Irvine Real Estate

Buying a Condo in Irvine CA. to be used as UCI student housing can be a great alternative to renting if done correctly…. Here’s how the numbers can work.

A typical 1 bedroom rental apartment on UCI campus land will cost around $1,000 per month and will be about 600 square feet in size with a kitchen and bathroom.  This $1,000 monthly expense is usually not Tax deductible and after 4 years of College education, you’ll have nothing to show for it. 

As an alternative, one (assuming the parents) can purchase a 2 bedroom Condo in Irvine within a 15 minute (or less) drive to UCI.  There are currently 4 Condos for sale in Irvine ranging in price from $355,000 on up to $400,000, that have 2 bedrooms, 1 bath with about 900 square feet of living area.

Let’s use a nominal figure of  $400,000 for this example as the purchase price. The parents invest a down payment of 20%, leaving a loan amount of $320,000.  There are many loan options today, but let’s assume a fixed interest rate of 6% amortized over 30 years, which yields a principal and interest payment of $1,919 per month. The Taxes are an additional $383 per month (No Mello-Roos) and the association dues are nominally $250 per month. The fire insurance is built into the association dues.

Adding up all of these monthly expenses, yields a total monthly cost of $2,552 per month.  The next step in this example is to rent the extra bedroom to another student and have the parents of that student sign on the yearly lease. One can easily rent this 1  bedroom for $750 per month which is $250 less than on Campus housing due to the fact that the rental Condo is off Campus and the bathroom is shared.  Subtracting the $750 income minus the $2,522 expense, yields a net monthly cost of $1,802.  Now the typical family putting their sibling through college at UCI is probably in the 35% Federal Tax bracket and let’s assume another 5% in State Taxes (in California, this would 10%… Texas would be zero).  This results in an approximate $750 per month Tax Deduction. Subtracting this $750 Tax Deduction from the actual net expense of $1,802, yields an effective $1,082 monthly cost for your College student.  Compare this to the $1,000 per month student rental cost, and the effective after Tax deduction monthly expense is essentially zero, assuming you rent the extra bedroom to another student. 

There’s more.  Let’s assume a very conservative 3% per year rate of appreciation for real estate for the next 4 years.  Using the $400,000 initial purchase price, and after 4 years of College, your 2 bedroom Condo is now worth $450,204.  Now you can keep this Condo and continue to rent to College students or you can sell it using a 1031 Tax exchange in order to avoid Taxes on your capital gains, and buy another rental home in some other City or State.

The results above could be slightly improved if one purchases a 3 bedroom, 2 bath Condo and rented out 2 bedrooms to 2 other students. Or, if one uses a lower interest payment loan such as a 5 year lower fixed interest rate, which then rolls into an adjustable rate loan after 5 years, with the assumption that the Condo would be sold after 4 years of College.

To view all Irvine Condos for Sale, visit our website at Irvine Real Estate. If you would like to discuss this program in further detail, please feel free to call Vincent Bindi at 949-388-3396.

There are currently 32 homes for sale in Westpark in Irvine. They range in price from $395,000 for a 1 bedroom, 1 bath, 800 square foot condo built in 1989, on up to $1,295,000 for a 5 bedroom, 3.5 bath, 2,995 square foot home.  The median price is $795,000, with the average price per square foot is $449/SqFt and the average days on marker is 52 days. 

Currently, there are 15 homes and condos Pending in escrow in the West Park area of Irvine.  These homes range in price from $425,000 for a 2 bedroom, 2 bath 871 square foot condo in the Brisas tract, on up to $835,000 for a 4 bedroom, 2.5 bath , 1,953 square foot detached home built in 1997 in the Positano tract.

In the past 30 days, there were 18 homes and condos that sold and closed escrow in Westpark in Irvine.  These homes ranged in price from $410,000 for a 1 bedroom, 1 bath, 900 square foot condo built in 1987 in the Tiempo tract.  The highest price was $1,360,000 for a 5 bedroom, 3.5 baths 2,818 square foot home built in 1996 in the Trieste tract. The median price of homes sold and closed was $715,000 with an average price per square foot of $461/SqFt and the average days on market of 49 days.

For the month of December in the previous year of 2005, there were 30 homes that sold in Westpark in Irvine.  The minimum priced home was $342,500 and the highest price sold a year ago in December was $1,175,000.  The Median price was $668,000 and the average price per square foot was $366/SqFt. 

To view all home for sale in Irvine, visit our website at Irvine Real Estate.

The homes and Condos in Quail Hill incorporate a wide variety of options from stately detached homes to garden courtyard condos.  Construction of homes started in 2002 in this popular community and continues to this day. It is planned that Quail Hill will have about 1,400 Irvine homes located in 13 different communities when completed.  Quail Hill is named after a distinctive rock formation that is shaped like a Quail. 

There are currently 8 Condominiums Active for sale in Quail Hill ranging in price from $575,000 for a 2 bedroom, 2 bath unit with 2 car garage, on up to a 3 bedroom, 3 bath, 1,700 Square Feet Condo for $795,600.  The median price is $679,900 and the average days on market is 32 days.

There are 20 detached homes currently for sale in Quail Hill, Irvine.  These homes range in price from $649,000 for a 2 bedroom, 2.5 bath, 1,200 Square Foot detached home, to a maximum of $1,900,000 for a 4 bedroom, 3 bath, 4,080 Square foot estate located on Mosaic street.  The median price is $880,000 and the average days on market is 45 days, and the average price per square foot is $489/SqFt.

In November, there were 7 condos that sold and closed escrow in Quail Hill.  The minimum priced condominium sold was $445,000 for a 1 bedroom, 1 bath, 830 square foot condo, on up to $730,000 for a 3 bedroom, 3 bath, 1,700 square foot condominium. With 8 condos currently for sale and 7 condos sold in November, this represents a brisk sellers market.

For the month of November, there were 5 detached homes that have sold and closed escrow in Quail Hill, Irvine.  These sold homes ranged in price from $830,000 for a 3 bedroom, 2.5 bath 1,790 Square Foot home, on up to $900,000 for a 3 bedroom, 2.5 bath, 2,000 square foot property.  The ratio of 20 homes active for sale compared to 5 homes that sold in November, represents about 4 months of inventory which is the transition from a sellers market to a neutral market. 

Quail Hill in Irvine is serviced by the respected Irvine Unified School district.  The local elementary schools servicing the area are Alderwood at Quail Hill and Oak Creek.  The middle school is Rancho San Joaquin, and the upper grades are serviced by University High School.  Quail Hill has Mello Roos tax that ranges from about $1,500 to $3,000 per year dependent upon the home type and location.

If you would like to view all Condos or detached Homes listed for sale in Irvine, please visit our website at:  Irvine Real Estate

The popular Woodbridge area of Irvine CA. offers a wide assortment of newer and older detached homes and affordable Condos.  Woodbridge Village boasts of two man-made lakes (North Lake and South Lake) and is centrally located in Irvine.  The area of Woodbridge is bordered by 405 Freeway, Jeferrey Rd., Irvine Center Dr. and  Culver Dr.

Currently there are 70 homes Active for sale in Woodbridge in Irvine, and the minimum price is $399,900, for a 2 bedroom, 1 bath, 928 square foot Condo, and the maximum priced home is a $2.45 Million detached house with 6 bedrooms, 4.5 baths, 3 Car Garage and 5,000 square foot of living area.  Of those 70 homes, 23 are detached homes with a median price of these detached homes of $869,900. There are also 46 Condos for sale in Woodbridge, Irvine with a median price of $555,000

As of this day, there are 9 detached homes sold and In Escrow, and the median price of the Woodbridge home is $755,000.  There are an additional 36 Condos sold in escrow in Woodbridge and the median price is $580,000.

In the past 30 days, there have been 31 Condos sold and close escrow in Woodbridge and the median price of these Condos was $502,500.  Correspondingly, in this same time period there were 8 detached homes sold and closed with a median price of $735,000.

The first homes built in Woodbridge, Irvine were constructed in 1974, and the majority of the home construction occurred from the  late 1970′s  to the early 1980′s.  The most recently built homes were constructed in 2001 in Woodbridge.  There are a total of 40 tracts built in Woodbridge comprising of a total of 7,722 homes.  Below is a table listing all of these Tracts and the corresponding home builder.

If you would like to view all homes listed for sale in Woodbridge, Irvine, CA. just visit our website at:  Irvine Real Estate.