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Old 05-31-2022, 08:32 AM   #41
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Timing can be a real dilemma ......
.....
No matter how expensive it seems now, owning a home gets cheaper over time as your housing costs are locked in and future-proofed - taxes too.
....
+1
Many years ago, I was in the situation of having FREE rent , but I went ahead and bought a small place.

I knew my FREE rent would not last forever, even if it could last a few years.
I compared regular comparable 2-bedroom apts rental cost to the ownership cost of a very similar same neighborhood 2 bedroom condo.

Sure the rental was cheaper, but as soon as I projected out a few years with the constant mortgage vs the increasing rent, I could see they crossed. The GIANT bonus came when 25 yrs out, the mortgage is paid off, and the rental gets another increase, but the condo was cheaper long before then !
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Old 06-03-2022, 03:49 PM   #42
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Sounds familiar

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Greetings, we've been in a West Coast (CA) Metro area for 20 years working (no kids). Have been renting for the duration - in hindsight, probably a bad idea now (given pandemic fallout and blastoff of housing), but that's in the past and hindsight is easy to scrutinize. We received a notice of intent to sell from our landlord this last week ( without dates) - he's 76 yro and we discovered more recently he has brain ailment unfortunately. I found out about it several months ago during a phone conversation, so the notice wasn't a complete surprise, but I had decided to ride it out as long as possible. He'd given power-of-attorney to a tax consultant/broker attorney in his notice. When I contacted my landlord, he replied "talk to my attorney" when asking for an extension. CA regulations seemed to state 60 days if on a month-to-month lease, but there was no date listed....anyway.

In our situation prior to this, buying housing clearly wasn't good with a way-below-market rent we have/had. I had planned on buying in 2021 years back, but that got deep-sixed by the pandemic and our financial circumstances I won't get into. We've been on a month-to-month lease for 13 years - our landlord has been good. I think its a simple case of old age, and he needing to liquidate his real-estate....unfortunately we are casualties of the situation and my lethargy.

Problem now is the market rents are double our current rent .....however, I'm thinking to eat the double rent for a year while keeping a closer eye on the real-estate market. Lower end (smaller) Condo Prices seemed to have plateau'd and even a bit decline after going upwards steeply for 6-8 months. We have savings to purchase cheaper end now (if I sell a chunk of our stock portfolio), but I don't like pressure-buying for housing when we need it. There's the other problem of stocks tanking more which would make selling stock at a loss for condo purchase undesirable. Our jobs are pretty good, but remote work isn't doable, so moving out of area/starting anew isn't a good option for us. I have no idea how the housing market will move, but how do you weigh waiting longer to buy against horrid rent surge? The more desirable units (houses) would be stretching for us. Is paying for excessive rent for 1 to 2 years worth the gamble that housing will cool for more affordability? -- I calculated it at ~$15,000+ a year (increase in rent) .....its kind of like asking where stocks will be in 12 months. The numbers seem to indicate renting given the price run-up - that's how I'm leaning, but thought I'd ask.....its an incarnation of the Rolling Stones song, "Rock and a Hard Place"....
Our DS27 moved out to San Clemente Jan 2020 with his best buddy from college. They had both completed their Master's & the BFF wanted to try to break into the music business. But they got an INCREDIBLE deal on their apt.
One block from the beach, 2 BR in decent shape for $2K.

Obviously Jan 2020 was a VERY VERY VERY BAD time to try to break into ANY business. 6 weeks after they secured jobs quarantine occurred. Luckily both of their jobs paid them so they muddled thru. But a year later BFF decided he had enough. DS thought he would get a roommate. NOPE. Place sold & raising rents 50% (we knew it was a deal to begin with).

All good things must come to an end...
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Old 06-03-2022, 03:52 PM   #43
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Agree, better to rent now than buy. (never thought I would say that) If/when prices drop. Then buy. A million dollar home rents for $3500 -$4k. Not smart to buy now. So my advice is to wait. Then buy.
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Old 06-03-2022, 03:56 PM   #44
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Yea, SC has gone nuts. Been since HS. So much has changed in 45 yrs.
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I agree!
Old 06-03-2022, 04:00 PM   #45
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I agree!

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Agree, better to rent now than buy. If/when prices drop. Then buy. A million dollar home rents for $3500 -$4k. Not smart to buy now. So my advice is to wait. Then buy.

DD24 lives in Fort Worth & would love to get out of her apt.
Grandparents dissolved a family trust so she has a chunk of $ for a down payment.
She works near TCU so wants to live not too far.
Housing market isn't as bad there as here in Lincoln.
But she needs to spend $250K to get something decent.
Sadly house taxes there are RIDICULOUS (this from a Nebraskan; people complain all the time here. 1.7% is a LOT better than 2.3%!)
Even putting 90K down, by the time she pays taxes, insurance & interest, she will only be putting $150/mo toward principal.
I told her I'm not sure that is worth the risk of ownership.
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Old 06-03-2022, 04:06 PM   #46
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Thanks Cathy - this is good information- maybe our land-lord was thinking similarly to you. Are you sure about the 120 days? I thought the CA regulations said 60 days from notice to vacate when month-to-month lease. We could use the extra time if 120 days. I will ask his attorney also.
I think you are mixing two things. 1) notice of intent to sell. Cathy says they have to give you 120 days notice that they are going to put it on the market. That does not mean you have to vacate. 2) notice to vacate is separate from notice of intent to sell. We used to have rentals in California. At that time, notice to vacate (can only be given to month to month renters, not leases) was in fact 60 days. In this market, youíll need at least that much time to find something.

If I were you, I;d go back to the landlordís lawyer and find out for certain which notice you have been given: Intent to sell, or vacate. If it was just intent to sell, stick around and negotiate with the new landlord.
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Old 06-03-2022, 06:45 PM   #47
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Can't speak for San Diego metro, but in the San Francisco Bay Area, it takes a whopping recession (or a quake, LOL) to lower both condo and SFH prices. One reason most RE analysts aren't expecting another "hit" like the 2008/9 bubble is the fact that afterwards banks tightened up their lending standards.

In addition, a good percentage of housing loans aren't being carried directly on the banks' books; they're packaged and re-sold as investments.

Inflation and rising interest rates will hit condos harder than SFHs. If you can't work remotely or find a reasonable commute, you're stuck within the urban area where demand for housing is highest but the ability of developers to erect dozens/hundreds of SFHs is almost non-existent.

A big problem with waiting for short sales/bankruptcies is that often the property gets trashed. So when you look at sales stats, it seems that RE prices have fallen. But in actuality a move-in ready home - NOT turnkey and sparkling new, but where the roof hasn't sprung a leak yet and the furnace is 15 yrs old but still works - didn't actually drop very much in asking price.

Our next door neighbor bought what must have been one of the last bankruptcy SFH in our neighborhood, selling for about 55% of its previous value. The last rental tenants, at the end of their lease, also stole all the major appliances. Less than a week later all the copper piping was stolen, meaning it had to be replaced before a Certificate of Occupancy could be issued. Between the bank and the interior damages, it was 18 months before the family finally moved in.

It was profitable in the end, but they admitted later they came really close to the end of their financial rope because everything - including repairs - took so long. They bought the property just as RE values began to rise again, but it took an additional $175K on top of the $308K mortgage...and of course, like all us homeowners they're continuing to spend $$$ on additional remodeling projects.

The OP is in a tough spot. Condos will be cheaper and more easily found for rent or sale in a bad market, but the HOA costs can fluctuate if not enough tenants/owners are resident. But when it comes to SFHs, there will never be enough of them in CA metros, because there just aren't the thousands of acres nearby to support affordable housing.

In the almost 40 yrs we've lived in the heart of the SFBA, only the Loma Prieta earthquake seriously impacted RE values. They dropped 25% in our city and it took 10 yrs to recover. But none of the other so-called bubbles had any long-term lasting effect. On average the decline was 10-15% in our gentrifying starter home neighborhood, lasting about 18-24 months. Then prices, once recovered, shot up even higher - every time.

We have a mix of home sizes with modest-sized apartment bldgs; some have been converted into condos. But zoning doesn't allow big hi-rise condo units in most of the city's residential neighborhoods (NIMBYism lives on, unfortunately or fortunately, depending on one's PoV).

Again, not familiar with San Diego so YMMV. Good luck to you whatever you decide.
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Old 06-13-2022, 06:54 PM   #48
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We found out that the land-lords Attorney/Agent is selling to an "investor". A contract was signed. The agent said the "new landlord" (his words) will be by to view the apartment tomorrow.
He mentioned the investor bought all 4 units. They were never listed on MLS....my guess is they gave him a discount for buying all 4 units. I was told verbally ok until 31AUG22 for staying, and have not gotten a notice to vacate yet. I expect the new land-lord to raise the rent to similar rent prices around us. We're now trying to ascertain the cost of new rent/new amentities vs the time to move/possibly staying. Our old landlord raised the rent $275/month cumulative in 13 years. Wondering now, does the new land-lord need to serve notice to vacate for the new rent to take affect? If the agent told us 31AUG22, I understand that to be the end of the prior arrangement. If the contract is already in motion, I guess the rent I paid for July is going directly to the investor, as will August's.
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Old 06-14-2022, 08:42 AM   #49
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We found out that the land-lords Attorney/Agent is selling to an "investor". A contract was signed. The agent said the "new landlord" (his words) will be by to view the apartment tomorrow.
He mentioned the investor bought all 4 units. They were never listed on MLS....my guess is they gave him a discount for buying all 4 units. I was told verbally ok until 31AUG22 for staying, and have not gotten a notice to vacate yet. I expect the new land-lord to raise the rent to similar rent prices around us. We're now trying to ascertain the cost of new rent/new amentities vs the time to move/possibly staying. Our old landlord raised the rent $275/month cumulative in 13 years. Wondering now, does the new land-lord need to serve notice to vacate for the new rent to take affect? If the agent told us 31AUG22, I understand that to be the end of the prior arrangement. If the contract is already in motion, I guess the rent I paid for July is going directly to the investor, as will August's.
You should really talk to a tenants rights organization. You're making a lot of assumptions here that are probably incorrect and taking just a few minutes to describe your exact situation to someone who knows the state laws would probably help you understand what might or might not happen in the next few months and how to respond just in case your new landlord doesn't know or follow the law.

Generally your rent can't go up by more than 10% per year in CA and you are entitled to get a 60-day notice in writing before an increase can take effect.

Generally, your landlord can't terminate your tenancy unless they are planning to move in themselves, or withdraw the unit from the rental market, or undertake substantial remodeling. If they do have a valid reason for terminating your tenancy, then you will get a 60-day notice of that in writing. They may also be required to provide you with relocation assistance or a rent waiver equalling one month of your current rent.

I say that these are "generally" true because here are exceptions. It depends on what type of building you live in; whether the landlord also lives in the building; how old the building is; whether you've previously been notified that your tenancy is exempt from the rent-control law; etc.

Here are a couple of links that may help: https://housinghelpsd.org/ https://www.tenantstogether.org/tenant-rights-hotline
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Old 07-17-2022, 02:51 PM   #50
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Hi Cathy, the sale of the unit went through July 9th - we'd paid our July rent to the old owner, and have "met" the new owners via email. They said they would let us know about what to expect and get back to us - its been over a week

If the sale has gone through, but no notice to vacate I'm assuming we're going to receive a new lease. How long can we continue under our old month-to-month rent - do we have a grace period under the old lease?
Does the 10% CA rule protect under a change of ownership? We still have not gotten notice to vacate.

Thanks.
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Old 07-17-2022, 07:52 PM   #51
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Hi Cathy, the sale of the unit went through July 9th - we'd paid our July rent to the old owner, and have "met" the new owners via email. They said they would let us know about what to expect and get back to us - its been over a week

If the sale has gone through, but no notice to vacate I'm assuming we're going to receive a new lease. How long can we continue under our old month-to-month rent - do we have a grace period under the old lease?
Does the 10% CA rule protect under a change of ownership? We still have not gotten notice to vacate.

Thanks.
No reason to assume you'll be getting a new lease. You might, you might not. The new owner can continue to rent to you as a month-to-month tenant without a new agreement; or he can ask you to sign a new monthly rental agreement; or he can ask you to sign a new 12-month lease. There's just no way to know what he will do until he tells you.

Change of ownership is not a sufficient reason to raise rent by more than 10%, but as I noted previously, there are exceptions and I have no way to know if any of them apply to your rental unit or your new landlord. This is why you should talk to a tenants rights organization and get some free advice. They can ask you questions about your living situation and collect enough info to be able to give you accurate answers.
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Old 07-17-2022, 11:32 PM   #52
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My co-worker's son is an oncologist in San Diego, and he's living in a medium size house that was priced incredibly expensive per square foot.

My buddy was looking to move out there to support his son, but the San Diego real estate was just too expensive. They were looking at real estate 20 miles north of San Diego where home prices were much better.

Have you looked at other communities within commuting distance of SD?
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Old 07-21-2022, 02:38 PM   #53
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No reason to assume you'll be getting a new lease. You might, you might not. The new owner can continue to rent to you as a month-to-month tenant without a new agreement; or he can ask you to sign a new monthly rental agreement; or he can ask you to sign a new 12-month lease. There's just no way to know what he will do until he tells you.

Change of ownership is not a sufficient reason to raise rent by more than 10%, but as I noted previously, there are exceptions and I have no way to know if any of them apply to your rental unit or your new landlord. This is why you should talk to a tenants rights organization and get some free advice. They can ask you questions about your living situation and collect enough info to be able to give you accurate answers.
We got a notice of termination of tenancy (CAR NTT 6/22) - (move out) notice. Asked new landlord if possible to rent as-is and told, "renovating for family move-in".

Was also told would receive full deposit back if abide by move-out date. Never received anything on paying the current rent for August and partial Sept. Are these rents still due to new owner? He did not mention them explicitly. Thanks.
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Old 07-21-2022, 03:13 PM   #54
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My co-worker's son is an oncologist in San Diego, and he's living in a medium size house that was priced incredibly expensive per square foot.

My buddy was looking to move out there to support his son, but the San Diego real estate was just too expensive. They were looking at real estate 20 miles north of San Diego where home prices were much better.

Have you looked at other communities within commuting distance of SD?
San Diego has 2 commuter trains, the Coaster and the Sprinter as well as trolley service.
You can go on their website and see where the stations are and the schedules.
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Old 07-21-2022, 03:23 PM   #55
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We got a notice of termination of tenancy (CAR NTT 6/22) - (move out) notice. Asked new landlord if possible to rent as-is and told, "renovating for family move-in".

Was also told would receive full deposit back if abide by move-out date. Never received anything on paying the current rent for August and partial Sept. Are these rents still due to new owner? He did not mention them explicitly. Thanks.
Hard to tell without seeing the language, but I would think that you'll get your full deposit back if you move out on or before the move-out date and that you would only owe rent through when you move out.

So for example, if you move out near to but before the end of August you would owe August rent but get your full deposit back... but if it were me and my deposit were more than what you owe in rent I would tell him when you are moving out and that you'd like your August rent deducted from your deposit refund... rather than pay August rent and take the chance that the new owner welches out on the deal to return your full deposit.
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Old 07-21-2022, 03:28 PM   #56
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Hard to tell without seeing the language, but I would think that you'll get your full deposit back if you move out on or before the move-out date and that you would only owe rent through when you move out.

So for example, if you move out near to but before the end of August you would owe August rent but get your full deposit back... but if it were me and my deposit were more than what you owe in rent I would tell him when you are moving out and that you'd like your August rent deducted from your deposit refund... rather than pay August rent and take the chance that the new owner welches out on the deal to return your full deposit.
Thanks, the new owners never gave me their account information - only have the old owners account (obviously not sending payment to him). Guess it will depend when we select a new place - then transact.
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Old 07-21-2022, 03:48 PM   #57
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Landlord here. Your lease should spell out your rights/ expectations in writing. My leases all spell out what could/should be done. If your lease does not specify that you shall pay the new landlord, then I would say you don't. You don't have a lease with new landlord.
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Old 07-21-2022, 04:18 PM   #58
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We got a notice of termination of tenancy (CAR NTT 6/22) - (move out) notice. Asked new landlord if possible to rent as-is and told, "renovating for family move-in".

Was also told would receive full deposit back if abide by move-out date. Never received anything on paying the current rent for August and partial Sept. Are these rents still due to new owner? He did not mention them explicitly. Thanks.
Legally the rent for August and September is still due. If you have their mailing address, send them a paper check. If you don't have it, ask them how they want the rent paid.

Since this is a "no-fault just cause" eviction, the new landlord may also be required to pay relocation assistance in the amount of one-month's rent. You can figure out if it's a requirement in your case by looking at the second page of this flyer and reviewing the section on "excluded housing": https://www.sandiegocounty.gov/conte...82%20Flyer.pdf
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