Home Buying in 92129>Question Details

Emiley, Home Buyer in San Diego, CA

Buying now or waiting?

Asked by Emiley, San Diego, CA Tue Apr 2, 2013

We currently own a condo and interest in buy a home and then rent out the condo.
1. Are there any advantages of buying a home

Help the community by answering this question:


Right now is the right time to buy. The end of the year is always a good time to buy. Right now we are seeing big price reductions, longer sales times and motivated sellers.
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
Janet McCarthy
RE/MAX Solutions
0 votes Thank Flag Link Mon Oct 6, 2014
Just this past week an article appeared on the local newspaper projecting what rents would do in the next 5 years. The average rent of a 2 bed in San Diego was $1241 in 2004. Today its $1530 and its projected to be $1830 in 2019. With a fixed rate mortgage you avoid that concern all together. In an area like San Diego, buy when you can because it could pass you by (see the Bay Area).
0 votes Thank Flag Link Mon Sep 22, 2014
Emiley, you're asking Barbers if you need a haircut here...

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 :)
0 votes Thank Flag Link Sun Sep 21, 2014
See my answer above. I'm not seeing a sellers market. The market is more balanced and titling towards buyers.
Flag Mon Oct 6, 2014
Your question is time sensitive and location driven.....The absolute best time to buy is when doing so is right and perfect for the buyer/customer.

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!

0 votes Thank Flag Link Fri Sep 5, 2014
If you can buy now - BUY!!! Interest rates are at their best since last year. There are more homes on the market than a few months ago so the market is a bit softer than 3 months ago. In fact, we as agents are seeing homes sit for at least 45 days with no decent offers.
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 - nbergman1@live.com
website - http://www.sandiegohomesbynancy.com
0 votes Thank Flag Link Thu Sep 4, 2014
There is very little inventory, but it would still be a great time to buy if you can find a place because you can likely rent out your condo for positive cash flow.
0 votes Thank Flag Link Wed Aug 27, 2014
I think the market is much better for buyers now then last year for example. There is more inventory and less competition, much easier for buyers to get their offers accepted. And rates keep defying the odds and staying extremely low! The advantages of a house over a condo is that you have more privacy and more space around you, and a backyard, front yard, etc... Much more breathing room.
0 votes Thank Flag Link Wed Aug 27, 2014
Now is a great time to buy. For mortgage help, call or email for a free pre-approval in less than 10 minutes. We lend our own money and are licensed in 49 states.

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.

Brad Neumann
Sr. Loan Officer
Crosscountry Mortgage Inc.
Toll Free: (855) 415-5626 ext. 5734
Email: bneumann@myccmortgage.com
NMLS# 948036
0 votes Thank Flag Link Sat Nov 9, 2013
Hi Emiley,

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!

David Rudd
Kindred Real Estate
0 votes Thank Flag Link Tue Sep 10, 2013
Hi, Emiley

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

J. Reeves
CEO and Founder
Reef Point Realty & Construction
0 votes Thank Flag Link Tue Aug 13, 2013
With the lack of land ready to develop and interest rates that have started to rise I would look now. Price - Interest Rates - Taxes - land development all influence the affordability of homes.
0 votes Thank Flag Link Tue Aug 13, 2013
Waiting. Maybe in 2 years the market will change again and the prices will drop down. I think rates with go 6% at most, and that's still a great rate.
0 votes Thank Flag Link Sat Aug 10, 2013
If you're going to do it, do it now if you'll need financing - interest rates are at historic lows, but won't stay that way for more than another 6 months or so. Most parts of the country are also experiencing a very brisk rental market - so no time like the present!

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.
0 votes Thank Flag Link Wed Apr 17, 2013
Hello Emiley,

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, REALTOR®, CPA, CFP®
Web Reference: http://www.chadbasinger.com
0 votes Thank Flag Link Wed Apr 3, 2013
The major advantage is that residential Single Family Homes appreciate at a higher rate than condos. The market is already picking up significantly, and by summer will be hotter unless there is some unforeseen event that brings the market down again, such as a hike in interest rates. It's Spring! Great time to cruise and look around. Open houses area a great place to find a realtor if you don't have one already, or get one here on Trulia to send you regular new listings as they come on the market.
0 votes Thank Flag Link Tue Apr 2, 2013
There are advantages IF you like a yard, neighbors further away, and taking care of things yourself. Houses usually go up in value more than condos.

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:
Deja Correia
Senior Loan Officer
San Diego Funding
Office: 619.260.1660 ext. 228
Cell: 619.251.1432
Fax: 619.374.7477
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

Blog: http://JoanWilsonRealtor.com
0 votes Thank Flag Link Tue Apr 2, 2013
Hello Emiley~

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!

Chris Gorno
DRE# 01499885
Web Reference: http://www.ChrisGorno.com
0 votes Thank Flag Link Tue Apr 2, 2013
Hi Emiley, the question to ask yourselves is "What is our true motivation for wanting to buy a home?" I say this because your particular lifestyle needs and wants are what create the 'Value Proposition' for you.

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!
0 votes Thank Flag Link Tue Apr 2, 2013
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,
Raana Jamshide
0 votes Thank Flag Link Tue Apr 2, 2013
Hi Emiley,

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!

Frederick Remick
Keller Williams RE
0 votes Thank Flag Link Tue Apr 2, 2013
Home Prices have already started to increase in most areas and interest rates are expected to rise by the end of the year so I would say that buying now would be a good idea.
0 votes Thank Flag Link Tue Apr 2, 2013
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.
Steven Campbell
Real Living Lifestyles
0 votes Thank Flag Link Tue Apr 2, 2013
I would talk to someone in your area to verify but I know here in our market that the biggest advantage to a single family home over a condo is that the value of a single family home increases more significantly and quicker than that of condos and townhomes.
0 votes Thank Flag Link Tue Apr 2, 2013
Hi Emiley,

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.

Warm regards,
0 votes Thank Flag Link Tue Apr 2, 2013
Hi Emily,
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!

Sinead McAllister-Clifford
Real Estate Broker/ Realtor®

McAllister Homes Real Estate
Residential Sales & Property Management
License 01366009
858-205-5215 CELL
brokermcallister@gmail.com EMAIL
0 votes Thank Flag Link Tue Apr 2, 2013
IMO the reason to buy now is interest rates. They currently remain near historical lows. With the economy improving there is talk that the Fed will have to begin to raise rates some time in the future. It is best to lock in 30 year money now.
Good luck,
0 votes Thank Flag Link Tue Apr 2, 2013
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