Anaheim foreclosures and short sales are causing Brookhurst Village Condominiums in Anaheim to plummet

By
Real Estate Agent with RE/MAX of North Orange County

Anaheim foreclosures and short sales are causing Brookhurst Village Condominiums in Anaheim to plummet (Address 1250 S. Brookhurst St., Anaheim, CA 92804). I remember showing the 2 and 3 bedroom condos for sale in the complex last summer and there were many properties for sale between $275,000 to $360,000.

Now, just 6 months later, there are 31 condos available, most of which are priced around $165,000 to $240,000!!!! That's a 40% drop in 6 months!!!!

Right now is the time to buy! With interest rates very low and sellers' willingness to pay for closing costs, you could break even compared to renting in less than one year. Contact me, Aaron Kelly of REMAX of North Orange County, to see some of these great opportunities throughout North Orange County.  Check out the breakdown below courtesy of the real estate website at www.homerealtymanual.com :

Rent vs. Buy

Your home purchase breaks even after 0.8 years.

This is based on your home's equity minus a 5.00% sales commission paid to brokers or real estate agents when you sell your home. It also assumes your home will appreciate at 5.00% per year and you have an income tax rate of 25.00%. If you cannot remain in your home for at least 0.8 years you should consider continuing to rent.

We calculated your breakeven point by examining how long it would take to create enough equity in your home to exceed the value of investing your cash on hand. We also accounted for differences in your monthly rent and house payments. If your rent payment is less than your net house payment, we add that monthly savings to your investment. If your house payment is less than your rent payment we subtract that amount from your investment. You may notice that on the schedule at the bottom of this report the investment value can be reported as negative. This happens if your house payment is significantly lower than your rent payment. It illustrates that if you continue to rent the extra cost of renting would, in effect, use up your cash on hand.

Loan Information

Your total monthly payment was calculated as $1,420.37. Your down payment was calculated as $10,000 and you had a home price of $165,000. This is for a 30 year mortgage at 5.750% in the amount of $155,000. Total closing costs for this loan are estimated at $0.00.

Your current monthly rent is $1,425. The expected inflation rate of 3.10% annually was used to estimate future rent and property taxes. The rate of return use for investments was 7.00% per year after taxes.

Your $1,420.37 monthly payment consists of:

Principal and interest

$904.54

PMI

$64.58

Taxes

$137.50

Insurance

$68.75

Association dues & maintenance

$245.00

Comments (1)

Zen Ziejewski
Keller Williams Realty - Laguna Niguel, CA
Laguna Niguel Real Estate

That's a huge drop! A good time to think about an investment property. 

Feb 22, 2008 09:27 AM