To all moving, or thinking of moving to San Diego...some advice (Los Angeles: renting, how much)

[earlyretirement]

Yeah great advice. We go to La Jolla every year for the summer for vacations but don't know the entire area too well. I rented a house for 4/5 months until we get a chance to check out some of the other areas mentioned on this board. I spend TONS of time looking at houses online so we'll be ready to look at houses once we are there in a few months. Even if it comes down to having paid for the rental house for a few months and we find something right away renting first makes sense.

Fortunately we don't have to move furniture. That would be tough. We just rented a furnished place so it will be painless once we find a house as we are buying everything new.

But it's excellent advice. I think prices can fall a bit more in the next 1.5 years but I think if you are buying a home to live in for the long haul and not an investment now is a decent time to buy. I wouldn't consider homes a "bargain" there but it's nice that many have fallen 30% from peak levels which was insane...

[joerankinn]

Any advice is usually a good advice when it comes to moving out and relocating, best to ask about the replay. It is still a useful comment/advice. It still lies in your own thoughts on how else, otherwise you will just end up not so bad.

[SDrelocate]

Good stuff

The only change from my previous advice is to rent for shorter time, say few months to 6 months. Do an intense house search.

If renting, watch out for distressed landlords going into foreclosure. Luckily you have more rights now.

The rental market is actually pretty tight now in San Diego area. prices are not that cheap. It is tough finding a SFH in good location with good schools with decent price.

I would suggest buying soon when interest rates are now at historic lows. Lock in fixed rate, stay away from any ARM. I think interest rates only going up from here for a variety of reasons. House prices will probably plod along for years, but then again a house is not a get rich quick scheme. If you know you're not likel to stay for a while (7-10 maybe even more), just rent.

[kd did]

I realize that this thread is from 2009, but am curious SDrelocate if "rent before you buy" would still be your advise?
Thanks!
Sorry-newbie poster mistake-didn't read the entire thread! I think you answered my question!

[katnip kid]

KD, it may be an old thread, but it is still a good one on a timely topic! Plus, it is good advice for anyone making a long-distance move anywhere. I was wondering about this topic myself. Why not keep the thread going and updated?

[SDrelocate]

KD Did,
My recent post from Aug 25, 2011 just above your post has an update on my earlier advice. I suggest you Rent for shorter time, don't jump into an unfamiliar housing market cold. Rates are awesome historic lows, housing is not a get rich scheme, buy if you expect to stay for a while.

Good Luck

[earlyretirement]

Originally Posted by SDrelocate

KD Did,
My recent post from Aug 25, 2011 just above your post has an update on my earlier advice. I suggest you Rent for shorter time, don't jump into an unfamiliar housing market cold. Rates are awesome historic lows, housing is not a get rich scheme, buy if you expect to stay for a while.

Good Luck

SDrelocate offers excellent advice. Renting makes sense until you get to know the area. I also think unless you definitely are committed to the area and know for sure you will be here for a longer period then it's better to rent.

But definitely the rental market is fairly tight on great properties in good areas. But it's still possible to find some great properties.

Real estate should never be looked at as a get rich quick type scheme. Many people have figured that out. I do think real estate can be an excellent investment but should never be looked at as get rich quick. I've always believed real estate is a long-term investment.

I did end up buying a house in the area 2 months ago and even if prices dip lower.... I'm definitely happy with my decision to buy now as I know we will be here for the long-term and found the perfect house for our family.

I've started to take a look at the investment property market here and it's no where as good as other areas simply because real estate is much more expensive here compared to other places around the country. I'm still seeing if it makes sense.

[shmoov_groovzsd]

Originally Posted by earlyretirement

SDrelocate offers excellent advice. Renting makes sense until you get to know the area. I also think unless you definitely are committed to the area and know for sure you will be here for a longer period then it's better to rent.

But definitely the rental market is fairly tight on great properties in good areas. But it's still possible to find some great properties.

Real estate should never be looked at as a get rich quick type scheme. Many people have figured that out. I do think real estate can be an excellent investment but should never be looked at as get rich quick. I've always believed real estate is a long-term investment.

I did end up buying a house in the area 2 months ago and even if prices dip lower.... I'm definitely happy with my decision to buy now as I know we will be here for the long-term and found the perfect house for our family.

I've started to take a look at the investment property market here and it's no where as good as other areas simply because real estate is much more expensive here compared to other places around the country. I'm still seeing if it makes sense.

Definitely something I have been looking into and I wont touch it especially below what is selling below 500k.
Not only because I am inexperienced, but when I do math, the margins are SLIM. SD is tough, because once an area catches on, investors will jump on it like wildfire. Santee is a recent prime example of that.
I cant even imagine what its like in north county or higher end properties. Those prices dont budge! I just dont know what is giving with the shadow inventory in some of the desirable areas.

[earlyretirement]

Originally Posted by shmoov_groovzsd

Definitely something I have been looking into and I wont touch it especially below what is selling below 500k.
Not only because I am inexperienced, but when I do math, the margins are SLIM. SD is tough, because once an area catches on, investors will jump on it like wildfire. Santee is a recent prime example of that.
I cant even imagine what its like in north county or higher end properties. Those prices dont budge! I just dont know what is giving with the shadow inventory in some of the desirable areas.

That's what I'm finding as well. I haven't had time to really research it in depth but I have a lot of real estate experience and own many properties around the world. And definitely the ROI is better in other places.

NCC is still expensive. Yeah, in most areas it's down 30% or so from peak but it should have never been at those peak prices to begin with.

I do think you can make returns if you are buying distressed properties but to be honest I have no experience buying distressed properties. A realtor recently sent me an example of some property in distress in Chula Vista that sold for close to $290,000 at the peak and now it's listed in a short-sale for $130,000. They claim the ROI is really great but I haven't had a chance to look at the area but just doing some basic due diligence the area seems rough.

I've been super busy but I'll take the time to research this more. Been super busy furnishing a new house so once that is done I'll look.

I do know in other areas of California people are cleaning up. I have a really good friend and client that is totally making a fortune flipping distressed properties. He is buying them off the court house steps for very discounted prices and doing some basic repairs and flipping them. He has also bought some multi tenant buildings which he decided to keep as he claims the ROI is 17+% a year. He said some properties he bought are netting close to 20% a year ROI. And I know him well and did a ton of investments with him over the years so I know he is a total straight shooter. It's just that buying properties off the courthouse steps is not my thing.

[shmoov_groovzsd]

Originally Posted by earlyretirement

That's what I'm finding as well. I haven't had time to really research it in depth but I have a lot of real estate experience and own many properties around the world. And definitely the ROI is better in other places.

NCC is still expensive. Yeah, in most areas it's down 30% or so from peak but it should have never been at those peak prices to begin with.

I do think you can make returns if you are buying distressed properties but to be honest I have no experience buying distressed properties. A realtor recently sent me an example of some property in distress in Chula Vista that sold for close to $290,000 at the peak and now it's listed in a short-sale for $130,000. They claim the ROI is really great but I haven't had a chance to look at the area but just doing some basic due diligence the area seems rough.

I've been super busy but I'll take the time to research this more. Been super busy furnishing a new house so once that is done I'll look.

I do know in other areas of California people are cleaning up. I have a really good friend and client that is totally making a fortune flipping distressed properties. He is buying them off the court house steps for very discounted prices and doing some basic repairs and flipping them. He has also bought some multi tenant buildings which he decided to keep as he claims the ROI is 17+% a year. He said some properties he bought are netting close to 20% a year ROI. And I know him well and did a ton of investments with him over the years so I know he is a total straight shooter. It's just that buying properties off the courthouse steps is not my thing.

Yeah exactly. I have company in town right now and its their first time seeing our pad. While they love the house, Lemon Grove is "meh" to them and has probably seen better days. I agree with that sentiment as well. I would NEVER refer someone that I know to buy here based on speculation alone, but I am pretty confident there are better times ahead. Its far from plug n play here. While the wheels are in motion here at the grassroots level that I am involved in, its going to take some time for it to really start taking shape where it starts raising eyebrows.

But between the various cities in the county, LG is one of the smallest by a mile. So getting things done has been incredibly easy with very little red tape and resistance thus far. There are some decent investments here, but I am talking 10-15 years out min before some higher percentage returns start happening.

I am not sure that's something Chula Vista is going to see where you saw. IMHO, there were so many moving parts there from a political standpoint, it seemed like too big of a project for me personally.