Is this a good to buy house now in Mira Mesa, San Diego - CA?

[Ankita Saverdekar]

Hi All,

My first post here!

I am thinking of purchasing a house in Mira Mesa area of San Diego, California. And seeking help regarding the market and right time to buy.

The house I am interested in is 5 Bed - 3 Bath, 2 Bedrooms+1 Bath is part of extension to the original.

Needs fix. I observed flooring and paint is needed.

Hearing a lot that recession might reduce the house price more and is better to wait.

Also, since this house needs fix, not sure what else to expect more for the fix.

Is it good to buy this big house and keep it for longer time thinking about the investment/rental property.

Any experience in this area would help!

[Dan H.]

"The future's not ours to see, Que será, será ..."

You were not clear if the rental/investment is immediate or after you have lived there.

I have purchased twice near market highs in 1992 and 2003. Both purchases at their low were down close to 20% (1993: purchase $167K, went down to ~$140K today worth ~$630K, 2003: purchase: $740K, went down to ~$620K, today worth ~$1M). Today both purchases make me look like a genius. I would have done better if I had purchased at the low but I did fabulous.

However, what happens if I did not purchase a an RE before significant appreciation. In 2012 I purchased an RE for $302K that today is worth ~$600K. I would have missed almost $50K of appreciation each year. in addition, in CA prop 13 sets your property tax based on purchase. Hold it long enough and your tax base is far below value.

So I do not have a crystal ball but I know the past has indicated purchasing at close to market highs has provided a good return for a long hold and I know that missing out on an appreciation cycle could result in being priced out of a market.

If you like the house and the area and can afford it, I recommend buy rather than wait for any potential, but far from guaranteed, price decline. This is especially true if you are purchasing the home to live in.

Good luck