The unit numbers in red are the ones that have sold. The smaller units facing the railroad and over the loading dock are selling rather well. These units are generally 1 BR (600+ sqft) in the $300,000s and 2BR (900+ sqft) in the $400,000s. The units that are larger, quieter, or have better views are in the $600,000s and $800,000s and are not really moving.
My theory here is that small money is dumb. There are a lot of people who can qualify for a $300,000 or $400,000 loan and are desperate to buy something, anything, for whatever reason. Let's run the numbers.
Assume 1-BR at $350,000 with 20% down. Your loan is $280,000 at 4.75%. That will run you $1460 a month in mortgage alone. Your property taxes are $350 a month. HOA dues of $400 - $450, so assume $400 for the smallest units. That gets you to $2210 per month for a small one bedroom on the railroad tracks! You can rent closer to the beach for $1265.
Any info on the soundproofing in these places?
ReplyDeleteSoundproofing defeats the purpose of living in a beachy, breezy area. Who wants to keep the windows and doors closed all the time?
ReplyDeleteWho wants to keep the windows and doors closed all the time?
ReplyDeletePeople who live 50 feet from the train tracks?
Beachy and breezy this isn't. It's stuck between a crowded roadway and a railroad track - it is an abomination!
ReplyDelete$300K to be 3 blocks from the beach!!! What a steal!!! In 30 years as you sit downstairs at Pannikin #26 sipping coffee, people will be dumbfounded when you tell them you only spent $300K. Way to go and keep up the good work. It's a steal and a real prize. The naysayers?? Just jealous whannbees...
ReplyDeleteIf you saved your $70,000 down payment plus the $11,340 per year rent difference, you'd have $1.9 million assuming the 7.75% returns that Encinitas taxpayers are guaranteeing city employees. Even assuming a more modest 6% return, you'd have $1.3 million.
ReplyDeleteYou think a small 1-BR apartment facing the railroad tracks in a 30-year-old building is going to be worth $1.3 million in 30 years?
It's certainly possible, but only if we get a currency collapse. In which case the nominal returns to saving and renting would almost certainly be much more than $1.3 million.
We'll be exchanging cabbage heads for currency in 30 years (perhaps less).
ReplyDeleteWC, where can I get 6% on my money?? Stop living in fantasy land. Either that or you work for the COE!!!
ReplyDeleteAsk Stocks and Houlihan. They figured out a way to give the unions a guaranteed 7.75%.
ReplyDeleteI hear Scott Bottolfson can do the same.