Villages of Columbus - Columbus Square - Camden Place

NEW -> Contingent Buyer Assistance Program
<p>With China now looking to bolster it's currency holdings in other forms besides the dollar, it can be almost assured that there will be no more rate cuts. Compounding the effect of the market today along with strong sentiment from the Fed regarding inflation, rates may very well go up. </p>

<p><a href="http://biz.yahoo.com/ap/071101/wall_street.html">http://biz.yahoo.com/ap/071101/wall_street.html</a></p>
 
<p><em>And mowing the lawn, watering the lawn, watering the trees, trimming the trees, fixing the roof, etc, costs a lot more than the HOA fee, believe me, or you can ask any homeowner.</em></p>

<p>You will share the same costs as a condo owner when a reassessment is needed to replace doors, roofing and windows...FYI. It's just in the form of higher HOA spread over x amount of years. Happens all the time when not enough funds are in the war chest to make major repairs. </p>
 
<p>One interesting thing about attached product over SFRs (except in gated neighborhoods), is that the HOA of the attached product owns their streets. Thus, the condo owners pay via the HOA for slurry sealing every couple of years, which is an expense SFR owners in non-gated communities don't pay.</p>
 
<p>i agree. the housing costs consist of the mortgage, property taxes, and hoa. i think that most hoa's are pretty fair in their assessments though.</p>

<p>the issue i'm most concerned with is property tax. it's anywhere from 1% to 2%, right? </p>

<p>thus, on a 500k property, it's anywhere from 5k to 10k per year. that's anywhere from $400 to $800 per month.</p>

<p>So buying in Camden will cost you $1000/month just for the maintenance costs? And the mortgage will be at least another $2000/month?</p>

<p>So it will be $3000/month for a 3bedroom? And rent per room is around $800/month? The difference is $600/month? That could be the tax savings right there.</p>

<p>That's not too bad.</p>
 
I have a guy who's going to pay me close to 900 bucks a month to rent the 1st floor room. That will definitely help for the prop taxes/HOA's
 
got my good faith estimates today. 30 yr fixed with 10 yr interest only payment option. the balance amortizes after 10 yrs. and, no pre-payment penalties.





5.625% 1st


8.00% 2nd





not too shabby i suppose... luckily i have pretty good credit. what do you guys think?
 
wow! 5.625% is an amazing rate! And 10 yr interest only should be fine. You most likely will refinance or sell by then anyways. Did you buy down your interest rate?
 
<p>i believe it was:</p>

<p>3.125 points on the first (~$12k, covered by incentives).


3.25 points on the second (~$2k, covered by incentives).


(2 yrs HOA are prepaid by my incentives)</p>

<p>i can definitely afford the P&I payments now. my plan is, pay IO for now and take the difference between that and the P&I payment and put it into a mutual fund or online savings at 4.75% and just before the loan amortizes, make a large payment toward the principle. i want my equity/money to work for me, so i'm taking arbitrage away from the banks.</p>

<p>my close of escrow is the week of dec 18th as is most phase/neighborhood 10's. merry Christmas to me! ...for the next 10+ years. HAHA.</p>

<p> </p>
 
myfirsthome,





If I were you, I would do things a little differently. I don't know your exact details of your purchase, but a rough assumption would be a $400k 1st 5.625% $1875 I/O a month and a $40k 15yr 2nd 8% $382 a month. I would take the incentive money from the second and apply it to the 1st mortgage. Depending on the spread, you could get it down to 5.375% or $1792 a month. I would pay the points on the second out of pocket $1300, not that much money. This would save you almost $100 a month, that you could apply to the second mortgage. In a little over 10 years the second would be paid off. This would save you about $10k in interest on the second.





Currently in year 10, when your loan re-amortizes looks like this:


$2880 a month 1st.


$382 a month 2nd.


$3162 a month total.


Total money spent in 10 years $271k. The next 5 years after the first 10, you would spend $190k.





My advice looks like this:


$2723 a month 1st.


2nd paid off.


$2723 a month total.


Total money spent in 10 years $272k. The next 5 years after the first 10, you would spend $163k.





That $27k in 15 years, would be the equivalent to a 132% annual return a year on your investment of $1300 on your second. Of course, you would have to keep the home and the loans for 15 years.





You can play with the <a href="http://mortgage-x.com/calculators/extra_payment_calculator.asp">extra payment calculator here</a>.
 
<p>JP,</p>

<p>This thread, and the associated debate between the GF and friends of mine, have demonstrated that many people enjoy the convenience of an attached product with an HOA that takes care of external maintenance and landscaping. I judt don't feel the same way at all.</p>

<p>As mentioned previously, my GF and I spent a year renting a large older home on a large lot. The owner gave us a cut on the rent if we handled gardening, light maintenance, some painting, etc. I actually enjoyed the housework, and it wasn't very expensive at all. Granted, when the AC went out, we didn't pay for it!</p>

<p>To your point about costs, that is true to an extent, but not when we're talking about these new products. I literally spent a month at VOC, taking videos, planning furniture, etc. after I placed very high in the affordable housing lottery. I had the option to purchase a Clarendon or Camden CHEAP ($300k), but the massive auxiliary costs killed the deal. Those costs simply would not have been a factor in an established neighborhood. YES, many homes in Costa Mesa are going for $800k, while a GREAT Camden unit is mid-400s. </p>

<p>But check Redfin, and you'll find that some Costa Mesa neighborhoods are beginning to show SFRs for the mid-500s, and condo properties are lower. A $450k Camden is much nicer than most Costa Mesa condos for $450k, but Costa Mesa's will drop. These CM neighborhoods are NOT new and pretty, and the condo properties can't compare to a new Lennar everything-included condo at Camden, but you will be saving hundreds/mo. in HOA/CFD costs. These CM condos will drop quite a bit, and I doubt you'll find a Camden for $250k anytime soon. </p>

<p> </p>
 
<p>HOA at Camden will be $300/month at built-out. I think HOA at most other places are around $250/month anyways. I don't think the difference is signicant. And try finding a place built in 2007 instead of 1987 - that's a big deal isn't it?</p>

<p>As for the loan scenario myfirsthome, I suggest you pay the minimum on the first and apply any extra funds you have to the second. The theory is.. if the rate is low, pay the minimum. If the rate is high, pay it down as fast as possible. There is no point in making 5% at the bank while paying them 8% on your second.</p>
 
<p>my financial advisor loves American Funds... he has sold other funds before, but has been pushing American Funds as time-proven over his career. my parents have used him for over 30 years and out of all of thier advisors he's made them the most money, so i trust his advice :)</p>

<p>btw, i'm in my mid-20's so he thinks the Capital World Growth & Income or the Investment Company of America funds would be the best choice for me.</p>
 
American funds is solid and they are known for relatively low fees. I have a few friends who work for them and they are run well. I'd go for it.
 
I am considering Camden, but I am a bit concerned about the train noise. Anyone here already live in VOC?

Would like to know if you hear the train horn often? I checked the metrolink website, there are trains coming here in early morning like 5am. Thanks a lot!
 
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