Posts

If You follow us on Social Media (If you don’t you should) you’ve probably noticed a couple of properties we just listed with multiple units. So it got me thinking, what are some of the advantages of owning these types of properties and why you should consider it!

Duplexes are a great start for those who are interested in investing in real estate. And, a superb (yet out-of-the box) strategy for first-time buyers. Duplexes are unique, and can prove to be a winning proposition!

Five advantages of owning a duplex


  1. Affordability

A duplex can be a great start for you if you are looking to buy a bigger home in the near future. Why? Rental income. The potential to finish `which helps pay off the mortgage.

  1. Get help with your mortgage

As I mentioned above, you can use your rental income to pay off the mortgage much quicker making it more affordable. This is one of the greatest advantages when owning a duplex which is why it’s appealing for new or seasoned investors.

To help paint a picture, let’s say your mortgage payments on the property is $1,500 per month. You rent the other half of the property for $950 a month, which leaves you only paying only $550 a month! If that isn’t turning some gears in your head then I don’t know what will.

  1. Live in one side, work from the other

If you’re an aspiring entrepreneur who want’s an affordable workspace why not work from next door? Living next door to the office can save you time and money in the long haul. Say goodbye to the long hour commute.

  1. Use the second unit for family

If you have an older family that need close attention, a duplex arrangement might be a great solution. You can all have peace of mind knowing your just a doorknock away. Another idea, rent it out to a family member who’s just graduated from University but can’t quite afford their own place yet. Not only will they be thankful but helping family and friends is one of the most rewarding feelings.

  1. Airbnb

We’ve all heard of it but does it work? There are numerous investors (new and experienced) who are taking advantage of the airbnb platform. Having the ability to rent out half of your property for a certain time is a win win. Check out how you can take advantage with a click youtube search to get started!

“Is the market going to crash?” is the most popular question I get these days. The second most popular question: “Is this a good time to buy or sell?”

If you’re reading this, you’re probably wondering the same thing!

While I certainly cannot predict nor guarantee the future, all indicators point to a price correction. Many individuals fear another recession looming and if we follow historical cycles, we’re about due for one. I am NOT an economist and cannot predict a recession; however, I do actively study my market and can tell you that the activity I see is trending towards a price correction in residential real estate.

The pivot began in earnest, this past summer (right around July 2018). The San Diego region has been plagued by a housing shortage for decades and that shortage became more pronounced over the last decade. As we came out of the ashes of the great recession (circa 2010-2011), large investment institutions started to scoop up dirt-cheap properties to fill their portfolios.

Many new-construction projects were tabled or completely scrapped because many potential consumers were NOT able to finance purchases due to the negative credit impacts caused by short sales and foreclosures. Those consumers had a need to rent- hence rents in San Diego have skyrocketed! As the inventory on the resale market dwindled and consumer demand increased, prices began to inflate to near pre-recession levels (fueled heavily by extremely low interest rates). And, as of this year we’ve reached that peak!

So to the naked eye, you’d say, “Oh man, here we go again!” But, I believe this is a different type of correction – I don’t believe we’re experiencing an economic bubble burst (at least not yet), rather we’re experiencing an “Affordability” bubble burst! The truth of the matter is that something had to give! Housing has become too expensive –  plain and simple.

If you take into consideration median incomes compared to housing costs, the only two cities (in California) that are more expensive than San Diego to live in are San Francisco and Silicon Valley (i.e. San Jose). Let that sit for little bit. This means that it is technically less expensive to live in Los Angeles proper, than San Diego! That’s insane! So of course, consumers say, “Enough is enough!” And, the market has stalled! Add National economic trends to the mix, along with the Fed increasing interest rates and BOOM – a perfect recipe for prices to trend downward.

When this price correction trend begins, listings begin to sit a bit longer on the market with absolutely no offers in hand and quite possibly no showings. Then price reductions begin…

Neighbors who’ve been sitting on the fence waiting for the peak to come, place their home on the market to hedge against any further equity loss. Wanting peak pricing, they list high and their house sits endlessly on the market with nothing happening. They reduce the price…no bites…and then they reduce it again…nothing. The price reduction trend goes viral, inventory doubles (almost overnight) and buyers have more leverage to negotiate a deal…

Increasing interest rates however keep buyers on guard because their purchasing power is dwindling. So they write lower offers and stick to their guns… They will even walk away from the offer they made you and bid on the neighbor’s home instead (even though they like that house less). But heck, they’re getting a better deal, and this pattern continues – on and on…

…This is where we currently are in the market – at the beginning stages of an affordability bubble bursting!

Here are some stats on inventory:

The number of homes for sale has increased dramatically in the last quarter.  San Diego is up 26.5% from the same time last year with 8,051 Active properties today.  Last year this time there were 6,537.  According to Infosparks, San Diego sales were down 20.7% in September, rolling three months down 11.4% and for the year down 8.9%.

https://markets.businessinsider.com/news/stocks/redfin-report-for-sale-home-supply-surges-in-hot-west-coast-markets-1027594652

So what should you do? First and foremost – DO NOT PANIC! Do not act out of fear. First assess your situation and determine what your goals are (the “WHY” of things). Once you’ve defined your WHY, team up with a pro to define and create a strategy for the “WHAT” and the “HOW”!

Keep an eye out for my next article where I address what you should do if you’re a condo owner!

*this article expresses the opinions of the author and is NOT to be considered as legal, tax or financial advice. *

 Listing Price: $600,000

Neighborhood: Chula Vista

Address: 1047 Southview Circle.

Profile: 1,911 sq. ft. | 4 bed, 2.5 bath

To schedule a showing contact David Castillo | 619.920.6983 | David@agentprolific.com


Le

I

had the distinct pleasure of meeting the Maciel’s at an open house my team and I hosted. Like anyone who’s interested in becoming a homeowner, one does their research and proceeds to have a plethora of questions. So we listened, gave our input, and after a month from our initial greeting, Jaime & Tara were ready. They were serious, you’d probably be too if you had homeownership set as one of your goals for the year! For the Maciel’s, location was the key focus for our house hunt. Unfortunately at the time, the Maciel’s were residing in a neighborhood notorious for trouble, and they were fed up with it. My goal was to move them out ASAP, and provide a quality list of homes to view. This became more than an average home search, it was a search for peace of mind.

If you don’t already know, the housing market is extremely limited at the moment. Some homebuyers get discouraged with that fact, but we didn’t let that change our decision on moving forward. As luck would have it, after only a week of house hunting and reflecting on our options, we honed in on a property off East J Street in Chula Vista. We were excited! It was in budget and exactly what we were looking for. A single story home, plenty of room for entertaining guests, and most importantly, it was in a safe neighborhood. We submitted an offer and shortly after our offer was accepted! The stars were aligned, everything seemed perfect, and just as I thought nothing could go wrong, it did.

Look, opening escrow can be a smooth process, smooth like butter if you’re proactive and have a great team working together. This deal however put on the pressure! Life was testing both ends. On my clients side, they were being forcefully evicted, and expected to be out of their rental property the same day we were to close escrow. The only problem was, the sellers were way behind schedule. The big question became, will the sellers be moved out on time? My clients were afraid of being homeless and on top of it, were facing potential legal trouble from their old land lord. They were worried, but I reassured them we would figure this out.

When things couldn’t go more wrong it did. The wife of the sellers delivered her baby days away from escrow and they hadn’t started packing! There was no way they were going to pack everything up by themselves, so I took matters into my own hands. With escrow scheduled to close the next day, I skipped the office and head to my clients soon to be new home. All I saw was a large shipping container, a moving truck, and 5 little kids running around inflicting more stress for everyone! I hopped out the car, got my hands dirty and helped that family move everything until we finished the next day. I wont get to much into detail, but I will say we moved out A LOT! When it was all over relief set in, all the work paid off, my clients were getting a new home!

After all that work, I was able to give my clients the keys to their new home on time. It was so worth it. We really busted a mission to make that day possible. We don’t quit when we see adversity. It drives us to only work harder. Now the Maciel’s are proud homeowners and eager to make this new home theirs! The search for peace of mind concluded. We they and their son are in a safe neighborhood. We always have our friends and clients backs, remember that when you decide to buy or sell your home. 

P.S I recently paid a visit to their home and it is awesome! I can’t wait to share that story and photos with you guys soon.

Are you aware of what Proposition 60 can do for you? Are you ready to cut your cost of living to a whole new minimum without sacrificing your quality of life? If so, you are ready to hear about an exciting new development in title law. Did you know that you can transfer your home title to a whole new property without raising your property taxes? As a matter of fact, you can lower them to a level that you will be completely comfortable with. Thanks to the passage of Propostion 60, you can remain a home owner while downsizing your costs without losing your comfort.

Are You Ready to Cut Your Basic Cost of Living?

You may be ready to cut your cost of living in Southern California but you may not quite know how. Thanks to the passage of Proposition 60, there is a way to make downsizing property in San Diego a reality. You can transfer the title from your present home to a new location of equal or slightly lesser worth while also keeping your property taxes at their present level. This is a one time offer that you are fully qualified to take advantage of. The time to do so is now as this offer is strictly limited.

How Can You Transfer Your Title to a New Home?

If you are interested in transferring your title to a new home, you can do so by means of the brand new Proposition 60 enactment. Your reasons for doing so may come down to a number of factors. Your children may have flown the nest or you may have recently suffered a bereavement. Regardless of your reasons, one thing is clear: You have the ability to transfer your title to a whole new property without having to suffer the penalty of increased taxes. To do this, you need to take advantage of the new rules that Proposition 60 has established for home owners who are over the age of 60.

There is No Time Like the Present to Lower Your Home Taxes

If you are interested in downsizing property in San Diego, now is the time to learn what Proposition 60 can do for you. You can move to a whole new location in an exciting new area of your choice without having to suffer the sting of an increase in your applicable property taxes. There’s no need to hold on to an excessively costly property due to sentimental reasons. If you want to be free of an oppressive financial burden, now is your time to cut the cord. Feel free to contact us in order to learn more about what Proposition 60 can do on your behalf.

Excerpt:

If you are ready to cut your cost of living in Southern California, we can help. Downsizing property in San Diego is easier than ever to accomplish. Contact us today for details.

1370 Judson Way.

Chula Vista, CA 91911

For More Information regarding this Property

Contact: DAVID CASTILLO

Phone: (619) 920-6983

Email: David@agentprolific.com

 

Sold:$750,000

Neighborhood: Bonita

Address: 3816 Bonita Glen Terrace

Profile: 3,415 sq. ft. | 5 bed, 4 bath

Bonita is one of those neighborhoods that is filled with pride; you can hear it in the tone of the people that fill it. We’ve had the pleasure of meeting great families, community leaders, and business owner’s of the area over the years. There’s something about Bonita and its ability to surprise you at any moment. That moment is this home and we are beyond excited to list this for you. We think this home capture’s the spirit of Bonita perfectly. With plenty of greenery and natural lighting, there is a healing like element that allows you to unplug from the unnatural fast pace of society. This home is perfect for a family small or large. Come visit this beautiful home and paint your picture perfect home.

 Miguel Contreras of Agent Prolific | 619.977.6447

“Live Prolific”


 

Happiness awaits up Eastlake trails…

SOLD

NeighborhoodEastlake

Address: 1450 Marble Canyon Way

Profile: 2,159 sq. ft. | 4 bed, 3.5 bath

Across from the incredible Otay Lake is the neighborhood of Eastlake Vistas. Eastlake is one of south bay’s fastest growing communities, with business and lifestyle in mind. This property can be found minutes away from local schools, parks, and of course, trails. This home is perfect for a growing family who enjoys an active lifestyle. This Large Olympic Vistas Home offers 4 bedrooms with a Loft (optional 5th) and 3.5 Bathrooms. The home boasts an open Concept kitchen, with upgraded tile flooring and counters. Also equipped you’ll find a fireplace, large balcony, a yard with a fire pit, plus phenomenal panoramic views! You don’t want to miss out…

“Live Prolific”


Contact us for more information

Sold: $595,000

NeighborhoodAlpine

Address: 2665 Lobelia Rd.

Profile: 1,845 sq. ft. | 4 bed, 2 bath

Nestled in the hills outside of San Diego is this charming 4 bedroom home. It’s minutes away from the 8 freeway making trips to the city simple for you. Alpine living is perfect for those looking to unplug from the fast paced life of San Diego. This neighborhood isn’t all rural though; think suburban living with the ability to escape into the land in less than 10 minutes! There are plenty of shops, great schools, and of course the famous Alpine brewrey. (we can’t help but plug a great brewrey) The home itself is well kept and move in ready. The kitchen comes equipped with clean granite countertops which is complimented with tile flooring. All in all, this is home and neighborhood is beautiful. Enjoy the fresh air, beautiful sunsets, and even more beautiful nights under the stars.

To schedule a showing contact Miguel Contreras at 619.977.6447 or miguel@agentprolific.com

“Live Prolific”