Mark Thorngren

Camarillo Market Update

There are likely more months ahead of gradually falling home prices & stricter loan requirements. However, for qualified home buyers, the low interest rates, large home selection and considerably reduced home prices are providing some remarkable opportunities.

In Ventura County over the last 12 months, home prices have fallen 38%! Homes are selling at an average of 97% of list price, when they are priced near market average. This is a strong sign of the beginnings of market recovery.

There are some rather compelling indicators from a variety of sources that indicate continued positive pressures on our markets since the start of the year.

Anything being offered for sale for less than $500,000 and especially in the $350,000 and below range is being snapped up by investors and first time home buyers.

It is not unusual for me to call a listing agent for my clients and be told there are 20 to 25 offers!

This is like the market 3 years ago but in reverse. Prices have fallen so far that first time buyers are jumping at the opportunity to realize their home ownership dream. Visit Ventura County Real Estate and Market Insights and click on "Find a Home" to start your own home search on our local Multiple Listing Service.

At the same time, investors are snapping up homes with all cash offers making it very difficult for many first time buyers to compete. Their frustration is that list prices are in their price range, but competition from investors and austere bank terms drive the actual sale prices much higher.

There are still a number of banks that have not figured out that a short sale is an opportunity for them to cut their losses. Some of these banks take 8 to 10 months to approve these short sales and consequently they loose numerous deals from frustrated and impatient buyers.

Often a buyer waits months for bank approval of short sale, only to have the bank foreclose on the property and auction it off for many thousands less than their offer! It makes no sense and can't be predicted.

First time home buyers need to take a hard look at their needs and be realistic about the cost of home ownership. You simply cannot low ball a listing with a reasonable expectation of success now. The market is much more competitive than a year ago. The days of offering $50,000 less than market average for a home are coming to an end.

Your realtor should be doing a Comparative Market Analysis on any home you want to make an offer on. Once you know the market value of the home, make an offer based on the market price. If you have taken the time to be pre-approved with a lender, you'll know already if this home makes financial sense.

Be prepared to negotiate and expect competition! If you cannot be flexible in price and terms, this market will be extremely difficult for you. A take it or leave it attitude will not serve a buyer well either, and many folks have lost wonderful opportunities for home ownership for the sake of a few dollars.

One rule of thumb to keep in mind is: for every $1,000 you borrow for a home, it increases your mortgage cost by about $7 to $8 dollars. Listen to additional market information on my free 24 hour HomeFinder Service at (866) 345-7028.

Develop your buying strategy, negotiate price and terms based on market price, be pre-approved with your lender, and beware of short sales. Be flexible and have a backup plan.

Let your real estate professional guide you through the 30 pages of the offer process and handle all the followup escrow details. Expect them to schedule and track all the inspection, termite, and home repair and home warranty details for you and to provide you with experience based guidance for a successful transaction.

You can buy a home for a lower price than we have seen in many years.

Call or email me and I'll be happy to help you get started.

You are invited to explore the latest in Video Real Estate News and Information at Realty Times Video Newsletter. Produced and updated daily, it provides comprehensive upbeat information on the latest developments in our fast changing market.

Mild Mediterranean Climate year round. Excellent schools and 20 minutes from the beach. No smog, great shopping and friendly small town feel.

Camarillo is a showpiece for Ventura County. A very upscale town of 63,000 people, with summer "Concerts in the Park", Frequent community events and celebrations, this town has an abundance of attractions.

LA is an hour South and separated by a mountain range. Beach and harbor activities are available within a few minutes drive for boaters, swimmers, divers or a romantic dining experience at one of our many premium restaurants.

Camarillo has it's own premium outlet mall for upscale shopping at discount prices. Hiking, horseback riding, off-road biking, ATV exploring and fishing are all within an hours drive at scores of State Parks and National Recreation Areas.

Take a boat trip out to the Channel Islands for a unique camping or hiking experience, or observe the twice a year dolphin and whale migration back and forth to Mexico.

More questions? Email them to me at mark@markthorngren.com or call me office direct at (805) 504-0228.

It is important that you know, that I do have time for you, your family, friends or business associates who could use my help right now.

Mark Thorngren

Sedona at Dos Vientos Ranch

There is a newer section of Thousand Oaks set within an elevated bowl surrounded by the gorgeous and scenic, Santa Monica Mountains. Located just north of the Pacific Coast and perched at the very western edge of the Conejo Valley Shelf, this area is bordered by Malibu to the Southeast, the much lower Oxnard Plain to the West and Newbury Park to the North East.

Drive down Borchard Road away from the older neighborhoods of Newbury park, up and over the Potrero Ridge line, and back down the other side into the valley bowl that is Dos Vientos Ranch. As you coast down the hill through the rustic, rocky, cactus and yucca lined hillsides, you follow a gentle left curving roadway until you begin to glimpse the sprawling, stucco tribute to expensive tract homes that is Dos Vientos Ranch.

In the far Southwest corner in a little L- shaped bowl of rocks, cactus and coyotes is Sedona, the newest tract. These are roughly 4500 sq ft to 6,000 sq ft homes which are offered in what the developer calls Italianate, Spanish and Tuscan Elevations. Sixty nine homes are currently planned which range in price from roughly $1,446,000 to about $1,600,000.

There are 7 phases planned and they are currently selling the 8 homes of Phase 1. These 8 homes were put on the market Saturday the 16th of May. Today, Monday the 18th, four of the homes have already sold! When my wife and I visited the site on Sunday, there were cars lining both sides of the road, for a block on either side of the model homes. Clearly, our newspapers and tv have failed to convince these people how bad our economy is, and how poorly real estate is faring. Imagine that.

The Phase 1 homes are being offered at a “low introductory price.” Each of these 8 homes is being offered with an additional $25,000 worth of interior options. Buyers can pick their lot, or they can pick the model of home they want, but the builder has already determined which models will be built on which lots.

By the way, the developer has the A- team working to serve prospective buyers. I was very impressed by the professionalism of the Sales Counselors I met. They were friendly and composed even when there were 3 and 4 groups of people actively seeking their help at any given time. They answered all my toughest questions with no dodges or excuses and they were extremely knowledgeable.

Build time is about 9 months with the Phase 1 homes projected to be move-in ready next January 2010. I was told that Phase 2 may be built earlier than originally planned if demand continues, with a possible March 2010 move-in.

Buyers are expected to pre-qualify with either Chase or Bank of America, but they can use any bank for their loan. Bank of America is offering a long term rate lock of up to a year to cover build time on these homes.

There is no Mello-Roos on these homes ( see my blog on Mello-Roos ) but there is a $266/month combined HOA. A Master Association covers the cost of keeping the brush clear around the homes for fire protection, and a few other things like building and maintaining the Park Center. The Sedona Association takes care of the maintenance of the security gates, roads and walkways.

These are big homes, lavishly presented. Myself, I think some of the homes “flow” better than others. The models are not always very representative of what you can make the homes into either. There are numerous layouts available for the two story homes but only one example of each model is presented.

The two story models are the Santa Barbara and the La Jolla (which was my personal favorite). These homes have the option of a 3 car tandem garage with an optional bedroom and bathroom “suite” or what most of us would call a great big granny flat. Depending on the model, you can have a 5 car garage or you can substitute another Den, or you can move the dining room or granny flat location if you choose a 3 car garage.

Pick a design with up to 6 bedrooms, or fewer bedrooms and additional recreation/ family rooms. There are a lot of design opportunities for buyers to review before their specific home design is frozen. I like that the developer is offering a bit of flexibility to his buyers.

The thing I really like about the two story homes is the use of outside space. This is featured prominently in the marketing of these homes as well. Simply put, the designs encourage home owners to adapt the many courtyards, covered porticos, balconies, decks and covered loggias as everyday living space. The built-in barbeques, outside fireplaces, relaxing fountains and beautifully tiled courtyards encourage you to pull up a big comfortable chair and kick back with friends or family while everyone enjoys the open air and sunshine.

The covered loggia/balcony off of the master bedroom in the Santa Barbara model is particularly inviting, with gorgeous views and cool breezes and yet, a bit more privacy than most balcony designs. It has outdoor drapes which can be pulled across each side to enclose the room around a gas log fireplace. Very romantic.

The Montecito Plan is essentially a 1-story home with a second story recreation room. It is a 4 bedroom home with a 3 car tandem garage. Featuring a central courtyard, it tends to be a bit smaller than the 2-story homes having just under 5,000 sq ft. of living space. Three different walls of the courtyard have doors leading into the home, and an outside staircase leads up from the courtyard wall to the second story recreation room . This is just a little weird for me. Like the movie “Labyrinth”, you have to wonder what happens if you choose the wrong door.

The rest of the interior is like walking around a squarish mall. A narrow hallway runs in front of each of the bedrooms and widens out in front of the Den and Living Room. Like an echo of the nearby courtyard, an open dining room occupies a smaller framed area within a central atrium. The hallway skirts the dining room on two sides and runs past the Family Room entry on the left and Dining Room to the right. It narrows back down as it passes by the powder room on the right and on to the Master Bedroom entry on the left. I swear I passed some joggers along the way.

The Family Room is the largest room in the house and is open to the huge kitchen. I liked this combination layout. Each of these rooms has a nice outside view and backyard access. The kitchen has a large island with tall low-backed chairs for snacking. It adjoins a breakfast nook which is large enough for a smaller table. Unfortunately, you need to hire a guide to get from the kitchen through the family room and over to the main dining room.

The next largest room appears to be the Master Bedroom. The bedroom opens through double glass doors to the rear, outdoor patio. On the other side of the bedroom, a tall, rather narrow arched doorway leads to the Master Bath. There are two recessed reading lights in the ceiling above the headboard of the bed, but they are so high up in the 12’ coffered ceiling that they are useless for reading. There is a thin screen tv on the distant wall opposite the bed, but you need binoculars to see what’s on.

The Master Bath is quite large with separate tub and shower enclosures. The shower is nicely tiled and big enough for about a dozen of your closest friends. Strangely enough, the jetted jacuzzi tub is a mere 6’, two person bucket by comparison. I also think the tub surround should be made of a material that wouldn’t be slippery when wet. Maybe a small hand rail would be useful as well.

The walk-in “his closet” reminds me of my college dorm room and across the hallway, something about 3 times larger is obviously the “her closet”. Most of the models I saw have rather sparsely furnished walk-ins. Maybe a shelf, but not much in the way of quality wall organizers or center room fixtures. Lighting in these walk-in closets was similar to my garage and is a missed opportunity for the developer to please women with lots of needs.

The Monterey Plan is the other single story floor plan and does not have a model. The floor plan appears to be identical to the Montecito Plan but without the second story recreation room.

I have one major concern with each of these homes. The downstairs view for most of them is not much more than a brick wall or embankment. The best views were usually upstairs views from the front or rear of the homes. Being a tract home, each home has minimal set back from its’ neighbor, with homes in higher elevations enjoying greater privacy. This is a disappointment for homes in this price range.

My wife was a bit put off by the rather imposing kitchens. They are appropriately huge with ovens that look more like stereos - sprouting buttons, gauges and switches. The refrigerator in one model had 2 doors that were each about 3 feet wide and heavy as a safe. Once opened, the refrigerator shelving was only about a foot deep. Forget about walking by an open refrigerator door, it’s like crossing the border. You have to wait for the door to close.

The central island stands about chest high on me and a bit higher for my wife. The cabinets were fabulous but again a bit high. My wife could not see inside the microwave mounted on the overhead cabinets. If you are an NBA basketball player, you’ll love these kitchens.

Some of the family rooms were centered on fireplaces with the entertainment center off to one side. Other family rooms were centered on the entertainment center with the fireplace off to one side. Personally, I am more of a tired tv person in the evening than a romantic fireplace person. I’ve been married a long time.

A word about presentation. I expect to see all the most expensive upgrades on new home models. Designer nick-nacks and leather furniture do well in these homes. However, please don’t try to sell me a 6,000 sq ft home by employing undersized furniture and beds in the bedrooms! It’s a bit tawdry and silly in these huge homes.

If you want me to see the genius of design in your outside living areas, then impress me. Don’t stick a mid-priced home depot barbeque in the middle of a huge stucco wrap around. Show me some barbeque tech and a built-in refrigerator at least. Also, explain to your interior designer that outside design means not putting candle decorations in the sun. They melt all over the furniture!

From a strictly safety point of view, I was glad to see home sprinkler systems standard in these homes. I was a bit concerned that none of the second floor homes had a second way downstairs other than the main staircase. That might be an issue in a home fire.

Speaking of technology, I didn’t see much. Lots of extra bedrooms/dens, but I didn’t see a single home theater. I saw no integrated solar panels powering these huge homes even though we live in an area of the world that just screams for them. Many local residences and businesses have already adapted them as eco-friendly and economic windfalls. There is no voice activated lighting or music. No adjustable polarizing windows on the sun side of the home or even personalized door locks. I guess that is just too much to ask for.

I did see 3 air-conditioning units lined up just outside the window of a ground floor bedroom in a 1.5 million dollar model home. Yuuch!

We all know a large part of our population is rapidly aging, but I saw none of the new elevator designs which are now available to two story residences. These new elevators are concealed behind what looks like closet doors, yet are wide enough for wheelchairs. They open up a whole new market for two story structures and enable long term home owners to maintain the full utilization of their homes, even if their owners develop physical limitations.

The lots themselves speak for the way our culture seems to have changed in the last few decades. The tract is locked away behind some really pretty wrought iron gates.

Presumably this is for enhanced security and privacy. It just doesn’t work. People just follow each other through the opened gates.

If you are serious about security, you can employ an additional entry arm to separate individual vehicles as they pass through the gate or you hire real, live gate security. I’ve seen many less expensive neighborhoods with better security than this – (see Victoria Estates in Oxnard).

The individual lots remind me of pictures of aircraft parking revetments in a war zone. Stone walls atop earthen embankments surround each lot on the sides and back. It looks for all the world like someone hooked a tow bar to the front of each home and shoved it into its own parking spot. Whatever happened to neighborhoods with lot lines made of flowering hedges and property lines of fragrant evergreens? Sorry, I’m showing my age.

Considering what people seem to want in a new home these days, I give these homes a solid B. Although the design of the exterior spaces on some of the two story models is intriguing, I didn’t see much real innovation or serious new technology. These are just nice, big, expensive tract homes like they have been building for the last 10 years.

Just the way I see it.

Mark Thorngren

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mark@markthorngren.com

(805) 504-0228

Camarillo's Montelena 1 Tract

 

There are many wonderful neighborhoods in Camarillo, but one of the nicer mid-priced tracts is Montelena 1. Built 1990 through 1995, these are very comfortable Mission Oaks homes, with a number of view locations. They are 3 and 4 bedroom homes with 2.5 to 3.5 bathrooms which range from about 1800 sq ft to almost 2800 sq ft. Lots range in size from about 6,000 sq ft to over 9,500 sq ft. The homes are all uniform stucco with red tile roofs, built with many luxury amenities, nicely landscaped and with no HOA!

 

The homes in Montelena 1 are located in the Mission Oaks area with a hilltop view overlooking the Calleguas Creek. Flynn and Lewis Roads are part of the expansive view to the North and West with mountain and partial ocean views on the horizon. This is a fairly quiet neighborhood with limited access to the busier streets of Creekside Drive and Mission Oaks Boulevard.

 

The neighborhood itself resembles a flattened loop with 3 streets and a cul-de-sac. Via Pacheco and Paseo Montelena have some amazing view locations, while Via Cupertino runs a block behind the cliffside homes. Chula Vista Court is a small cul-de-sac off of Paseo Montelena with a quiet, friendly feel.

 

Most of the homes I've seen have generous back yards that often sport large patio decks (especially the cliffside homes) or very private, lushly landscaped gardens. More than a few of these homes have gorgeous inground pools, built-in barbeques and decorator deck furniture.

 

Most of the kitchens I have seen are expensively upgraded with granite countertops and stainless appliances. They usually face the backyard and often have part of the valley view. Living rooms and family rooms enjoy vaulted ceilings and at least one fireplace. The master bedrooms are usually downstairs with backyard views or patio access. Huge master baths sport upgrades that may include double marble vanities, separate tub and tile shower enclosures, designer light fixtures and cabinetry.

 

There are usually 2 to 3 upstairs bedrooms which are quite a bit smaller than the downstairs master and a bit tight in my opinion for a home in this price range. That would be my main criticism of these homes. If Mom and Dad are using the downstairs master and the kids are upstairs, it's okay. However, if grandma is living here or one of the kids have moved back in, the upstairs bedrooms are small.

 

Most homes have a downstairs hallway half bath that opens to the living room and the laundry is usually downstairs as well. Inside access to the two car garage is internal also, and a very few homes even have a 3 car garage. If you are retired or the kids are away at college, you essentially have a single story home with upstairs office and guest room. Pretty darn comfortable and often with the perfect backyard view for a couple to enjoy at sunset with an ice cold beverage or maybe a little barbeque with friends.

 

Eleven homes have come to market in the last year.

 

Two properties expired last summer after 6 month listings when they didn't sell at $715,500 and $719,500 respectively.

 

Five homes have sold for an average of $635,000 with the highest sale price at $687,000 for a 2,400 sq ft home and the lowest sold at $600,000 for a 1,800 sq ft home.

 

There are four homes actively being marketed in this tract for an average listing price of just over $623,000. The lowest priced home is listed at $539,000 and 1,800 sq ft (it's a short sale), while the highest priced home is listed at $690,000 for 1,800 sq ft and priced at $690,000 though it does have a nice view.

 

There is one home currently listed for $679,900 with 2,767 sq ft and a large backyard in ground pool that looks very tempting.

 

By my calculations only one of these eleven homes was a distressed sale, meaning only one home was a short sale or foreclosure. That makes this tract a very stable investment for any home buyer. Just the same, values appear to have eroded about $1,000 to $1,500 a month over the last year. This compares to over $4,000 a month in some Oxnard neighborhoods with even larger, newer homes. (see my blog on Victoria Estates).

 

Four or five years ago, these homes were selling for the high $600,000's to low $700,000 range, so they really have not come down as much as I would have expected. These homes are very comfortable, built in a premium location, and are a very solid investment for those with the means to take advantage of our current market. 

 

Warmest Regards,

Mark Thorngren

Ventura County Market Insights Video Report

Ventura County Real Estate 

mark@markthorngren.com

(805) 504-0228   

Pier View Townhomes

Mark Dragonchuck is a genius. He has done what very few other local developers have achieved.

He got it right.

Mr Dragonchuck has managed to place a group of townhomes where they ought to be, at a price that is very competitive and with a quality of workmanship and superb styling that we seldom see. This is very cutting edge stuff. This is Pier View Townhomes.

Nine units only, no pool or recreation center and hardly anything else that a buyer can be charged for in addition to their home. These are just small, really, really nice homes. Very energy efficient and very tech friendly. Wow, what a concept!

There are only four units left, but they represent some very comfortable offerings. The basic home layout is a 2 car garage with built-in laundry on the first floor and a very long straight staircase to the living areas on the second and third floors. These homes are not designed for folks with weak legs. You drop your newspaper at the top of the steps and it’s going to bounce all the way down to the street.

When you enter the living area you are going to be surprised at the level of workmanship and attention to detail you see everywhere around you. Take a look at the limestone flooring. It’s not just well executed, it’s breathtaking in design and colors used as well. All of the gorgeous tilework is framed by 5” dark natural wood floor trim and matching door frames. There are no two units that share designs or colors.

Everything you touch is nice. The doors are solid panel fir. The door knobs and hinges are oil rubbed bronze. Light fixtures are shaker style and sized for the home. The staircase banisters are varnished hard wood and installed on both sides of the steps – a nice touch.

The second floor has the kitchen, dining area, living room and 1 bathroom. There is a two chair deck off the dining area which may or may not have a view and which usually has a gas plug for your barbeque. You may have to give up a chair if you elect to have a barbeque on your deck.

The kitchens are mostly small with no islands, but with very high quality, hand finished natural wooden cabinetry, stainless appliances, and some marvelous granite counter tops that were evidently selected with great care. Under cabinet lighting and recessed room lighting keep everything comfortably lit for food preparation. Most kitchens have a window but the kitchen views may not always impress.

The stairways to the third floor may or may not be carpeted, but all are limestone or flagstone framed with hardwood trim and banisters. The top floor has one or two bedrooms and a bath. The bathrooms are masterpieces of stone work flooring and colorful granite vanity tops.

The smaller bedroom usually is rather compact with few frills, while the master bedroom will have an outside deck and a larger closet. There were a few master bedrooms that had absolutely wonderful views of the ocean and pier. One of the units we visited had a good-sized walk-in closet in addition to the deck and larger bedroom size. Another unit, had both bedrooms sharing the outside patio with their own separate access.

Everything you see runs counter to the normal new home trends. Bigger here is not better. The units are compact and scream efficiency, quality and high tech. No plastic anywhere, no built-in entertainment nooks and no 1000 square foot two story entryways. There really is no wasted space anywhere.

What you will find are dual pane PELLA windows, water saving shower heads, low flow toilets, set back thermostat controls for FAU, exterior house doors weather stripped and the list goes on. Hard wired smoke detectors, garage door safety sensors, fire sprinkler systems, HDTV ready, pre-wired for security system, pre-wired for On-Q network systems. Very impressive, very smart, very green, very nice.

Usually on one of the floors of each unit there is a view or partial view of mountains, ocean or some of the nearby Victorian Style mansions which have been converted to apartment or business use. There are several units which have a parking lot view of the next door restaurant and which absorb a bit of the loud music that it plays. There are also a few very poorly maintained rental homes just over the fence on both sides of the development. It just adds to the inner city ambiance.

People who like downtown Ventura with all it’s shops, restaurants, playhouses and clubs will find this a marvelous, convenient place to live. These homes are 1 block from the pedestrian bridge that crosses the 101 to the ocean front walkways, surfing beaches, restaurants and fairgrounds. You would have a difficult time finding another single location with such extraordinary access to the best attractions Ventura has to offer.

I give this enclave an A for style, A for quality, A for execution, and an A for location.

I like it! I want to see more from Mr Dragonchuck.

Warmest Regards,

Mark Thorngren

Find out more at www.PierViewTownhomes.com

Visit more of my blogs at www.MarkThorngren.com.

Port 121 at Seabridge Marina

Port 121 is part of the master planned community at Seabridge Marina. It is probably one of the last major residential communities to be approved by the California Coastal Commission for the foreseeable future. The Seabridge Marina takes advantage of breath-taking mountain views, easy ocean access and world class shopping, culture, and recreation within a few minutes drive.

The Channel Islands National Park is a 20 mile boat ride off the coast to the West.

As I write this on 8 November, 2008 the Weather Channel is reporting over 12 inches of rain in parts of Washington State, near-record snow fall in South Dakota with drifts high enough to trap home owners inside, and cold winds blowing through Chicago. Here in Ventura County we are enjoying clear, sunny skies, with temps in the high 70's and low 80's. It is not difficult to understand why people move here from all over the world.

Seabridge Marina new home communities are being offered at very competitive prices compared to the older harbor side communities in the LA Basin. If you like yachts, backdoor mooring for your yacht and a fabulous clubhouse / pool complex - Seabridge Marina is a real eye-opener. If you want a luxury loft style living space, Port 121 at Seabridge Marina is really the only game in town.

Port 121 is a Townhome complex made up of two buildings - Phase 1 and Phase 2 - fronting on the Marina Village area of Seabridge Marina. The first building - Phase 1 - is rapidly nearing completion with 35 units. Sales began in July and there are 24 units still available as of early November 2008. That means these homes are selling at a rate of about 3 a month. None of the units will be available for move-in until early 2009. These first 35 units are scheduled for completion sometime between January and March.

Phase 1

Phase 1 is a three story building with keypad security and elevator access. There are 8 floorplans which include first floor live/work units combining business office space with second floor quarters. The office units have already sold out in Phase 1. The majority of the units are residential and include single story and two story loft homes. These homes are being offered with a long list of luxury upgrades included standard. A few of these upgrades include:

- "Metro Maple" European style cabinetry

- Living Room and Master Bedroom pre-wired for plasma tv's

- Video/Audio system including interior inside monitor for visitor communication and access

- Category 5 high speed data transmission wiring at all Bedrooms, Loft, Living Room and

Kitchen (per plan). Fiber optic cable with central hub included in each residence

Gourmet Kitchens include:

- Whirlpool Gold stainless appliance package, including:

- Self-Cleaning slide-in Gas Range

- 1.7 cubic ft. family capacity microwave hood combo

- 4-cycle, 5-level dishwasher with optional settings

- Granite Countertops with 6" backsplash

- Australian stainless steel sink with stylish Delta Chrome faucet

- In-Sink-Aerator disposal

- Spacious Pantries (per plan)

- Convenient Center Island (per plan)

Master Suite Baths include:

- Granite Countertops at both bath vanities.

- "Laguna" square sinks with striking chrome bath hardware and accessories

- Attractive tile shower/tub surrounds including shower enclosure with matching chrome

Accents.

This is just a very small sampling of the many upgrades included as standard with Phase 1. The cost of these upgrades has been heavily subsidized by the builder to get people interested.

Not all of these upgrades will be included as standard in Phase 2 !!!!

Also, it is important to know what is not included in either phase:

- You must buy your own Refrigerator

- Washer and Dryer - The washer and dryer must be a stackable unit.

Phase 2

Phase 2 will be twice as large as Phase 1 with 75 units and 4 stories. Where Phase 1 had only 2 water view units, Phase 2 will have 17 water view units. Phase 2 construction has been halted at the foundation and will not resume until sometime near 2011. These units are premium locations at Seabridge and the hope is to be able to offer them when the market is stronger and the builder can more easily justify higher prices and recoup some of the massive investments made prior to the current market slump. Prices will be anywhere from $100,000 to $200,000 more for the same floorplans currently available in Phase 1!

Phase 2 has been built immediately adjacent to harbor boat slips and features gated underground parking the same as in Phase 1. A fabulous harbor walkway runs immediately behind the property. Owners may have 1 or 2 parking spaces depending on the unit they purchase above them.

What is all this going to cost?

On the face of it, this community is a real bargain. You can actually buy a 1 bedroom, 1 bath for less than $350,000 ($349,990). The 6 plans still available in Phase 1 are priced from the $350,000 range for a Plan A on up to $599,990 for a Plan F single bedroom. You can also get a premium two bedroom Plan J with up to 1,732 sq ft for $550,990. The 3 other plans fall somewhere in between. So what we are talking about is a unit priced somewhere between $350,000 and roughly $600,000. Not bad at all for the seaside location, luxury amenities and brand new everything. But there are a few more considerations...

Mello-Roos

This is a new development. That means we can automatically expect a Mello-Roos (see my Mellos-Roos blog). When Proposition 13 passed in 1978, it severely limited the abilty of state and local governments to use property taxes to construct public facilities and services. Things like road maintenance, traffic lights, street lights, storm sewers, water mains, etc for new home developments. The Mello-Roos Community Facilities Act of 1982 enables "Community Facilities Districts (CFD's) to be established by Counties, Cities and School Districts as a means of obtaining this community funding.

Simply put, a Mello-Roos allows local CFD's to collect a monthly tax from new home buyers instead of through state property taxes. The developer does not have to pay for these services so they don't usually include their cost in the home price. That allows the homebuyer to purchase their home at a lower price from the developer. The CFD Mello-Roos just makes sure that the new home buyer does pay for these services without violating state law or impacting the bottom line for the developer. This is a 30 year Mello-Roos at Port 121.

HOAs

HOAs are Home Owner Association dues for the upkeep and maintenance of the landscaping, security systems, walkways, recreation center, pool - you get the idea. These fees are based on the square footage of the units purchased and can range from $290/month for a plan A to as high as $381/month for a plan J. These are "developer subsidized for the first 4 years of home ownership," after which the community HOA's will revert to an additional $100 dollars a month for each plan.

It is also interesting to note that these HOA costs are actually inclusive of a Seabridge Marina HOA and a Port 121 HOA. The two are separate HOA's paid concurrently by the new home owner.

Besides your principal and interest for your mortgage, there is a 1.25% Annual Ventura County Property Tax based on your Home Sales Price. Amount / 12 for monthly cost.

Mortgage Insurance is .0026 times the Loan Amount / 12 for monthly cost.

Plan Costs

Here is a little break down of the plan costs and parking available for Phase 1 units.

Plan HOA Mello-Roos Total/Month # Parking Spaces

A $290/month $223/month = $513/month 1 space

B $335 $263 = $598 2

E $350 $263 = $613 2

F $335 $263 = $598 1

G $365 $263 = $628 2

J $381 $340 = $721 2

So what does all this add up to?

The least expensive Port 121 unit is the single bedroom Plan A. Your mortgage amount will depend upon the amount you borrow to finance this home. There are a number of conventional and FHA programs to help first time home buyers into a mortgage. Some will pay a portion of the down payment and even most of the closing costs when combined with CAL-HFA programs. They probably won't beat the incentive offered by the developer.

The developer is working with DHI Mortgage www.dhimortgage.com to offer an interested buyer several incentives. They will pay closing costs. These are costs which cannot be financed into the loan itself and can be considerable. Roughly $4,000 to $8,000 or more depending on your purchase price, credit rating, etc. (This is a shoot from the hip value - check with your lender.)

Another developer incentive to buy down the interest rate for purchasers to "around 6%". Interest rates fluctuate daily, so this is a very rough rate.

These numbers will certainly rise over time with a $100 increase in the HOA guaranteed after 4 years. These are Phase 1 numbers only. Phase 2 purchase prices and associated monthly HOA and Mello-Roos will most certainly be much higher.

-All offers must be accompanied by a $7500 deposit.

-No contingent offers will be accepted. If you need to sell a property in order to purchase this

one. It cannot be a contingency of purchase.

-There is a normal (required by law) 3 day right of recission on any offer made.

Summary

This is a luxury community and it really is going to be tough for a first time home buyer to manage. For a larger family, Port 121 is going to be a tight squeeze with only 1 or 2 bedrooms. However, if you don't want to mow your lawn or do any home maintenance at all, this is a very user friendly opportunity. If you are not concerned by the monthly costs, the homes are very comfortable. I'm told many are being purchased as second homes by investors and folks wanting a scenic get-away retreat from LA.

Make no mistake though, these are not economy homes by any definition.

I would hazard a guess that if you believe real estate is a cyclic market that will generally trend upwards in value, that land is not an unlimited quantity in Southern California, and that seaside properties are often in greater demand than similar homes further inland, you will find these homes to be a good value. Maybe a good long term investment as well.

Warmest Regards,

Mark Thorngren

Check out the Video Newsletter on REal Estate and Mortgage News from Realty Times

mark@markthorngren.com

http://www.markthorngren.com

(805) 504-0228

All of the figures used in this report were current as of the day written. I cannot guarantee the accuracy of any of the information presented beyond today. All prices and fees are subject to change without warning.