High Rises, CPW, Skyline

[Shooby_IHB]

We stopped by the sales gallery this week, prices are due to come out later this month. Range from 400K (I?m guessing 1 bedroom or smaller 2 bedrooms on the lower floors) to 1.5 million for the penthouses.



Considering as an investment property in the future, perhaps start a family there and then rent out in 8-10 years. Since they are having trouble selling them, they have lowered HOA?s to $500 for the first 4 years (includes water, gas, sewer, trash, cable/internet)



Considering a smaller 2 bedroom, on a lower floor. Things that deter me so far are:



1. I currently live in Columbus Square, so obviously ?santa ana? will deter many buyers/renters.

2. Location, no where near a supermarket, however it is walking distance to daphnae?s and Togo?s smile Bright side is it?s smack middle of 405/55, south coast, irvine, airport, etc.

3. How much I can actually rent out a place like this in 8 years. Esp after the HOA?s go back up to $1,000 a month.



The layout is great and they are including choice of wood floors, upgraded cabinets/countertops, upgraded floors for the bed/bath, and appliances.



Considered central park west, but am leaning towards skyline.

 

[biscuitninja_IHB]

Shooby,

the short answer to your question is... you can't.



1. While living there is ok, the people you are attracting are the ones that live in the apartment complex across/down the streets. Mainly business people and a few well to do students. IMHO not enough of a wide variety to capture a majority of the market.



2. Again, its ok, but not ideal. Once all those people get in there, the parking, driving will become a nightmare. Jamboree corridor is already congested, imagine another 1000 or so apartments along with the District fully built in....



3. In 8-10 years or so, the market "might" pick back up, but unless you get this place for south of 300 pSQFT(FAR south - like south pole south) then you'll be underwater for a while. As well as that HUGE 1k a month HOA. That alone is going to eat up 40-60% of any rent that you get - and then you have to pay for the mortgage!



Unless you have mounds of money you HAVE to park in real estate, then i'd pass for a while, keep coming back every few weeks for he next 6 months to keep your pulse on things. I'm kinda in this situation, but there are other things you can get for far better prices that are IMHO, a better asset.



good luck

-bix

 

[Shadax_IHB]

Consider that Marquee has 2-bedrooms renting out for $2,500 per month. Even with the discounted HOA fees, it still seems like it has a ways to go. I'm sure they're doing everything they can to avoid lowering the prices further. 4 years of $500 off the HOA dues may seem like a great deal, but it only amounts to $24,000. IMO they'll all be down that much in a few months (if not sooner). These high-rises are poison. Seriously, $1,000 in HOA dues. They better have a "full service" concierge service for that much.