San Diego Rents to Increase

Laurel Bay 3rd Floor coming!

We have a great 2 bed 2 bath 2 parking across from Balboa Park coming up for $559,000.  (not in MLS yet) What I love about this unit is the building is meticulously cared for with pool, spa, fitness, 3 party rooms and an owner's herb garden!  Did I say it has a really low HOAs?  It has wonderful restaurants on the bottom as well as Starbucks.  The balcony views Laurel Street.  This would make an excellent holding property.  We will rent it out for you and you can use it when it's vacant.   Lack of construction, mixed with employment and population growth, mean San Diego's downtown rent should increase by at least $155/mth by next year.  The University of Southern California's real estate school and Beacon Economics, said San Diego's rent increases will outpace those of LA.  This means more profits for landlords.  Rents for studios downtown are starting at $1900 with the 1 bedrooms going between $1900 and $2200.  2 bedrooms start at $2400 and go up subject to views and amenities.
San Diego renters are spending an average of 39.5 percent of their incomes on rent.  It is less than other areas of California.  Tenants in LA pay more thank 47%!  These findings show that there is strong job growth here.  With space limited in San Diego it makes obtaining building permits for multi-dwellings more difficult.

 Attention Landlords:  I encourage people to pull out $100,000 of their portfolios and purchase a rental property in San Diego.  The rental income will be close to offsetting any payments.  Even if you have to feed it a few hundred per month, the appreciation and tax advantage of owning a rental should be considered.  If you don't want the hassle of dealing directly with tenant issues, we have a wonderful property management company that will take care of that for you with no or limited vacancy. 

Downtown San Diego Investments

Attention Renters:  I encourage anyone who rents in San Diego to consider purchasing.  We have low and -0- down properties where the payments will be very close to what the rent is.  Remember you get to take advantage of the mortgage tax credit which is usually around $150 to $200 per month.  Conservatively, the appreciation should be at least 5% next year.  If you know anyone who is a veteran working in San Diego purchasing is a must.  If they are transferred, it is so easy to lease out.  I just closed one for a vet where he had nothing out of pocket.  Contact me at:  marsha@sellsandiego.com for a list.  Marsha