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Old 01-08-2008, 10:17 PM
 
112 posts, read 476,152 times
Reputation: 54
Default Invest in a condo for retirement in San Diego

I moved to Austin, TX from San Diego last year for family reasons. But I still love San Diego, nice weather, lots to do. Even though it is not a suitable place to raise a family, it is still a good place for retirement. I will have plenty of free time to enjoy the sunshine and beach but can avoid the traffic conjestion.

Many people who move out of CA can no longer afford to move back because historically the house appreciation in CA is much better than other places in the country. So I am thinking to buy a condo and rent it out for additooal income if there is any but mainly for appreciation. When I retire, which is 20 -30 year away, I can sell the condo and afford to buy a house in San Diego. I like to hear the opinions from the pundits on this board:

1. Is this a viable options?
2. How is current rental market in San Diego? Can it make even?
3. How hard is it to manage your rental property remotely? Anyone in this board does so before?
3. I can afford a condo/Townhome upto $400K and I also like to rent the condo to a professional. What are the good places for my investment?
4. When should I buy it in the current RE market?

Thanks a bunch!
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Old 01-22-2008, 07:42 PM
 
112 posts, read 476,152 times
Reputation: 54
I am surprised no one responded my posting. I guess many people who moved out of San Diego for job reason would love to invest in properties in San Diego with hope that he/she will come back to San Diego again.
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Old 01-22-2008, 07:48 PM
 
2 posts, read 5,756 times
Reputation: 10
I have lived in San Diego for 7 years now. My realtor set me up on a custom search so I can get emails with what I'm looking for in my price range. I think he mentioned that he is also a property manager for a few clients. He is really good and will be very honest. Feel free to contact him: Alexander Pfleger 858-483-4687
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Old 01-23-2008, 05:49 PM
 
961 posts, read 1,850,860 times
Reputation: 605
Quote:
Originally Posted by austin_or_sd View Post
When I retire, which is 20 -30 year away, I can sell the condo and afford to buy a house in San Diego.
Hey austin_or_sd. I'm an Austinite who is also torn between the two cities, and I'd like to make it to San Diego sooner or later.

If you are really planning on retiring in SD, why not buy your retirement home now and rent that one out. In 30 years you can have the mortgage paid off and the property taxes fixed at todays rate right? That would set you nicely for retirement.
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Old 01-23-2008, 07:05 PM
Status: "Beautiful Fall" (set 6 days ago)
 
Location: New York City/San Diego, CA/Gloucester, MA
346 posts, read 364,115 times
Reputation: 388
I would do it. I just picked up a condo downtown for under 250k in a great building. It's small but nice and it looks like it would rent for $1500 pretty easily which is close to my costs.

There are some incredible deals out there now and the interest rates are low. The change in downtown San Diego in the last ten years has been nothing short of remarkable and its only going to get better...

San Diego is a much nicer place when you don't have to deal with driving everywhere.
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Old 01-23-2008, 07:38 PM
 
Location: Rolando, San Diego CA 92115
7,110 posts, read 18,002,624 times
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I am looking for my parents, mostly in the Lake Murray and La Mesa area. You can definitely cash-flow many of the condos, with 20% down.
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Old 01-26-2008, 09:20 PM
 
112 posts, read 476,152 times
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Quote:
Originally Posted by AustinGuy View Post
Hey austin_or_sd. I'm an Austinite who is also torn between the two cities, and I'd like to make it to San Diego sooner or later.

If you are really planning on retiring in SD, why not buy your retirement home now and rent that one out. In 30 years you can have the mortgage paid off and the property taxes fixed at todays rate right? That would set you nicely for retirement.
I remember you, AustinGuy. You gave me some balanced views about Austin when I was torn for a decision on whether or not to accept a job offer from a Round Rock company amd move to Austin. It's almost a year now. Everything has been very nice so far. I have no regrets. I bought a pretty nice home here in Austin. I don't have money to buy a decent detached house. Besides, detached house is harder to manage for out-of-town invester. That's why I decide to go with condo now. When the condo accumulates enough equity (keep my finger crossed), I will think detached house. Is this what every Californian does?

If you want to make it to San Diego, it might be a good time now. You seem to be in IT field like me. I still get calls from head hunters in San Diego. So the job market should be fine. I checked a house in 4S Ranch. The last sold price is $775K on May, 2006. Now the same house is listed for $539.9K, a 30% price drop.
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Old 02-07-2008, 06:41 AM
 
10 posts, read 31,412 times
Reputation: 22
It Doesn’t Look Good

As a Californian now living in Austin I agree that San Diego is a nice place for retirement. However, I would not buy any real estate in San Diego or anywhere near California big cities at this time. According to articles and data that I have read the prevailing view by economists is that the national housing meltdown has not yet hit bottom. Optimistic views are that the market will begin to stabilize in late 2008. Pessimistic views are that it won’t until 2010. For example The Private Mortgage Insurance Co.’s Economic and Real Estate Trend report has a risk index of housing price declines over the next two years based on economic factors such as unemployment, incomes, price to income affordability, appreciation acceleration or deceleration, mortgage market conditions, etc. The latest quartely report gave the San Diego-Carlsbad-San Marcos metropolitan statistical area a 69% probability that prices will continue to decline over the next two years. Los Angeles-Long Beach-Glendale 79%, San Francisco-San Mateo-Redwood City a 25% probability of price decline, compared to less than 1% chance of a price decline for the Austin-Round Rock Area. The country is on the brink of recession, foreclosure rates continue to rise in California, nationally about $500 billion of adjustable-rate mortgages will reset in 2008, which will most likely increase the defaults in California, adding more inventory to the oversupply and putting more downward price pressure on housing. Additionally condos are the first to suffer in a downturn. I would wait, keep a close eye on the market and see if prices drop even further

Last edited by Suburbanite08; 02-07-2008 at 06:49 AM.. Reason: deleted computer generated code/text
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Old 02-07-2008, 10:34 AM
 
5 posts, read 13,025 times
Reputation: 10
Quote:
Originally Posted by Suburbanite08 View Post
It Doesnít Look Good

As a Californian now living in Austin I agree that San Diego is a nice place for retirement. However, I would not buy any real estate in San Diego or anywhere near California big cities at this time. According to articles and data that I have read the prevailing view by economists is that the national housing meltdown has not yet hit bottom. Optimistic views are that the market will begin to stabilize in late 2008. Pessimistic views are that it wonít until 2010. For example The Private Mortgage Insurance Co.ís Economic and Real Estate Trend report has a risk index of housing price declines over the next two years based on economic factors such as unemployment, incomes, price to income affordability, appreciation acceleration or deceleration, mortgage market conditions, etc. The latest quartely report gave the San Diego-Carlsbad-San Marcos metropolitan statistical area a 69% probability that prices will continue to decline over the next two years. Los Angeles-Long Beach-Glendale 79%, San Francisco-San Mateo-Redwood City a 25% probability of price decline, compared to less than 1% chance of a price decline for the Austin-Round Rock Area. The country is on the brink of recession, foreclosure rates continue to rise in California, nationally about $500 billion of adjustable-rate mortgages will reset in 2008, which will most likely increase the defaults in California, adding more inventory to the oversupply and putting more downward price pressure on housing. Additionally condos are the first to suffer in a downturn. I would wait, keep a close eye on the market and see if prices drop even further

This sounds like good advice. I've been thinking of doing the same thing. I'm a former San Diegian now living in Connecticut, one of the only other places in the country thats probablly as expensive as socal to live. Wife and I are looking to eventually move back to SD but are not sure when or how. The thought crossed my mind that purchasing a condo in SD now, or within the next year or two and renting it out might be a way to secure some equity when the day does come for us to move.

Still have questions about how difficult/expensive it is to have the property managed for us. Anyone out there know?
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Old 02-07-2008, 02:35 PM
 
Location: San Diego > Denver
264 posts, read 946,610 times
Reputation: 86
I have 3 or 4 relatives who have rental properties, and the few who bought within the last 4 years or so have not made a profit off their properties, most years they've broken even (to within a few hundred dollars). The few who've owned property for years are seeing some income, but say they have to pay a 10% fee for property management.

We are about to put our detached condo (small house) on the market, but were thinking of leasing it out if it doesn't sell within 6 months or so. From what different people have told us (who do their own property management), definitely shop around for a property management firm you trust, and that has reasonable prices.

We've been hearing all kinds of predictions about housing prices. Most "experts" believe the housing market here still is going to see more decreases, but none agree on how much of a drop. I don't think it's going to be a huge drop, but something to think about.
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