whether or not you can finance it is a different story. loans are hard to come by these days and if you can pay cash the ROI on a lower priced home is WELL in excess of the rates you get on bank deposits and could easily beat your wall street type returns. you have a la jolla location in your posting...when he is done you are close enough to several good investments to make managing it do-able.
i m a long term bull on real estate and your use horizon, 5 years, is long enough to make it advisable.
I have to agree with Santarosaguy. A loss of $15k a year may be far less expensive than the estimated 20% down payment $200-300 HOA fees, taxes, insurance and repairs. Not to mention the uncertainty of resale value. If you can find a unit priced way below value where you walk in with equity I'd say go for it. Or perhaps, a unit a short distance away where your son can commute by shuttle. All the advise posted seemed really good, I would just weigh all the pros and cons and try to decide the most cost effective, hassle free choice for you.
Best wishes to you both!
You may even decide at the end of the 5 years that this is an investment worth holding on to, renting it out even after your son finishes his program. I am going to consider this option for my daughter after her freshman year (I want her to have the dorm experience for a year first). Congratulations to you and your son and welcome to gorgeous La Jolla!
Cheri Sasson, Broker/Owner
Congratulations to you and your son's acceptance to UCSD!
Just curious if you decided to make the investment?
Make it a great day!
Keller Williams Realty
You can also continue to own it after that as a rental.
We are in a down market and the rent of 15,000 will be going up as will housing prices.
There are things to consider like HOA issues, and making sure you can sell the property down the road as in any purchase.
Harold Sharpe - Broker
So Cal Homes Realty
California Department of Real Estate Broker License # 01312992
The least expensive 2 bedroom in the UCSD area is around $300,000. That should help with your calculations. HOA fees are around $200-$300, plus property taxes estimated at 1.25% of the purchase price.
I would suggest that if you purchase a condo that you do so in the UCSD area of La Jolla/UTC. There is a free shuttle for the students which is really a benefit because parking on campus is difficult. Students like the close proximity to school.
Thank you and good luck to you and your son. Regards. Maria Weiss, Coldwell Banker, 858-248-0863, DRE License # 01368844
Congratulations- how exciting! In my opinion, this would be a great option for you. Prices and interest rates are extremely low right now and you're absolutely right- why pay someone else's mortgage? Plus, when you son does graduate, you can either sell it or rent it as you know the rental market in that area will always be hot from the University. There are a bunch of very cute condo complexes I would love to show you. I have worked on a lot of Villa La Jolla units, which are very competitively priced. Let em know if I can assist.
McAllister Homes Real Estate
Congratulations on your son's success. It would be a good idea to look for a 2 Bed/2 Bath . It would give your son the option of taking on a roomate (additional income), or if your son eventually moves on, and you need to hold the property - you have the option of converting it to a rental until the market improves. You may also sell with profit/loss - whatever is more advantageous at the time. Consulting your advisors (Tax, Financial, Real Estate) is important in deciding if it is worth it for your family as there are many factors to consider.
Marcie Sands, REALTOR
Simply The Best Real Estate Co., Inc.
Congratulations to your son on his achievements!
Pacific Sotheby's International Realty/La Jolla
This may be a good option for you. There may be some tax advantages for you as well, talk to your accountant about that. A 2 bedroom would be better, in my opinion, because your son could get at least one roommate and after 5 years if you decide to sell, the market is usually better for a 2 bedroom than a 1 bedroom or studio condo.
More than likely you will have to put 20-25% down on an investment property. You can check with the lenders at this link ( http://www.thesandiegopropertyshop.com/3/W0000019683/P000036 ) to see what the requirements are for this.
No one can predict what the market will be like 5 years from now but you may realize some appreciation if you decide to sell the home after your son graduates. My website has a search engine that can help you find what condos are available in the areas surrounding UCSD.
The San Diego Property Shop
CA DRE #00648687
The first thing to do is to talk to your accountant. It is fairly easy to use the internet get an approximate price on a condo to give to the accountant as a cost basis.
They can best advise you on the financial picture and the tax ramifications of what you are looking to do.
From a real estate perspective, you have to consider what you will do with the property 5 years from now. If the answer is sell, no one can predict where the market will be in 5 years so you have to be prepared to take a loss or break even on the investment in your son.
Best of luck to you,
Mark & Kari Shea
Shea Real Estate
with 5 years to wait, you are almost guaranteed of some appreciation, and at the least you will have the tax deduction and the opportunity to work on your own house, instead of someone else's condo.
Good luck and may God bless
I would be happy to discuss our recent experiences with you at your convenience.
Prudential California Realty
purchase. If you were to buy in the right area I would say that yes you could come out a lot better with a good ROI on your investment, since rates and prices are still low. You can visity my site to start your search and get local markets reports in
the area you are interested in buying in. Thanks and have a great evening!