I've been selling real estate in this area for over 33 years, starting in Irvine. In that time I've seen many cycles, and each one has been different.
Here's some wisdom I can impart, based on my experience. If you KNOW that you will be absolutely moving out of Irvine after 3 years, there is NO way that you should be buying a property here - unless you don't mind losing money.
In my humble opinion, the likelihood that there will be 10% appreciation in the next 3 years - enough to cover your eventual costs to sell - is far too much of a gamble to take the risk on.
Here's how look at your situation; Would I take such a risk? My answer is absolutely not. For the same reason I bought my last house in 2001. After that, I was uncomfortable that the market might stall, or worse, collapse, as the years ensued.
Rent somewhere of your choosing - perhaps even in a nicer neighborhood than one you might buy in, and renew the lease every year. If you go into such a lease telling the landlord that you'll probably be there for at least 3 years, you'll likely get a more favorable rate, as well.
When it's time to move on, it won't matter what the real estate market is like - it will simply be the end of your lease. And mark my prediction - prices then will probably not be 10% or higher, than they are right now.
By the way, I would be happy to assist you in finding a suitable property to lease, if you need such assistance.
Good luck in your decision making.
I agree with you that Real Estate is always a good investment comparing to renting. You get the benefits of owning a home. But, don't forget that there are many investors (most clients I work with) out there buying homes because of the lower price and lower interest rate. Even if 3 years from now the re-sell price is not anywhere you'd like it to be, the townhome you are buying now could possibly be an income producing property for you. Homes in Irvine are very desirable (especially if it is a 3 bedroom) because of the SCHOOLS! I am working with several investors and all of them want to have at least one house in Irvine. We acquired one property in UT in November and used it as a rental property. I also have seen many good homes in Turtle Ridge that have lowered the sales price.
Feel free to let me know if you have any questions.
Looks like your company is offering you some great perks!
I do believe prices may not drop much further. Prices in Irvine have gone up compared to last year , especially in some neighborhoods.
However, I think that a 3 year time frame to buy and reselling for a profit a bit of a risk especially given the current economic scenario. Irvine has comparatively been shielded from too much distress sales so far, which is what helped home owners here.. Low Mortgage rates and lower prices have got in lot of strong buyers into the market.
If you do decide to buy, I would suggest look at cost of ownership other than just mortgage and insurance. Are the HOA & Mello Roos ( If applicable) low enough to attract a buyer in a soft market? Is it a desirable neighborhood with proximity to good schools? Can the property be leased easily?
DRE Lic# 01845233
Hanu Reddy Realty
If your employer is willing to give you some contributions towards buying, aren't they willing to give you some perks towards renting?
Seriously, in this market, unless you plan on being in the home for a minimum of 7 years, it does not make sense to buy now.
However, if you asked the same question in 2010 or 2011, I'd be on the fence about it and would have to justify buying it based on the rental income paying for the mortgage and HOA. Irvine does have some newer housing developments in the works which may raise the median home value overall. I hope it works out for you whatever choice you make.
Yes, this is a great time to buy in Irvine! Not only are the schools top notch, but the parks, trails, etc. are as well. Irvine is ranked one of the Safest Cities and that is appealing to many as well. Since your company is giving you a great relocation package, buying now is made easier. If you rent for a year or so, you won't be able to enjoy the benefits your company is offering you now.
Also, while renting avoids you having to come up with an initial downpayment, you can not enjoy the tax benefits of writing off your interest.
Please call me if you would like to discuss further.
949 929 4908
I recommend you hire a professional and experienced REALTOR for your situation. Best wishes.
Harrison K. Long, REALTOR and broker associate, Coldwell Banker Residential Brokerage, Irvine, CA. 949-854-7747
This is a good time to buy in Irvine, why?
1. Irvine itself is a very good city/ town, recently rank #22 Best Place to Live in CNN, #1 city from California that was mentioned in that article
2. Interest rate is the lowest in 40 years history
3. Market is at bottom, with indication that prices & sales in Irvine are starting to rise in June
4. 3BR is the most common that people search to buy
So, don't miss a great opportunity to own in Irvine. :)
Welcome to Irvine! There are a few factors to consider when buying and selling in a short time frame (within 5 years from now). First you need to consider all the advantages of purchase (tax deduction, relocation assistance from your company, potential resale value, low interest rate, low home prices, 2 year owner occupied tax free gain). As you probably know, capitalizing in the equity sell of a property is usually more promising as a longer term purchase. For a 3 year equity sell is a little on the edge since you will probably be spending some money to upgrade and when you sell, you need to pay for the closing costs and commission. However, if you allow it a little longer, the equity gain will be more promising because Irvine has been and is still a very highly desired area. I am having a seminar on Short Sales July 24, 2010 to educate people the ins and outs of short sale to help California on the road to recovery. During the seminar, I will touch up on the real estate market trend and rent vs. buy in today's market. Please feel free to email me and I will have my assistant send you the flyer. Hope this helps!
Irvine has always been in demand because it is a model planned city,it has excellent schools that are one of the most hightly rated in the NATION, it is the home of UCI which is one of the best universities, and to add to all of this, Irvine is rated THE safest city in the NATION as it was reported by the FBI, for several years now. Also, Irivne is the the heart of Orange county which is the heart of Southern California.
We have noticed that in the past few months prices have gone up a little bit, this may have been caused by the increased demand due to the first time home buyer tax credit, as well as investors. Whether or not prices will jump much higher in 3 years, no one can give a definite answer to this. One thing is for sure, Irvine will ALWAYS be in demand.
II will be more than happy to show you properties within your price range, I have lived in Irvine for the past 25 years, and am very familiar with it and its surroundings.
Keller Williams Elite Realty
Won't you come out from behind the curtain and engage with us in dialogue? I sense you would be an excellent resource. :-)
Stay Blogging My Friends!
It's a great time to buy. Interest rates are at an all time low and home prices have dropped. If you are thinking of selling that soon, I would not recommend that. Rather, consider purchase of a nice townhome in a desireable area that you can lease in three years. We are in a recovery, but it will take time for Real Estate to rebound enough for you to be able to make a profit on that investment. If you need a professional referral for Irvine, feel free to contact me.
In the past we could count on properties appreciating in value each year! What we can count on now is that we simply cannot make promises concerning building equity in a property. It sounds like your company is offering you some great perks...will you be transferring with this company in three years? If so, will they be offering you more perks?
Keller Williams Realty
When it comes to the market there is no FOR SURE way to tell if the market is going to go up or down. The best thing for you to do is start looking. You NEVER know when the best deal is going to come along! If you go to my website http://www.deltamaxmortgage.com/SearchtheMLS you can search the entire MLS for Irvine and all close by cities such as North Tustin, Lake Forest, Costa Mesa etc.. like the Realtors do and you can set up a free property saver account to send you daily email updates of new homes that match your search criteria. That way you can stay ahead of the newest homes that come on the market and beat other buyers to the hottest listings! When you see a great deal you can jump on it! The bottom line is Now in South Orange County California including Irvine prices are much affordable and we are now experiencing multiple offers in many of the homes. So this is the buying time. I can guarantee you that you will not get the same deal in Irvine- CA three years from today. Please do not hesitate to call me if you would like to know more about Irvine housing, prices and market conditions.
Best of luck
If you need any help at all I would be happy to help you or to just answer any questions you might have. Feel free to call me anytime at your convenience.
Does it make more economic sense to rent or buy? Use your numbers and see below.
Why renting at a higher monthly cost might be the right choice to make. A very different way to look at things below.
A site that shows what they think the future of house prices will look like below.
In the end it is a choice you will make. One thing is do you want to buy, leave, and keep it as a rental. If so find out what the cost of buying is compared to renting. Maybe you do not mind losing money if you can do as you please with no landlord. Buying would make more sense. Look up foreclosures in your area. See what is expected to come. You may find it looks bad. You may not. Do a lot of research and then make an informed decision.