Starter home or condo in Encinitas

[Anonymous]

If can pay 550-575k you might check out this house:

http://www.encinitascarlsbad.com/page.cfm?page=HomeDetail&ID=508982

Also, Click on the map below and focus on the homes with the green dots that are east of El Camino. Some are in the 600s, no mello roos, great location, but still pricey…

[Anonymous]

If can pay 550-575k you might check out this house:

http://www.encinitascarlsbad.com/page.cfm?page=HomeDetail&ID=508982

Also, Click on the map below and focus on the homes with the green dots that are east of El Camino. Some are in the 600s, no mello roos, great location, but still pricey…

[Anonymous]

http://www.encinitascarlsbad.com/page.cfm?page=NewMap

[Anonymous]

http://www.encinitascarlsbad.com/page.cfm?page=NewMap

[hawk]

Juice
Thanks for the recommendation. Right now we really couldn’t afford those houses due to the hoa/ mello roos.

I guess we just need to hope that we can save our butts off in the next year plus and see prices go town in encinitas. It would be really nice to buy a sfr and just be able to live in it for a long time.

It’s difficult for me as a women to get a law degree work for a few years and then I am going to want to have kids. We don’t want to overextend ourselves on a mortgage so that we would be forced to sell or work full-time.

I am set on being able to work from home or part time when the babies come!

We are working on reducing outstanding debt…thankfully we only have my student loans (federal ones at a low 2.75) and 7250 on my car loan. Please don’t yell at me for the car loan, I have driven beater cars my entire life and financed a used corolla, partially to have my husband have some credit established. I paid 2k last month on my car loan and should have it paid off in 3-4 months.

Then, it is all going to go to savings!

C

[hawk]

Juice
Thanks for the recommendation. Right now we really couldn’t afford those houses due to the hoa/ mello roos.

I guess we just need to hope that we can save our butts off in the next year plus and see prices go town in encinitas. It would be really nice to buy a sfr and just be able to live in it for a long time.

It’s difficult for me as a women to get a law degree work for a few years and then I am going to want to have kids. We don’t want to overextend ourselves on a mortgage so that we would be forced to sell or work full-time.

I am set on being able to work from home or part time when the babies come!

We are working on reducing outstanding debt…thankfully we only have my student loans (federal ones at a low 2.75) and 7250 on my car loan. Please don’t yell at me for the car loan, I have driven beater cars my entire life and financed a used corolla, partially to have my husband have some credit established. I paid 2k last month on my car loan and should have it paid off in 3-4 months.

Then, it is all going to go to savings!

C

[sdrealtor]

Hawk,
There are many nice areas that you probably havent seen yet in the area with no or very low fees. Without any financial information from you, I probably have a good idea of what your life will look like over the next 10 years as it is what I just went through (i.e. a couple of kids, wife with great job who took a couple years off, then a couple years part time and now just starting back at around 60%). Life does get different and more expensive when kids arrive and it is best to build up reserves now. You could easily find yourself in a deficit spending mode for a couple years as the kids approach school age. But if you do it right you will be in a great position once they reach school and you can get back to working a bit more.

Based upon what I suspect your earnings are, you should try to stay at 450,000 or lower if you can. Hopefully prices will get that low or lower for something nice and I’d wait until the do. If you have questions about any areas post them here. I have owned/lived in multiple properties in the area and have friends living pretty much everywhere. I know where the busy streets are, where the crazy neighbors are, etc and would be happy to point you in the right directions. When the time comes to look I suggest you find yourself a good local experienced agent as there are many around here that really know the area and genuinely care about their clients. From my experience, the best properties/deals go quickly and often never see the mls so its best to work with a well networked agent.

I hope it all works out for you and yours as this is the most wonderful place I have ever lived and feel so fortunate to be able to raise my family here.

Best of luck!

[sdrealtor]

Hawk,
There are many nice areas that you probably havent seen yet in the area with no or very low fees. Without any financial information from you, I probably have a good idea of what your life will look like over the next 10 years as it is what I just went through (i.e. a couple of kids, wife with great job who took a couple years off, then a couple years part time and now just starting back at around 60%). Life does get different and more expensive when kids arrive and it is best to build up reserves now. You could easily find yourself in a deficit spending mode for a couple years as the kids approach school age. But if you do it right you will be in a great position once they reach school and you can get back to working a bit more.

Based upon what I suspect your earnings are, you should try to stay at 450,000 or lower if you can. Hopefully prices will get that low or lower for something nice and I’d wait until the do. If you have questions about any areas post them here. I have owned/lived in multiple properties in the area and have friends living pretty much everywhere. I know where the busy streets are, where the crazy neighbors are, etc and would be happy to point you in the right directions. When the time comes to look I suggest you find yourself a good local experienced agent as there are many around here that really know the area and genuinely care about their clients. From my experience, the best properties/deals go quickly and often never see the mls so its best to work with a well networked agent.

I hope it all works out for you and yours as this is the most wonderful place I have ever lived and feel so fortunate to be able to raise my family here.

Best of luck!

[Raybyrnes]

Hawk,

An easier way of paying the car off would be to contact your student loan servicer and request a forbearance. You could re route the payments towards paying off the car and come back to the Student Loans in the future. If you are both working at the moment your are phased out at around 110K on the student loan interest deduction (should be a couple of CPA’s on this board who can verify the #’s) but if you plan on cutting back hours when you have kids this would be a decent time to begin paying this back when the interest on each month payment potentially becomes deductible. Don’t know if this helps or not.

[Raybyrnes]

Hawk,

An easier way of paying the car off would be to contact your student loan servicer and request a forbearance. You could re route the payments towards paying off the car and come back to the Student Loans in the future. If you are both working at the moment your are phased out at around 110K on the student loan interest deduction (should be a couple of CPA’s on this board who can verify the #’s) but if you plan on cutting back hours when you have kids this would be a decent time to begin paying this back when the interest on each month payment potentially becomes deductible. Don’t know if this helps or not.

[DaCounselor]

“Condos:

> little control over costs (HOA, special assessments)
> more influenced by distress sales (for example, in an SFR you can argue that you have a better lot, better sunlight, etc than the distressed property across the street that just closed escrow for $50K less than your asking price – when the condo three doors down from you with the exact same floorplan sells for $50K less than yours, try telling a buyer how your condo is so much better than the distressed one and how that low-ball comp should not be considered)
> HOA tells you how to live (no junk on the balcony or patio, landscaping must be approved, no parking in the driveway, etc)
> common walls – I love hearing my neighbors {fill in the blank}
> poor construction – condos are the main reason destruction defect litigation exists
> lifestyle – looks and feels like an apartment complex

Anyone care to add to the list?”
__________________________________

These are all good and valid points, many of which can be argued both ways. With respect to a lack of control over costs, however, every homeowner can be as involved as they would like regarding HOA decisions. Everything from meeting attendance to actual board membership is possible. I believe (as the owner of 3 attached units) that the apathy amongst homeowners is evidence of a desire to not have to make the decisions regarding $$ – it is far easier to just write the check and not delve deeper and just live your life. And folks enjoy the benefit of the HOA when it comes to landscaping, exterior maintenance, roofs, etc. It’s a trade-off and not necessarily a negative.

Regarding distress sales, I would argue that a SFR in a planned community is no more immune from a low comp than an attached unit. Condos can also be differentiated by location within the complex (end unit, top floor, view, etc.) the same way a SFR in a planned community can be.

Condo owners must abide by varying degrees of HOA rules, which some folks find restrictive while others enjoy. Many folks don’t want to look out their window and see junk crammed onto their neighbors’ balcony, cars on blocks on the front lawn, a neon purple house across the street, etc.

I can assure you that poor construction is not limited to condos. There have been a large number of single family home tracts that have been slapped together and have been the subject of construction defect litigation.

As for lifestyle, we’re talking apples and oranges. Many folks like the lower maintenance lifestyle that condo living affords. Some condos are nothing more than apartments and some are very, very nice. And it’s often possible to get oneself into a better area for less money with a condo versus a SFR. That is one of the real benefits I see. And I think that probably plays into the discussion of price depreciation – ie – what will happen to the $600K coastal condo versus the $600K house in North Park (or the like)? I guess we’ll see.

Oh, and when I’m talking about condos, I’m including in my head townhomes. Just a disclaimer. Anyway, I believe most folks prefer SFRs and with good reason. My only point is that condo ownership/living is not all bad and has actually worked out quite well for me and numerous other folks in my circle. I beleive condo ownership in a great location trumps SFR ownership in a less-than-great location. The end.

[DaCounselor]

“Condos:

> little control over costs (HOA, special assessments)
> more influenced by distress sales (for example, in an SFR you can argue that you have a better lot, better sunlight, etc than the distressed property across the street that just closed escrow for $50K less than your asking price – when the condo three doors down from you with the exact same floorplan sells for $50K less than yours, try telling a buyer how your condo is so much better than the distressed one and how that low-ball comp should not be considered)
> HOA tells you how to live (no junk on the balcony or patio, landscaping must be approved, no parking in the driveway, etc)
> common walls – I love hearing my neighbors {fill in the blank}
> poor construction – condos are the main reason destruction defect litigation exists
> lifestyle – looks and feels like an apartment complex

Anyone care to add to the list?”
__________________________________

These are all good and valid points, many of which can be argued both ways. With respect to a lack of control over costs, however, every homeowner can be as involved as they would like regarding HOA decisions. Everything from meeting attendance to actual board membership is possible. I believe (as the owner of 3 attached units) that the apathy amongst homeowners is evidence of a desire to not have to make the decisions regarding $$ – it is far easier to just write the check and not delve deeper and just live your life. And folks enjoy the benefit of the HOA when it comes to landscaping, exterior maintenance, roofs, etc. It’s a trade-off and not necessarily a negative.

Regarding distress sales, I would argue that a SFR in a planned community is no more immune from a low comp than an attached unit. Condos can also be differentiated by location within the complex (end unit, top floor, view, etc.) the same way a SFR in a planned community can be.

Condo owners must abide by varying degrees of HOA rules, which some folks find restrictive while others enjoy. Many folks don’t want to look out their window and see junk crammed onto their neighbors’ balcony, cars on blocks on the front lawn, a neon purple house across the street, etc.

I can assure you that poor construction is not limited to condos. There have been a large number of single family home tracts that have been slapped together and have been the subject of construction defect litigation.

As for lifestyle, we’re talking apples and oranges. Many folks like the lower maintenance lifestyle that condo living affords. Some condos are nothing more than apartments and some are very, very nice. And it’s often possible to get oneself into a better area for less money with a condo versus a SFR. That is one of the real benefits I see. And I think that probably plays into the discussion of price depreciation – ie – what will happen to the $600K coastal condo versus the $600K house in North Park (or the like)? I guess we’ll see.

Oh, and when I’m talking about condos, I’m including in my head townhomes. Just a disclaimer. Anyway, I believe most folks prefer SFRs and with good reason. My only point is that condo ownership/living is not all bad and has actually worked out quite well for me and numerous other folks in my circle. I beleive condo ownership in a great location trumps SFR ownership in a less-than-great location. The end.

[hawk]

Dear Ray:
Thanks for the advice. We are currently saving as well while paying off the car. Our income is such that we can easily pay 1500-2k per month while still paying the student loan at $250 and saving $500.

I don’t know if it would be worth it to request a forebearance for a few months, but we might just put the savings toward the car?

We are getting used to budgeting with our combined incomes and are realizing that if we keep our spending low we can really start saving.

sdr: I think 450k is right where we want to spend. Maybe a little more if we wait longer and save more. After the car payment is paid off my goal is to save 3k per month.

c

[hawk]

Dear Ray:
Thanks for the advice. We are currently saving as well while paying off the car. Our income is such that we can easily pay 1500-2k per month while still paying the student loan at $250 and saving $500.

I don’t know if it would be worth it to request a forebearance for a few months, but we might just put the savings toward the car?

We are getting used to budgeting with our combined incomes and are realizing that if we keep our spending low we can really start saving.

sdr: I think 450k is right where we want to spend. Maybe a little more if we wait longer and save more. After the car payment is paid off my goal is to save 3k per month.

c

[sdrealtor]

FYI, that 450K figue will hopefully get you a nice starter SFR. Up to 500K is probably doable but not optimal as once you get in you want to start making it nice. The Home Depot trips add up quickly. The truth is w/o an accurate picture of your situation these are very rough guidelines. Hopefully, it will get much more affordable that that for you. I beleive 2 more rounds of Fall/Winter slow sales will open up some much better opportunities and the earliest I would think about buying if I were you would be November 2008 when sellers are seasonally at the bottom of their optimism.

If you end up in a townhome, try to get at least 1500 sq ft. I say this not just for the space but because it will keep you out of communities that you might not be happy in beyond 2 years.

One last thing, if you dont have family support in the area dont forget to account for help with your kids. Even if you are not working, you will need help around the house not to mention some time out with your hubby as a break from the kids.

[Author]

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