Newport Coast and Laguna Beach (Irvine, Orange: foreclosure, rentals, mortgages)

[waterlily1010]

Hello, we're moving from the UK to the OC at the end of the month (husband starting a new job in Newport Beach), we still haven't found a house to rent but we loved a few houses we viewed in Newport Coast. We however think it would be a shame not to have great ocean views (Newport Coast seems more expensive if you want some ocean views) and it seems that for our budget Laguna would be a good option albeit further (we want to avoid traffic). Anyone can tell us more about Newport Coast and Laguna Beach in terms of living there, commuting to Newport Beach, meeting people (we've got a baby so it should be easier). Thanks a bunch!

[newportbeachsmostwanted]

I do realize this post is from a while back- however you may be watching or subscribed and I thought I might help any others in similar circumstances. First-Please be wise and educated on your reasons to rent in this area vs own. Yes, OC is experiencing a cooldown, but this does not mean - rent and wait to buy. In my opinion, I would not pay a landlord in this area rent for the next 5 or so next years. Why? Orange County is currently one of the top five hottest markets for rentals. The rent appreciation rate is in the 99% percentile. It's a landlord's market. You could get priced out. This would not be good. Why not instead have your money work for you? This is a hot market and you have the potential to create substantial equity in your personal home.

You work in Newport; Here you also probably obtain a decent salary. A decent salary which allows you to choose to live safe and sane in Orange County. Lake Forest for would be a good example of a safe and sane nearby area. I would consider this area for a cheaper purchase. I will let that go for now and I will still give you my outlook on the cities you wanted..

Newport Coast is a new tract home division built under the Irvine company. This means that you will be a paying a premium for brand new everything. Rents are currently less than what they could market in this area-because housing vacancy/construction is in greater supply. When construction wraps up in the next few years-demand will continue and rents will soar. This will result in a disaster unless you have something signed into your contract.

If you lived in Laguna, the scenario will be more congestion to and from work. I personally would choose Aliso Viejo over Laguna. Aliso Viejo is a better commute and a bit lower rent. Aliso Viejo commute will be on the 73 tollroad with little or no congestion. If you live/rent in Laguna you will experience heavy volume through and around the center of town. The traffic will ease as you leave Laguna and the lanes widen, and pick up again as you hit congestion at Mariner's Mile--when the road narrows again for commercial properties.

I would rethink your renting idea, and first make sure it is best for you to rent a luxury property in a premium area.

[nevercoldcall]

OC right now is a renter's paradise. A couple of weeks ago I was looking at rentals in Newport Coast that had been on the market for months & months and the owners were practically begging me to rent them. This market is full of risky option-arm interest-only mortgages that are going to adjust this year, 2007, meaning the foreclosure rate is going to skyrocket, and home prices (and rents) are going to plummet. It's a good time to move to the OC!