Tuesday, January 31, 2012

Irvine Housing Blog

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Buy or rent at Tiempo in Westpark

Posted: 31 Jan 2012 04:00 AM PST

166 Alicante Aisle is a 2bd/2ba condo in the Tiempo tract in Westpark.  Tiempo is bounded by the Peters Canyon Trail, Alton Parkway, Harvard Ave and San Marco Park.  Click the picture below for a closer view.  The streets in this tract are Alicante, Costero, Abrazio, Marbella and Giovanni.

There are a number of floorplans here and it looks like this property is a plan D.  It looks like there is another Plan D listed currently at $389k: 132 Alicante.  The only recent sale I found for a Plan D looks to be 164 Alicante which closed on 12/29/2011 for $300k.  We'll use that price in the analysis.

166 Alicante

Purchase Price $300,000    
Closing costs $9,000 3%  
Total price $309,000    
Down payment $69,000 20%  
Loan Amount / Percentage Of Price $240,000 80%  
Interest Rate / Period (months) 4.00% 360  
  Monthly Yearly  
Mortgage Payment $1,146 $13,750  
Interest Component $800 $9,600  
Property Tax $258 $3,101 1.03%
Special Assessments $54 $644 0.21%
Effective Tax rate     1.25%
Insurance $50 $600  
HOA 1 $185 $2,220  
HOA 2 $0 $0  
Cash Out $1,693 $20,315  

And here are some possible adjustments that may apply to your situation.  Be sure to also consider how long you may own the property (average is around 6 years), what kind of financing you actually qualify for, how much you put down, the effect of giving up the standard deduction, potential price declines, costs to sell the property, etc.  The NY Times Buy or Rent calculator is a great tool that helps with some of these.


Possible Adjustments      
Interest paid   $9,600  
Property tax   $3,101  
Total deductible   $12,701  
Tax benefit $265 $3,175 25%
Opportunity cost of down payment -$115 -$1,380 2%
Principal paid in mortgage payment $346 -$4,150  

As far as rentals, 36 Marbella was listed on 12/31 and is asking $1850/month.  And 86 Costero leased on 5/3/2011 at $1650/month.  Similar 2 bedroom apartments at San Marco Villa rent between $1,670 and $1,825.  Would you rent or buy this property?


robertducket said...

Renting a place is easier than buying. It make good effects to getting well facilities faster in lower rate. That make flexible to life and its facilities.
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