San Diego drastically outperforms Bay and LA on rents

[Coronita]

[quote=Escoguy]They were discussing some pretty steep assessments to get the building fixed.

Apparently there was some pushback due to the amounts 200K per unit and up.

I think there is much more to this story than many will want to come to light.

If this can happen with a 40 y.o. building then???

Are older buildings structurally sound?
What kind of maintenance program is needed to prevent this?
How to prevent condo boards from delaying needed repairs?
How will lenders react?
What will this do to insurance rates?
Is the Japanese mindset of tear down the older property more appropriate?

I don’t think they will find any survivors.[/quote]

balcony failures are not uncommon… But something of this magnitude, doesnt happen often.

https://www.latimes.com/local/lanow/la-me-ln-berkeley-code-violations-20150619-story.html

[scaredyclassic]

[quote=Coronita][quote=Escoguy]They were discussing some pretty steep assessments to get the building fixed.

Apparently there was some pushback due to the amounts 200K per unit and up.

I think there is much more to this story than many will want to come to light.

If this can happen with a 40 y.o. building then???

Are older buildings structurally sound?
What kind of maintenance program is needed to prevent this?
How to prevent condo boards from delaying needed repairs?
How will lenders react?
What will this do to insurance rates?
Is the Japanese mindset of tear down the older property more appropriate?

I don’t think they will find any survivors.[/quote]

balcony failures are not uncommon… But something of this magnitude, doesnt happen often.

https://www.latimes.com/local/lanow/la-me-ln-berkeley-code-violations-20150619-story.html%5B/quote%5D

Thanks for this. My wife thinks I’m irrational for being terrified to go on any balcony. Now I have an explanation more rational than I’m afraid I will fling myself to my death.

[svelte]

Former maintenance man says the parking area would flood with 1-2 feet of salt water with every King Tide.

https://www.msn.com/en-us/news/world/ex-maintenance-manager-for-surfside-condo-that-collapsed-recalls-saltwater-intrusion/ar-AALvrfH?ocid=msedgntp

[sdrealtor]

The irony is all the terms he cites driving people here are even more a factor where he went and far more likely to dissipate there than here

These things take far longer than even the most pessimistic economist would predict and as they say in the long run we are all dead. He’ll never see any of what he’s predicting

[sdrealtor]

[quote=gzz]“ also prompted the high-earners to pick low-cost, low-tax areas ”

Citation needed.

You do sound increasingly bitter and engaging in confirmation bias reasoning to justify your decisions.[/quote]

incredibly so

[sdrealtor]

[quote=svelte][quote=scaredyclassic]

What’s the point of earning a lot of money if you have to live in a crap location.[/quote]

Doesn’t have to be a crap location, you can probably get a condo in Surfside, FL pretty cheap about now.[/quote]

It was never very expensive. The uncle of my best friend growing up owned a small motel two blocks north from where that building was. We spent a month there senior year in high school and a few other times. I know that area very well. Bunch of old condos that were old when I was in high school.

[Coronita]

B29…

Dang… im on a roll.

BINGO!

Come on, its pretty fun… join in and its easy.

create your own bingo board.

https://bingobaker.com/

[sdrealtor]

N32!

[svelte]

[quote=sdrealtor]Bunch of old condos that were old when I was in high school.[/quote]

Well Champlain South wasn’t old when you were in HS.

Champlain South was built in 1982.

Let’s say you’re 40. You were in high school 1994-98. Champlain South was 12-16 years old at that time.

[Coronita]

[quote=sdrealtor]N32![/quote]

BINGO AGAIN!

[sdrealtor]

[quote=svelte][quote=sdrealtor]Bunch of old condos that were old when I was in high school.[/quote]

Well Champlain South wasn’t old when you were in HS.

Champlain South was built in 1982.

Let’s say you’re 40. You were in high school 1994-98. Champlain South was 12-16 years old at that time.[/quote]

Class of 81! I was speaking to the general area. They are always adding and rebuilding but the core of that area is old school condos.

Note, my friends uncle sold the old Sea Patio motel years ago and its now an orthodox synagogue.

[gzz]

That penthouse is beautiful, love the marble floors and bathroom designs.

The kitchen screams 2007-ish renovation, but is perfectly nice. Funny how a million year old stone can look 15 years out of date, but about 6 colors of granite got way overused during the bubble.

I think the current trendy solid white quartz looks like an apple store or biotech clean room and will age badly as a matter of style.

If I had to do a reno I’d use forest green countertops and classic colors of marble and travertine for bathrooms. Travertine looks amazing as flooring but isn’t strong enough and requires a lot of small patching. It is great on walls however.

[gzz]

Another article on SD rents. This one says we are 10% YoY and beating both CA and USA figures.

Rental Rebound – SD County Sees Double Digit Growth, Return to Pre-Pandemic Levels

[gzz]

Metro Dallas prices are up 25% YoY and inventory down 67%.

https://ntreis.net/download/may-2021-monthly-market-indicators/?wpdmdl=8305

While a big outperformance of national prices would feel good, a national boom is more sustainable and lets our prices grow without hurting our competitiveness.

Longer term, I think Prop 13 and the lack of developable land make SD a better investment than places like Dallas and St George. At some point construction parts and labor will get more reasonable and housing prices there will decline to marginal cost + a fairly small location premium.

[EconProf]

[quote=gzz]Metro Dallas prices are up 25% YoY and inventory down 67%.

https://ntreis.net/download/may-2021-monthly-market-indicators/?wpdmdl=8305

While a big outperformance of national prices would feel good, a national boom is more sustainable and lets our prices grow without hurting our competitiveness.

Longer term, I think Prop 13 and the lack of developable land make SD a better investment than places like Dallas and St George. At some point construction parts and labor will get more reasonable and housing prices there will decline to marginal cost + a fairly small location premium.[/quote]

I agree with you that the lack of developable land in San Diego raises prices and rents. Add to that the influx of people from the even worse-run cities in the Bay area and LA, and San Diego prices and rent will benefit. But San Diego is tied to CA, which competes for worst-run state with the likes of New York, Illinois, New Jersey, etc. For years, CA ranks as most business-unfriendly, highest percentage of people in poverty (despite lavish welfare programs), and is tied with NY for highest taxes. Example: We have, by far, the highest gas tax and are tied with Rhode Island for worst roads in the US.
So as the new exodus from CA (Census Bureau) continues, San Diego will always have its ocean, mountains, and weather to benefit real estate investors. But these benefits could be outweighed by other factors. People can vote with their feet.

[Author]

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