Is there anything decent I can get with my income and savings in Irvine?

NEW -> Contingent Buyer Assistance Program
Buy the used homes while you can because you all will be extremely disappointed by the new bench mark prices when new homes are released. Trust me. Your window of opportunity in Irvine is limited between now and the new home release in Woodbury.



Home sellers are not stupid and will reset selling price accordingly to new home prices.



Here is another advice. The new homes will not be a drastic improvement over products designed after 2002 except for more glass and a California room.
 
[quote author="bkshopr" date=1239237117]Buy the used homes while you can because you all will be extremely disappointed by the new bench mark prices when new homes are released. Trust me. Your window of opportunity in Irvine is limited between now and the new home release in Woodbury.



Home sellers are not stupid and will reset selling price accordingly to new home prices.



Here is another advice. The new homes will not be a drastic improvement over products designed after 2002 except for more glass and a California room.</blockquote>


BK, what is your outlook on the Orchard Hills home. Will they still be "luxury residences" only with the high price tag or has the economy caused them to change that strategy? When are they due out?



When is the new home release due out in Woodbury? Is it just going to be an extension of the models already offered in Woodbury? Or something new?
 
[quote author="bkshopr" date=1239237117]Buy the used homes while you can because you all will be extremely disappointed by the new bench mark prices when new homes are released. Trust me. Your window of opportunity in Irvine is limited between now and the new home release in Woodbury.



Home sellers are not stupid and will reset selling price accordingly to new home prices.



Here is another advice. The new homes will not be a drastic improvement over products designed after 2002 except for more glass and a California room.</blockquote>


I'm not sure if interperting your comments correctly. Are you saying that the builders will release new homes soon in Woodbury that will be priced above the market price of used Woodbury product and in turn the used home sellers in Woodbury will all raise their prices?
 
[quote author="ScubaSteve" date=1239020553]I guess what I'm really trying to ask is if I was a responsible buyer, how much could I afford based on my financial situation. The posts above say 3*140K = $420K property, which isn't much these days and the redfin link shows a 610K house, which seems affordable w/ a low hoa and mellaroos, however, the down payment required on that is about 193K for a conforming loan, which is something I don't have. Is 20% still the norm these days? My parents tell me that I should just put 10% down and save the cash, but I'm not sure if they are up to the times. I know I'm not, which is why I'm posting here.</blockquote>


Don't take this the wrong way but 2 income/$140K a year is not a very high income. What happens if one of you loses a job? At that income level you shouldn't be looking at anything north of $400K, and that will be a stretch. Do some yoga, get Zen and relax in your rental saving cash.
 
[quote author="usctrojanman29" date=1239166059][quote author="Roo" date=1239078961]Scuba, it would probably make a lot of sense for you to work with a financial advisor/planner. Don't take everything he says for granted, but most likely you can get good advice from someone who will look in your situation more carefully than we can. You should certainly meet with a few of them before settling with one.</blockquote>
Honestly, most financial advisors/planners are worthless because they try to milk you for whatever fees they can make off you (that's been my experience with them). There are good ones out though. The few things that I would use one would be for life insurance purposes and estate planning. I think he will be wasting money if he comfortable doing some of the legwork himself.</blockquote>


Spot on my Trojan brother. And if you absolutely feel the need please select someone from NAFP.org. A good fee only planner can be useful for someone with enough assets and income, but please avoid all the kooks that set up shingles enabled by the repeal of Glass Steagall (like Northwestern Mutual agents etc)
 
[quote author="Boston2theBay" date=1239243854][quote author="ScubaSteve" date=1239020553]I guess what I'm really trying to ask is if I was a responsible buyer, how much could I afford based on my financial situation. The posts above say 3*140K = $420K property, which isn't much these days and the redfin link shows a 610K house, which seems affordable w/ a low hoa and mellaroos, however, the down payment required on that is about 193K for a conforming loan, which is something I don't have. Is 20% still the norm these days? My parents tell me that I should just put 10% down and save the cash, but I'm not sure if they are up to the times. I know I'm not, which is why I'm posting here.</blockquote>


Don't take this the wrong way but 2 income/$140K a year is not a very high income. What happens if one of you loses a job? At that income level you shouldn't be looking at anything north of $400K, and that will be a stretch. Do some yoga, get Zen and relax in your rental saving cash.</blockquote>


$400K a year ain't much either.



http://articles.moneycentral.msn.co...ngTrading/getting-by-on-400,000-MSNMoney.aspx
 
[quote author="Geotpf" date=1239067083]Why does everybody care about how old a house is? The costs for any additional repairs are far overweighed by higher HOA fees, higher Mello Roos, and the "newness premium".</blockquote>


The wood frame loosens over time and you start getting all sorts of creaking. All man-made structures have a finite lifetime. Eventually it will need to be torn down.
 
[quote author="asianinvasian" date=1239246353][quote author="Boston2theBay" date=1239243854][quote author="ScubaSteve" date=1239020553]I guess what I'm really trying to ask is if I was a responsible buyer, how much could I afford based on my financial situation. The posts above say 3*140K = $420K property, which isn't much these days and the redfin link shows a 610K house, which seems affordable w/ a low hoa and mellaroos, however, the down payment required on that is about 193K for a conforming loan, which is something I don't have. Is 20% still the norm these days? My parents tell me that I should just put 10% down and save the cash, but I'm not sure if they are up to the times. I know I'm not, which is why I'm posting here.</blockquote>


Don't take this the wrong way but 2 income/$140K a year is not a very high income. What happens if one of you loses a job? At that income level you shouldn't be looking at anything north of $400K, and that will be a stretch. Do some yoga, get Zen and relax in your rental saving cash.</blockquote>


$400K a year ain't much either.



http://articles.moneycentral.msn.com/Investing/StockInvestingTrading/getting-by-on-400,000-MSNMoney.aspx</blockquote>


No, he didn't say income of $400k/yr, he said the original poster shouldn't look at homes north of $400k with an income of $140k
 
[quote author="eclipxe" date=1239280360][quote author="asianinvasian" date=1239246353][quote author="Boston2theBay" date=1239243854][quote author="ScubaSteve" date=1239020553]I guess what I'm really trying to ask is if I was a responsible buyer, how much could I afford based on my financial situation. The posts above say 3*140K = $420K property, which isn't much these days and the redfin link shows a 610K house, which seems affordable w/ a low hoa and mellaroos, however, the down payment required on that is about 193K for a conforming loan, which is something I don't have. Is 20% still the norm these days? My parents tell me that I should just put 10% down and save the cash, but I'm not sure if they are up to the times. I know I'm not, which is why I'm posting here.</blockquote>


Don't take this the wrong way but 2 income/$140K a year is not a very high income. What happens if one of you loses a job? At that income level you shouldn't be looking at anything north of $400K, and that will be a stretch. Do some yoga, get Zen and relax in your rental saving cash.</blockquote>


$400K a year ain't much either.



http://articles.moneycentral.msn.com/Investing/StockInvestingTrading/getting-by-on-400,000-MSNMoney.aspx</blockquote>


No, he didn't say income of $400k/yr, he said the original poster shouldn't look at homes north of $400k with an income of $140k</blockquote>


I know, he said 140k/year isn't a lot of money and I'm saying even 400k/year isn't a lot. A lot of people think they are richer than they really are.
 
<blockquote> I know, he said 140k/year isn't a lot of money and I'm saying even 400k/year isn't a lot. A lot of people think they are richer than they really are.</blockquote>
I don't understand this mentality. A little over 3% of U.S. households bring in between $150k and $199k a year, and the OP is just $10k shy of hitting that bracket. $140k may not be Newport Beach or Laguna Beach rich, but it should be able to afford Irvine. You may be correct about home expectations relative to salaries, but I think a lot of people think Irvine is more special than it really is.
 
[quote author="starbuck1975" date=1239306139]<blockquote> I know, he said 140k/year isn't a lot of money and I'm saying even 400k/year isn't a lot. A lot of people think they are richer than they really are.</blockquote>
I don't understand this mentality. A little over 3% of U.S. households bring in between $150k and $199k a year, and the OP is just $10k shy of hitting that bracket. $140k may not be Newport Beach or Laguna Beach rich, but it should be able to afford Irvine. You may be correct about home expectations relative to salaries, but I think a lot of people think Irvine is more special than it really is.</blockquote>


Welcome to the IHB.



I see you've met AI the resident troll. Please stay a while and don't let that moron ruin your trip.
 
[quote author="starbuck1975" date=1239306139]<blockquote> I know, he said 140k/year isn't a lot of money and I'm saying even 400k/year isn't a lot. A lot of people think they are richer than they really are.</blockquote>
I don't understand this mentality. A little over 3% of U.S. households bring in between $150k and $199k a year, and the OP is just $10k shy of hitting that bracket. $140k may not be Newport Beach or Laguna Beach rich, but it should be able to afford Irvine. You may be correct about home expectations relative to salaries, but I think a lot of people think Irvine is more special than it really is.</blockquote>


And therein lies the problem with the housing market. Under normal circumstances the person making 140K a year should be able to buy about a 420K house. Truly, that is what a house in Irvine should cost and he should be able to buy one. 140K is not a lot of money but your are right, not many people make that much. Home prices never should have become so crazy that a person making 140K couldn't buy the average OC home without crazy financing. I think when 100K (or even 80K given the current climate) can buy the median home in the OC, we'll be able to get back to seeing a reasonable (not insane, maybe 1-3% a year) appreciation in homes.
 
[quote author="Boston2theBay" date=1239243854][quote author="ScubaSteve" date=1239020553]I guess what I'm really trying to ask is if I was a responsible buyer, how much could I afford based on my financial situation. The posts above say 3*140K = $420K property, which isn't much these days and the redfin link shows a 610K house, which seems affordable w/ a low hoa and mellaroos, however, the down payment required on that is about 193K for a conforming loan, which is something I don't have. Is 20% still the norm these days? My parents tell me that I should just put 10% down and save the cash, but I'm not sure if they are up to the times. I know I'm not, which is why I'm posting here.</blockquote>


Don't take this the wrong way but 2 income/$140K a year is not a very high income. What happens if one of you loses a job? At that income level you shouldn't be looking at anything north of $400K, and that will be a stretch. Do some yoga, get Zen and relax in your rental saving cash.</blockquote>


No offense taken. I don't think I have a "high" income as well, but I did thought it was enough to afford a house. If I had said that I make 140K alone and had a wife to support, would that really change things? I would think 140K on a single income would be considered high. Would you still ask the question, "what if u lose ur job?"



Am I missing anything here? Just seems like no one should really be buying anything in Irvine unless they are making 250K+ which is something I don't think I will ever get to.
 
SS, it's more about timing and the current economic environment where people loose their jobs unexpedetly.



You know if you or your spouse are at risk or not. Depending on your situation, car payments, debts (student loans or credit cards), family status (kids) what you can afford will change drastically for someone making $140k a year.



In reality you can afford up to 560K with a 20% downpayment ($112k).
 
[quote author="Roo" date=1239325559]SS, it's more about timing and the current economic environment where people loose their jobs unexpedetly.



You know if you or your spouse are at risk or not. Depending on your situation, car payments, debts (student loans or credit cards), family status (kids) what you can afford will change drastically for someone making $140k a year.



In reality you can afford up to 560K with a 20% downpayment ($112k).</blockquote>


This is correct and we are getting there. I guess the point is still the same: have patience. We are getting back to the real world, where real incomes will be able to buy a decent house in a decent area.
 
[quote author="tmare" date=1239326123][quote author="Roo" date=1239325559]SS, it's more about timing and the current economic environment where people loose their jobs unexpedetly.



You know if you or your spouse are at risk or not. Depending on your situation, car payments, debts (student loans or credit cards), family status (kids) what you can afford will change drastically for someone making $140k a year.



In reality you can afford up to 560K with a 20% downpayment ($112k).</blockquote>


This is correct and we are getting there. I guess the point is still the same: have patience. We are getting back to the real world, where real incomes will be able to buy a decent house in a decent area.</blockquote>


I can't wait to buy a McMansion for what was the price of a starter home!
 
Not me. I don't want to have to clean, heat, or cool anything much over 2k sf.



Those 4k sf mcmansions must take all your weekend to maintain, or you have to hire some help.





However, like IHO, I'd take the large garage (hopefully in a BK approved location)
 
[quote author="freedomCM" date=1239339143] I'd take the large garage (hopefully in a BK approved location)</blockquote>


YEEEAAAAHHHH!



<img src="http://www.clarkandrichardson.com/projectgallery/pathenkeLG.jpg" alt="" />
 
[quote author="CK" date=1239076686]



This is a great comment. Taking it a step further, it makes no difference to your future children whether their home is owned or leased --- as long as that home is safe and happy. Your children will notice if their parents are stressed out paying 40%+ of their income to maintain a depreciating asset much more than they would notice if their house is leased.</blockquote>


I agree that you shouldn't buy something you can't afford. however, your mention of 'children won't notice" is not completely accurate unless you can lease a place and stay there for a long time. Your children will notice, and their life will be affected if you have to move every 1 to 2 years.
 
[quote author="irvine123" date=1239361057][quote author="CK" date=1239076686]



This is a great comment. Taking it a step further, it makes no difference to your future children whether their home is owned or leased --- as long as that home is safe and happy. Your children will notice if their parents are stressed out paying 40%+ of their income to maintain a depreciating asset much more than they would notice if their house is leased.</blockquote>


I agree that you shouldn't buy something you can't afford. however, your mention of 'children won't notice" is not completely accurate unless you can lease a place and stay there for a long time. Your children will notice, and their life will be affected if you have to move every 1 to 2 years.</blockquote>


Where can you cite evidence of this have to move every 1 to 2 years stuff? I'm being serious, because I think it is NAR based propaganda. 1. Because each time I have rented, I have lived there for more than three years, and both times I would have stayed longer if could. 2. Cayci has been in her condo for nearly six years. 3. All my tenants have lived in their units for more than three years. Four of the five have been there for more than five years, and yes they all got an increase of rent this year.



So please, please tell me where there is statistical information confirming the 1 to 2 years myth. Because, in my experience it sounds like it is a bunch BS.
 
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