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Fjellestad of FBS in 92120 Quotes RE Experts to Emphasize Urgency & Necessity to become a Rental Owner in San Diego County

FBS has over four decades of real estate experience. This experience and expertise gives us a unique perspective which is straightforward, direct and transparent. Well located real estate should be owned as a long term investment since it is the safest, most productive method for average people to build wealth. We also believe that property should be kept rented in order to make long term ownership possible since rent collected is helping to keep the property well maintained and paying down loan principal. Eventually the property will be debt free and the rent can become an excellent safe source of additional retirement income for the investor. We have taught and utilized this realistic "real estate doctrine" for decades while keeping our clients on track with comprehensive advisory services and "best practices" property management.


Rents to jump over next five years
By Jonathan Horn

Rent_t540


Over the next five years, rents in San Diego County are expected to rise almost twice as fast as they did in the preceding decade, according to projections by CBRE.

From 2004 to 2014, the average rent in San Diego County rose from $1,242 to $1,542 per month, a 24 percent increase. By 2019, the average rent is expected to hit $1,830 per month, 19 percent more than the current average, said Dixie Hall, a CBRE apartment specialist.

“If we weren’t under supplied, we’d have much higher vacancy and we wouldn’t be seeing the rent raises that we are,” Hall said. “And we wouldn’t be seeing people paying $2,000 for a one bedroom.”

Speaking to about 200 people at a panel held Thursday by the San Diego County Apartment Association and the Certified Commercial Investment Member San Diego chapter, Hall said demand for rentals has increased because of three major factors: millenials are moving out of their parents’ homes, previous homeowners now choose to rent, and others still have credit issues from the Great Recession and can’t qualify for a mortgage.

The vacancy rate in San Diego County is about 3.7 percent, below a stable market, which would have vacancies around 5 percent, said moderator Robert Vallera, senior vice president of VOIT real-estate services. Another report, released Thursday by Cassidy Turley, calculated San Diego County’s vacancy rate as 2.6 percent, second lowest in the nation after San Jose.

CBRE reports that it is tracking 8,600 new units under construction, with 1,600 of them downtown. That’s where most of the demand for new units exists, said Peter Burley, who directs the Rosenthal Center for Real Estate Studies of Chicago.

“The millenials are distinctly urban, preferring public transportation, walkable neighborhoods, flexible work environments and easy access to social interaction,” he said. “They don’t drive.”

Hall said the new units being built, while expensive, are highly amenitized, with fire pits, pool decks, barbecues, large gyms and clubhouses. “You would want to live in these properties,” she said. “Residents today want to socialize, they want to be outside, they don’t want to be trapped in their apartment.”

Marco Sessa, senior vice president of Sudberry Properties, in charge of the expansive Civita mixed-use community in Mission Valley, said developers have a hard time responding to the demand for more units.

“It’s almost impossible to get things approved and it takes a very long time,” he said. “Unfortunately even with the amount of deliveries that are expected in the next few years, it is by far the demand exceeds the supply, not because we don’t want to build it but because it’s very difficult to get those projects actually out of the ground.”

The ONLY challenge according to Warren Buffet? Comprehensive and constant professional management of your rental business. The solution in San Diego is complete property advisory and management services by FBS.

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Rental ownership has a long history of satisfying the primary investment priorities of personal financial independence: safety of capital, inflation hedge and tax-favored income. Traditionally, if the detailed financial statements of the wealthy are available for review it becomes apparent that long-term income producing real estate assets directly or indirectly contribute substantially to their net worth.

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FBS has over four decades of real estate experience. This experience and expertise gives us a unique perspective which is straightforward, direct and transparent. Well located real estate should be owned as a long term investment since it is the safest, most productive method for average people to build wealth. We also believe that property should be kept rented in order to make long term ownership possible since rent collected is helping to keep the property well maintained and paying down loan principal. Eventually the property will be debt free and the rent can become an excellent safe source of additional retirement income for the investor. We have taught and utilized this realistic "real estate doctrine" for decades while keeping our clients on track with comprehensive advisory services and "best practices" property management. Please stop by www.fbs-pm.com        

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FBS Property Management & Advisory

Rental ownership has a long history of satisfying the primary investment priorities of personal financial independence: safety of capital, inflation hedge and tax-favored income. Traditionally, if the detailed financial statements of the wealthy are available for review it becomes apparent that long-term income producing real estate assets directly or indirectly contribute substantially to their net worth.

Certainly there are exceptions that get the notoriety. There are the entrepreneurs that hit the jackpot with a new invention, the right innovation at the right time and/or the market control of a needed commodity. Then there are the speculators that successfully capture the benefits of leveraged capital, cheap labor or some windfall in the short-term that cannot be repeated with consistency.

However, forget the outliers and the top one-percent and concentrate on the basics of what has worked for the top twenty-percent. Locally understood and available rental properties purchased carefully one at a time consistently becomes the safest real asset to own. Note that a small share in a national real estate investment trust may seem like a safe way to get the benefits of real estate ownership but in fact, this is just another financial asset with the same characteristics and historically similar results as any other stock market investment.

Well-located, rental-producing real estate has usually fared better as a long-term hedge against inflation when compared to financial investments. The closer your investment resembles a small business serving customers with an essential part of daily life the more likely that its operations and value are going to keep up with the cost of living.

Though assets may hold value no reliable income is produced. Equity in your personal residence is its own goal providing a sense of financial well-being, a source of emergency funds and a reduction of household expense as you approach retirement; but no income. However, a well maintained and managed rental (house, condo, duplex, and apartments, commercial) that is held free of debt produces tax-favored income on a consistent basis.

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FBS has over four decades of real estate experience. This experience and expertise gives us a unique perspective which is straightforward, direct and transparent. Well located real estate should be owned as a long term investment since it is the safest, most productive method for average people to build wealth. We also believe that property should be kept rented in order to make long term ownership possible since rent collected is helping to keep the property well maintained and paying down loan principal. Eventually the property will be debt free and the rent can become an excellent safe source of additional retirement income for the investor. We have taught and utilized this realistic "real estate doctrine" for decades while keeping our clients on track with comprehensive advisory services and "best practices" property management. Please stop by www.fbs-pm.com        

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