DOWNTOWN HOUSING BOOM PUTS SAN DIEGO
IN "GREAT URBAN RENEWAL"

With approximately 9,100 condominium and apartment units either under construction, slated for construction or pending approval in Downtown San Diego, the large cranes populating the skyline are far from being an endangered species. There are currently 56 residential projects under way or in the pipeline in the East Village, Little Italy, and Cortez Hill areas of Downtown. CCDC is scheduled to release 1,442 condos and 339 apartment units in 2005 alone. In the last three years there have been more than 100 projects, which is pretty substantial for a 1,500-acre area.

Between 2001 and 2004, there were a total of 5,880 condos and apartments. Currently, there are around 2,300 affordable housing units downtown, with more in the works - CCDC is meeting its mandatory 20% of housing that is supposed to be earmarked for low-income families. A question that has remained is how many of the units that are already built or planned to be built should be for sale and how many should be rentals. Over the last few years, there has been a bit of a craze across the country to convert apartments into condos. The concern is enough that some cities like La Mesa and Imperial Beach are beginning to contemplate corrective measures.

Nationwide it is pretty standard to have 65% for sale units and the remainder as rentals. There are about 790 units that have been converted, are being converted or have submitted applications to convert in Downtown San Diego. Another 1,000 units were originally planned to be apartments, but were converted to condos before construction was completed.

Condo conversions are so popular because everyone wants to own their homes, especially with real estate prices being so high. In addition, there is a large gap between what a renter can pay and what a builder can sell a unit for. However, around 20% of downtown condos are for-rent units, a trend that will likely condo units rather than large luxury units are on the planning board. With the influx of people moving downtown, another thing the CCDC is watching is the amount of personal and quality of life amenities available. The CCDC is taking the initiative and spending a lot of money to ensure that there are grocery stores, dry cleaners and other amenities to meet the demand of a growing population. The community plan provides for parks, schools and neighborhood retail. The big push now for CCDC is a focus on the public realm - infrastructure support and big civic events.

Six Creative Ways to Afford a Home

San Diego's competitive housing market and steep home values can make home buying a challenge, you may want to consider the following options:

1. Investigate local, state, and national down payment assistance programs. These programs give loans or grants to cover all or part of your
   required down payment. National programs include the Nehemiah program, www.getdownpayment.com and the American Dream down payment fund from the Department of Housing and Urban Development, www.hud.gov,
2. Get the seller to provide financing. In some cases, sellers may be willing to finance all or part of the purchase price of the home and let you repay them gradually, just as you do with a mortgage.
3. Consider a shared-appreciation, or shared equity, arrangement. Under this arrangement, your family, friends, or even a third-party may buy a portion of the home and thus share in any appreciation when the home is sold.The owner/occupant usually pays the mortgage, property taxes, and maintenance costs, but all the investors' names are usually on the mortgage .There are companies that can help you find such an investor if your family can't participate.
4. Get help from your family. Perhaps a family member will loan you money for the down payment and/or act as a cosigner for the mortgage. Lenders often like to have a cosigner if you have little credit history.
5. Lease with the option to buy. Renting the home for a year or more will give you the chance to save more toward your down payment. In many cases, owners will apply some of the rental amount toward the purchase price.You usually have to pay a small, non refundable option fee to the owner.
6. See if you can qualify for a short-term second mortgage to give you the money to make a higher down payment.This may be possible if you have a good income and little other debt.

Source: REALTOR Magazine

home | mls listings | newsletter | schools | events | about mary | email mary

Copyright (c) 2005, Mary Mitchell Real Estate, All Rights Reserved

Site Design by: DesignerBlvd