I know its annoying but... (San Diego, Kensington: apartment, lease, how much)

[shmoov_groovzsd]

Originally Posted by Jhox99

Hey all, I wanted to resurrect this thread to check in on the current state of things in SD. Almost exactly one year later and our plans still haven't changed, except we have a bit more saved, our house is under contract, and I finish my degree in December. We plan to come out in the fall to explore some areas before our big move next spring.

How is the job market in San Diego doing these days? From checking out Indeed.com and Careerbuilder, it doesn't look like it has recovered. I work in website marketing, search engine optimization, and web development. Anyone with any insider knowledge on the market for jobs in this industry?

Has the housing recovery taken hold there as it has here in Kansas City? Houses in my neighborhood, are being scooped up quickly (including my own which took 6 days to go under contract).

Also, GMUAlum, if you are still on these boards, did you make the move? Any advice?

Congratulations Jhox

I am with earlyretirement on all accounts.

The housing market is hot right now over here. The job market doesnt might not be popping in SEO or Web Dev, but then again, I dont think that has seen a pop in decade at least. I am sure there are openings that do come up, so keep staying on those website and try somehow to reach out via linked in for some tips etc.

Def check back when you are in the area. I wouldnt be surprised if things might have changed then

[Naomi Manischewitz]

Originally Posted by shmoov_groovzsd

Congratulations Jhox

I am with earlyretirement on all accounts.

The housing market is hot right now over here. The job market doesnt might not be popping in SEO or Web Dev, but then again, I dont think that has seen a pop in decade at least. I am sure there are openings that do come up, so keep staying on those website and try somehow to reach out via linked in for some tips etc.

Def check back when you are in the area. I wouldnt be surprised if things might have changed then

Would you say now is a good time to buy a condo for a first time home owner? I am not sure how long I will stay in San Diego for (until the economy gets better I move to wherever I can get a full time job in my field), but I keep thinking I should be owning and not paying $1000 rent per month. I know interest fees are great at the moment. Like between 3-4% for people with excellent credit. I just look around at small houses and condos and the prices just just higher than I thought still.

[earlyretirement]

Originally Posted by Naomi Manischewitz

Would you say now is a good time to buy a condo for a first time home owner? I am not sure how long I will stay in San Diego for (until the economy gets better I move to wherever I can get a full time job in my field), but I keep thinking I should be owning and not paying $1000 rent per month. I know interest fees are great at the moment. Like between 3-4% for people with excellent credit. I just look around at small houses and condos and the prices just just higher than I thought still.

I think the answer all depends on your personal situation. It's typically not a one size fits all type of answer. But typically buying does NOT make sense for anyone that isn't fairly sure they will be around in the area at least for the next several years. If you aren't sure you will stay in San Diego for at least the next several years you should hold off. As well, if your job situation isn't steady/stable then it's also not a good idea.

Renting is NOT a waste of money if you aren't sure you will be around for the next several years and your job situation isn't stable. My advice would change if you tell me you have a TON of savings set aside or huge reserve funds. In that case it might still make sense.

But if you aren't sure you will stay in San Diego for the next few years, I'd just rent. Renting can and does make sense for many people. JMHO.

[Naomi Manischewitz]

Originally Posted by earlyretirement

I think the answer all depends on your personal situation. It's typically not a one size fits all type of answer. But typically buying does NOT make sense for anyone that isn't fairly sure they will be around in the area at least for the next several years. If you aren't sure you will stay in San Diego for at least the next several years you should hold off. As well, if your job situation isn't steady/stable then it's also not a good idea.

Renting is NOT a waste of money if you aren't sure you will be around for the next several years and your job situation isn't stable. My advice would change if you tell me you have a TON of savings set aside or huge reserve funds. In that case it might still make sense.

But if you aren't sure you will stay in San Diego for the next few years, I'd just rent. Renting can and does make sense for many people. JMHO.

That's the thing. I do have enough for a down payment I just keep thinking if I won't be here more than 2 years, do I want to go through the trouble of having to sell you know?

[earlyretirement]

Originally Posted by Naomi Manischewitz

That's the thing. I do have enough for a down payment I just keep thinking if I won't be here more than 2 years, do I want to go through the trouble of having to sell you know?

Yep. It's not just a matter of having the down payment. It's GREAT that you do have a down payment to use once you hit a city you know you will be for the long haul.

Absolutely if you aren't sure you will be here past 2 years I'd definitely NOT buy. You will eat up a lot of time, and money on real estate commissions selling plus buying a property is a HUGE responsibility full of obligations.

I do know people in your situation that have bought but they had a LOT of savings and they planned to just turn it into a rental property if they left. And they had enough savings to buy another house in another city that they moved to.

But there are a LOT of people that are FORCED into being a landlord from a move vs. choosing to be a landlord. So absolutely don't rush into a buy and in this case renting isn't a waste at all.

Also, remember something important...... people that rented during the housing bubble years turned out to be "geniuses". LOL. Many of us sold our real estate portfolios before the bubble burst and rented for many years. While people thought we were "wasting our money renting" we just watched as housing values plummeted. So keep things like that in mind as well.

Renting is NOT a waste of money in a lot of situations. I sold all my USA real estate back in 2003/2004. I watched it go even higher and rented for 7 years. I always got a kick out of people telling me I was "making a mistake renting" or "throwing money down the drain renting". I ended up buying again in mid-2011. Many of the people that told me I was "wasting my money" ended up losing their homes or severely under water on their homes even today.

[shmoov_groovzsd]

Originally Posted by Naomi Manischewitz

Would you say now is a good time to buy a condo for a first time home owner? I am not sure how long I will stay in San Diego for (until the economy gets better I move to wherever I can get a full time job in my field), but I keep thinking I should be owning and not paying $1000 rent per month. I know interest fees are great at the moment. Like between 3-4% for people with excellent credit. I just look around at small houses and condos and the prices just just higher than I thought still.

Naomi,

Just tagging along with what earlyretirement said.

Especially the part about renting during the bubble years lol. That was most definitely us and yeah hindsight is definitely 20/20 at this point in time.

I fall into that camp that is not a black or white issue. There are tons of pros or cons for both each with respect to buying/renting.

For example, we bought in an area that isnt so great but improving. It fit what we wanted and thought would not only be a decent roof over our head, but be close to the things we liked living downtown for 6 years. I honestly dont many people that would put Lemon Grove in a top 5 list of place to live in San Diego lol

We had a game plan though. For us it was a great time to buy for the very reasons you mentioned (low interest rates and prices at the time). But we went into our first home purchase treading lightly and have no kids so the options were wide open. We are VERY fortunate to have the financial leverage to afford a lot more, but like yourself, being in a first home buyer category, we were not looking to hit a home run. I never even lived in a house before as I grew up in an apartment and lived in apartments thereafter. I am actually having a hard time now living in a house for as crazy as that sounds. But that is another story lol

Based on the iffy/short term nature of your staying in SD, renting does give you far more leverage to pick and choose. I still think that renting in San Diego is an incredible oppt for the short term. You can live in many areas that great from sea to mountains to suburbs to urban. Not like other cities where you are either living in the city or in the suburbs.

In theory you could buy a place, move in two years and play landlord, but IMHO that sounds like a lot more work than maybe its worth for the sake of 'throwing money out the window' renting.

[Naomi Manischewitz]

Thanks for the tips on real estate!

[tonyinsd]

Renting if you only want to stay in a place for a few years is not only a good option, if you ask me, it's the only option.

Do not purchase real estate unless you are looking to own it long term. At least five years, preferably ten.

[Ragnar]

Originally Posted by tonyinsd

Renting if you only want to stay in a place for a few years is not only a good option, if you ask me, it's the only option.

Do not purchase real estate unless you are looking to own it long term. At least five years, preferably ten.

I'm with Tony on this one. Buying real estate requires a longer-term commitment. This is especially true if you are a first-time home buyer. The fees on both ends of the transaction really add up. And, with a 30-year mortgage, you will not make a big principal dent in the first few of years unless you pre-pay a lot.

[Jhox99]

Thanks everyone for your responses. I keep waiting to hear that there is a significant jobs recovery in SD, but it isn't happening as quickly as I would like. I am sad to hear that the housing recovery is in full swing (although happy for you locals-man you guys were hit hard!), I would have liked to have gotten in when prices were severely depressed.

In answer to someone's question (can't remember who), we definitely wouldn't move out there before at least one of us has a job. If we have to live on one salary for several months, we can afford to do so, although obviously it would hurt us. It is just such a complicated process. The likelihood of both of us finding jobs at the same time are slim, so we will very likely have at least a month or two of one income. Both of us are very marketable, however, (both have master's degrees and solid experience) so the optimist in me says that we can make it. My wife is a school counselor presently, but she is licensed to practice in any setting, so if schools aren't feasible, she might turn to the private side. Now I just have to convince her to learn Spanish!