Affordable Housing Solution for First-Time Homebuyers

All-time high sales prices have first-time homebuyers priced out of the market. What are the options?

San Diego County has seen home price increases at approximately 16 percent since last year. The San Diego Association of Realtors reports the median sales price of $674,900, and the average sales price is $851,479. Where is the affordable housing in San Diego? http://media.sdar.com/media/CurrentStats.pdf

The obvious answer is that affordable housing in San Diego doesn't exist. Many first-time homebuyers consider moving up the I-15 corridor, north of the Temecula Valley, into the Inland Empire, for lower-priced housing.

Becoming a daily commuter with the rising gasoline prices can be a burdensome consideration. Sure, you can get more for your money, but is it worth it in the big picture?

As a former Bank of America mortgage employee during the 2008 to 2012 financial recession, I am reminded how those areas are the first to drop value. Our Bank of America REO asset managers created internal risk grade zoning codes to correlate with the deficiency and foreclosure history.

The high-risk areas were all considered category five areas. A category five hurricane provides a wide path of catastrophic destruction for homeowners. Once a homeowner defaults on a mortgage, the values in the neighborhood will spiral downward. The risk is higher in these areas because many are susceptible to foreclosure due to less ownership equity.

The pandemic has created more remote work opportunities, and there is hope for you if you can work from home.

A strategy could be for you to buy your second home before you buy your first home. Buying a second home may have you relocating to another state like Nevada, Texas, or Florida. Inflation has not affected home prices as it has in most of California.

There are nine states in the U.S. without state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.

Technically, it would be a first home purchase for a first-time homebuyer. Many choose to buy a second home for vacationing or as an investment income-producing property provided at higher rates associated with higher risks. Purchasing your second home as your first home is a forward-thinking strategy for producing wealth with your real estate portfolio.

There are no geographical boundaries when working as a remote employee. There are boundaries for affordable housing.

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