Do you know someone who will be attending college or graduate school in San Diego? Or perhaps they are starting their first job in San Diego. If so, we would love to discuss why investing in a property, versus renting, for the next few years makes financial sense.
Interest rates continue to be near historic lows, making financing very attractive. Though the San Diego housing market has been hot and prices have been on the rise, there are still many great opportunities to buy condos and townhomes close to San Diego’s campuses for less than $500,000.
In addition, there are a variety of FHA programs to choose from which could be very attractive to Baby Boomers/Empty Nesters looking to help their child get into his/her first home. Many people are under the illusion that they’d have to fork over a 20-25% down payment ($80,000 to $100,000) to help their kid get into a $400,000-$500,000 home—when in fact it can be done for less than $22,000.
Here’s how it works: The young adult goes out with Mom & Dad’s favorite Realtors – Maxine Geller and Eva Meier. They find a 3-bedroom home for under $500,000. Mom and/or Dad help him/her qualify for an FHA mortgage with as little as only 3.5% down. As owner/occupant, they can bring in a couple roommates for $750 each… and enjoy living in his own home for only $1200 a month. And it’ll only cost the parents $22,000 out of pocket.
We have done this with several clients and it is a total win-win! FHA is a sleeping giant that many agents and clients forget about— with interest rates at historic lows there’s never been a better time for Mom and Dad to help their adult children get into a home of their own. Let us know if you or someone you know has someone we can help with their first home.