Find a buyer's agent that comes refered to you by a friend who has used them that will talk to you without pressuring you into some type of a commitment.

Real estate is local and I don't know your area and can't give you brokerage advice but ask you take a look at the attached blog I wrote for first time home buyers in my area.

Good luck and do your research and figure out what is the most fiscally responsible decision for you.

Maka,

Talk to your parents and ask them what their interest rate was when they bought their house? Dont be surprised if they say the rate was over 10-18%!

Or the fact, that prices have dropped in SD about 25-30%, this is called a "correction".

Go back to your parents and ask, if they can do it over, would they? I have asked this questions to hundreds of people and the answer is 90%, YES.

People should not buy a house for the sake of buying or for price. Smart people buy houses or property if it is apart of a business plan with objectives, strategy and measureable benchmarks.

So for some, todays market is a gold mine.. for others its not.


Found the Bottom, is correct, there are some agents out there who are looking to sell you a property for any reason... because thats would they do, sell property.

Educated buyers today are doing much due dillegence by creating a business plan to buy. My business plans are appropriately called, "Wealth Creation and Wealth Preservation"

Quality agents never do anything half ass.

Hi Maka. I've never understood why people (i.e., Crestico) randomly bring up a post that died out several months ago, but just in case you're still following this, I would highly recommend looking a Rent vs. Buy calculator (just type it in Google), and they can give you a rough estimate of if it makes sense depending on your criteria.

My initial thought is that as a resident physician, who could easily be moving over the course of the next few years as you wrap up your residency, you probably don't want to take on such a large financial obligation, especially in a down market (for example, since you originally posted this 3.5 months ago, prices have fallen approximately 8%). Sidenote: this is based on one measurement of all of San Diego - so doesn't give you an accurate reading of a specific area or type of property - but is definitely worth noting.

Good luck w/ whatever you decide.

Dear Maka,

Is It A Good Time To Buy A Home? The simple answer is YES! It is still a good time to buy a home. With the help of the right agent, you can make this "good time" into a "great time" for you and your family. The news is full of stories about the housing crisis, homeowners losing their homes, and the overall bad state of the economy. Not all of this news, however, has to translate into dissuading you from buying a home. In fact, right now is a very good time, especially for some, to jump in and achieve the American dream of home ownership. As of late, the housing market is starting to look better. Read on for more information about why it is still a good time to buy a home.

First, the government is looking to help you. If you are a first time buyer (which, to the government, is defined as anyone who has not owned a home in the last three years), you are entitled to a maximum $8,000 tax credit. Additionally, interest rates are at all-time lows and the Federal government is taking steps to insure and make these loans available to more and more people.

Leverage. Leverage is defined basically as borrowing money to supplement existing funds for
investment. Imagine if you invested ten thousand dollars in stocks and those stocks earned ten percent, you would have earned one thousand dollars. But investing ten thousand dollars on a home, and having that home's value increase ten percent; effectively, you would have earned ten thousand dollars. Which sounds like a better investment to you?

Next, you have to live somewhere. And so does everyone else. According to nationwide statistics, approximately 800,000 new households are created each year in the United States alone. Each of these households will need housing, regardless of the state of the economy. This fact alone ENSURES the recovery of the housing market.

Cycles. The economy is a cycle, and like a cycle, what goes down must come back up. Once this happens, it will create INSTANT equity for you. That means you will have earned FREE money just by living in your home, which you are going to do regardless of where you live. Why not buy a home and earn free money in the process?

Mortgages. Many people think a mortgage is just like paying rent, right? WRONG! With the right fixed-rate mortgage, you are basically ensuring the same payment for thirty years. If you try to rent an apartment for thirty years, odds are that every year or so, your rent will be increased. That does not happen with mortgages.

Ownership. Owning a home is a GREAT accomplishment and it allows you to express yourself in the best way possible. You can decorate it any way you want, furnish it, paint it, and improve it and all the while you will be increasing its value and the value of your investment. Ownership also gives you and your family a sense of stability and a place to lay your roots.

These are only a FEW of the reasons why right now is a good time to buy a home. A qualified agent will be able to answer any questions you may have and also give you more reasons to consider investing in your next home!

Thank You!

Hi Maka,

I myself live in Uptown and absolutely love this area. Thankfully there are many options for both renting or buying. The choice to buy really depends on what your ultimate goals are. You are definitely taking a great first step and getting advice. Another very important thing to do would be to talk with a mortgage broker as well. This will help create the good starting point for knowing what you can afford, as well as what to work on (if anything) in order to buy the place you want.

It is best to be prepared in advance, keep an eye on the neighborhoods for a while, and then when the place that you want appears, you will be ready. No need to rush - this will be your home and you'll want to make it a great experience.

I'd be happy to meet with you in person to find out more of what you're looking for as well as introduce you to a mortgage broker to help with your decision to rent or buy.

Best Regards,
John E. Price III
Realtor, Prudential Dunn
Phone: 619.884.8443
E-mail: john@my92103.com
Web Site: http://www.my92103.com

Maka,

I would sit on the sidelines for a little while and see how the market is by summer 2009. I think the condo market is quite saturated and will drop a little further. There's nothing wrong with renting it keeps your options open. Good Luck.

Dawn Lewis
http://www.dawnsellssandiego.com/

Doctor, i would stay out of the condo arena for a lil while longer. If anything, you want to find cash on cash investment where you will have little negative every month.

If you can scrape together some cash from a gift, inheritance or ??? you might be better off to buy an a multi unit property instead.

Commerical Investment Real Estate is the next Tsunami to hit our economy. So hold on to your seat belt cus we still in for a rocky ride the next 24 months.

A follow up to a few items mentioned in comments below...

“Home prices will continue to decline in almost all areas”… I believe this is more than half true. Homes in the $750k to $2m price range have a whole lot of downside to them.

However, in the $200k to $300k price range in which you would be qualified… select homes in select areas are now selling below their intrinsic value, and at historically low interest rates.

These homes are not only selling at prices inline with “(1) family incomes and (2) rental prices”… they are selling for less than the cost of their lots plus their building costs; they represent 5%-10% net return on investment on all-cash purchases; you have to get your bid accepted in the face of stiff smart money competition; and they will benefit from an oncoming wave of higher-end foreclosure displacement.

Also the idea that “you will not lose equity if you sell within a few years” is exactly what is wrong with the state of the economy today. I am a real estate broker. And a registered mortgage advisor. With an economics degree. And a Wall St. background. And I assure you with absolute certainty that if you “buy and sell any home within a few years” you will most assuredly lose equity.

It takes about 7% of the sales price in costs to sell a home. On a $250k purchase, 7% is $17,500. It is not likely that your home will appreciate this much within a few years. So if you buy, then buy for the long haul and make sure you can afford to live there or rent it out. Real estate is for shelter and for long term net worth optimization… not for flipping, unless you are a highly sophisticated investor.

As for the “scholars, across the nation”, they also said the bubble wouldn’t pop, and that Fannie/Freddie was safe, and that 30:1 leverage is profitable. And now scholars across the nation say it’s a smart idea to pay debt with more debt to postpone what is going to happen anyway.

Bottom line: get a lot of information, make your own intelligent decision with the same disciplined approach that has led you to be a success this far in life, and you can’t go wrong.

take the time to work on or establish your credit, it will save you a lot of money in the long run.

Maka, I'm sure on a daily basis you have to watch people make difficult decisions and I'm fairly sure you have advised some to look at all the information, consider it, and choose. They ultimately must make the decision.
Your situation is no different. It's your money and your choice. Become informed, know your market, ask questions (Trulia is good for that) then find a good agent with a plan in hand and move forward making informed decisions.
It's your money, your decision,your responsibility and if you make an uninformed decision, get a bad agent, and end up upside down in your mortgage it's your fault.!!!

Best of luck, Dunes

Hi Maka, that’s what makes our Trulia community so great. You can get informed opinion, often from varying viewpoints that present a clash of ideas… so you can sift through them to find what makes the most sense to you… without having to feel pressured by people looking for a commission. These forums also refine your process so you can identify a realtor you trust when the time is right for you..

Good for you for taking such a mindful approach to your learning curve about this market. It is very tricky right now and buying is not right for everyone, but it does offer some killer opportunities for the right consumer or investor.

In your case, at $47k, if you have 20% to put down (could be less, but…) you will probably, technically get loan approval for something around $250k purchase price, which equates to about $1,750 total monthly payments. But even without the ton of Med student loans you probably have, this is going to be tough to budget. Then again, you will probably be living 20 hours a day at work so you won’t have time to spend money, ha!

Some properties within this market segment present outstanding opportunities, especially as rates are being offered at near historic lows… that said, its not like things are going to turn around very quickly so if it makes sense budget-wise to hold off, then I doubt you’ll miss the boat.

In your case, at first glance, I’d say it boils down to having 20% or more deposit, and little or low interest payments on debt. You’ll be earning a lot more soon, so its not like you won’t be able to get started at some point.

For more info on identifying good buying opportunities, read some of my posts about “Market Bottom Triangulation”. Here are two for easy reference:
http://sethestate.blogspot.com/2008/10/market-bottom-triangu…
http://sethestate.blogspot.com/2008/09/auntie-em-auntie-em-i…

As a buyer’s advocate , I specialize in helping folks just like you find the right property and the financing that meets your goals, so don’t hesitate to drop a line. I cover all of San Diego on the buy side. You can use my website http://www.sethchalnick.com to keep your finger on the pulse of the SD market, searching to your heart’s content for free. Speak soon, sc