Known for nearly perfect weather and centralized location near several other notable tourist destinations, San Diego is hugely popular.
San Diego is just a short commute away from the Mexican border, a mere two hours from LA, and about a half day’s drive from Vegas. It’s no surprise that so many people are buying up properties in America’s finest city! You might have even considered purchasing some property there yourself.
While there are plenty of great reasons to buy property in San Diego, there are a few things you should know before doing so.
Below, you will find 10 important considerations from one of the top San Diego property management firms. These tips will help you make an informed purchasing decision and get the most out of your new property!
1. Dual Agency is Allowed in San Diego
The phrase “dual agency” means that both the buyer and seller can work with the same agent. Some states require buyers and sellers to be represented by different real estate agents. Fortunately, you have the freedom to be represented by whomever you choose. You will need to provide written consent for dual agency, though.
While a dual agent can expedite the buying process, they are also tasked with serving individuals on the opposite side of the negotiating table. That is why you may want to consider working with your own agent.
2. Be Aware of Mello-Roos Taxes
In the state of California, some areas are subject to Mello-Roos taxes. Some districts, including several regions of San Diego, were set up in a way that limits property taxes. The state legislature responded by creating Mello-Roos taxes, which charge property owners based on the value of the land, not the structures themselves.
As you’re looking at properties, ask your agent if the property you are considering is subject to these taxes.
3. Make Sure to Review the Seller Disclosure
California has robust disclosure laws that are designed to protect home buyers. When you receive your disclosure report, expect it to be quite lengthy. While reviewing this document may seem tedious, it is important that you carefully look over each page.
If there is a known concern with the property or the structure, these documents will reveal the issue so that you can make an informed purchasing decision.
4. No Real Estate Attorney is Required
Certain states require a real estate attorney to be present during closing. This drives up closing costs. However, California is not one of those states. With that said, it may be worth it to hire a local real estate attorney if you are engaging in a complex property transaction.
If you are comfortable going without an attorney, you will simply need to partner with a title company to complete the transaction. Not sure which route to choose? Your real estate agent or an experienced San Diego property management company can provide additional insights into the benefits of each arrangement.
5. San Diego Property Management Companies Protect Your Investment
If you are purchasing real estate with the intent of renting it out, consider working with a knowledgeable San Diego property management company.
These agencies help to connect you with reputable renters, manage payments, and oversee other responsibilities on your behalf. The benefits of partnering with a San Diego property management firm include:
- Ability to easily screen tenants
- Complete marketing support
- Reduced tenant turnover
- Ability to act as a point of contact for tenants
- Making sure that rent is paid by the due date
- Fewer hassles in the rental process
Working with a San Diego property management company is one of the best ways to protect your investment.
6. Decide Whether You Are Going to Be a Full-Time Resident
Before you make your purchase, you should consider whether you plan on living at the property full-time or want to split your residency between two locations.
If you are not going to live at the property year-round, renting it out is a great way to make extra income.
Concerned about the wellbeing of your property while you are out of state? If so, then partnering with a San Diego property management firm can allow you to make a profit while protecting your property.
7. Your Presence Is Not Required at Closing
California is one of many states that do not require buyers to be present during closing. Your real estate agent and broker can represent you during closing if you’ve signed documents ahead of time or through a mobile notary.
If you are transitioning to San Diego from another state, this makes completing the transaction extremely convenient.
8. Home Buying Requirements Are Standardized
Despite the fact that the California real estate industry is heavily regulated, San Diego home buying requirements are fairly standardized.
For example, qualifying for an FHA loan in San Diego requires you to meet the same criteria as you would in any other state. To qualify for this type of loan, you’d likely need a minimum credit score of 620, a down payment of at least 3.5%, and a debt-to-income ratio of no more than 50%.
9. San Diego is a Popular Tourist Destination
As you may already know, San Diego is one of America’s top tourist destinations. Millions of people visit California and San Diego’s beautiful beaches every single year. Buying a property in San Diego gives you access to all this natural scenery, top attractions like the San Diego Zoo, and much more.
10. Investment Properties Can Provide Huge Returns
When you buy property in San Diego, you are making a great investment that can provide huge returns. Even if you only rent out your property for a portion of the year, you can earn more than enough to offset the cost of your purchase.
However, managing your own rental property has many challenges. That is why you should consider working with a San Diego property management firm. A property management agency will handle all of the stressful aspects of renting out your real estate investment while you reap the profits.
Whether you land in San Diego or another one of California’s many beautiful towns, you’re sure to enjoy the experience if you keep these tips in mind!