[KristopherSD]

Thank you for the insight into the neighborhood and school system. I definitely see the schools as being the biggest problem but won’t have to worry about that for at least another 8 or so years hopefully. Otherwise it seems like Talmadge is becoming nicer and nicer with a lot of the restoration projects going on and the recent undergrounding of utilities. The community also seems to be highly involved and cares about the neighborhood.

From an appreciation point of view I’m hopeful it could eventually become the next Kensington. The proximity to El Cajon Boulevard and lack of a real business area catering to Talmadge are the biggest barriers to that happening from what I can see. I plan on living in the area for a very long time so that would simply be a bonus. Prices seem to be aggressively climbing in the area as well lately.

[KristopherSD]

28 year old millennial reporting in. I wasn’t in a position to buy during the the bulk of the prices increases over the last few years. I could have conceivably purchased in 2015 but thought that prices couldn’t go much higher. Clearly I was dead wrong! I’m looking in the Talmadge area and prices are absolutely skyrocketing. I’m talking $100k+ increases in a single year between very similar properties.

The money is flowing everywhere here and i’m unsure how people are doing it. Looking at the average downpayment for the area over the last few months people are putting down under 7% and prices are $675k+. So somehow they are managing $4000 or more payments for these places. That requires two hefty incomes. I’ve saved enough to put well over 20% down but am getting hammered by people offering above asking almost immediately after places are listed.

Looking further east even to Santee places are going for over $500k. These are starter homes that need work. I dont see how any first time buyer can afford these prices without either seriously stretching or help from mom and dad. I feel fortunate to have saved so much but at the same time like a fool for missing out on the massive price increases. Savers are apparently losers!

I don’t see how things can normalize at this rate. To me it’s people with equity from price increases trading with others with equity. I doubt there are many organic first time buyers at these prices. Things will keep going higher and higher and either it flattens out or violently crashes again.

[KristopherSD]

Thank you for all of the replies so far, it’s been about what I expected. Half saying to wait it out and keep saving and half saying to suck it up and either go a different direction or purchase. I can definitely see truth in both aspects. I have considered buying a condo in the past and waiting to buy a home until later. The benefit of a condo would be that I get into a nicer area, specifically Point Loma, which I really like.

I really like the idea of being debt free and can see myself paying off a condo quickly and later purchasing a home and renting out the condo. I think if I were to purchase a condo I would likely pay it off in under 5 years and move on. I understand that I could be investing the money in the market but I already have a defined benefit pension and max my 401k so feel like my bases are covered there. Aside from that I feel we are on the precipice of a recession anyways and would be wary of Investing heavily into the market outside of my retirement accounts which won’t be touched for decades.

My other option would be to purchase a $550-600k home that needs significant cosmetic work. I am fortunate to have a family member who is very experienced in remodeling homes and is chomping at the bit to help me. I would still probably try and pay a home down as well. Either route I would go would hopefully result in having low bills and flexibility to travel and not be constantly stressed about money like a lot of my peers. Most of my family is in San Diego and I plan on remaining here until retirement age at least.

[KristopherSD]

[quote=bearishgurl]On second thought (I haven’t actually looked), I think you might be able to do Allied Gardens for $450K or less if you keep submitting offers and remain patient, Kris, but it will likely be a smallish house (1500 sf). Also, unless you’re going to leave that original knotty pine (LOL) in the kitchen and room divider, those houses are lacking in character (a good portion don’t even have FP’s). Of course, a lot of people today would be turned off by knotty pine. I haven’t looked to see what the flippers are doing over there but I think its a great location!

As far as LM, maybe you can get an offer accepted on a 75+ yo smallish house in 91941 near the village but I would be prepared for hidden termite damage that the seller’s pest control company doesn’t find. It’s possible that what you buy there would turn out to need far more time, skill and money for rehab than you originally envisioned. It’s a charming, walkable area with the trolley running through but you will need to budget at least $150 extra per month to run A/C at least 6 mos year. As far as 91942 goes, most of those homes are too big for your price range so I don’t think you would be able to find anything for <=$450K unless it's really beat up. And most of those homes are picked up by cash investors. I can’t comment on San Marcos, Oceanside or Vista.[/quote]

This is just mind-blowing to me that with $450k for a home and an additional $70k for remodel, with a overall total of $520k, I’m still not guaranteed a decent place. $520k won’t even get me into the city by your account, and will land me a smaller home in outlying areas. How can this unreality possibly continue? With my income I am supposedly in the top 15% of income earners in the US, yet somehow I feel poor when it comes to purchasing a home anywhere near San Diego. Unbelievable.

[KristopherSD]

[quote=bearishgurl][quote=KristopherSD][quote=FormerSanDiegan]You are missing a key piece of information:

What are you current paying in rent.[/quote]

I currently pay less than $850 once split with my girlfriend to live in a small one bedroom cottage two blocks from the beach and restaurants in a nice area. Unfortunately we don’t have any laundry on site and no garage, but we’re making it work and can continue to do so for the next few years. Every rent vs. buy calculator tells me to keep renting forever at this rate.

I’ve also considered condos as some have mentioned, but don’t really like the reliance on others if the HOA goes to hell or issues arise. However i’ll keep an open mind as there are some nice condos for reasonable prices throughout San Diego in my price range.[/quote]

Kris, $1700? is very reasonable rent for a cottage two blocks from the beach with restaurants/retail, etc within walking distance. You likely aren’t going to get even five miles from the beach if you end up buying. If you have reliable street parking available that you don’t have to constantly fight over, I would stay put if I were you. Especially, if you like living near the beach.[/quote]

It’s actually $1250 for our place, I pay a greater proportion as I make a decent amount more than my significant other. In my mind it’s hard to beat that rent even without the nicer amenities. Hopefully this will allow me to bide my time and wait to purchase until the opportunity for a good fixer upper appears.

[KristopherSD]

[quote=FormerSanDiegan]You are missing a key piece of information:

What are you current paying in rent.[/quote]

I currently pay less than $850 once split with my girlfriend to live in a small one bedroom cottage two blocks from the beach and restaurants in a nice area. Unfortunately we don’t have any laundry on site and no garage, but we’re making it work and can continue to do so for the next few years. Every rent vs. buy calculator tells me to keep renting forever at this rate.

I’ve also considered condos as some have mentioned, but don’t really like the reliance on others if the HOA goes to hell or issues arise. However i’ll keep an open mind as there are some nice condos for reasonable prices throughout San Diego in my price range.

[KristopherSD]

[quote=svelte]What you don’t mention is how long you plan on keeping the home and/or staying in San Diego[/quote]

Thank you everyone for the input so far, I appreciate it! To answer your question, I plan on being in San Diego for the rest of my life hopefully or at least until retirement 25 years from now. Ideally I would buy my “forever” home that needs alot of work, and turn it into a nice home over the course of a few years.

I guess what puts me off buying now is what I consider very high prices. I cannot believe that fixer upper homes in Clairemont Mesa are going for $500k+ or $450k+ in La Mesa, not to mention $600+ in Ocean Beach. I wonder who is buying all of these homes, there cannot possibly be THAT many tech jobs around. Maybe I am wrong. I feel that I am in a very advantageous position with decent savings, no debt, and a stable job yet I somehow feel “priced out”. This leaves me wondering if others are stretching the budget to purchase.

[KristopherSD]

[quote=svelte]What you don’t mention is how long you plan on keeping the home and/or staying in San Diego[/quote]

Thank you everyone for the input so far, I appreciate it! To answer your question, I plan on being in San Diego for the rest of my life hopefully or at least until retirement 25 years from now. Ideally I would buy my “forever” home that needs alot of work, and turn it into a nice home over the course of a few years.

I guess what puts me off buying now is what I consider very high prices. I cannot believe that fixer upper homes in Clairemont Mesa are going for $500k+ or $450k+ in La Mesa, not to mention $600+ in Ocean Beach. I wonder who is buying all of these homes, there cannot possibly be THAT many tech jobs around. Maybe I am wrong. I feel that I am in a very advantageous position with decent savings, no debt, and a stable job yet I somehow feel “priced out”. This leaves me wondering if others are stretching the budget to purchase.

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