Dec252011

This was a $1,000,000 home?

This was a million dollar home. Take a good look at that picture, and tell yourself, that was a million dollar home. It doesn’t feel right, does it?

I understand that people want to live down by the water, but do they really want to live in a yellow shoebox? Someone thought this tiny ugly house was worth a million dollars in 2005. Crazy!

The bank took this back for $825,000, probably the outstanding balance on an 80% loan. This asset manager is not delusional, so he is trying to get out at $640,000. The price is still outrageous, but relative to the competing listings, it will probably sell near asking.

Even the beach is seeing 35% declines from the peak.
— —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —-  —- —- —- —- —- —- —- —- —- —- —- —- —- — ————————————————————————————————————————————-
Proprietary OC Housing News home purchase analysis

2814 NEWPORT Blvd Newport Beach, CA 92663

$640,400    ……..    Asking Price
$990,000    ……….    Purchase Price
12/8/2005    ……….    Purchase Date

($349,600)    ……….    Gross Gain (Loss)
($79,200)    …………    Commissions and Costs at 8%
============================================
($428,800)    ……….    Net Gain (Loss)
============================================
-35.3%    ……….    Gross Percent Change
-43.3%    ……….    Net Percent Change
-6.9%    …………    Annual Appreciation

Cost of Home Ownership
——————————————————————————
$640,400    ……..    Asking Price
$128,080    …………    20% Down Conventional
3.94%    ………….    Mortgage Interest Rate
30    ………………    Number of Years
$512,320    ……..    Mortgage
$121,677    ……….    Income Requirement

$2,428    …………    Monthly Mortgage Payment
$555    …………    Property Tax at 1.04%
$0    …………    Mello Roos & Special Taxes
$160    …………    Homeowners Insurance at 0.3%
$0    …………    Private Mortgage Insurance
$0    …………    Homeowners Association Fees
============================================
$3,143    ……….    Monthly Cash Outlays

($391)    ……….    Tax Savings
($746)    ……….    Equity Hidden in Payment
$174    …………..    Lost Income to Down Payment
$180    …………..    Maintenance and Replacement Reserves
============================================
$2,359    ……….    Monthly Cost of Ownership

Cash Acquisition Demands
——————————————————————————
$7,904    …………    Furnishing and Move In at 1% + $1,500
$7,904    …………    Closing Costs at 1% + $1,500
$5,123    …………    Interest Points
$128,080    …………    Down Payment
============================================
$149,011    ……….    Total Cash Costs
$36,100    ……….    Emergency Cash Reserves
============================================
$185,111    ……….    Total Savings Needed
——————————————————————————————————————————————-
This property is available for sale via the MLS.
Please contact Shevy Akason, #01836707
949.769.1599……
[email protected]…..