If you’ve fallen in love with Coronado, you’re not alone. Our island paradise attracts visitors from around the world, many of whom turn their short stay into a long-term vision.
It may be known primarily as a vacation destination, but roughly 25,000 people call Coronado home. Want to become a local? Here are four simple real estate strategies that can land you on our pristine shores for longer than just a week or two.
1. Own Instead of Rent
Buying a home when you first enter the workforce or during a life transition might not be realistic, but once you have settled down and established a career, owning is usually the more sound choice for your finances. Renting is widely compared to throwing money away. And oftentimes, we find that a client can pay just a little more for a mortgage than their current rent. When you own, your home is an investment rather than a monthly expense.
Think a Coronado home is out of your budget? You might be pleasantly surprised. There are 2-bedroom condos in the Village (the center of town) for roughly $800k-1million. The Shores offer 1-bedroom units with beautiful views for less than $1 million. In the Cays, you can find a 2-bedroom condo in the $800k range.
2. Buy and Rent Out During Summer
Many families go on an extended vacation or visit other family members for the summer. Sound like you? Consider buying a home in Coronado, staying in it for the majority of the year, and renting it out while you are gone during the summer months.
This strategy works well because the summer vacation rental demand in Coronado is extremely high. Rental income from July alone can be enough to offset the annual taxes, insurance, and other expenses on your property.
3. Buy and Use as a Vacation Home
In reverse from the previous suggestion, those who are happy with a smaller dose of the Coronado lifestyle can buy a home, rent it out for the majority of the year, and use it as a vacation home when they wish to spend time on the island. This allows you to get your foot in the door of a coveted market, with a high return on your investment should you wish to sell later on.
Because of its great schools, Coronado also has a strong demand for school-year rentals. You should have no trouble finding renters even in “the dead of winter”—which is typically sunny and 70 degrees here in the San Diego area.
4. Veterans: Leverage Your VA Benefits
Many military families falsely assume they do not have the financial ability to buy a home in Coronado. Understand that your Veterans Affairs (VA) benefits go a long way here! A VA home loan enables you to borrow with:
*No down payment
*No mortgage insurance needed
*Reusable VA (entitlement)
Furthermore, a VA jumbo loan lets you borrow more than the “conforming limit” set by lenders. In San Diego County, you can pair your VA benefits with a jumbo loan for 100 percent financing on a home purchase up to $580,750. That means no down payment.
Once you pass the $580,750 mark, you can use your VA benefit with no maximum loan amount. The only stipulation is that you must be able to make the minimum down payment, which is significantly less than homebuyers without VA benefits. You can even use a Thrift Savings Plan (TSP) as your down payment.
No Two Strategies Are Alike
The strategies we’ve offered are all rather common. However, when it comes time to find your dream home in Coronado, your strategy will be unique to your needs and preferences. Let Del Coronado Realty provide concierge-level service so that you can truly enjoy your Coronado home-buying experience. Call us at 619-437-1888, or visit us in Hotel del Coronado at 1500 Orange Avenue.