I have a client who I worked with about 18 months ago. Sold her condo down in the south bay and she did very well and wanted to buy into one of the conversions in Clairemont. I discouraged her and she has been renting ever since. I would absolutely agree that you will be better off renting for another few years, (if you can put up with it) especially for a condo in this area. About 2 months ago I sold off my 1/1 in Mission Valley to my tenant. While I gave her a very nice deal below market I do believe that the condo market will continue to lead the charge in the market depreciation cycle. So unless you can build in a relo package that buffers you sufficiently for the depreciation potential, I think it would be wise to pass.
One thing though… as always, run the numbers and see. Alot of people have discussed and posted about rent verses buy calculators, (and it is pretty easy to just put together an excel sheet) See if it works out for you.
Another big reason for the hesitancy is that this would not be a final or long term purchase by any means. It would be most likely the first in a ladder of purchases as you move ahead. So the likelihood that this will pencil out as a rental, (when you do move out) is low at that price. Similarly I think you will most likely be ready to move prior to the market going down and getting back up to where the home would provide at least a break even.
