SD housing market nightmare (San Diego, Encinitas: subletting, apartments, mortgage broker)

[merkov]

Originally Posted by Pedro2000

Sadly in places like SD and worse in NYC or SF, you'd buy a place in Chula Vista and wind up getting a smaller house with probably worse conditions and less yard for far more money. There are plenty of homes for sale in CV, Del Mar, SB, Encinitas that haven't been updated since 1960 and still get bought up. I would never call that "moving up" if you wind up with a worse house, just different zip code that people consider "nicer areas."

Great post, though I feel that things are actually worse in SD than NYC or SF: professionals in the latter two cities earn an income that is much, much higher than the rest of the country, which is not the case in SD.

[GuyInSD]

Originally Posted by Pedro2000

...all the appreciation on real estate means very little if your $500K house sells for $2 million in 10 years. Because that means you'd have to buy another house that is also $2+ Million. No gain at all unless it was just an investment property you bought and rented out over the years. Or if you plan to move to a cheaper state...

Yes - as I've been saying all along in this thread - Rental Property is one of the few ways to amass wealth that everyday folks can take advantage of. There are only two rules to follow: DON'T buy in crap areas, and buy AFTER a crash happens (around 3-4 years after will usually do). Simple really. In the meantime, if you're renting, spend as little as you have to on housing costs and hoard away your money.

[Pedro2000]

Originally Posted by GuyInSD

Simple really. In the meantime, if you're renting, spend as little as you have to on housing costs and hoard away your money.

You wouldn't live in places like SD though if that were the case. At least not until you locked up some rental properties and plenty of cash and investments elsewhere.

[mauialoha]

Maybe....I moved to North County 14 years ago and decided I didn't feel comfortable buying here. we found a good deal on renting a condo here in La Costa and we've lived here ever since. Our cost of renting here is way lower than what it would cost to own here. We were lucky to find this place and our rent has stayed below average over the years.

And yes our savings grew over the years especially in the past few years. So we were able to buy a condo to retire to on Maui. we will have a mortgage but pretty low payment.

Sometimes the best strategy for the San Diego market is to stay out of it

[mixxalot]

I used to wait it out but it seems like foreign cash is buying the properties here in CA. So I've decided to wait and buy outside of the big cities for much less. A home in Chico is 1/2 of what San Diego costs. Yes, no beach but I can always visit and keep a boat in San Diego for summer.

[earlyretirement]

Originally Posted by GuyInSD

Yes - as I've been saying all along in this thread - Rental Property is one of the few ways to amass wealth that everyday folks can take advantage of. There are only two rules to follow: DON'T buy in crap areas, and buy AFTER a crash happens (around 3-4 years after will usually do). Simple really. In the meantime, if you're renting, spend as little as you have to on housing costs and hoard away your money.

SO SO SO true. The rule of thumb is to buy in the BEST possible area that will always have high rental demand even in times of recession of economic downturn. The wealthy typically will always have money and be able to pay premium prices and want the best areas.

I own a portfolio of international properties and I always buy in the best areas. The only time I've deviated from that is when I could clearly see an area was going to gentrify. I bought in a few neighborhoods like that and it paid off as those upcoming areas tended to become even more desirable and have higher rental yields than the ritzy areas.

Also, it definitely helps if you can buy right after a collapse but even if you can't and the rental yields and cap rate are high then it can still make sense. I look at capital appreciation as icing on the cake but I never count on that. It's all about cap rates and rental yields for me.

I know a lot of people that do the same thing. They might start with one or two properties and then just keep reinvesting the cash into more properties.

[Ultrarunner]

^^^ Kind of like Monopoly as a child.

The problem with the Best areas is they can fall...

Buying at the other end of the spectrum there is no where to go but up... has worked well for me.

[LuvSouthOC]

Originally Posted by mauialoha

Maybe....I moved to North County 14 years ago and decided I didn't feel comfortable buying here. we found a good deal on renting a condo here in La Costa and we've lived here ever since. Our cost of renting here is way lower than what it would cost to own here. We were lucky to find this place and our rent has stayed below average over the years.

And yes our savings grew over the years especially in the past few years. So we were able to buy a condo to retire to on Maui. we will have a mortgage but pretty low payment.

Sometimes the best strategy for the San Diego market is to stay out of it

What if you had bought 14 years ago in La Costa? Prices were far lower.

Congratulations on moving to Maui. It is my second favorite Hawaiian Island and a very nice place, but a bit humid for some of us.

[Pedro2000]

Originally Posted by earlyretirement

SO SO SO true. The rule of thumb is to buy in the BEST possible area that will always have high rental demand even in times of recession of economic downturn. The wealthy typically will always have money and be able to pay premium prices and want the best areas.

I own a portfolio of international properties and I always buy in the best areas. The only time I've deviated from that is when I could clearly see an area was going to gentrify. I bought in a few neighborhoods like that and it paid off as those upcoming areas tended to become even more desirable and have higher rental yields than the ritzy areas.

Also, it definitely helps if you can buy right after a collapse but even if you can't and the rental yields and cap rate are high then it can still make sense. I look at capital appreciation as icing on the cake but I never count on that. It's all about cap rates and rental yields for me.

I know a lot of people that do the same thing. They might start with one or two properties and then just keep reinvesting the cash into more properties.

How did you get started in international properties? I've been looking to expand into that space myself, but outside of central america and Canada, I just don't have the experience or knowledge to know what's good and what's a bad buy. AI've done some research now and again, but I'm not into buying without seeing as some Chinese buyers are in the US. Plus I've learned that certain parts of Mexico and Central America can be really corrupt when it comes to Real estate purchases and titles. But there are some buyers who have bought houses in the US using WhatsAPP , more in OC and LA, but still, it's a bit crazy that an 'SMS' like tool is all you would use to buy a property.

[1AngryTaxPayer]

Originally Posted by LuvSouthOC

What if you had bought 14 years ago in La Costa? Prices were far lower.

Congratulations on moving to Maui. It is my second favorite Hawaiian Island and a very nice place, but a bit humid for some of us.

Buying 14-20 years ago usually means you are sitting pretty fat cat right now My properties have went from an average of 150K to over 600K in that time span.