[quote=spdrun]No one is saying that it’s a terrible decision (so long as costs can be supported), but that there are much better option from an investment standpoint.
Rental income of under 3%, imputed (calculated as if you were renting from yourself) or otherwise is pretty stinky even for the San Diego area. Especially if you don’t have the benefit of being able to walk to the beach and a downtown area.
To each their own, I guess.[/quote]
Thank you, spdrun. I never stated anybody who bought in CV made a “terrible decision.” Obviously, CV has had a tremendous run-up in values since the “great recession of ’08+.”
I simply stated that buyers could get a LOT more for $950K elsewhere in the county than a home with ~2000 sf situated on a barely standard (or substandard) lot.
This is akin to Silicon Valley pricing, except the home there selling for $950K would be older and smaller and the lot would be larger.
SD (CV or Sorrento Valley) cannot be compared to Silicon Valley in any way, shape or form. It doesn’t even come close. And SD doesn’t have anywhere NEAR the percentage of dedicated open space that Silicon Valley has and never will.
Besides the influence of the tech sectors HQ’d there, larger residential lots in most cities and a large percentage of dedicated open space is what made Silicon Valley so expensive to buy in, IMO.
I also stated that the “8-figure set” aren’t typically interested in econoboxes on lots within “pissing distance” of their neighbor’s house (spdrun’s apt expression). It doesn’t work that way. This set of folks usually pay all cash and buy in the most well-established choice coastal locations in the state. Before even moving in, they then often tear down or gut portions of the inside and remodel to obtain a home to better suit their needs in their chosen prime location.
(Read: LJ, RSF in SD Co and RPVE and Beverly Hills in LA Co.) Somehow, the tract developments in CV I’ve viewed so far online don’t seem to fit that bill. And there’s nothing wrong with that. Different strokes for different folks.
I’d like to know if any Pigg agent or broker can post any stats here showing the actual percentage of homebuyers in CV who took out jumbo mortgages and those who paid all cash to purchase there (the last 3 years would be helpful).
Maybe I’ll be able to look thru JTR’s site tonight and see if he’s posted anything in this regard.
