What was interesting to me though, was that San Diego was number eight on the top 10 cities where renting was supposedly better than buying.  Actually, this isn’t totally true.  Since the analysis was only based on a price-to-rent ratio, there was no subjective input on this, nor were market trends or predictions taken into account.  Pete Flint, the co-founder and CEO of Trulia added that “We’re not suggesting that it’s unwise to buy in these areas, though – just that it’s significantly more expensive than renting.”

Now lets look at specifics and not generalities…

I just pulled up three properties that are in various buildings of downtown San Diego – all of which, I’d consider/want to live in.  I then pulled up similar units that have rented in those buildings over the last 12 months and found that $2400/month is a pretty conservative average for all three of these units.  In other words, if you purchased/owned one of the units below, or one similar to it, I’d bet that you could rent it for $2400, or very close to it, depending on the available inventory at the time(the rental market is very  susceptible to supply…more so than sales).  In the three examples below, I based the monthly payments on a 4.5% 30 yr fixed mortgage, with a 20% down payment and 1.25% property tax. The tax savings is based on a 33% write off on the mortgage interest.

Property #1 – M2i $375,000

This 1187 sqft condo in East Village’s M2i building is a 1BR/2BA loft style condo that is bank owned(aka REO, foreclosure).  Located at 527 10th Street, M2i is a great loft style building that was built by Citymark in 2005.  This is one of my favorite non-highrise buildings and I love the location.

This M2i condo would be a great 1 bedroom, but could be built out as a 2 bedroom.  With low HOAs of $406/month, this is one of the more affordable buildings.  Unit 411 is priced at $375K, which would make your monthly payments around $2316 – this does not take into account your tax write offs as a home owner, which would be around $371/mo…making your actual monthly payment about $1945.

FYI – this condo was purchased in 2006 for $550K – it’s currently priced 32% lower than it was worth 4 years ago!

Property #2 – Trellis $369,000

Located in the famous Gaslamp District of downtown San Diego, Trellis is a great spot for someone who wants to be in the middle of it all.  530 K Street #813 is currently for sale at $369K. This 2BR/2BA has 943 sqft and is a great corner unit.  The bedrooms are on opposite ends of the condo, providing maximum privacy.  Trellis is one block away from Petco Park and is litterally on top of Donovan’s steak house!

This condo is investor owned and at the listed price, would have a monthly payment of about $2462(the HOA are higher, at $569/mo).  With that said, I think you could get this for less than $369K, which would obviously lower your payments.  With the tax write off, you’d be closer to a monthly payment of about $2097.

FYI – this condo was purchased in 2005 for $449K – 18% lower than it was.

Property #3 – Parkloft $425,000

Parkloft is where I want to live.  This building is in the East Village and is very unique.  Parkloft is the only true loft building in downtown San Diego that I know of.  It has exposed plumbing/ductwork, 11′-14′ high ceilings and exposed concrete walls.  Additionally, there are no bedrooms walls that have been built out(that I’ve seen).  It’s hard to explain, but I just really love this building.

877 Island Ave #109 is a short sale with a list price of $425K. This loft is 1671 sqft and has two full bathrooms.  This condo also has a HUGE closet, that’s probably 10′x10′, if not larger – no joke.  I love this unit because it’s so spacious and open.  Also, this can be accessed from the street and has a walk-up entrance.  The only drawback I’ve seen, is that it’s a little on the dark side(not much natural light).

At the asking price, your monthly payment would be about $2911(the HOAs are much higher here, but you also get more space), or about $2491/mo after your tax benefits.

FYI – this condo was purchased for $770K in 2004 – this is a 45% price reduction over 6 years!

So what does that mean….?

Clearly it’s not apples to apples (nor is it Apples to Apples), but aside from the down payment, renting isn’t really much cheaper.  Sure, there are other costs, such as repairs, upgrades, etc., but as a home owner, you also get to reap the benefits of appreciation – yes I know home prices haven’t done much good to home owners lately, but a LOT of people made  a lot of money not too long ago.  You also don’t have to worry about your landlord raising the rent, asking you to move out because he wants to sell, or anything else like that.

I’m not saying buying is the right move for everyone, but it might make more sense than you think.  What else are you going to do with you $50-100K you have saved up?  Let it earn 1-1.5% in a CD?  Invest it in the  stock market?

If you’re ready to look at your options and you have questions about real estate, please contact me.  Denny Oh 858-243-2092 denny@sandiegoh.com

After having several good offers, many of which were well into the $900K range, the banks(there was a first and a second loan) couldn’t reach a compromise and approve the short sale.  For years, the two banks argued over a few thousand dollars, wanting more than what the buyer was offering and more than the First was willing to give the Second.  Now, condo #2805 at the Grande South is an REO and is listed at $830,000.  What could have sold for about $950K…will now sell for $120K less…not to mention two years later!

At a list price of $830K, the Grande South unit isn’t a bad buy.  I wouldn’t call it a great deal, but it’s not bad.  Considering the most recent comp was on the 33rd floor on the north side of the Grande North, at $860K, it’s not a bad buy.  However, keep in mind that the south side of the Grande South will be heavily impacted in terms of it’s views.  Another thing to note, is that the comps I just sited was an REO and the same unit directly above it sold for $1,130,000 in July of 2009.

If you’re looking for a good deal, let me know.  Things to know:

• The entry level for any market in San Diego, is VERY competitive – this means that FHA buyers are kind of out of luck.
• Cash is king.  All you FHA and 10% down buyers can thank those who have cash for ruining their chances of buying anything in this market.
• Inventory is low.  With only 500 condos on the MLS and ZERO residential construction scheduled(probably for another 12-18 months), good inventory is in high demand and you have to act quickly.
• Having an agent who knows their stuff(and knows the other agents) is very important.
• Now that the California First Time Home Buyer Tax Credit has expired, there will probably be less buyers out there, creating more leverage for qualified buyers.

If you have any questions about San Diego real estate, please call Denny Oh at 858-243-2092 or denny@sandiegoh.com.

These ‘05 units have bay views to the west and city views to the south(and a bit to the east).  They get plenty of sunlight and offer great views – which will eventually deteriorate as the lots around it get developed.  Right now, there’s an ‘05 unit on the 7^th floor that’s listed as a short sale at $625K.  The same exact floor plan sold this past October for $655K – which was also a short sale.

Unit 405 in The Grande South(same exact unit but 3 floors lower) also sold in October, but for $675K!  If you’re looking for some square footage and can’t pay a million bucks, this might be the condo for you.  Let me know if you have any questions.  Also, I may have a similar unit coming onto the MLS, but with a better view!

Click here to see more downtown San Diego condo deals.

Click here to search all the condos for sale at The Grande North and South.

This downtown San Diego condo deal is a short sale, but in my opinion, it’s well worth the wait.  This 2 bedroom plus den, 2 bath condo is currently on the market for $1.1M.  This condo had previously been purchased in 2007 for $1,574,000 and in my opinion, it will sell for somewhere in the mid to low $800K range – we’re talking about a 46% price reduction in less than three years! The unit directly above it is very similar and is currently in escrow and has an asking price of $969K.  There are also a few other similar units that are in escrow with list prices of $849,900 and $1,022,000, but both of these units are on the north west corner and have less desirable views(in my opinion). 

If you have the time and patience to wait for the banks to get their act together, you may be able to get a phenomenal deal on this unit.  I’ve been in The Legend a lot lately and have become a big fan of it.  Minus the lack of parking for some units, this building is a development and offers some of the best views in East Village.  Let me know if you’d like to take a look. 

Click here to search all the condos for sale at The Legend

If you’re looking to capitalize on the down market, here you go.  Please let me know if you’re interested, as this will not last long.

Denny Oh 858-243-2092 denny@sandiegoh.com

The Pinnacle has high ceilings, so the 1,290 sqft feels like a lot more.  This condo is listed at $799,500 and is a short sale.  The unit directly above it, sold this past August for $900K.  If you want protected water views and a central location in a premiere condo highrise, this is your chance.  And if you want to be higher up, check out The Grande North #3302!

If you’re looking for something else, give me a call and I’ll do my best to find that deal for you.  Click here to see some other great downtown San Diego condo deals.

The Grande North #3302 is priced at $856,900 and is bank owned(a foreclosure).  To give you an idea of how great a deal this is, the exact same unit/floor plan is available in the same tower/orientation on both the 23^rd and 24^th floors, at a list price of $1,049,000.  So, to go up eight or nine floors, you get a discount of $192,100! The exact same unit, but one floor higher, sold back in July for $1,130,000…$273,100 more!

If you want a great condo in a great building at a great price, here’s your chance.  Don’t wait – this will sell this week.

Denny Oh 858–243–2092 denny@sandiegoh.com

Click here to see all the condos for sale in The Grande towers.

Unit 403 at La Vita is a 3 bedroom, 2 bath condo with 1,328 sqft.  The short sale is approved at $474K.  It has two balconies and two side by side parking spots!  This unit is on the north west corner of La Vita and overlooks the green courtyards and over the neighboring buildings.  This downtown San Diego condo deal is the only active 3 bedroom in downtown San Diego that’s listed below $600,000(not to mention below $500K)!

This is a great deal.