Goodbye to San Diego

[phaster]

[quote=XBoxBoy]
This thread brings up one of the things that I think people overlook. We whine about how expensive housing in San Diego is, and get lots of talk from politicians about how they are going to create affordable housing. But expensive housing is how we discourage people from moving here (or to stay if they are here). Expensive housing is how we keep San Diego from being even more congested than it is.[/quote]

since this site was more or less started looking at RE, just wondering if other piggs noticed the genius business deal political leadership of this city pulled off (to help address the homeless issue)

[quote]
San Diego pays top dollar and near-top dollar for hotels to house the homeless

…The city has borrowed almost half of the $106.5 million it paid for the two hotels

…Commercial real estate broker Adrian Glover has consulted on hotel transactions for decades, representing buyers and sellers. He said the city paid too much for the two Residence Inn properties.

“Hotels are worth probably 30 percent to 40 percent less than they were a year ago because of COVID-19,” he said. “This should have come out in the due-diligence period” of the escrow process.

“The city is short of money. Somebody should be watching the pennies,” Glover said. “This is a windfall for the seller, but it’s a major burden for the buyer.”

…The purchases also will eat into the city’s annual tax revenue as officials confront a $240 million budget deficit.

In addition to the loss of property taxes generated by the two Residence Inns when they were privately held, the city will no longer collect the transient occupancy tax assessed on every room rented.

Based on capitalization rates reflected in the CBRE appraisals — the measure of annual returns on investment — the city will lose about $866,000 a year in hotel taxes, plus $100,000 or more in annual income for the tourism marketing district.

https://www.sandiegouniontribune.com/news/watchdog/story/2021-02-21/san-diego-pays-top-dollar-and-near-top-dollar-for-hotels-to-house-the-homeless
[/quote]

[The-Shoveler]

I would submit that IMO exactly zero politicians would do anything that could lower the tax base (such as low cost housing in mass).

They talk a good game but it will only go through if it does not lower rents or home values.

And if they ever do they would be recalled immediately.

[phaster]

[quote=The-Shoveler]I would submit that IMO exactly zero politicians would do anything that could lower the tax base (such as low cost housing in mass).

They talk a good game but it will only go through if it does not lower rents or home values.

And if they ever do they would be recalled immediately.[/quote]

…Recall Jen Campbell???

https://www.piggington.com/node/27310

[quote]
San Diego leaders propose vacancy tax, community land trusts for housing crisis

Democrat-dominated City Council explores bold ideas after years focused on incentives, streamlined regulations

By DAVID GARRICK
FEB. 8, 2021 6 AM PT

SAN DIEGO — San Diego’s new Democrat-dominated City Council is proposing several bold ideas to tackle the city’s affordable housing crisis, including creating community land trusts, a rent registry, vacancy taxes and forcing landlords to rent to people with pets.

City officials have routinely listed the housing crisis as a top priority, but most of the legislation they have passed in recent years has focused on streamlining existing regulations and creating new incentives for housing developers.

The exceptions are two efforts spearheaded by former City Council President Georgette Gómez to preserve existing low-income units and strengthen the city’s “inclusionary” law so developers must build more low-income units.

Now the City Council, with an 8-1 Democratic majority and five new members, is proposing that San Diego begin exploring more aggressive ideas.

They say solving the housing crisis has become more important with the city’s greater focus on social equity. Minorities are the most impacted by scarce housing, they say.

Council members Vivian Moreno, Dr. Jennifer Campbell and Raul Campillo said they want the city to study a possible vacancy tax, which would tax the owners of undeveloped lots and landlords who have empty units.

http://www.sandiegouniontribune.com/news/politics/story/2021-02-08/san-diego-leaders-propose-vacancy-tax-community-land-trusts-for-housing-crisis

Should San Diego establish some type of vacancy tax?

Some San Diego City Council members [i.e. JEN CAMPBELL] are considering a variety of progressive proposals aimed at cutting housing costs, including an additional tax on owners of empty lots or landlords with unoccupied units.

The idea is money from the tax could be used to fund construction for subsidized housing and encourage landowners to build new housing or sell to someone who will.

http://www.sandiegouniontribune.com/business/story/2021-02-19/should-san-diego-establish-some-type-of-vacancy-tax
[/quote]

[The-Shoveler]

Yea probably LOL,

The only thing these would do if enacted (talking is one thing doing is another) is cause a mass exit of Mom&Pop landlords from the game, and big corporate landlords to jack up prices even further.

[scaredyclassic]

hanging out in east village, it looks like a huge percentage of the high rise condos are unoccupied. not sure if those statistics are anywhere? they just look…empty…

[EconProf]

[quote=spdrun]Isn’t Leavenworth also a military prison?[/quote]

Leavenworth also has a major military base, but that is separate from the Federal Penitentiary I taught at. The base goes back to frontier days and has a storied history. The university I taught at was in St. Joseph, MO, 45 miles away, and where the Pony Express riders started their relay-type trip to Sacramento.
My students at Leavenworth had a sense of humor. Once, during a lecture, two bells went off, a sound I had never heard before while teaching there. I asked the class what that meant. One guy said “Its a signal to take hostages”. They all laughed, except me.
A few minutes three bells went off. I asked what that was supposed to mean. “It means to kill the hostages”.

[Myriad]

[quote=phaster]
…Commercial real estate broker Adrian Glover has consulted on hotel transactions for decades, representing buyers and sellers. He said the city paid too much for the two Residence Inn properties.

“Hotels are worth probably 30 percent to 40 percent less than they were a year ago because of COVID-19,” he said. “This should have come out in the due-diligence period” of the escrow process.

Based on capitalization rates reflected in the CBRE appraisals — the measure of annual returns on investment — the city will lose about $866,000 a year in hotel taxes, plus $100,000 or more in annual income for the tourism marketing district.[/quote]

Yep, the city should stop buying RE – they are f*** terrible at it.
I looked up the prices as the Marriott Mission Valley was up for sale a while back. It was $242k/key in April 2019. Who pays more for a Residence Inn, only politicians do.
[img_assist|nid=27317|title=|desc=|link=node|align=left|width=1200|height=600]

[phaster]

[quote=sdrealtor]Went on a walk with a neighbor friend this weekend that has a place up in Brian Head. He grew up in Mass so loves the winter fun and snowmobiling up there. They have great golf courses in St George also.
[/quote]

as a teen did some skiing in Brian Head and always thought it would be neat to have a vacation home there or up in the mammoth lakes area because those areas seemed so “lush” WRT SD

last week drove one of my vehicles out to Julian to charge up my battery and also get some apple pie (figured I’d kill two birds w/ one stone)

anyway what I noticed is it’s really dry out in east county AND this seems to be the case w/ the rest of CA according to news reports

[quote]
California is bone dry. Will March bring more misery or a miracle?

…Los Angeles and Southern California have lots of company in this respect. The state and the West are gripped by persistent drought, including large areas of exceptional drought in the Southwest

https://news.yahoo.com/california-bone-dry-march-bring-002412223.html
[/quote]

the reason I mention as a teen thinking Brian Head and Mammoth were lush and wanting a vacation home/ranch is realize things were quickly changing

as a teen what I thought was normal (areas of the western USA being “lush”) was actually abnormal in the grand scheme of things

point being many parts of the western USA can be in drought conditions for thousands of years

Danger Cave Near Wendover Provided Clues to Ancient Utah Dwellers

as an “investor” in real estate the extended period of drought made me think it important to investigate the potential of fire storms in a location

sadly growing up and taking classes @ UCSD I lost the “dream” that a place like Brian Head was lush

basically after learning more about the long term climate conditions in the south western USA can be in drought for thousand of years,…this implies there was an elevated risk of fire, which means higher insurance rates or even the possibility of not being able to get insurance (due to co$t$)

https://www.latimes.com/california/story/2019-12-05/california-bans-insurers-from-pulling-policies-in-fire-ravaged-areas

my drive out to Julian prompted me to do is google info on the topic of drought/wildfire AND rediscovered news items about the last big fires here in SD

[quote]
Revisiting a San Diego County story from 2005: “Choppers devour millions”

https://fireaviation.com/2021/02/10/revisiting-a-san-diego-county-story-from-2005-choppers-devour-millions/
[/quote]

thought it important to bring up the topic of fire storms because given our dry winter weather conditions,… this summer the odds of a devastating wildfire is something everyone should keep in mind

[phaster]

[quote=Myriad]

Yep, the city should stop buying RE – they are f*** terrible at it.

I looked up the prices as the Marriott Mission Valley was up for sale a while back. It was $242k/key in April 2019. Who pays more for a Residence Inn, only politicians do.
[img_assist|nid=27317|title=|desc=|link=node|align=left|width=1200|height=600][/quote]

speaking of “genius” real estate deals FWIW ya might find the following pod cast interesting,…

[quote]
Kevin Faulconer’s City Hall and 101 Ash:
The Worst Land Deal and the Biggest Cover-up

Art Castanares of LaPrensa San Diego, is joined by guest host, Barbara Bry to discuss 101 Ash Street. This premiere episode features an exclusive interview with attorney Lawrence Shea on city of San Diego’s disastrous 101 Ash Street deal.

(Originally aired on 2March21)

https://anchor.fm/btc8

[/quote]

since faulconer is termed out of local office, seems he’s scheming to be governor

https://www.kevinfaulconer.com

too bad there wasn’t a virus that takes out the yuge population of “no talent ass clowns” (i.e. career politicians/pundits) to make the world a better place

…on the bright side had to laugh at the description DeMaio gave of faulconer (i.e. “Meg Whitman without the dress”)

[quote]
The fighting over California’s top job has begun — among Republicans

…Two prominent Republicans have already launched their campaigns — former San Diego Mayor Kevin Faulconer and businessman John Cox, who lost badly to Newsom in 2018.

Since launching his gubernatorial run, Faulconer has quickly sought to position himself as the establishment pick. He rolled out a slate of endorsements from Republican lawmakers. A mailer from his campaign stresses that Faulconer was able to win in populous, diverse San Diego by persuading independent voters. That offers a “credible shot at winning statewide, despite California’s challenging voter registration,” the piece argues.

But convincing the Chamber of Commerce is different from convincing MAGA adherents. Faulconer’s foes are already seeking to portray him as a milquetoast moderate who would not excite voters. Cox, who lost to Newsom in a landslide in 2018, has highlighted dubious real estate deals to try and portray Faulconer as corrupt. Cox attacked his rival in an ad entitled “Gavin Faulconer.”

“I’m attacking corruption. I’m attacking incompetence and mismanagement. I don’t care if it’s Republican or Democrat,” Cox said in an interview. “I don’t think Kevin Faulconer has any business running for governor.”

Faulconer has also drawn steady fire from former San Diego Councilman Carl DeMaio, a longtime rival and staunch Trump supporter who hosts a popular conservative talk radio show. DeMaio launched a website that portrays Faulconer as a liberal in disguise, drawing a public rebuke from Rep. Darrell Issa (R-Calif.).

Choosing an establishment-favored centrist like Faulconer would squander the energy and enthusiasm galvanizing California Republicans, DeMaio argues. He said California Republicans, desperate for a victory, have “demoralized the base” by seeking to elevate someone more like the Democrats.”

“It is vitally important to rebuild the infrastructure in the state. A recall race – win, lose, or draw – can be a real turning point for the Republican Party. You can only do this if you have a candidate you can be proud of and who can motivate the base,” DeMaio said in an interview, arguing that Faulconer’s ascendancy was “part of the death-spiral of the Republican party” and calling Faulconer “Meg Whitman without the dress.”

https://www.politico.com/states/california/story/2021/03/10/the-fighting-over-californias-top-job-has-begun-among-republicans-1367493
[/quote]

[EconProf]

We just got back from our “walk-through” of the new house and will move in this Friday. Brio is one of many developments this company has done, and they are pros. 400 or so well-designed houses and condos, nearby clubhouse, pools, exercise room, tennis, pickleball, etc. two blocks away. Our 2700 SF single-level has views of snow-capped mountains. Glad we locked in the price last July at approximately $550,000, because the same model is now $57,000 higher.
Talking to the sales manager at Brio and various realtors in town reveals how hot this market is.
New listings are gobbled up in a week and bidding wars are the norm. All the contractors are super busy, and it takes a year to get a house built. One result is that developers of communities no longer quote a fixed price–they realize that waiting until the house is built costs them too much in lost appreciation. Plus they can get hurt by the rising labor and materials costs (lumber has doubled). So they have to build spec homes and then put them on the market, meaning buyers no longer get to chose their colors, options, cabinets, etc., as we did.
Growth in nearby Cedar City (50 minutes up I-15), and Hurricane (20 minutes away) is nearly as frantic as St. George).
So the population is booming, and it is all from an influx of buyers, mainly from California.
Gosh, I wonder why.

[Coronita]

[quote=EconProf]We just got back from our “walk-through” of the new house and will move in this Friday. Brio is one of many developments this company has done, and they are pros. 400 or so well-designed houses and condos, nearby clubhouse, pools, exercise room, tennis, pickleball, etc. two blocks away. Our 2700 SF single-level has views of snow-capped mountains. Glad we locked in the price last July at approximately $550,000, because the same model is now $57,000 higher.
Talking to the sales manager at Brio and various realtors in town reveals how hot this market is.
New listings are gobbled up in a week and bidding wars are the norm. All the contractors are super busy, and it takes a year to get a house built. One result is that developers of communities no longer quote a fixed price–they realize that waiting until the house is built costs them too much in lost appreciation. Plus they can get hurt by the rising labor and materials costs (lumber has doubled). So they have to build spec homes and then put them on the market, meaning buyers no longer get to chose their colors, options, cabinets, etc., as we did.
Growth in nearby Cedar City (50 minutes up I-15), and Hurricane (20 minutes away) is nearly as frantic as St. George).
So the population is booming, and it is all from an influx of buyers, mainly from California.
Gosh, I wonder why.[/quote]

I dont know. The market looks pretty hot here in SD too.

[spdrun]

You ran all the way to Utah to live in a “planned community” with an HOA who’ll want to control how to live?

[sdrealtor]

[quote=EconProf]We just got back from our “walk-through” of the new house and will move in this Friday. Brio is one of many developments this company has done, and they are pros. 400 or so well-designed houses and condos, nearby clubhouse, pools, exercise room, tennis, pickleball, etc. two blocks away. Our 2700 SF single-level has views of snow-capped mountains. Glad we locked in the price last July at approximately $550,000, because the same model is now $57,000 higher.
Talking to the sales manager at Brio and various realtors in town reveals how hot this market is.
New listings are gobbled up in a week and bidding wars are the norm. All the contractors are super busy, and it takes a year to get a house built. One result is that developers of communities no longer quote a fixed price–they realize that waiting until the house is built costs them too much in lost appreciation. Plus they can get hurt by the rising labor and materials costs (lumber has doubled). So they have to build spec homes and then put them on the market, meaning buyers no longer get to chose their colors, options, cabinets, etc., as we did.
Growth in nearby Cedar City (50 minutes up I-15), and Hurricane (20 minutes away) is nearly as frantic as St. George).
So the population is booming, and it is all from an influx of buyers, mainly from California.
Gosh, I wonder why.[/quote]

People cashing out. I have two neighbors about to. Nothing to buy in red hot CA so they limp out of state to find something else

[Coronita]

[quote=spdrun]You ran all the way to Utah to live in a “planned community” with an HOA who’ll want to control how to live?[/quote]

Is that what a co-op is in NYC?

[spdrun]

^^^

Sure, but if I moved to Utah or Nevada, I’d look for a few acres out in the desert where I could do whatever the hell I wanted. Weld and build stuff at midnight, test motorcycle engines at 3 am, raise chickens, put up solar panels, hang laundry in the yard, etc. Isn’t that the charm of living in a sparsely-populated state?

Also, HOAs make sense in structures where units share walls. They’re overkill in single-home communities. Why would I need someone to tell me what color my door should be painted or what age my car is allowed to be? I can decide that myself.

[Author]

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