Hey Bearvine, am I correct in assuming you’re an Irvine resident? Anyhow, I am intrigued by your having both occupied, and purchased as an investor, properties in Morgan Hill, considering I was required to sign a particularly onerous document stating that I intended to occupy, or if purchased as an investment, that I wouldn’t sell nor rent for 12 months after COE. This document was required in McMillan land and in Hovnanian land and in the Ventana tract. Don’t know about Shea, I didn’t look there. From the wording of your posts, it would appear that you bought early and sold early, how did you manage to purchase so many properties new? I was quizzed at length by Dustin in Crystal and Kelly in Artessa about my intentions, but the Hovnanian agents (wink-wink) didn’t care, nor did the Ventana people. And if I may ask, which tracts did you purchase for residence and for investment purposes?
This is my reality check: I purchased in Temeku Hills in 1997 at $87 psf and again in 2000 at $114 psf. I just cannot believe that we will regress to pre-1997 prices and acquire property here at less than $80 psf. That’s pricing from the height of the last downturn and if so, we are all soooo screwed! If that’s the case, I should buy at least 10 homes here, and forego my plans to purchase 3-plexes in Cupertino! Unfortunately, this Morgan Hill place was purchased for $197 psf, blame hubby for that one, but it seemed such a bargain compared to other areas.
Snail asked for some data on Morgan Hill resales and foreclosures. I haven’t kept a spreadsheet; I just have eyeballed the data. But I think I will follow through on Mumm Street within the next couple of days and give a history on every resale or REO. I’ve been too busy to respond for the last 48 hours.
Regarding McMillin’s cash flow and ability to sit on undeveloped land, does anyone out there have any insight? I seem to recall there’s no developer subsidy for HOA, so that at least is not an expense to them. We need Irvine Renter (Irvine Bubble Blogsite) here as He/She could find and give us the inside info on McMillin’s ability to withstand the downturn.
Anyhow, there is no good answer here and we shall all see how it plays out.
