Downtown 2/2 condo

[admin]

Hi, recently turned on to this site and am convinced to hold off on buying for the time being. Unless something comes along that makes sense. I just found the following listing and would like any input.

Address: 1640 10th Ave., # 107, SD, CA 92101. It’s a bank owned property listed at $389k. Previously sold in 10/04 for $469,500. Before that, sold in 1/02 for $259k. So, it would be reasonable to assume that I could get it for at least $100k less than what it sold for in ’04. I understand that was close to the peak of the inflated market. How much lower should one expect this type of property to go? Back to the price it went for in ’02? Is it pure speculation?

Thanks for any input.

[Diego Mamani]

Property tax and HOA alone could easily exceed $700 a month, and that’s before homeowner insurance. The mortgage pmt could be $2500 or so. That’s a lot of money to throw down the drain, especially on a depreciating asset. Perhaps you can rent a similar 2/2 unit for $2k a month and see if you really like the downtown condo lifestyle?

[Critter]

Are you familiar with Mr. Brightside? His blog tracks the downtown condo market. Here’s the link:

http://sandiegomarketmonitor.blogspot.com/

[PerryChase]

HOA Downtown is $500/mo or more. Combine that with property taxes and you can easily hit $1200/month before even touching the interest and principal payment.

I think that once Downtown gets built-up, the lower end apartments (let’s call them what they are) will sell for about rental value, or below original builder prices.

There are so many rentals Downtown now that it’s stupid to buy. Unlike single family homes where school district and other features call for a premium, you can easily rent an apartment Downtown that is right next door to one that is for sale.

For example, you may not be able to rent a 3000sf SFR in a certain neighborhood with a certain school district. But you can rent an apartment in virtually any building Downtown.

[fsbo]

if it went down to 1/02 price, around $250 ppsf for condo, the housing bubble would have been crashed.
how much is the HOA per month (and what does it cover)?

[PerryChase]

This is an old condo with $393/mo HOA.

http://www.sdlookup.com/MLS-076014470-1640_10th_Ave_107_San_Diego_CA_92101

I wouldn’t touch it with a 10 ft pole. I would not be surprised to see this or similarly old units drop to $200k or less. Rent and save your money.

——–

I’m exaggerating a bit here. Cortez Hill is a good area of Downtown (better than East Village, IMO) so compared to other properties at 1000sf, this one is not bad. But, realistically, you should wait another few years. I bet that you’ll be pleasantly surprised at what you could afford in a couple of years. Renting is the best option for now.

[no_such_reality]

I’m exaggerating a bit here.

I don’t think so. That’s a very dated interior. Like old apartments, they can’t command rent. Downtown is flooded with new decked out condos that will be competing desperately for renters.

[TemekuT]

Warning! Warning!

If this is a older wood-framed structure, you will hear the upstairs neighbors walking. You will even hear their bed creaking…and speaking of creaking, the older wood subfloor will definitely creak.

Buy in a concrete building for peace of mind. (but don’t buy yet)

[SD Realtor]

If there is absolutely 1 place in the entire county that I would NOT buy into right now it would be downtown SD. I cannot urge you strong enough to hold off.

SD Realtor

[blahblahblah]

What will happen to the HOAs downtown as the FBs start walking away from their toxic voodoo loans? Are the banks obligated to pay the HOA or will the remaining homeowners have to pick up the tab?

[PerryChase]

SD Realtor, there goes your Downtown sale. 😉

[PCinSD]

Wow, thanks for everyone’s input and the reality check. I currently rent in Bankers Hill for $845 a month. I think I’ll fix up my apartment and be content with that for the time being. Thanks again.

[SD Realtor]

Darn it Perry!! I would have gotten both sides as well… Anyways I did get the listing today. He did not price at my recommendation, I recommended 510 and he wanted 540. I got him to list at 525-565. Don’t ask me why he wanted the range. I think it is because he has the Prudential hangover. I was wrong, he bought at 600 not 620.

DNY – You were right it is Discovery, the general area is Cortez Hill.

SD Realtor

[sdrealtor]

You’ll do fine with that price as any buyer will view it as 525K. Value range pricing is so 2004!

[anxvariety]

You’ll do fine with that price as any buyer will view it as 525K. Value range pricing is so 2004!

I saw some VRM priced places earlier in a flyer, and it was kinda funny how small the ranges were… I mean no gap I wouldn’t expect to shave off the bottom end of the price to begin with.

If you need to satisfy pride of ownership.. one such approach too consider, and one I’m taking is – buy a trailer, and a cheap desert acre for 10-20k.. That’s assuming you even like hanging out in the desert or have something to tow with.. at that point you have something you own, livable spot, weekend escape, and are buying in an area that in my opinion stands to appreciate in almost any conditions.. I see demand for desert land as ever increasing more than just more people on the planet.. see the Temecula experiment for the pattern that I think is most fitting.. even if it were to depreciate, it would be peanuts relative to an average salary or compared to a 20% drop on a 300-500k place..

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