Finding a motivated seller is the key factor in getting the best deal. Rents will continue to rise, because we are not meeting the demand and there is no new construction. The rental market has changed significantly with the rise in short sales and foreclosures. Those owners became renters and many will never return to owning a homing. Consequently, we see a very tight rental market - with low inventory and lots of demand. The rental market is where many investors are turning, with the plan of buying and holding for a few years.
On average Zillow predicts between 6% and 8% growth in San Diego - the higher amount if you live in a great school district or on the coast.
I have buyers who bought in Mira Mesa at the beginning of the year and have already seen a $20,000 increase in value.
I would much rather see people buy now, get a good deal, benefit from the tax right off and enjoy owning a home. In real estate you don't wait to buy, you buy and wait.
Best to you
Now is not an ideal time to buy if you can wait. We are still below 3 months of inventory, which signals it's a seller's market and prices are up nearly 30% in the past 2 years and even more in some areas. If you can wait a year or two, that would be wise. Wait until inventory levels are at 6 months. Then, you'll have more to choose from and most likely lower prices as well. If anyone tries to fear-monger you with "interest rates will go up if you wait", don't make that a concern. You don't make a decision like buying a home based on interest rates. Even if rates go up 1%, on a 500k purchase, that's only $200/mo difference if the price stays the same. If the price goes lower, then that could easily even out. The point is, no one knows what interest rates are going to do, so you can't factor that in to the equation.
Be patient. Look at a lot of homes in person. The right house will talk to you when you see it :)
In most areas, the best time to buy was 2-3 years ago! With this said, waiting will bring you the following: higher interest rates, higher priced homes, and less inventory to choose from.
Just keeping it real!
If you can get the mortgage paid for each month plus a few hundred dollars - need a decent 6% ROI to make it work as a rental property. Its a great tax write off.
The rental market here in San Diego, especially in 92129 is strong. So,many people want to live here because of the schools. We are close to the beach, freeways, downtown, and lots of other activities.
If you are looking for a home, I know a few in the Rancho Penasquitos. They are priced to sell.
I'm a local agent - someone who know the neighborhood is important in an agent when you are looking.
If you have any questions, please let me know. I would be happy to help.
Nancy (local 92129 agent)
Nancy S Bergman
Realtor - Cal BRE #01893550
Keller Williams- Carmel Valley/ Del Mar
12780 High Bluff Dr #130
San Diego, CA 92130
Cell (858) 617-9449
Email - email@example.com
website - http://www.sandiegohomesbynancy.com
We can do: FHA, Conventional, USDA, VA, HARP, Interest Only, Home Equity, Fixed, and Variable. Find out which product is right for you by calling Brad at (855) 415-5626.
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Crosscountry Mortgage Inc.
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If you already own a home, I think your are best suited in your own question.
Buying a home is a very personal experience. You are at an advantage as you are already a home owner.
Obviously there are emotional advantage in owner a detached (or attached) home. For the financial benefits, you should really speak to your accountant. As the benefits vary for each person dependent on their financial situation.
Sorry - but there is not an absolute answer.
Best of luck!
Kindred Real Estate
A house is a HUGE investment! Just be smart and go with your instincts. If you don't like it when you pull up for the first time, what makes you think you will like it for 5 years? Most houses don't grow on people, they just make them more frustrated, so choose the right one carefully.
If you need help in buying or renting out property, or have any other questions, please don't hesitate to get in touch with me anytime
CEO and Founder
Reef Point Realty & Construction
Keep in mind the potential tax consequences. Most states only allow a homesead exemption on your primary residence, so the condo taxes will be higher. Depending on local tax law, you may have to pay sales tax (and certainly income tax) on the rental income. If you're of Social Security age, do the math on what additional income is allowed under your specific circumstances.
That is great that you are in a situation that you can buy a home and possibly keep your condo as a rental. What you need to ask yourself if what your goals are and whether or not your plans will enable that to happen. In theory, it sounds good, but you must make sure that the actual numbers work out. For example, is that condo going to be generating a positive cash flow, break even, or lead to a cash shortage/drainage each month (having said this, it is also important to factor in the tax benefits.) Of course, cash flow is merely one aspect and the other big thing to consider is potential for capital appreciation. One caveat when renting out, be sure that you get solid, respectful tenants who will not destroy your place to the point that no security deposit will cover the damages and lost value in your place. This is not to scare you, but to merely make you aware of this possibility as I have seen it happen to others.
As to the advantages of owning a home, there are plenty. In general, you will enjoy the following in a home over a condo: an actual lot (as opposed to zero lot lines with condos), a yard, more privacy, more square footage, more uniqueness, a warmer feel, greater flexibility (not having to follow the HOA guidelines). Of course, there are some downsides as well, with the main one being greater maintenance.
Quite frankly, this is a question that I could write a book on, but will not get into all of that on here. I am a huge numbers person and as the saying goes, the numbers don't lie. I am a big believer in looking at the numbers in addition to seeing if something merely feels right.
All the best in your situation.
Chad Basinger, REALTORÂ®, CPA, CFPÂ®
Get pre-qualified. If you have never owned a rental before, there are some time constraints for counting the income from the rental as part of your income.
Let me know if you need help. Need a good lender to talk to:
Senior Loan Officer
San Diego Funding
Office: 619.260.1660 ext. 228
2468 Historic Decatur Road Suite 160 San Diego, CA 92106
NMLS: 413050 CA DRE: 01904562
Joan Wilson (Realtor, SRES, Ecobroker, Certified REO, HAFA, and Short Sale Specialist)
Pacific Sotheby's International Realty
Call or Text: 760-757-3468 An exceptional home is simply a frame for an exceptional life
CA DRE License # 01341483
There are definitely advantages to buying a Single Family Detached Home over a condo for most situations. When the market crashed, the condo market got hit the hardest and is the slowest to recover. Single Family Homes appreciate much quicker, for the most part, depending on the area.
I reccommend getting pre-qualified for your next purchase to determine what is needed in order to make that happen. A Lender will look at your debt to income ratio (including the rent you will capture on your condo) and then determine what you qualify for on top of that for your next home. Sometimes the only way to move up to a new home is to sell the condo, too. The only way to know is to get started. I can refer some excellent Lenders for you, to put you in good hands.
It is always good to find an experienced REALTOR to work with. Someone who you trust, are comfortable with, who listens to your needs and is going to be agressive about getting your offer accepted once you find your dream home! You can interview a few to find the right fit, as well. I would love to talk to you to see if we are a good fit, and offer you a consultation to go over your situation and discuss your wants and needs. Many great agents on this feed as well!
Best of Luck!
If you are just over condo living, have a growing family and need more space, want to take advantage of the current market conditions, including some of the best affordability ever with low interest rates and low prices, don't want to get priced-out for another decade, need a better investment and write off, need to relocate closer to better schools, need a shorter commute, want your own outdoor private space, etc.
Once you have determined your true motivation, then you will have the answer to your question and know if buying a home represents advantages to you and your particular circumstances. You see, every home purchase is somewhat unique.
Then ask yourself the simple question, "Is this a strong enough motivation and advantage to make the move?"
Finally, once you are ready, contact a real estate agent, have them get you in touch with their lender as a first step, then begin your home search once your budget and feasibility have been determined.
You see, it really is all about you and your families particular circumstances. I hope this helps.
Thank you for your question and your consideration!
As you read the responses from different agents all agree that now is the best time to buy. Rates will be going up soon so will the prices due to seller's market. It is a great idea if you can afford to hold on to your condo and rent it out.
Please contact a REALTOR to help you with your decision.
Best of luck,
First of all the market has risen about 5-12% in the last 18 months in SD County. If you are looking to upgrade to a Single Family Home I would DEFINITELY get on it now! There are still deals out there but the inventory is pretty low, interest rates are low, and there are a lot of Buyers out there. The nice thing is that the values are still VERY affordable.
You also are smart to hold onto your condo and rent it out. Rents are up about 10% in the last 18 months and it's great to hold onto an appreciating asset!
I will tell you that the navigation of today's market is very tricky and you need a Realtor that knows how to find properties...look under rocks...work hard for you :) Feel free to contact me and I can give you a great idea of what is out there!
Keller Williams RE
We are currently advising our clients to not sell their current property if possible but get out there and buy. Now is the time to be investing in San Diego real estate. Interest rates are very low, values are still low but are movng up, and investors are buying. Call me today at 619-972-1552 to set a time to evaluate your situation and form a game plan. We have been helping people buy and sell property in San Diego County since 1987. If not me...pick out a great Realtor or Broker and explore the current real estate adventure that awaits you.
Real Living Lifestyles
Well, the main advantage of buying, and not waiting to buy, is the market here in San Diego is a seller's market. There's very low inventory, which is pushing prices up, and a lot of buyers who are having a hard time getting into a home feel they might be priced out soon. If you really want to get into an attached home, I'd get pre-approved for a loan as soon as possible, and go for it. If it's not imperative that you buy a detached home, but you just really want one, you can try to get an offer accepted, and if it doesn't pan out, just remain in your condo.
Advantages: no HOA, although some developments have them (some have CC&R's and no HOA) you can choose your own exterior paint colors, having an actual yard (although I know of one development that has great sized yards and really low HOA fees), better parking for you and guests, a garage (although some condos have them), etc.
I know it's a big decision, so don't hesitate to contact me with question or for information.
Of course- there are lots of advantages of buying a home! Are you asking as opposed to a condo? If that's your question, then the privacy and usually lower HOA dues are why detached homes are more attractive to some. I would love to talk to you about your options. Feel free to contact me directly and we can work together to find something for your family!
Real Estate Broker/ RealtorÂ®
McAllister Homes Real Estate
Residential Sales & Property Management