Families Get Creative To Stay In The Market
In 1987, my father bought our first piece of Real Estate in San Clemente, he paid $175K for a 4 bedroom 2 bath home. That very same home just sold for $770K last summer.
Everyone knows Real Estate in San Clemente is hot, hot, hot!!! So what is a young family to do to get in, or stay in, the Real Estate Market?
As we began looking for a bigger house we were astonished to find that a 3 bedroom 2 bath houses in a decent neighborhood were going to cost close to 1 million dollars! How would we ever get approved for a loan that large? And if we were approved, how would we ever afford it?
Just when we were beginning to give up hope, an idea struck us like a lightning bolt. Why not let someone else help us with the mortgage?
We noticed that the price of single family Real Estate in San Clemente had increased by, in some places, 35% - 45% in 2004. Income properties, however, were lagging behind with increases of only 15% - 20%.
You could buy a nice 3 bedroom 2 bath single family home in the heart of San Clemente with an ocean view for 1 million dollars. You could also buy a duplex with TWO 3 bedroom 2 bath units in the heart of San Clemente with an ocean view for 1 MILLION DOLLARS!!!
The answer was right before our eyes. We could buy a duplex and rent out the extra unit to afford the mortgage! We immediately began to look for a duplex that most resembled a single family home. Important factors to making a duplex feel more like a home are: