San Diego Downtown Condos…

…can actually pencil out very will for purchasing rather than renting. They key is that you are planning on living in the downtown condo for at least 3 years or you are willing to rent it out if something comes up and you need to relocate. The numbers show that with a twenty percent down payment, you can own a downtown San Diego Condo for substantially less than renting…pencils out anywhere between 10-20% less per month. First let’s take a look at renting a one bedroom condo vs. buying the same downtown San Diego property.

Rent vs Buy One Bedroom Condos

The property tax and interest deduction used in the above model are based on an individual or couple being in the 27% tax bracket.  This represents a wage earner that would be considered low to moderate income by San Diego median income.  If you are in a higher tax bracket, which is likely, your savings would be greater.

We tend to err towards the side of caution as we would rather under-promise and over-deliver.  You can see by the last line that it could take approximately 10 years to make back your initial down payment via the savings of owning, however, this does not include the benefits of appreciation of the property values nor the rising of rents which we are really starting to see right now.

Rent vs. Buy Two Bedroom Downtown Condos

If you are considering the rent vs. own scenario for 2 bedroom condos, this is a similar scenario.  All of these 2 bedroom condos include 2 parking spaces and both La Vita andTreo have swimming pools and Jacuzzis.  They were all built within the last 8 years and are in good condition.

Due to the nature of the larger down payment, it takes longer to recapture the intial investment on the 2 bedroom condos, but it is likely the 2 bedroom condos will have a greater appreciation as the San Diego Real Estate market leads the nation out of the housing downturn of 2006-2011.

What if you don’t have 20% to put down?

Well, in this case you may still purchase with FHA, VAor conventional financing, but the numbers won’t work out quite as well.  Generally with less of a down payment, rates are higher and you have to factor in Mortgage Insurance (except for VA or Homepath).  For specific numbers regarding your situation, give us a call and we’ll connect you to the right properties and will show you if buying is a good option for you you.

We can help you purchase or rent so in the end, we’ll help you do what is best for you.

Cheers from your friendly downtown neighborhood real estate experts.