In My Neighborhood in 95062>Question Details

Directfitz, Home Buyer in Santa Cruz, CA

I am sending 2 students to UCSC over the next 10 years and am considering buying rather than renting or dorms. Any recommendations?

Asked by Directfitz, Santa Cruz, CA Fri Apr 29, 2011

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11
Hi Peg! Ann Berry-Kline here! Looking at property for your college students is a wise investment! The dorms at UCSC are great and provide that first step away from home that, we as parents, want our kids to have. After that, when they need a bit more space or know the land a bit better, a property that you can rent out in addition to them staying there is wise and can be cost effective.

Give me a call to talk more about what you are thinking about and I can help you with the numbers to see if this is something that makes sense for you and your family!

Ann Berry-Kline
ePRO Realtor with Bailey Properties
UCSC Women's Club BOD member
Coordinator for the Santa Cruz Chocolate Festival
831-332-4042
annkline@baileyproperties.com
0 votes Thank Flag Link Tue Apr 9, 2013
The Condo complexes near UCSC have been a great place for student for decades, Currently downtown Santa Cruz has become a good place to buy. transportation to campus is good.
Santa Cruz is a bike friendly town, but the hill can be daunting for some.
Talk to your accountant about depreciation and tax advantage of owning. This is an individual issue so it is best handled by some one who has all the facts.
Peg Popken Agent Scotts Valley
0 votes Thank Flag Link Tue Apr 9, 2013
I have a GREAT listing you might be interested in - the buyer is waffling a bit and it right up your alley on the West side of Santa Cruz - 4 bedroom, 2.5 bath. More than likely you would be able to charge $1000.00 a room to help cover your mortgage.
Here is the link:http://matrix.mlslistings.com/DE.asp?ID=808848111
0 votes Thank Flag Link Thu Apr 26, 2012
Talk to your accountant! There may be a possibility of you buying the condo, or a large home, renting out some of the space to other students who are looking for an off campus site, having your child or family member manage it, and find yourself in a win win situation.
0 votes Thank Flag Link Sat Apr 30, 2011
Here's a suggestion from a lending perspective - more than likely you'll need 20% down or more to purchase the home as an investment. Rates are a little higher than for owner occupied but overall rates are low so it's not too bad.

If the down payment is too high it's possible one of your kids could qualify to be the occupant borrower and you'd be a co-applicant on an FHA loan. Those only require 3.5% down. We've helped clients in this exact scenario in the past when they didn't have the 20% down.

We miss Santa Cruz. Our favorite RV spot is at Seacliff and we spent a full week their last summer. Beautiful!

If you have any other specific lending questions feel free to post back or contact us via our profile.
0 votes Thank Flag Link Sat Apr 30, 2011
As you can see by most of the answers our market is ripe with good buys. Prices have declined to levels seen in 2002-2003. According to most property managers I know rents have held their own and there are very few vacancies. I will be listing a 3b condo very close to UCSC this summer. Give me a call and let me know when you are looking to buy. I list and sell in the entire county of Santa Cruz and have lived here for over 25 years. I am also a Certified Pre-Foreclosure Specialist and can help you with REO or short Sale properties.
Carol VanAusdal, Realtor, 831-261-6750
carolvan@kw.com
0 votes Thank Flag Link Sat Apr 30, 2011
If it is10 years it could be a sound investment to buy a property rather than rent. Keep in mind, dorms are taken care of, (no roof leaks) and on campus dining can be cost effective. That said I do recommend at least talking with an agent about the different areas, what I specialize in is the westside, and I can help you with good areas that may appreciate or steer you from areas that have always struggled gaining appreciation.
Please feel free to call me with any Santa Cruz questions and/or set up a search on my website and also call your tax accountant. I do recommend looking into it with a qualified agent. Give me a call that is what I do. I don't just sell the westside of Santa Cruz, I live there.
Michele Replogle, Realtor, 831-818-7372
michele@michelesellsforyou.com
0 votes Thank Flag Link Fri Apr 29, 2011
Snata Cruz is not only a college town, but it is a popular seaside destination in the summer for people living over the hill in San Jose and Silicon Valley. A week's rent in the summer can be comparable to a month's rent during the school year. In the event that your kids take on additional roommates to generate some rental income (to help reduce your expenses) or you decide to use the home as a vacation rental for the summer months, you may want to consider retaining a Property Manager. That individual can screen tenants, collect rents and make sure your investment is well maintained. Neither you nor your kids need to be burdened with management concerns.
0 votes Thank Flag Link Fri Apr 29, 2011
Real estate prices have been staying 'affordable' in Santa Cruz and if you need to finance this purchase, interest rates remain good. This would be a great time to invest dollars in the real estate market.

On the westside (of Santa Cruz) on or near a bus line, rooms can rent between $500-800 per month. This can help offset a mortgage payment or generate income. The inventory is growing with the spring/summer market so there is plenty to look at right now.

If you need help "pencii"ing the numbers, I'd be happy to help you figure out what would be a good 10 year investment. Please call or email me!

Ann Berry-Kline, Realtor
Bailey Properties
DRE #01877365
831-688-7434 x366
0 votes Thank Flag Link Fri Apr 29, 2011
Hi,

I have a couple of families I am working with right now that are doing the same thing. With the decline in the home prices in Santa Cruz, it's a great time to do this. Depending on your price range, there are some well priced homes and condos available near UCSC. Also, buying near UCSC, the rents are pretty high so it's a good investment as well. Please feel free to search for properties on my website where you can receive current and new listing automatically. Please feel free to contact me by phone or email if there is anything else I can do for you. Would love to help you find what you are looking for.

Warm Regards,

Lonna
http://www.lonnaberry.com
lonnaberry@me.com
931-234-2911
Web Reference: http://www.lonnaberry.com
0 votes Thank Flag Link Fri Apr 29, 2011
GREAT PLAN, best determine what you can qualify purchase then work from that point

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Fri Apr 29, 2011
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