New Development: PS-5

NEW -> Contingent Buyer Assistance Program
Looks like there are two different developments in the area - 6 pack motorcourt homes and 4 pack motorcourt homes.

Also, on the other side of the hill, looks like there's a SFD with 2500+ sq ft homes, some of which appear to have some pretty nice city views.
 
Compressed-Village said:
Did someone said that, there is currently too much supplies of homes available? TIC and FIvePoints doesn?t think so. :)
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^ This!

The way these builder are building, Irvine will completely done with new build within the next 5-8 years.

This is the first time IP is actually going to build home at Portola Springs, how interesting.  This parcel of land is going to be the last TIC develop neighborhood besides OH4 and the probably the last new TIC neighborhood with under $1M homes.  Non-gated, low HOA, reasonably priced (compare to OH) and situated on a hill (or elevated plot of land), it is worth considering.

 

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lnc said:
Compressed-Village said:
Did someone said that, there is currently too much supplies of homes available? TIC and FIvePoints doesn?t think so. :)
Click to expand...

^ This!

The way these builder are building, Irvine will completely done with new build within the next 5-8 years.

This is the first time IP is actually going to build home at Portola Springs, how interesting.  This parcel of land is going to be the last TIC develop neighborhood besides OH4 and the probably the last new TIC neighborhood with under $1M homes.  Non-gated, low HOA, reasonably priced (compare to OH) and situated on a hill (or elevated plot of land), it is worth considering.
Click to expand...

Though it's the first time IP as a 'brand' is building in Portola Springs, IP and CalPac are both subsidiaries of TIC, so I wouldn't say it's some sort of a new revelation.
 
Compressed-Village said:
Did someone said that, there is currently too much supplies of homes available? TIC and FIvePoints doesn?t think so. :)
Click to expand...

IP and 5P both know, which is why they've been lowering their prices and rushing rushing rushing to finish their developments.  They know the next downturn in housing will be a gradual, slow decline so they need to *finish* fast.
 
brianlin87 said:
Though it's the first time IP as a 'brand' is building in Portola Springs, IP and CalPac are both subsidiaries of TIC, so I wouldn't say it's some sort of a new revelation.
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Are you sure CalPac is a subsidiaries of TIC?  All I know is that the owner of both company are related but not sure if TIC own entirely or portion of CalPac.

The IP only build in the best (in terms of marketing prospective) TIC neighborhood, build at desirable location within that development and only offer product is the mid price range in order to assure a sales success.  This is probably why despite of boring floor plans, all IP home sold very well when it was new and continues to do well in the existing home market.

So IP finally decided to build at this part PS is pretty significant IMO.  This part of PS was originally planned to be gated and at one time it was thought to be the same tier as gated OH neighborhood. 

 
lnc said:
brianlin87 said:
Though it's the first time IP as a 'brand' is building in Portola Springs, IP and CalPac are both subsidiaries of TIC, so I wouldn't say it's some sort of a new revelation.
Click to expand...

Are you sure CalPac is a subsidiaries of TIC?  All I know is that the owner of both company are related but not sure if TIC own entirely or portion of CalPac.

The IP only build in the best (in terms of marketing prospective) TIC neighborhood, build at desirable location within that development and only offer product is the mid price range in order to assure a sales success.  This is probably why despite of boring floor plans, all IP home sold very well when it was new and continues to do well in the existing home market.

So IP finally decided to build at this part PS is pretty significant IMO.  This part of PS was originally planned to be gated and at one time it was thought to be the same tier as gated OH neighborhood. 
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I?m not so sure what?s so significant about it.  So they came in 12 years after PS started and cherry picked the view tract to build on?  After all the infrastructure (schools + community park) has been built?  With the same old boring floor plans?  Whoopdeedoo.
 
ThirtySomethingWEquity said:
Compressed-Village said:
Did someone said that, there is currently too much supplies of homes available? TIC and FIvePoints doesn?t think so. :)
Click to expand...

IP and 5P both know, which is why they've been lowering their prices and rushing rushing rushing to finish their developments.  They know the next downturn in housing will be a gradual, slow decline so they need to *finish* fast.
Click to expand...

This is not a pump and dump mentality that you refer to. You speaks as if these are fly by night builders and disappear after they sell you a house. IF there is a down turn, wouldn?t it makes more sense to stop and abate the buildings. Holding the lands and pay little to nothing in taxes on the lands, rather than build and having to pay taxes on the improvements on their books and not able to sell and hit them in their profit margin? They could easily lay-off workers and contractors to preserve their balance sheets. When was the last time you actually look for contractors to perform any home improvements and how hard was it and how expensive to locate a proper skills for your need? All I have to tell you is it is harder and more expensive than last year. Labor market is tight. These builders have resources, sales staff, and a team of advisors to know when to slow down.

If and when the builders stop building and lands stop getting improvements then I will be worry. Until then, I have to trust that these major real estate players knows more than I am.
 
ThirtySomethingWEquity said:
Compressed-Village said:
Did someone said that, there is currently too much supplies of homes available? TIC and FIvePoints doesn?t think so. :)
Click to expand...

IP and 5P both know, which is why they've been lowering their prices and rushing rushing rushing to finish their developments.  They know the next downturn in housing will be a gradual, slow decline so they need to *finish* fast.
Click to expand...

The lower/middle market is doing better now that rates are lower so they probably think things have stabilized for now, which they have (as long as rates stay low).
 
Is the Irvine company debt free? I doubt it. So there is some cost to holding on to the land. They are paying interest and have an asset that isn?t generating cash flow at this time. So there is at least an indirect cost. Perhaps just not a direct cost (any direct costs are probably not significant?)
 
qwerty said:
Is the Irvine company debt free? I doubt it. So there is some cost to holding on to the land. They are paying interest and have an asset that isn?t generating cash flow at this time. So there is at least an indirect cost. Perhaps just not a direct cost (any direct costs are probably not significant?)
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Indeed, the opportunity cost of deployment that cash elsewhere is probably their biggest cost.
 
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