pavilion Park residents be concerned as well?
irvinehomeowner
Well-known member
Yeah... qwertustin is just posing... you can't go to bed happy in the ghetto... he's referring to a different kind of happy.bones said:qwerty said:our gross monthly payment (PITI + HOA) was 8% of average monthly gross wages for 2014. that is why i go to bed happy every night. but i cant afford irvine
Haha. I go to bed happy every night too. But in irvine
I think my PITIH is like 80% of my income... but I live in Irvine.
#MoneyPoorIrvineRich
Bullsback said:
I might be able to add a bit of insight here. I just bought one of those 5K sqft lots in Arcadia and the premium was indeed $25K. The negative is that there's a retainer wall at the back so the usable size is a few feet less, but still leaps and bounds better than the standard lots.
From what I've seen, prices have been mostly stagnant in Arcadia over the last few months, but in the last couple of weeks I did see prices go up by under $5K. They're getting to their last few homes as all the 5K lots have been sold (or so I was told by a salesperson when I last visited), and they're in their last phases.
More to the point, the lot size is great compared to others in the area and the premium was bearable to me. Total tax/Mello Roos rate isn't bad either.
Irvine Dream
New member
I actually did a poll a couple of months ago (http://www.talkirvine.com/index.php/topic,13210.msg265171.html#msg265171) and it was depressing to see how well off the other posters were. At that time I was looking to extend my PITI to 43% to get a new house but most of the pollsters had debt ratio less than 25% and hence I have given up on the idea of owning a new home in Irvine.lnc said:
I doubt the average person in Irvine has a home (PITI + HOA + Insurance) ratio less than 25%. Maybe on this board but doubt average is that low. I would presume the average is closer to 30-40% (but I have no basis for it). That said, the more expensive the home, I would presume that the ratio would get less. I'm less willing to stretch myself to move from a 2500 sq ft home to a 3500 sq ft home (you still have a home) vs. the person who is stretching themselves to get an entry home / condo for their family. My presumption would be the higher dollar properties actually have lower DTI's vs. the less expensive stuff for this reason (although their are always outliers and this statement wouldn't have held true during the last real estate bubble).Irvine Dream said:
You also have to remember, everyone's lifestyles are different. Kids vs. No Kids. Fancy car vs. Normal car. Luxury clothes vs. normal clothes. Types of vacations / entertainment expenses. Money can go a lot of places. Ultimately you have to decide what fits your life and overall budget and what makes sense. Also, from what I remember, you were looking at some of the bigger properties (3K sq ft) so you could always opt for less home but more money.
Note: I won't put retirement savers vs. non retirement savers in their cause that shouldn't be up for debate, you absolutely need to save. I understand if you are 20 with 3 kids and figuring out every possible way to scrap by, but if you are buying a home in Irvine, you should be able to save (both for retirement and rainy day issues).
Perspective
Well-known member
At these levels ($1M+ homes), it gets complicated. If your net worth is already comfortably high, you might be much more comfortable pushing your front-end DTI up to the high 30s.
But if your retirement savings isn't where it should be, your reserves aren't either, and you have young kids with no college savings, you might be sacrificing goals if your front-end DTI is above 25%.
But if your retirement savings isn't where it should be, your reserves aren't either, and you have young kids with no college savings, you might be sacrificing goals if your front-end DTI is above 25%.
Largely, I think if you stay at that 25% range (or below), you should be in a good spot. You should be able to save for kids college and retirement, pay for daycare, go on vacations (maybe not super extravagant, but you can travel), have decent cars (no benz) and be well prepared for rainy day issues. You won't be living a lavish lifestyle, but you'll have it pretty good (given you are living in a $1M home...so you are inherently building equity as well).Perspective said:
I'd also say if you are younger you are probably better prepared to handle a slightly higher DTI vs. if you are older (unless you have significant assets and are truly prepared for retirement, so the actual income needs to fund things are less significant). If you are older and nearing retirement, have low savings, etc, then going high on the DTI of a home would set you back (you'd be better of downsizing and living below your means and dumping cash into your retirement).
Irvine Dream said:
Maybe lot of posters here are at different stage of their live.
When I bought my first home shortly after getting my first job, my PITI was around 40% too. Overtime, the PITI keep coming down, and by the time I sold that home just before I move to Irvine, my PITI was down to 4%. It was due to increase in income, home mortgage interest rate coming down, multiple refinance to lower mortgage rate, and finally paid off the mortgage.
With current housing situation with housing price almost at the peak and interest rate at bottom, it would be very difficult for a first time home buyer to duplicate that. If I'm a first time home owner purchase a new home today in Irvine with my old starting salary, my PITI would be over 50% easily and I don't see my PITI will ever drop below 25%.
Perspective
Well-known member
Here are some terms to consider, since many of the comments were qualifying what was being discussed using different terms:
PITIA is the principal, interest, taxes, insurance, and association dues.
Front-End DTI is the PITIA divided by monthly gross income.
Back-End DTI is the PITIA plus all other recurring debt including child/spousal support divided by monthly gross income.
http://www.consumerfinance.gov/eregulations/1026-Q/2013-30108_20140118#1026-Q-h10-h15-4-c
PITIA is the principal, interest, taxes, insurance, and association dues.
Front-End DTI is the PITIA divided by monthly gross income.
Back-End DTI is the PITIA plus all other recurring debt including child/spousal support divided by monthly gross income.
http://www.consumerfinance.gov/eregulations/1026-Q/2013-30108_20140118#1026-Q-h10-h15-4-c
scubasteve
Active member
Bullsback said:
I can probably vouch for this. I bought my new home for $1.1M. My ratios are right at 25% if you don't include any of my yearly bonuses (which can be significant; we pretend we don't have this). My wife and I both max out our 401k so we are living like we are at 43%. Once you include daycare, tutoring, and sports costs for our son, it's even lower (tiger parents.. RAWR). Luckily, both our cars are paid off and we plan on driving our Honda and Toyota into the ground...unless the new Tesla's in 2017 are really 35k =).
Vacations consists of using work travel points and companion passes. Definitely not a lavish lifestyle, but pretty good so far.
Perspective
Well-known member
Ryanmom said:
Creditors only use gross income. They don't consider taxes, which for households buying $1M+ homes are more than PITIA.
irvinehomeshopper
Well-known member
It is too bad for the other architects since they want to preserve their business interest. The local big developer /land baron does not want the public like you to know about this industry. To educate you meant you become a discriminate home shopper. I lost all my jobs, got black listed, and developer mandated other builders not to hire me or face land deal consequences. All of you by now should have felt that Irvine lost much of its innovation during the last 8 years. By being here I jeopardized my entire career. I focused over 25 years in creating unique products for many of you and your parents. I just packed my bag and reinvented myself somewhere else. I never realized Irvine was a very small circle. This door closed forced me to the Silicon Valley, East coast , Panda country, Pacific Northwest and the Texas coast. Getting black listed was a blessing forcing me to discover the rest of the Asian communities in this country. My knowledge is no longer regional it is national. I understand not only your culture but your relatives culture around the nation . With this knowledge I created Ellwood. I appreciate all of your support in making it the best selling project in Irvine and to validate my existence being here has been the best decision I made.
AW said: