Why Should You Buy THIS Home?
I have this great listing in Downtown’s Marina District. It is a 2 bedroom/2 bathroom condo with 2 parking space and it is over 1,237 square feet. The property is located in Renaissance, which is one of the best locations downtown. It is directly across the street from Ralphs Grocery Store, Jimbo’s Natural Foods Grocer, and Horton Plaza. It is also a short walk to Seaport Village, The San Diego Convention Center, and The Gaslamp Quarters.
Renaissance was built in 2003-2004 and has 221 residences. The complex features two 24 hour desk attendants, one garage attendant from 7am-11pm, building manager, assistant manager, cleaning staff, pool, spa, outdoor fireplace, two commercial barbeques, beautifully landscaped
common area terrace, a well appointed fitness facility, and a conference room. It is a very well run building with a financially strong homeowners association. Renaissance also went through a scheduled common area remodel over the last year and has a fresh new look.
So why should you buy this property?
- The property is priced from $599,000-$625,000 and it is located on the 5th floor. The average price per square foot in the building year-to-date is $558.49 and this property is currently listed at $484.23-$505.25 per square foot. The current average list price in the building is at $616.99 per square foot.
- If you were to rent this condo or one similar, it would cost you right around $3,000 per month. If you purchase this property for $600,000 with 25% down, your mortgage would be about $2,280 (30yr @ 4.5% payment and interest). If you add the homeowners dues and property taxes you are right around $3,650 per month.
- That is approximately $9,800 a year for the first few years. This interest could possibly be a tax deduction if this is your primary residence or qualified second home.
- Now factor in appreciation. We will use a very conservative rate of 5% a year, which over the past few years we have had double digit appreciation year over year in Downtown San Diego.
- 1st 12 months: $630,000
- 2nd 12 months: $661,500
- 3rd 12 months: $694,575
- The lot directly north of Renaissance is owned by Bosa. Bosa is a condominium developer from Canada. There is a good chance that a condominum complex will be built in that lot in the next 5-10 years. The current cost of construction for a luxury highrise complex is estimated around $600 per square foot due to the cost of steel and concrete. That would mean in order to make a profit a developer would be looking to sell for an average of $750 per square foot. That would raise help raise the values of the surrounding buildings.
- In 3 years, you would have paid $108,000 in rent, which you will never get back. The same 3 years of homeownership would cost you approximately $131,688, which doesn’t take into consideration the possible tax writeoff. You would have paid your loan down by $22,795 and your investment would have potentially increased by $94,575, if not a lot more. I would say that $131,688 over 3 years was much better spent than the $108,000 you would be giving to someone else!
- With the money spent on homeownership you built equity, while living in a great condo and location!
On top of building equity, rents are estimated to rise almost 20% in the next 5 years. Click here to look at an article in the Union Tribune about a rent study in San Diego County. We have already seen a drastic leap in rents in Downtown San Diego.
- 645 Front Street #504, San Diego, CA 92101
- 2 Bedroom / 2 Bathroom
- 1,254 Square Feet
- North Facing Condo
- Offered At: $599,900-$624,900
- HOA Dues: ~$775/mo
- 2 Parking
- 1 Storage Room