Thoughts on buying a townhouse?

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Steve,

Why not rent someplace near where you work? Avoid commuting altogether. Save the money you would spend on gas and tolls.

The first year of marriage is hard. Owning your first house is hard. It is only harder when you combine them. My wife and I bought our first house in AV, brand new. We thought we would live there for a long time. We left after 5 years because our neighbors made our lives hell. This was a detached place. My point is just that if you end up wanting to sell when the prices are at the bottom, you might not be too happy.

In two years, you may be able to buy something in Irvine.
 
I know it would be really nice to buy something now, especially as you are getting married soon. I bought with my fiance (now husband) right before we got married and wish we had not. We really do like the place we purchased although prices have come down a bit. We look around and see all the nicer places for the same price and we are kicking ourselves.



I would suggest to at least wait until the end of summer and see how things are going.
 
[quote author="24inIrvine" date=1207877544]<blockquote>



Thanks for the recognition 24.

Spreading the truth is not an easy job.

Looks like Ipop and Catchme took the party over to this thread without inviting me.

No problem, you?re progress is coming along nicely.

The blonde hottie over blue bikini comment shows growth.

Now don't forget when you?re out, Fly with da Goose and cran.</blockquote>


Apparently my cal state education has failed me because I have no idea what your lingo such as "Fly with da Goose and cran" means. This isn't the first time one of your chick magnet lines went over my head. Perhaps, you can leave a non USC translation with those in parantheses for me :) And yeah, just admit it....



blonde > brunette in that photo!</blockquote>


LOL 24. Goose and cran = Grey goose vodka and cranberry juice. A tasty mixed drink for those who enjoy such things...
 
[quote author="skek" date=1207877962]Good call, 24. Hey catch -- go back and edit ipop's quote in your last post and remove all of the stuff about your company, including the links. You don't want that on the internet. A little smack talk is fun, but internet links are forever! Do it quick, I see a Google spider coming...</blockquote>


Sorry 24 and skek, I'm not the type of guy who flip flops my words so I will not edit my post.

It is what it is. I dont really care about exposing those links. I have nothing to hide.



You know forums like this one should be a place for all of us come together, sharing opinions, ideas, analysis.

Unfortunately, there are guys like ipoplayer use it a tool for personal attacks. That really shows how "cool" he is.
 
[quote author="T!m" date=1207880906]Steve,

Why not rent someplace near where you work? Avoid commuting altogether. Save the money you would spend on gas and tolls.

The first year of marriage is hard. Owning your first house is hard. It is only harder when you combine them. My wife and I bought our first house in AV, brand new. We thought we would live there for a long time. We left after 5 years because our neighbors made our lives hell. This was a detached place. My point is just that if you end up wanting to sell when the prices are at the bottom, you might not be too happy.

In two years, you may be able to buy something in Irvine.</blockquote>


If i do rent, it will be in Irvine for sure for the exact same reasons you mentioned.
 
[quote author="catchmeifyoucan" date=1207829777]

scuba steve,



Most likely you will get the advice "dont buy it yet, just wait" from lots of members here since most of them are renters and waiting to jump on when they think the market is right for their own analysis.



you do what you think is right for your situation...not market condition, not some unknown online advices....i mean would you listen to some forum advices on how to buy stocks??? I don't think so.



If you think the moment is right for you and your fiance to get a house after doing some serious homeworks (financial number, right house...), then you should go for it. But if you have some doubts, sit together w/ ur fiance, discuss the situation or talk to some family members, close friends, show them the house...they are the best people to give you advice.



Good luck</blockquote>
Well... Maybe it's because I have been a homeowner for a few years now, and visiting this blog for quite a few months, and I have no agenda or company to push... but I think this is the stupidist post I have read today. Most of the IHB members are not renters; it's about 50/50. He asked for advice on a blog forum, so it's a safe bet he is looking for the advice he is getting. And the best people to seek advice about purchasing a house is not friends or family members unless they are finacial advisors, tax accountants, or similar.



catchme, you have the honor of becoming the first person added to my ignore list.
 
catchme, you have to let go of your preconceived notions. you just advised steve online that he should ignore online advice despite the fact not two days ago you came here asking for advice online, which you subsequently rejected. aside from your stubbornness though, you've done a pretty good job of keeping your cool despite the IHB beatdown you've been taking so i commend you for that.
 
I didn't see him post a link (guessing its in another thread) so my bad if its there. Still, just thought go after the company he works for in the way you worded is pretty much the same thing as a personal attack. Catchme, maybe he did start with it, but you continued it. So just like acpme said....keep your cool like you did before and don't add to it. Well I guess you know now Ipop that I am not much of a drinker :)





But back to steve...its his thread! What is your timeframe? How far away is the wedding and your move in with the bride day? January 2009?
 
[quote author="24inIrvine" date=1207885409]I didn't see him post a link (guessing its in another thread) so my bad if its there. Still, just thought go after the company he works for in the way you worded is pretty much the same thing as a personal attack. Catchme, maybe he did start with it, but you continued it. So just like acpme said....keep your cool like you did before and don't add to it. Well I guess you know now Ipop that I am not much of a drinker :)





But back to steve...its his thread! What is your timeframe? How far away is the wedding and your move in with the bride day? January 2009?</blockquote>


Wedding is Jan 09- 8 months till d-day (jk). Build out of the Shea TH is in late Dec with a price guarantee until then. From what i'm hearing on this board, it looks like prices have more to drop in late 2009 so that price guarantee might not mean squat.
 
seems like a lot of people giving advice here are just spouting the group mantra 'wait wait wait'. Will you save money if you wait a year and buy? Perhaps. But this isn't Cortile people. He's not spending $400 a square ft. Shea homes seems to realize the market is tanking and is doing its best to unload its property quickly. I think these are pretty nice townhomes, (2 levels, don't have to walk up stairs to get to the main floor) in a very nice, not quite irvine city.



Who knows, maybe they'll get down to 400 by the time you're married. But, just because the 'bottom' in Irvine isn't anywhere near, doesn't mean its not getting there in other cities.
 
<em>catchme, you have to let go of your preconceived notions. you just advised steve online that he should ignore online advice despite the fact not two days ago you came here asking for advice online, which you subsequently rejected.</em>



LOL !
 
[quote author="halfnote19" date=1207889662]What does the Shea price guarantee consist of?</blockquote>
It's a price protection plan stating that if the price goes down between now and close of escrow (which won't be completed until a couple days before build out in mid-Dec), they will give give you the lower price than from when you bought it. So it's the same as if i waited until December 2008 to buy this place.
 
scubasteve- don't believe in that price protection plan because the builder won't release or lower the price until you or all the potential buyer have close escrow and move in. EXAMPLE..... savannah in irvine was finishing their second to last phase in dec 2007 close everyone's escrow by january-feb 14. and then they started on the last phase in march and that was when they release pricing. So in theory it sounds like a great offer of price protection but in reality the builder controls the next phase and pricing so you are really not getting anything. does that makes sense or did i ramble on?
 
my two cent.... go shopping now and wait until the end of the year and you will at least get a better deal. if you can wait a couple of year then you will get a better deal. some good excuse to use on the wife to buy you time........ 1) job not steady 2) job might relocate 3) go on vacation to take your mind off housing 4) get her some new toys 5) buy a new car.



Lets say you spend 50k in toys. it is probably the same amount of equity burn if you buy now. might as well drive a nice car and have something to show for it right?



I am in the same situation so i know....
 
[quote author="jbatzmaru" date=1207890790]scubasteve- don't believe in that price protection plan because the builder won't release or lower the price until you or all the potential buyer have close escrow and move in. EXAMPLE..... savannah in irvine was finishing their second to last phase in dec 2007 close everyone's escrow by january-feb 14. and then they started on the last phase in march and that was when they release pricing. So in theory it sounds like a great offer of price protection but in reality the builder controls the next phase and pricing so you are really not getting anything. does that makes sense or did i ramble on?</blockquote>


No it makes sense but this what the reps have told me (I understand they are reps and could be telling me anything I want to hear):



The reps told me that phase 5 (about 5 to 6 houses per phase) of the place is selling this Sat followed by additional phases being released every 3 to 4 weeks after (12 to 15 phases total). There is still a priority list, which I'm very surprised about, but it seems like these are still selling since they cut prices (there was no list when they were priced at 525K).



I don't know about buying a car now though- I'm happy if I can get from point A to B right now.
 
[quote author="ScubaSteve" date=1207891104][quote author="jbatzmaru" date=1207890790]scubasteve- don't believe in that price protection plan because the builder won't release or lower the price until you or all the potential buyer have close escrow and move in. EXAMPLE..... savannah in irvine was finishing their second to last phase in dec 2007 close everyone's escrow by january-feb 14. and then they started on the last phase in march and that was when they release pricing. So in theory it sounds like a great offer of price protection but in reality the builder controls the next phase and pricing so you are really not getting anything. does that makes sense or did i ramble on?</blockquote>


No it makes sense but this what the reps have told me (I understand they are reps and could be telling me anything I want to hear):



The reps told me that phase 5 of the place is selling this Sat followed by additional phases being released every 3 to 4 weeks after (12 to 15 phases total). There is still a priority list, which I'm very surprised about, but it seems like these are still selling since they cut prices (there was no list when they were priced at 525K).



I don't know about buying a car now though- I'm happy if I can get from point A to B right now.</blockquote>


I'd say get to point B (marriage/wedding) before you go to point C (house) :)
 
steve,



first, best of luck.



second, rather than buying in AV, could you convince your soon-to-be wife to rent a really nice detatched condo in Quail Hill or Newport on Bison? Living close to work is great for your time (not to mention gas and tolls on the 73 from AV to Bison)



when I look on CL, I see many nice ones

$2850 / 3br - GATED NEWPORT BEACH 1800 SQ.FT. (Jamboree/Bison) (map)

$2350 / 2br - Beautifully upgraded townhome/condo in Quail Hill (Free Rent) (Quail Hill Irvine)



so long as you are careful (see other threads), you could rent a really nice place that is only minutes from your employment (an extra hour a day to spend together!), and still save money for a year or two.



I highly recommend trying out the town that you intend to purchase a home in for at least six months, to see what it, and the commute to work are really like. If she won't go for it, I would strongly recommend that you at least stay in a hotel in AV for a week, to try out the commute and neighborhood.



Best of Luck!!!
 
there are 15 phases? oh damn.... and they are only on phase 5 right now? don't do it. you will over pay by 100k by the time phase 15 roll around. i almost bought in phase 15 out of 16 or something like that in savannah and the guy who bought in phase 1-5 was trying to sell the same exact thing for 535k where i could have bought a brand new one for 435k (net price would have been 385k minus all the incentives. i still didn't do it because i could not stomach the another 100k equity burn when it hit bottom even if i were planning to stay in there for 10 years. it is like a bad omen on a new couple who is just starting out. why would you want to be upside down on a new house. it is suppose to be the best years of your life. newlywed with no kids. enjoy your time and money and don't get strap down yet.



side note. OC register just publish a article stating that the PMI insurance group rated OC as the 6th most likely to lose value. These guys do their homework because they are in the business of evaluating the real estate market. If they say that there is a 81% chance of OC real estate going down. i will have to agree with them.
 
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