Poll: Irvine Housing Prediction June 2024 to 2025

Where is Irvine housing headed from June 2024 to June 2025?

  • Total voters
    30
  • Poll closed .
NEW -> Contingent Buyer Assistance Program
If purchased cash at 1.2M, the fees/taxes come to $1550 per month (+/-). If rent is $4,500, the net income is $2,950 or $35,400 per year. I can't calculate the depreciation benefits etc, so for now let's use the $35,400 as your income. There are fees associated with the purchase as well as the risk of having rent not paid, but some buyers could withstand this.

That same $1.2m in a 4.25% APY Treasury is $51,000 per year gross interest. At a 28% tax bracket, the net net is $36,700ish so I guess it could pencil.
 
sgip said:
If purchased cash at 1.2M, the fees/taxes come to $1550 per month (+/-). If rent is $4,500, the net income is $2,950 or $35,400 per year. I can't calculate the depreciation benefits etc, so for now let's use the $35,400 as your income. There are fees associated with the purchase as well as the risk of having rent not paid, but some buyers could withstand this.

That same $1.2m in a 4.25% APY Treasury is $51,000 per year gross interest. At a 28% tax bracket, the net net is $36,700ish so I guess it could pencil.
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I was actually thinking more along the lines of dividend equity like SCHD. You get 3%-4% dividend yield annually and the price per share goes up over time. This roughly simulates rise in home value and rent over past decade, though past performance is not indicative of future results.

 
sgip said:
I've lived in RSM since 2000. With many recent neighborhood sales in the $1.2M-$1.6M range, several "closed on a Monday and were up for rent on Tuesday". The weird thing is that a $1.2m priced home out at $4,250 per month seems really hard to pencil out. With a 1.0 tax rate, at least $150 for HOA dues, and insurance running $300-$500 per month (YOW!!!) it doesn't make sense to me to buy that home and "bet" on appreciation making the deal work. Perhaps all of the cash buyers out there might simply thinking a return of $$ based on a safe investment is more important than making it work in stocks or other asset classes.

This sort of cash parking could be the next phase of the price support in the market - be it in Irvine, or in all of South OC.
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not if those buyers expect RMB to keep depreciating against the dollar.
 
irvinehomeowner said:
That's a hefty rent for a townhome/condo.

I can't even afford to rent a proper SFR in Irvine. :(
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My house in south LA county was purchased 12 years ago, and has $1,000/month mortgage payment. To rent the house today would cost $4,000/month.

I was stupid enough to sell 4 investment properties before the pandemic, and lucky enough to have kept 2 houses. Had I kept all 6, I could have retired on the cashflow and... order $59.99 kalbi set at Kalbi Social Club for lunch instead of eating chicken salad right now. @_@
 
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Yeah... seeing how much oil/gold/crypto/NFLX is in those Irvine homes... I should have at least kept 1 or 2.

Hindsight hurts the wallet.
 
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