Advocating for San Diego Property Rights
Navy Veterans Discuss moving to San Diego and From San Diego – PCSing and Rental Properties
Two San Diego Navy Veterans Discussing PCSing to and from America’s Finest city – Deciding on whether you should own, rent, sell and buy in your (Point Loma, 32nd Street, Camp Pendleton, or beyond) duty station as an investment in building your legacy.
During the recording, feel free to skip ahead to the section most of interest to you. In this interview Jason and Clint discuss how as an active Navy Veteran you can explore real estate as a piece of planning for a life after service. The process of building wealth is not instant, it requires time and patients to explore, plan and implement while deciding what is most important to you. Knowledge creates opportunity and working with a team who have your interest at heart leads to new opportunities!
At the Legacy Realty Network, our mission is to support wealth building through real estate, leading to a path of financial freedom
We do this through financial education and personalized wealth building plans, the Legacy Realty Network team works to navigate the path towards home ownership and real estate opportunities for our clients. The end result, supporting our clients in following their dreams and passions.
Our network includes local education institutions, Active Duty military and Veteran communities, non-profit organizations and a worldwide network of professional, like minded Realtors. These connections create a platform to share ideas, experiences, and knowledge.
Working hand in hand with clients and our network of professionals, we strive to set the industry standard! Staying current on market trends, identifying opportunities for our clients, and exceeding our clients expectations
In the recording you will find the following: Each sentence has hyper-links to jump directly to that section of the conversation.
Greeting from Jason Rivera to active-duty Clint Bailey
Learn the story of Jason and his wife in how to fail at buying your first home, waiting too long cost you thousands of dollars. Money that could grow for your future, instead of paying someone else’s mortgage!
Intro PCSing to Hawaii Bought your first house link to Rich Dad Poor Dad the book.
You decided to buy – now what
Mindset – not dream home – 1st home
Shop around going forward to find the best fit for you Pluses and minuses in home buying – With no money down, and no taxes on the money used for a place to live, what have you got to loose?
Spouse and Agreement of location, type, considerations The important concept of communication!
Lessons Learned – what would you do differently?
EARL and pitfalls/advantage -watch interest rates and use to drop your rate, just know that the note will reset.
PCSing Advice to San Diego from an EOD Talking to a Jr. Sailor, what would your advice be them? Use social media to learn topics and then go deep with a professional, Lender and Realtor who has your best interest in mind. Understanding the value of a VA loan, where you have to serve our country to qualify and how it is superior to many lending options.
Proactive PCSing when and how to decide on Property Manager vs. List your home to sell
Property Management Discuss Self vs. service Knowing that things cost 8-10% for someone to take care of your property, how to decide what to do next.
Learn about Active Duty and Passive Income
PCS and buying there – what steps to take with VA loan and home hunting.
Your Legacy Realty Network September 2020 San Diego County Real Estate Snapshot
Strong San Diego real estate buyer activity has continued into the fall, which is normally the start of the seasonal slowing of the housing market. With stronger buyer activity in the market this year and the continued constrained supply of homes for sale, speedy sales and multiple offers are likely to remain a common occurrence and will keep the housing market hot even when the weather is cooling. (By San Diego standards)
Closed Sales decreased 3.9 percent for Detached homes and 2.9 percent for Attached homes. Pending Sales increased 5.6 percent for Detached homes and 22.6 percent for Attached homes.
Inventory decreased 53.0 percent for Detached homes and 28.3 percent for Attached homes.
The Median Sales Price was up 17.0 percent as of September,2020 to $753,500 for Detached homes and 17.2 percent to $491,000 for Attached homes.
Days on Market decreased 31.3 percent for Detached homes and 21.4 percent for attached homes.
Supply decreased 52.0 percent for Detached homes and 29.2 percent for Attached homes.
While mortgage rates remain near record lows, The Mortgage Bankers Association reports that lending standards are tightening, which makes it a bit more difficult for some buyers to qualify. At the same time, unemployment remains substantially higher than a year ago due to COVID-19.
Despite all this, buyers are out in full force this fall, showing amazing resilience in the middle of a pandemic.
PCS to San Diego
Is a Permanent Change of Station to San Diego in your future? Take a moment to evaluate your goals and future, and learn how to turn your BAH into $300,000 or more with your VA Loan Benefit.
Receiving orders for the next Permanent Change of Station is both stressful and exciting for families and service members. It is a time of new beginnings, new scenery and new friends. It is also an ending of a chapter and many goodbyes. Taking time during this transition to evaluate immediate and long-term goals can change the course of the future and aid in building long term financial freedom and opportunity.
Take a moment and think about your career plans. Are you looking to retire or transition out of military service in the near future? How long will you be spending at your new home port? Are you entering shore duty or will you be deployed? Are you a single service member, a family with young children or entering the final leg towards retirement?
Reviewing these factors will help as we navigate the next steps towards outlining your goals. Have you set up contributions to your TSP? Have you met with a financial counselor in your command? Have you ever explored your VA Loan benefits? This may be a time to work towards your college education or purchase a home for future investment income to boost your retirement income.
One of the greatest pieces of leverage is time. Time on any investment, be it education or financial, will provide a return that will allow for freedom of choice in your future. By leveraging your tax free BAH and the 100% financing of a VA loan, you can use your next PCS as an opportunity to purchase a property, with little to no money down. Think of it this way, the San Diego BAH for an E-6 with dependents is $3,114 per month. At an interest rate of 3%, including the VA funding fee of 2.3%, property taxes and insurance, the purchasing power of this Veteran stationed in San Diego would equate to a single-family home purchase price of $575,000. The three years this Veteran is stationed here, the BAH would go towards home ownership and build his or her family’s wealth, instead of the wealth of a landlord. Upon the next PCS, the home could then be sold or rented as an investment, allowing the military member to continue to build wealth through appreciation of the property and potentially increase their family’s monthly income as the property cash flows.
When leveraging a real estate investment with the VA loan and combining the service member’s TSP benefits, our military can truly create a path to financial freedom allowing for opportunity upon transition to civilian life and stability.
If your next orders are to one of the many military stations here in San Diego, you are in for a treat. Not only does San Diego have amazing wealther, our city offers a wide variety of housing opportunities, from condominiums to townhomes to single family options. There is something for everyone, from the beach scene, to hiking trails, shopping and museums including the world-famous San Diego Zoo, there is always something to explore. The school system provides a variety of options including charter schools, dual immersion programs, and STEM magnet schools (check out Greatschools.org for more information on schools).
Wondering how you can live the Sunny San Diego lifestyle? Life near the beach, along the coast from Imperial Beach, to Point Loma and North up to Oceanside (convenient if stationed at Camp Pendleton) offers a variety of housing options. With a network of freeways heading east/west (the 8 and 94 Freeways) and north/south (the 5 and 15 Freeways), San Diego offers an assortment of housing for all lifestyles and family dynamics.
Active duty and Veteran service members of our armed forces; Navy, Marines, Army, Air Force and Coast Guard, typically meet the eligibility requirement for the VA Loan Benefits to purchase a home. Many service members are provided with misinformation about the VA Loan and home ownership. Legacy Realty Network specializes in educating how to leverage your basic housing allowance into home ownership. Not only can you be a homeowner, but you can set yourself up to earn passive income- money you don’t have to do anything for! As certified Military Relocation Professionals and having PCS’d six times in ten years, we understand the uncertainty that sometimes accompanies a move. Our team will be your advocate and boots on the ground as you navigate a San Diego PCS. We have used the VA Loan personally and understand the ins and outs of how the VA Loan works. We have helped many service members purchase homes before they have executed their San Diego PCS. Increasing use of technology has allowed us to search, locate, conduct inspections and close on properties— virtually!
Contact us for a personalized consultation and review of the simple VA Lending process and San Diego housing options. Know that you have served our country and earned this benefit, and our team is here to serve you! Schedule today by calling or texting (619) 814-7505 or online at www.Legacyrealtynetwork.com.
The Housing Market Benefits with Uncertainty
It’s hard to listen to today’s news without hearing about the uncertainty surrounding global markets, the spread of the coronavirus, and tensions in the Middle East, just to name a few. The housing market benefits with uncertainty seems oddly uncharacteristic statement for today’s uncertainty. These concerns have caused some to question their investment plans going forward. As an example, in Vanguard’s Global Outlook for 2020, the fund explains,
“Slowing global growth and elevated uncertainty create a fragile backdrop for markets in 2020 and beyond.”
Is there a silver lining to this cloud of doubt?
Some worry this could cause concern for the U.S. housing market. The uncertainty, however, may actually mean good news for real estate.
Mark Fleming, Chief Economist at First American, discussed the situation in a recent report,
“Global events and uncertainty…impact the U.S. economy, and more specifically, the U.S. housing market…U.S. bonds, backed by the full faith and credit of the U.S. government, are widely considered the safest investments in the world. When global investors sense increased uncertainty, there is a ‘flight to safety’ in U.S. Treasury bonds, which causes their price to go up, and their yield to go down.”
Last week, in a HousingWire article, Kathleen Howley reaffirmed Fleming’s point,
“The death toll from the coronavirus already has passed Severe Acute Respiratory Syndrome, or SARS, that bruised the world’s economy in 2003…That’s making investors around the world anxious, and when they get anxious, they tend to sell off stocks and seek the safe haven of U.S. bonds. An increase in competition for bonds means investors, including the people who buy mortgage-backed bonds, have to take lower yields. That translates into lower mortgage rates.”
The yield from treasury bonds is the rate investors receive when they purchase the bond. Historically, when the treasury rate moves up or down, the 30-year mortgage rate follows. Here’s a powerful graph showing the relationship between the two over the last 48 years:
How might concerns about global challenges impact the housing market in 2020? Fleming explains,
“Even a small change in the 10-year Treasury due to increased uncertainty, let’s say a slight drop to 1.6 percent, would imply a 30-year, fixed mortgage rate as low as 3.3 percent. Assuming no change in household income, that would mean a house-buying power gain of $21,000, a five percent increase.”
Bottom Line
For a multitude of reasons, 2020 could be a challenging year. It seems, however, the housing market benefits with uncertainty. As Fleming concluded in his report:
“Amid uncertainty, the house-buying power of U.S. consumers can benefit significantly.”
Still have questions? Don’t hesitate, contact us now.