Today's property, located in Rancho Santa Margarita, is one example of the types of homes that are finding buyers. It's currently in the "backup offers" stage.
It's also a 2003 rollback with an upgraded kitchen that's seemingly in very good condition. Think about it: This property is low on price - after a few price reductions - and high on quality and features. That's what it took to find a buyer after months on the market.
It's the reality these days...
8 Pinzon, 92688
Asking price: $425,000-$450,000
Asking price/ sq ft: $243
Purchase price: $447,500
Purchase date: 8/6/03
Size: 3 beds, 2.5 baths, 1,749 sq ft (built in 1989)
MLS: S531534 (113 days on Redfin)
Asking price history: May 06, 2008: $499,900
May 28, 2008: $474,905
Jun 20, 2008: $450,000
Jul 05, 2008: $425,000
Zillow Zestimate: $472,500
HOA dues: $239
Type: Condominium
Style: Mediterranean
Stories: 2 Levels
Lot size: 3,319 sq ft
Status: Backup Offers Accepted
From listing: Orange County's Best Golf Course Buy! Amazing Tijeras Creek golf couse Views & wonderful settings of this Private 3 Bedroom, 2.5 Bath, 2 Car Garage, 2 Story Home. This home features Cathedral ceilings,updated kitchen with granite counters,new cabinets,tile floors,stainless steel appliances & recessed lighting. Enjoy your morning coffee from your private yard overlooking the 4th tee & fairway. Fantastic Lake and Pool amenities included. Close to shops, parks & school. Must See!
Customized financial info:
Minimum Income Requirement (using 30Y Fixed): $102,000, assumes no other debt/obligations.
Downpayment needed: $12,750
Monthly Payment on 30Y Fixed at 6.375% with property taxes and mortgage insurance estimated: $3,183.90
Minimum Income Requirement (using 5Y fixed): $97,200, assumes no other debt/obligations.
Monthly Payment on 5Y fixed at 5.75% with property taxes and mortgage insurance estimated: $3,017.78
Disclosure: All rates offered to the client with 1 point cost. Rate quotes assume a purchase transaction with the required minimum down payment, 720 credit score, full income qualification and required reserves. Rates are subject to fluctuation. Custom rate quotes and rate lock advice are available by visiting www.thegreatloan.com.
Notice the income requirements for this property (at the bottom of the asking price range). As we found out yesterday, the median household income in Orange County is $73,263. To qualify to purchase this property - a nice but fairly modest townhouse-style condo far from the county's main employment centers - a person/family would need to be making almost 40% more than the average OC family.
Yes, there is a bit more money in South County, but also remember this math assumes they have no other debts or obligations. If our prospective buyer has any monthly debts (like credit card bills, school loans, car payments or child support) then the income requirements rise.
Assuming the property makes it all the way to closing and sells for $437,500 (the mid point in the asking price range), it would mean a loss of $36,250, including 6% sales costs off the mid-2003 sales price.
Wednesday, August 27, 2008
2003's the year in RSM
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3 comments:
But it is actually insane for Someone making $100k to buy a $425k house is crazy!
using the loan/pmi above ($3200) add HOA ($250) yearly is $41k. ignore maint and any assessments, that is 40% DTI (can you even get that anymore?).
It also means that you will be scraping. say $6k/month take home, with $3500 going to nut means only $2500 for the rest of your living expenses and saving/retirement.
crazy sacrifice for a 3/2 condo!
FreedomCM
I agree with the previous comment... the price is insane even if you qualify... on top of which, South OC is "Option ARM" heavy which is just starting to blow-up, so there will be lots more inventory on the market over the next 18-24 months. Prices are headed down until they reach affordability for more middle class income earners.
Agreed. We make $111k a year and there's no way I would allow us to have a monthly payment that high. I'd rather go on renting an SFR for $2k a month and watch my kids' college accounts get fatter. If we can't get a 4/2 SFR for rental parity we won't bother buying; it's a waste of money.
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