The debate, renting vs. buying is still a hot topic of conversation for residents of San Diego. Home prices reached their peak in November 2005, but they are on the rise at around 5% per year, and experts are forecasting that rate to continue.
A Trulia study in October of 2015 produced results showing buying was 10% less expensive than renting in San Diego. Rent inflation equaled 13% from 2014 to 2015 in San Diego County. Low unemployment rate, the lack of rental inventory also contribute to the cost of living on the rise.
Supply is still tight on the buying side of the quandary, which will ultimately lead to the increase in home prices.
Annual mortgage insurance premiums are at reduced rates now, making a dent in annual savings at around $900 per year for first-time homebuyers.
For Those Considering Blending the Two Worlds
A word of caution if you are considering supplementing your mortgage with short-term leases like those found on Air BnB or VRBO. The city of San Diego is increasing their efforts to collect visitor tax (hotel tax) and enforce code violations from participants on those sites.
Plus, leases under 30 days are often against Homeowner Association (HOA) regulations. These are general statements; of course, each city and neighborhood have their rules on short-term or subleases. But, for the most part, visitors who are not your personal guests will not be received graciously.
Weigh Your Options
For those who plan on staying in their home for three or more years, buying is an attractive option. Down payment assistance is readily available now for first-time homebuyers (classified as not owning a home in the last three years) to help cross the bridge between renting and buying.
Credit is still stringent in the post-bubble mortgage market. Credit scores, credit history, employment history all contribute to whether or not you qualify for a loan. If there are blemishes on your credit, or you need a longer work history, renting is in your best interest.
The Ideal Time To Buy Is When You Are Ready
There are thousands of opinions floating around on when is the best time to buy a house, but the best time is when you are ready. Ultimately you should feel comfortable about the financial commitment and all the benefits of ownership.
People buy and sell homes every day of the year. The only valid home buying restriction is bank holidays when the title company representatives are unavailable. Holidays notwithstanding anytime is a smart time to buy.
A Roadmap To Ownership
I’ve been a real estate professional for more than a decade and have a financial background through previous experience and education. In working with clients from a variety of backgrounds, I am able to formulate a new strategy to accomplish their homeownership goals.
We can work together to have you on the road to buying a home right now. Let’s put our heads together. Contact me to start your journey!