usctrojancpa
Well-known member
Exactly, most of my Irvine buyers (whether they be Asian or not) are dual income households with incomes of $200k+/yr so even only with 20% they can easily afford a $800k home.NonFCB said:
Who are all these buyers?
- Thread starter CTNative
- Start date
NEW -> Contingent Buyer Assistance Program
640K @ 5% = $3,435 for principle and interest, the interest deduction will wipeout most or all of the property taxes (8K/12=$666), add the HOA, lets say $150/month, plus another $100/month for insurance, so that is 3,435+150+100= $3,685. If you are making 200K, you are probably netting around 10K month (200K/12*.6)
For Woodbury SFR, the mello roos is about $4500.
The HOA fee is $105 per month. There will a second HOA if you live in a detached condo, condo, or townhome.
irvinehomeowner
Well-known member
@NonFCB:
Great first post and please understand... FCB means Foreign "Cash Buyer"... not "Foreign Cash" Buyer (at least to me). I've said this before but much of that cash can be sourced from here via savings, successful businesses etc... what is a significant statistic is that the transactions that are high-cash or all-cash are usually parties with foreign decent (and yes... that does mean they can be 2nd 3rd or X generation).
It's not the Cash that's Foreign, it's the Buyer (and foreign is a wide brush in my definition).
Great first post and please understand... FCB means Foreign "Cash Buyer"... not "Foreign Cash" Buyer (at least to me). I've said this before but much of that cash can be sourced from here via savings, successful businesses etc... what is a significant statistic is that the transactions that are high-cash or all-cash are usually parties with foreign decent (and yes... that does mean they can be 2nd 3rd or X generation).
It's not the Cash that's Foreign, it's the Buyer (and foreign is a wide brush in my definition).
usctrojancpa
Well-known member
If I squirreled away enough cash to buy a home for cash, would I be a FCB since I was born in Europe???irvinehomeowner said:
irvinehomeowner
Well-known member
640k loan, 5% 30-year fixed... probably $2500 a month, call it $3500 to include maintenance, taxes, whatever... I think falls under DTI.The I-R-V said:
usctrojancpa
Well-known member
Mortgage will be about $3,400ish/mo with a 5% 30-year fixed loan with another $1,200/mo for property tax/Mello Roos, HOA, and insurance. That $4,600/$16,667 which is a DTI of 27.6%...considering that all lenders will allow you to go up to a DTI of 40% (and some to 45%) yeah it's easily affordable if the buyers don't have any other significant debt (car loans, credit cards, student loans, etc).The I-R-V said:
qwerty
Well-known member
irvinehomeowner said:
640K @ 5% = $3,435 for principle and interest, the interest deduction will wipeout most or all of the property taxes (8K/12=$666), add the HOA, lets say $150/month, plus another $100/month for insurance, so that is 3,435+150+100= $3,685. If you are making 200K, you are probably netting around 10K month (200K/12*.6)
usctrojancpa
Well-known member
And doing so while enjoying a cold Corona and watching the Laker game...multitasking at its finest.qwerty said:
usctrojancpa
Well-known member
Yeah, once you start adding student loan payments, auto loan payments, and then throw expenses for kids that DTI can spike up fairly easily. I think that an all-in DTI under 30% is easily affordable while a DTI>40% is beginning to push it (especially if you don't have savings as a safety net).qwerty said:
homer_simpson
Well-known member
Off-Topic again.. anyone know the Property Tax + MR for Woodbury/Woodbury east? Do they differ?
usctrojancpa
Well-known member
Depends on the size of home that you buy, but for a similar sized condo that you are looking at Park Lane you are looking at Mello Roos around $3,000-$3,500/yr in Woodbury (1.6-1.8% all-in) while Woodbury East is a little lower as TIC paid-off/pay down some of the Mello Roos bonds.homer_simpson said:
irvinehomeowner
Well-known member
Hey... my guesstimate was close.
By the way, almost all Chinese FCB have no student loans. Most come here with full scholarship. In additional, foreign students won't qualify for studuent loans in the US. Even for couples earn $200k/yr, most like to drive Japanese cars like Toyota, Honda or low end Luxus from 5+ yrs. The cars will be paid off or low monthly payment. Regarding kids, most grandparents will come in turns to help for the new borns for two years.
Irvine2Irvine
New member
homer_simpson said:
For Woodbury SFR, the mello roos is about $4500.
The HOA fee is $105 per month. There will a second HOA if you live in a detached condo, condo, or townhome.
Irvine2Irvine
New member
I am one of "these" buyers and in a group 2 and 3, move up and Asian.
I had bought my first small, old house in Irvine back in '95 and moved up to Woodbury Sonoma house. ALL of my 55% down payment came from the proceeds of the 1st house.
I did not get any help from any relatives or anyone else in buying either the 1st house or the new house. Also, I ended up in Irvine because the wife went to UCI and liked the city. Didn't have kids back then, so the schools were not really a big part of the equation when buying my 1st house. When buying the 2nd house, we stayed in Irvine so the kids don't have to change schools, scouts, or friends. I don't really save except for 401K and Roth IRA. After that, I spend all of my paycheck. I want to enjoy life while I am able to. I don't want to save all my life, then get sick and leave money to my kids when I die. I will help my kids through college, but that's about it. I want them to be independent and pave their own path like I did. I also got absolutely no help from my kids grandparents on childcare, and I don't plan to provide childcare to my kids either. By the time they have kids, I will be travelling.
I am just trying to show that there are many different types of Asians and not all "these" Asian buyers fall into the stereotype portrayed here. Also, many of my Asian friends don't fall into the strerotype either, although most of my wife's asian friends do.
I had bought my first small, old house in Irvine back in '95 and moved up to Woodbury Sonoma house. ALL of my 55% down payment came from the proceeds of the 1st house.
I did not get any help from any relatives or anyone else in buying either the 1st house or the new house. Also, I ended up in Irvine because the wife went to UCI and liked the city. Didn't have kids back then, so the schools were not really a big part of the equation when buying my 1st house. When buying the 2nd house, we stayed in Irvine so the kids don't have to change schools, scouts, or friends. I don't really save except for 401K and Roth IRA. After that, I spend all of my paycheck. I want to enjoy life while I am able to. I don't want to save all my life, then get sick and leave money to my kids when I die. I will help my kids through college, but that's about it. I want them to be independent and pave their own path like I did. I also got absolutely no help from my kids grandparents on childcare, and I don't plan to provide childcare to my kids either. By the time they have kids, I will be travelling.
I am just trying to show that there are many different types of Asians and not all "these" Asian buyers fall into the stereotype portrayed here. Also, many of my Asian friends don't fall into the strerotype either, although most of my wife's asian friends do.
panda
Well-known member
Thanks for sharing Irvine2Irvine,
It appears that you have became financially independent on your own through your wise investment in 1995 and I applaud you for that. I would like to get your input on couple of things. Irvine seems like the "Dream" place to live if you are already weatlhy, but for someone starting out with very little, no parental financial help, and trying to become financially independent in their early 30s, Irvine seems to a tough place. Had I bought a home in Sonoma, I would be been pretty much wiped out of my savings, practically all of it going in the home.
As you know, I purchased a new home in Atlanta for a closing price of $480,000 with all the upgrades. It is definitely in the highend of what i wanted to spend, but it is a home where the Panda family plans to live for atleast 10 - 15 years like you did with your first Irvine home. IHO makes fun of me sometime that i am throwing stones from my Georgia home, but I will admit it to IHO, that you can't compare Johns Creek, GA with Irvine, CA as Irvine is clearly better and has more prestige than Johns Creek, GA today. However outside of the perfect weather and the nice beaches, Johns Creek had everything I wanted with top schools, nice new subdivisions, low crime, low taxes, and lots of nice new Asian markets. The mortgage on my third home would bring up my total mortgage to almost a $1 million dollars (30 year fixed in the 4s). The reason I can sleep at night is because i have the cash and liquid investments to pay off the entire loan anytime. My mindset is to think like a banker where if i can borrow at 4.25% i need to invest the money wisely get a higher return (arbritrage) than 4.25% annually. Though I love Irvine, I knew that i would be sacrificing too much of my values, family, and my goal of becoming financially independent.
Irvine2Irvine, do you agree with some of statements that RC has made about Irvine regarding materialism, neighborhood competition, and pressure to consume to keep up with the status quo? Would you say there is a lot pressure to spend and consume in Woodbury?
It appears that you have became financially independent on your own through your wise investment in 1995 and I applaud you for that. I would like to get your input on couple of things. Irvine seems like the "Dream" place to live if you are already weatlhy, but for someone starting out with very little, no parental financial help, and trying to become financially independent in their early 30s, Irvine seems to a tough place. Had I bought a home in Sonoma, I would be been pretty much wiped out of my savings, practically all of it going in the home.
As you know, I purchased a new home in Atlanta for a closing price of $480,000 with all the upgrades. It is definitely in the highend of what i wanted to spend, but it is a home where the Panda family plans to live for atleast 10 - 15 years like you did with your first Irvine home. IHO makes fun of me sometime that i am throwing stones from my Georgia home, but I will admit it to IHO, that you can't compare Johns Creek, GA with Irvine, CA as Irvine is clearly better and has more prestige than Johns Creek, GA today. However outside of the perfect weather and the nice beaches, Johns Creek had everything I wanted with top schools, nice new subdivisions, low crime, low taxes, and lots of nice new Asian markets. The mortgage on my third home would bring up my total mortgage to almost a $1 million dollars (30 year fixed in the 4s). The reason I can sleep at night is because i have the cash and liquid investments to pay off the entire loan anytime. My mindset is to think like a banker where if i can borrow at 4.25% i need to invest the money wisely get a higher return (arbritrage) than 4.25% annually. Though I love Irvine, I knew that i would be sacrificing too much of my values, family, and my goal of becoming financially independent.
Irvine2Irvine, do you agree with some of statements that RC has made about Irvine regarding materialism, neighborhood competition, and pressure to consume to keep up with the status quo? Would you say there is a lot pressure to spend and consume in Woodbury?
Irvine2Irvine said: