Dear Landlords and Investors,

The principles of leverage, supply, demand, and ROI still push appreciation. San Diego has proven to be a wise location for your investment dollars. But, don’t become complacent. Don’t lose track of why you are investing, regardless of how successful you are. Dealing with unexpected issues can make or break your business. So of course, you’re right to want to understand how the current market affects your property values. You deserve expert guidance. Here are details on what you need to know now:

2 Timely Topics this Month- One is coming up in the November election. The other is at the end of this year.

Prop 33

Prop 33 is on the November ballot. We have made it clear in our previous 2-4 Unit monthly updates. We the citizens have to do the state’s work. For years Sacramento has not done its job to build enough affordable housing. We have the highest fees in the country to build.

So our legislators came up with an idea. Of allowing overcrowding neighborhoods with a solution. ADUs or additional housing units. The inner city of San Diego is a mess with many areas being overbuilt. Lack of parking was already an issue. Now it is out of control.

Guess we are all supposed to use public transportation. Like they do in NY, Chicago, and many other large metropolitan areas across the country. So the ADU guidelines did away with the idea of having one parking space per unit. Not too many years ago every 2, 3, and 4-unit property was required to have one space per unit. That was done away with.

Now there are commercials on TV pleading for everyone to vote yes on Prop 33. The Momma’s and Papa’s beautiful melody of California Dreamin plays in the background. While the words and images convey the message that tenants can not afford to live here any longer. And they are leaving. Why? The rent is too high. Duh! Rents have never been raised as high until after the state-mandated Prop 1482 was enforced. Remember that was to ‘keep rents stable’. We wrote back then that in every place it was mandated the exact opposite took place. Here we are now with high rents. If you don’t keep your rents up then your property value will not keep up either.

One other thing Not in the commercials. Is the fact that Prop 33 allows local unelected bureaucrats to levy fees on all housing. Be it a single family or 2-4 units or more. See once 33 is passed we the people no longer have a say. We no longer have a vote. Nor do our local elected politicians. Please vote NO as this only does the opposite. It makes housing More Expensive. While voting remember to also vote NO on Prop 5 to prevent increases in your property tax bills.

Click the link here for the AOA’s take on Prop 33:

https://aoausa.com/why-is-prop-33-striking-fear-and-concern-in-single-family-homeowners/?

Mandated Balcony Inspections SB 326

We just completed our mandated ‘balcony inspection’ on a 2 story building. Fortunately, the inspector did not find any major issues. The cost was reasonable as the building was included with a number of others on the same block. So we now have an SB 326 Compliance Report in hand. When and if the state asks for it we can pass it along to them. Also, it will be required when the building is sold in the future to the new owner.

Please remember you only have till the end of this year to have your balcony and stairs inspected. Not sure what enforcement mechanism will be used. But why take a chance?

RECENT FAQ’s FROM CLIENTS LIKE YOU

With all of the price reductions and longer days on the market, what are you telling sellers who want to sell their property right now?

The good news is that the FED discount rate dropped a 1/2 a point today. We anticipate more buyers entering the market as rates continue to go down. Although the FED rate drop doesn’t impact mortgage rates exactly it does help with consumer confidence and their spending. We pay attention to the 10-Year Treasury Bond Rate for tracking mortgage back securities specifically. If that number is lower than what it was yesterday, it’s a sign that mortgage rates are heading down. And we’ve seen mortgage rates moving down recently.

We’re in an interesting time in the market right now. Buyers are rightfully cautious. Is your goal to sell your property before the end of the year? If so, why take the chance of overpricing the property? Out of the 56 units that sold last month, 39 of those took a price reduction to get closed! Strategically pricing out of the gate is the key. Otherwise, you’ll end up chasing a price-declining market with price reductions until you get the property sold. We are focused on pending properties right now. The true gauge of what’s going on in the market in real-time.

You are better off listing your property under market value. Bringing as much attention to it as possible. And a bigger buyer pool. With the right marketing plan, you can end up with multiple offers. Even in this changing market. Our experience shows this is the winning strategy. Sellers doing what it takes to get a property sold. Instead of the alternative, sellers sitting on the market with an overpriced property with no interest, no showings, and no offers. Not a place you want to be going into the traditionally slower part of the year.

KEEP YOUR QUESTIONS COMING! We love hearing from you. We answer your questions monthly in the market report. It’s important that you’re informed and educated about what you buy and why you’re buying it. Call, text, or email us anytime.

AND WHEN YOU’RE AT THE END OF THE GAME… READY TO RETIRE FROM LAND LORDING?

Let’s face it. Being a landlord has its ups and downs. If we had to point you in one direction it would be the Delaware Statutory Trust folks. And here’s why. With the DST, you get all the benefits of ownership. Without the hands-on day-to-day dealings of tenants and property management/maintenance. Plus it provides you with cash flow. And in a lot of instances, it’s even more than the relinquished property provided. Second of all, you have professional management and bookkeeping. It’s automatically done for you. We’ve touched on DST options in the past. Don’t be shy, contact us.

Bookmark-Worthy Links

San Diego Real Estate YouTube– Weekly Videos Keep You Connected

Rentometer-House and Apartment Rental Rate Comps

HomeBot-Personalized Home Finance Tool

ALTOS Reports -Powerful Data-Driven Real-Time Zip Code Market Updates

MLS Access for Investment Property -Custom Searches For Investment Property

San Diego Apartment Investors Market Report Archives-Access Past Market Reports

IT’S TIME FOR YOU TO GET THE ROI YOU DESERVE

You’ve worked hard for what you’ve earned, and you’re right to want the best experience. Be confident you have professionals on your side. We use ROI-based marketing. Rest easy knowing we use an organized system to market your property. Employing our highly targeted and proven approach like no one else is what you deserve!

Thinking of selling your property in the next 12 months? Call us today for your strategic marketing consultation at 858-218-4511.

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