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Old 11-13-2017, 10:13 PM
 
77 posts, read 65,598 times
Reputation: 33

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Live here in SD. Single Guy. Im 35 and looking to buy my first place. Here is the dilemma... its damn expensive.

Backstory... 780 FICO Enough saved for down payment and a small amount left after for rainy day Zero Debt (no loans, car paid off, etc) I put 15% of my take home pay into retirement. So im feeling good.

Rent is already at 1800 and im assuming will be jumping in the range of 1900-2000 by time lease is up.
I can buy my own place now. Payments would be at most 2500 a month for the places im looking at. Im pretty frugal and have done the numbers. It would be tight but doable. I would be able to live my life as is but really wouldnt have much to continue to really save at least for the 1-1.5 years. Do i do it?

Bonus Question...
Condo all done up nice not needing any work, or stand alone house but needing minor cosmetic work which would probably take me 2-3 years to save to do. So its be happy with it now or later if can save for the work.
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Old 11-14-2017, 12:03 AM
 
Location: San Diego
3,000 posts, read 4,832,717 times
Reputation: 1614
Saving up for a down payment to buy years from now is tuff. It's a moving target.

Buy a nice good-location condo now and move on with your life. Renting gets old.

If things go well, you can always buy a single-family home later and rent out the condo.

Real estate empires are built slowly.
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Old 11-14-2017, 03:02 AM
 
7,031 posts, read 3,795,780 times
Reputation: 8369
Agree with cruitr. If you can swing it financially, and expect to be in San Diego for more than a year, buy. My only additional advice would be to try to buy in an area with a history of decent resale appreciation, even if it is a little more of a stretch.
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Old 11-14-2017, 06:30 AM
 
Location: San Diego, CA
461 posts, read 341,784 times
Reputation: 1128
Quote:
Originally Posted by RosieSD View Post
...My only additional advice would be to try to buy in an area with a history of decent resale appreciation, even if it is a little more of a stretch.
yup - it is far better to buy a tiny place in a nice area than a larger place in a dumpy area.
You want to be the poorest person in your neighborhood ; )
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Old 11-14-2017, 06:44 AM
 
214 posts, read 87,436 times
Reputation: 375
Quote:
Originally Posted by calicoolguy View Post
Live here in SD. Single Guy. Im 35 and looking to buy my first place. Here is the dilemma... its damn expensive.

Backstory... 780 FICO Enough saved for down payment and a small amount left after for rainy day Zero Debt (no loans, car paid off, etc) I put 15% of my take home pay into retirement. So im feeling good.

Rent is already at 1800 and im assuming will be jumping in the range of 1900-2000 by time lease is up.
I can buy my own place now. Payments would be at most 2500 a month for the places im looking at. Im pretty frugal and have done the numbers. It would be tight but doable. I would be able to live my life as is but really wouldnt have much to continue to really save at least for the 1-1.5 years. Do i do it?

Bonus Question...
Condo all done up nice not needing any work, or stand alone house but needing minor cosmetic work which would probably take me 2-3 years to save to do. So its be happy with it now or later if can save for the work.
Your best bet is to move out of California.
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Old 11-14-2017, 08:02 AM
 
593 posts, read 458,576 times
Reputation: 594
Does the $2500/mo include roughly 1% of the target purchase price for maintenance and repairs? Also be sure to add in any utilities that might be paid by your landlord now but that would fall under your direct purview if you buy. I'm assuming of course you're factoring in HOA type fees and any Mello Roos.

If you can account for the above additional costs from owning, still contribute 15% to retirement and be able to save a little after that to your rainy day fund, then I say go for it. If not but it's not too far off, it's still no crazy to go ahead but you are taking on some risk. I would want to feel pretty secure job wise and have some real chance of advancement and/or increased pay. Being "house poor" isn't that fun once the initial honeymoon phase wears out.

As others have said, it's better to buy smaller and more modest but in a better location.

Quote:
Originally Posted by calicoolguy View Post
Live here in SD. Single Guy. Im 35 and looking to buy my first place. Here is the dilemma... its damn expensive.

Backstory... 780 FICO Enough saved for down payment and a small amount left after for rainy day Zero Debt (no loans, car paid off, etc) I put 15% of my take home pay into retirement. So im feeling good.

Rent is already at 1800 and im assuming will be jumping in the range of 1900-2000 by time lease is up.
I can buy my own place now. Payments would be at most 2500 a month for the places im looking at. Im pretty frugal and have done the numbers. It would be tight but doable. I would be able to live my life as is but really wouldnt have much to continue to really save at least for the 1-1.5 years. Do i do it?

Bonus Question...
Condo all done up nice not needing any work, or stand alone house but needing minor cosmetic work which would probably take me 2-3 years to save to do. So its be happy with it now or later if can save for the work.
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Old 11-14-2017, 09:25 AM
 
Location: La Jolla
220 posts, read 107,383 times
Reputation: 356
I agree with the others that you buy in the best location possible even if the place is smaller.
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Old 11-14-2017, 09:34 AM
 
16,124 posts, read 9,343,357 times
Reputation: 7242
Quote:
Originally Posted by calicoolguy View Post
Live here in SD. Single Guy. Im 35 and looking to buy my first place. Here is the dilemma... its damn expensive.

Backstory... 780 FICO Enough saved for down payment and a small amount left after for rainy day Zero Debt (no loans, car paid off, etc) I put 15% of my take home pay into retirement. So im feeling good.

Rent is already at 1800 and im assuming will be jumping in the range of 1900-2000 by time lease is up.
I can buy my own place now. Payments would be at most 2500 a month for the places im looking at. Im pretty frugal and have done the numbers. It would be tight but doable. I would be able to live my life as is but really wouldnt have much to continue to really save at least for the 1-1.5 years. Do i do it?

Bonus Question...
Condo all done up nice not needing any work, or stand alone house but needing minor cosmetic work which would probably take me 2-3 years to save to do. So its be happy with it now or later if can save for the work.
Consider the cost and property taxes, Mello Roos, HOA for both if the SFH is in a Homeowners association and commute. Personally I would buy the house of it were livable and in a good area, as it will appreciate more in the long run. The work you do on it will bring some increase in price, but mainly time will do that in any event if in a good area. The Condo will mean you do not have to do work on the property, etc, but will still have some expenses similar to a SFH if things break down.
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Old 11-14-2017, 10:17 AM
 
510 posts, read 108,963 times
Reputation: 480
I agree with Mike Town, but again, if you must stay in San Diego, just buy, like others have said. I waited for years and it always feels like a struggle. like some said, it's a moving target.
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Old 11-15-2017, 12:07 AM
 
Location: Poway
1,285 posts, read 2,121,001 times
Reputation: 716
I agree with the others. Go for it. From your description of your situation, you have thought this all through.

Often I tend to think of 'what can go wrong?'.

It seems like you have an out... being that if you lose your income and/or have to move you could rent this property.

There is no obvious downside to your buying under those conditions.
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