Condo market in San Diego ? Recommended for new comers? (Chula Vista: sale, real estate)

[kothrush]

How's condo market in San Diego if one is not ready to invest in a house in near future ?

Me and my wife are young couple (late 20s , early 30s) and we might have opportunity to move to San Diego. We don't have any kids and we would like to be more close to urban/lively areas with easy access to bars/pubs/restaurants etc.

We want to know if it makes sense to invest in a condo for first few years while we are there and then buy house once we start thinking of family. Is condo market good in San Diego or we should just rent for first few years and then buy detached house ?

We will mostly be working near Chula Vista and would like to have 3BR/2 bath condo (budget is ~450k-500k).
If buying condo is not a good option, then what would be rent for similar size apartment in urban area? $2500?

[YellowKing]

Originally Posted by kothrush

How's condo market in San Diego if one is not ready to invest in a house in near future ?

Me and my wife are young couple (late 20s , early 30s) and we might have opportunity to move to San Diego. We don't have any kids and we would like to be more close to urban/lively areas with easy access to bars/pubs/restaurants etc.

We want to know if it makes sense to invest in a condo for first few years while we are there and then buy house once we start thinking of family. Is condo market good in San Diego or we should just rent for first few years and then buy detached house ?

We will mostly be working near Chula Vista and would like to have 3BR/2 bath condo (budget is ~450k-500k).
If buying condo is not a good option, then what would be rent for similar size apartment in urban area? $2500?

Just remember to factor in the Condo fees as part of the equation. If my condo fees stay static (they won't), it'll add an additional 150K on a 30 year mortgage.

[elchevere]

plan on buying something that you intend to live in for a number of years--not for just a couple....if your intent is to flip and make a tidy profit, not sure the market will coincide with your timetable...whereas interest rates may stay low for the short term, at some time they will rise again--even if to only 5 or 6%--which will have an impact on prices.....if you are new to an area--not just San Diego--it always makes sense to rent first (even if only for 6-12 months) so you get an idea of various neighborhoods and which ones you might enjoy living in and investing in....who knows, you might decide it's not for you, in which case you will have saved yourself thousands on closing costs, loan fees, etc. etc.

[kothrush]

Originally Posted by elchevere

plan on buying something that you intend to live in for a number of years--not for just a couple....if your intent is to flip and make a tidy profit, not sure the market will coincide with your timetable...whereas interest rates may stay low for the short term, at some time they will rise again--even if to only 5 or 6%--which will have an impact on prices.....if you are new to an area--not just San Diego--it always makes sense to rent first (even if only for 6-12 months) so you get an idea of various neighborhoods and which ones you might enjoy living in and investing in....who knows, you might decide it's not for you, in which case you will have saved yourself thousands on closing costs, loan fees, etc. etc.

Which would be a good rental area in that case based on my situation ?

[Pedro2000]

I don't know about the market for condos in Chula Vista. I would imagine you'd rather buy a house down there compared to a condo. If you are looking at anything in the Downtown areas, $500K isn't going to get you a 3Bd/2Ba condo. Especially in a decent area. Coronado won't have anything cheap either.

I guess you could look at Ocean Beach. There are some 300-400K condos in that area, but I think you will find a lot more 2Bd/2Ba compared to 3BD. It is rare to find 3BD condos in San diego to begin with and it'll be even rarer to find them in decent areas for under $500K. Especially if you need to commute to Chula Vista all the time.

I would say rent something, see what you like, figure it from there. If you still like the area, you are probably better off buying a Home in East Lake (part of Chula Vista) compared to buying a small Condo in an area that you don't exactly like.

[USDefault]

Originally Posted by kothrush

We want to know if it makes sense to invest in a condo for first few years while we are there and then buy house once we start thinking of family.

No.

Condominiums are tricky. Monthly maintenance and special assessments are everything with condos. If maintenance is imprudently deferred, look out for enormous assessments when something goes wrong or major repairs are needed. If the maintenance keeps going up and up, you will never sell the unit for market price because buyers will refuse to pay absurd monthly costs merely to live in the thing. This story is timely. Another problem is condo neighbors really matter, both for getting along and peace and quiet, as well as finances: if people in your condo can't afford the maintenance, guess who has to make up the shortfall: you do, either via increased assessments, or falling property values after the noncompliant owners are foreclosed on to collect the unpaid maintenance, dropping everyone's property values. This is why so many buildings in big cities have gone the "co-op" route, with very stringent application packages and even the ability to block a unit sale if the price is deemed too low by the board. Yes, this happens.

Second, your time frame. If you seek a condo for only a "few" years, rent instead. You will come out way, way ahead, from a financial point of view. When buying and selling real estate, transaction costs and fees are enormous; having to incur these costs twice within four years means your pocket is being picked by very high realtor fees, bank fees, title and lawyer fees, and all manner of miscellaneous document fees, transfer fees, recording fees, escrow, titleing, and on and on and on. This can easily rocket to many tens of thousands of dollars, which is just throwing big money away. Don't do this to yourself. Rent first. Then really research San Diego well. Take your time in choosing a neighborhood, and then a home. After significant due diligence, buy your home a few years from now, and plan on living there for ten years. I assure you this is the way to go, based on the facts you provided.

[kothrush]

Originally Posted by Pedro2000

I don't know about the market for condos in Chula Vista. I would imagine you'd rather buy a house down there compared to a condo. If you are looking at anything in the Downtown areas, $500K isn't going to get you a 3Bd/2Ba condo. Especially in a decent area. Coronado won't have anything cheap either.

I guess you could look at Ocean Beach. There are some 300-400K condos in that area, but I think you will find a lot more 2Bd/2Ba compared to 3BD. It is rare to find 3BD condos in San diego to begin with and it'll be even rarer to find them in decent areas for under $500K. Especially if you need to commute to Chula Vista all the time.

I would say rent something, see what you like, figure it from there. If you still like the area, you are probably better off buying a Home in East Lake (part of Chula Vista) compared to buying a small Condo in an area that you don't exactly like.

I don't have to buy/rent in Chula Vista. I'm good so far as I'm within 30 min commute.
Good to know condo market is not very recommended in San Diego.

[kothrush]

Originally Posted by USDefault

No.

Condominiums are tricky. Monthly maintenance and special assessments are everything with condos. If maintenance is imprudently deferred, look out for enormous assessments when something goes wrong or major repairs are needed. If the maintenance keeps going up and up, you will never sell the unit for market price because buyers will refuse to pay absurd monthly costs merely to live in the thing. This story is timely. Another problem is condo neighbors really matter, both for getting along and peace and quiet, as well as finances: if people in your condo can't afford the maintenance, guess who has to make up the shortfall: you do, either via increased assessments, or falling property values after the noncompliant owners are foreclosed on to collect the unpaid maintenance, dropping everyone's property values. This is why so many buildings in big cities have gone the "co-op" route, with very stringent application packages and even the ability to block a unit sale if the price is deemed too low by the board. Yes, this happens.

Second, your time frame. If you seek a condo for only a "few" years, rent instead. You will come out way, way ahead, from a financial point of view. When buying and selling real estate, transaction costs and fees are enormous; having to incur these costs twice within four years means your pocket is being picked by very high realtor fees, bank fees, title and lawyer fees, and all manner of miscellaneous document fees, transfer fees, recording fees, escrow, titleing, and on and on and on. This can easily rocket to many tens of thousands of dollars, which is just throwing big money away. Don't do this to yourself. Rent first. Then really research San Diego well. Take your time in choosing a neighborhood, and then a home. After significant due diligence, buy your home a few years from now, and plan on living there for ten years. I assure you this is the way to go, based on the facts you provided.

Thanks. In this case I'll consider renting in areas that I want I invest later on to get to know that neighborhood

[Pedro2000]

Originally Posted by kothrush

I don't have to buy/rent in Chula Vista. I'm good so far as I'm within 30 min commute.
Good to know condo market is not very recommended in San Diego.

The problem with Chula Vista is that it limits you to downtown areas and anywhere south of that. I don't think many people in North County San diego work in Chula Vista. People might move to Chula Vista (east lake) because they can buy a nice house, decent enough schools, and it's relatively affordable. But it would be rare for somebody to buy in Carmel Valley and work in Chula Vista.

There are decent parts of Imperial Beach and it's close to Chula Vista. Short commute to work and if you find a decent enough condo on the beach or near it, you might like it. IB gets a bad rap and for a good reason in certain areas. And if you have kids in school, it kind of sucks, but if you just want a condo for yourself and a significant other and you work in Chula Vista, I'd say look at the nicer parts of IB. Cheaper, closer to work, and you'll save money.

[Outdoorfanatic1]

Always check the HOA and make sure it's solvent and free of ongoing litigation. That can cause major issues and many lenders won't lend to a building tied up in litigation