The sea, the sun, the weather… yes, there are many reasons why San Diego is expensive. Whenever I travel and tell people I am from San Diego, I can see the envy in their eyes. With this kind of cachet, it’s no wonder everyone wants to live here.
Of course, living in a highly coveted area does have its drawbacks especially when it relates to the American Dream of homeownership. Whether you are a millennial, or not, and think homeownership is out of reach, it’s time to start thinking outside the box. There are many people that don’t realize the following scenarios are perfectly acceptable to lenders:
- Have you and a roommate been renting for a while? Why not purchase a home together? My brother did this exact thing when he was fresh out of college and on his first job. He and his roommate purchased a home and held onto it for a few years until they sold it and went their separate ways with “beaucoup” equity. If you’re going to rent together, why not buy together?
- The family that plays together, stays together. If that’s the kind of family you are, why not buy a home together? Families in Europe have been purchasing homes together for decades. Multi- generational homes not only make purchasing easier since you are pooling your resources, but it also makes the payments more affordable. Get out of that apartment and buy a home!
- Is your sibling your best friend? If so, this is another reason to purchase a home together (even if you’re not BFFs it’s still a perfectly good reason to start building some equity).
- Can you afford a home but don’t want to be cash poor? Get a roommate (or two). There are so many colleges, universities and out of town transplants to San Diego that finding quality roommates is not difficult.
- Are your parents or other relatives looking for additional investments? Perhaps you could partner with them and purchase a home. They don’t have to live in the home as long as you do. This is a great way for them to benefit from low down payment owner-occupied loan programs and rates which are always better than loans for rental property. You pool your assets and income to qualify for the loan.
Now that I’ve given you a number of creative ways to purchase a home, there are no more excuses. Put your game face on and give us a call to help you put your home buying plan into action!
Helen Young is the Branch Manager of Choice Lending Corp’s San Diego office. She has more than 20 years of experience in mortgage lending. She obtained her Bachelor’s degree from San Diego State University in Business Administration and Accounting and is a Certified Public Accountant (CA inactive). She is a member of the San Diego Association of Realtors, Pacific Southwest Association of Realtors and the Women's Council of Realtors. She belongs to the San Diego Regional Chamber of Commerce and is a member of the California Society of Tax Consultants. She is also a CA Real Estate Broker.
* The information above should not be considered actual tax advice. Please consult a tax professional to discuss your specific tax benefits related to homeownership.