San Diego has one of the strongest real estate markets in the nation. This makes it a great place to invest, particularly for those who are interested in buying a condo in Downtown San Diego. Aside from putting down roots in America’s Finest City, there are a number of impressive financial benefits people gain from condo ownership.
Avoid Increasing Rental Costs
Whether renting or buying, the demand for Downtown San Diego real estate is huge. Inbound workers, job seekers, college graduates, transplants, and San Diego locals alike have prompted an incredible increase in rental rates. While the costs of renting a condo in this region continue to rise, buyers have the ability to enjoy mortgage payments with fixed rates. If you intend to remain a long-term resident in this area, making the jump to property owner will come with significant financial rewards. If you stick to your budget, you’ll have more disposable and surplus income, and with a robust rental market, your property’s value will steadily increase.
Receive Tax Benefits
According to tax code, condo buyers are able to deduct origination fees and discount points, irrespective of whether or not they actually pay for these things. This means even if sellers pay the origination costs, buyers reap the tax benefits. Points and origination fees can lead to a considerable deduction, given they are typically representative of one percent of the total loan amount or more.
Enjoy Value Gains
Interest rates remain at a historic low, and this is giving California investors the opportunity to make healthy value gains. When added to the robust rental market and the soaring increase in property demand, buyers can expect considerable property value gains over time. Moreover, much like Seattle and the Silicon Valley, San Diego is fast becoming home to a number of impressive tech start-ups. This means that both property demand and property value will continue to rise well into the future.
Not only will condo ownership cut your overall living costs by eliminating the need to pay high local rents, but it will also allow you to start building towards a stable and financially secure future. As you continue making payments on this purchase, the amount of the unit that you actually own will increase, thereby producing equity. Given that property values are certain to rise, your equity will increase far more rapidly than it would in a weaker real estate market. This is money you can borrow against, use to finance the purchase of a second property or convert to cash when selling.
Interested in buying property in Downtown San Diego? Reach out to the real estate experts 92101 Urban Living. We specialize in Downtown San Diego properties, including penthouses, lofts, and condos in Little Italy, Marina, East Village, Gaslamp, Core, and the Columbia District. Give us a call at (619) 649-0368 and let us help you find your dream home. ')}