San Diego Housing Bubble News and Analysis

Dude. Rent.

Why do you desperately need to buy a house?

OK, maybe not desperately, but I would really like to buy a house. There are some houses around that price in the Escondido area, Chula Vista around Eastlake and some others. Are those areas really so bad? I just need a house for the next 6-7 years, and my expectations are modest.

If you can find a house for that price that you would like to live in for 10 to 20 years, by all means, buy it. If you are unfamiliar with the area, check it out at multiple times during the day and week to see if you like it. Otherwise you rent until you can find someplace you can afford. It's all about what you prefer and are comfortable with. Just don't get in over your head or buy a place you won't be happy living in just because you wanted to buy something rather than rent.

http://theautomaticearth.blogspot.com/20...
1) Hold no debt (for most people this means renting)
2) Hold cash and cash equivalents (short term treasuries) under your own control
3) Don't trust the banking system, deposit insurance or no deposit insurance
4) Sell equities, real estate, most bonds, commodities, collectibles (or short if you can afford to gamble)
5) Gain some control over the necessities of your own existence if you can afford it
6) Be prepared to work with others as that will give you far greater scope for resilience and security
7) If you have done all that and still have spare resources, consider precious metals as an insurance policy
8) Be worth more to your employer than he is paying you
9) Look after your health!

Chula Vista around Eastlake is newer than most parts of Escondido, and probably has less crime. Traffic is bad for the commute at either location, but probably depends on where you work.

It is with a very heavy heart that I say this but if you are willing to consider Escondido you have two options. First get your head examined. You obviously have some emotional issues that need professional care. Two look in Temecula. In the price range you are looking at its not even a comparison at this point. Temecula will offer far better value.

Of course there are other factors to consider, like how far you are willing to commute, but just based on desire to own and your price range, I'd say Temecula, or Ramona are your best bets.

East Lake is newer, but you should try commuting down Telegraph Canyon rd at 7:30 on a Monday before you make any offers. I'd also recommend trying to find a non-chain decent restaurant anywhere near there, good luck.
Josh

Ok, so you already admitted that you don't 'desperately need to buy' you just reeeeeally want to. Why not save the difference you'd be spending in rent vs. buy over the next 1-2 years to earn greater buying power and increase your options? Live very frugally for the next 1-2 years and see what your options are at that point. By then, unless you have multiples, you'll only have 1 baby. Young children don't care how big their houses are, if they have their own room, or if you own it or rent it.

I'll second all of that. I grew up in Escondido and just closed on a beautiful place in Temecula (for $250k-ish as it happens). It's 20 minutes from the 79 to the 78 and so worth it.

Find a house like this MLS#: 090029363 then hope you don't get out bid and the appraisal comes in lower than the asking price, that's my advice. If you like living in the city Oak Park is a nice cheap neighborhood.

Temecula offers far better value, as long as you don't try to commute to central San Diego from there. Homeownership isn't worth spending 3 hours/day behind the wheel.

250k is not enough to get into Eastlake. And most Eastlake houses have HOAs and Mello Roos. You could get a place closer to 300k with $200/month in fees on top of the mortgage payment.

There aren't really any nice areas closer than Temecula where you can buy a detached house for 250k. My advice is to rent.

Welcome aboard REN, I agree with you guys, the OP can find a comparable price but won't find the demographics, schools and house size anywhere in S.D. right now for 250k, Temecula does offer that right now but the 250kish market up here is shifting to the to the 300kish price, even in winter, his two options are rent in sd or get a map to temecula.

Ren, you are absolutely going to love the town and the low mortgage payment, especially the low payment. It's been almost a year since I jumped back in and I have the lowest payment to income ratio of my life. For the first time in my life I wasn't house poor during that dreaded first year after buying, I cannot find the words to express the peace of mind that biting off less than you can chew will bring. I've always bought what I could barely afford at a fixed rate and then allowed time and inflation to balance things out. In retrospect, that wasn't a bad plan, it's just not as good as going ultra affordable. Anyway, welcome to the hood, drinks on me.

TG- I read before where you referenced "microclimates" of Temecula area.
What are the "cooler' areas of Temecula?

Would the Santiago Estates/Chapparal areas be cooler?
Thanks.

booter, the answer is yes, but I'm not sure what the chapparal area is (if it's by chapparal high school, then no). santiago estates and Los ranchitos are the customs just North of temecula parkway, very much in the cooler microclimate. Just use the pechanga casino as the epicenter, the more you go east and north from there, the hotter it gets, maybe a degree a mile or two. The exception is the western hills, but that's all high end customs (de luz, even la cresta) from the other side of the hill it's a straight shot to the ocean, that's why they grow red grapes on the western coastal facing hills but for the townfolk, santiago is about as good as it gets.

Wow, lots of North County-centric thinking around here.

Lots of misplaced snobbery, too. Not everyone is looking for a 3,500sf 4/4 in West Stepford.

My wife and I bought for under $250k a few months ago in the Fletcher Hills area. Yes, we've had to do some work on the place, and no, I haven't felt the need to stock up on ammo or body bags.

I know what you're thinking, my dear upscale piggies, but it's not a matter of envying what I cannot afford.

So, to the OP: if you obsessively watch the market and can make a strong offer the second something pops up, you have a good chance of buying a decent house in a decent neighborhood for less than $250k.

Fletcher Hills is a very nice area and not that far away from downtown, the beach, etc. There are nice restaurants and shopping centers in the immediate area, Costco is close. I think you made a good move. Congratulations!

What happens at year 8? Will you stay or will you go? sounds like a song...

If you have to go, then the debt service on the purchase and rehab costs probably will be greater than renting. You also have flexibility.

Since you are planning on having kids, the schools and neighborhood will probably outweigh your commuting time in importance. So what I'm saying, is to rent close to work or university now and learn the area. When you have kids, they will be young enough to relocate without school and friends problems. Oh and watch the HOA and MelloRoos fees. This combined with utility costs can have a significant impact on your monthly cash flow.

And the market just may be even more favorable to a buyer in a year or two ;)

Thanks tg, I might take you up on that. We were actually thinking of becoming a member of one of the wineries, maybe Ponte. Then my wife had to go and get pregnant again.

Loving the payment already and haven't made one yet. We've got about a month to go before actually moving in, first need to help the Lowes folks pay for their kids' college.