June 2023 Real Estate News

{original post 6/28/2023}

Hello! Thanks for tuning in to this month’s newsletter. It’s our goal to bring valuable real estate content and local updates to you, so we hope you enjoy it! ☺️🏡💛

Summer is here! In this e-newsletter, we will dig deep into rethinking what your first purchase may look like, share about new housing ordinances in our city, provide a brief update on the number of new listings in our county, and share about upcoming events and fun activities on the Central Coast!

The Schwaegerle Team strives to educate and empower all people on the ins and outs of real estate, so thank you for tuning in and following the team on social media! 


How to buy a house before you’re 40

We hear it over and over again. California is so expensive, how can anyone afford to buy a house? Instead of buying, people are renting until they save up enough money to buy a house. However, as we’ve seen, waiting on the sidelines could be costing people tens of thousands if not hundreds of thousands of dollars in potential equity. We are advocates for homeownership sooner rather than later, so we’d like to share our story about making a different type of purchase early on. 

A couple of years after we got married, a mentor encouraged us to find a way to live as frugally as possible by cutting back on our living expenses. The only way we could do that was if we had assistance with paying our living expenses, such as purchasing a multifamily property, living in one unit, and renting out the others. 

Because of that, it made the most sense for us to think of our first purchase as strategic rather than comfortable and dreamy. The concept of purchasing our “dream forever home” was wiped away, and we quickly refined our housing criteria. It wasn’t exactly fun or enjoyable, but we knew it would be worthwhile in the long run. 

After a number of months of searching, we utilized our first-time homeowner benefits and put the minimum 5% down on our new owner-occupied property. Funny enough, the property fell out of escrow twice before our offer was accepted because it needed too much work for the other buyers. We knew this was an up-and-coming part of the county that had so much potential, but the other buyers didn’t have the eyes to see the future of what it could be. This property was also located quite a distance from our everyday activities, so we logged 1 ½ hours or more every day in the car commuting to work, friends’ houses, and church. We spent six months fixing up the property within the budgetary restraints we had and made it work as much as possible. We lived in tight quarters, which felt even tighter than usual during the early days of the covid-19 pandemic. However, living rent free during that time was a blessing, and we are grateful to have had such wonderful residents as neighbors even during the hard times. 

We have since moved and are now in the middle of converting our garage into an ADU and renting out a room in our home on Airbnb. At times, it’s not the most comfortable way to live, especially since we don’t have any storage space or parking, but it’s definitely helping pay our bills. 

This strategy is called house-hacking, and it looks different for everyone. Our first house-hack included multiple separated units, while our current house-hack is more involved with cozy quarters. Other house hacks include buying a house on acreage and renting out land for events or even buying a condo and renting out a room or two to friends. We have a number of clients and friends who have house-hacked as well, and they made even greater sacrifices to thrive in our area. We are so proud of them and hope you feel inspired to know young people can make it work here. 

We know it doesn’t sound comfortable. We know that everyone can come up with reasons why it won’t work for their situation. However, if you want to break the mold and get into homeownership before your 40th birthday, then sometimes you have to do what most people aren’t willing to do. As Gary Keller, founder of Keller Williams Realty, says in one of his books, “Anyone can do it. Not everyone will. Will you?”

If you’re interested in learning more, please call, text, or email us. We are very passionate about helping young people not just survive but truly thrive on the Central Coast. We wholeheartedly believe that house-hacking is the single best way to make it work in our beautiful state and build long term wealth. 


Housing Solution - 500 units being built downtown SLO

There is no question that there is a massive housing shortage in downtown SLO. The city council has decided to take massive action. They passed an ordinance that calls for the construction of 500 residential units downtown by converting old office and retail spaces. They will be turning vacant commercial space into studios, one bedroom, and two bedroom apartments. While it sounds like a large number of units, will it be enough to ease the burden on housing? Another question critics have been raising is how will this impact parking downtown? 

We know that higher density has pros and cons. Some pros are that it will drive traffic to local businesses. This should spur economic growth and help create a vibrant community. The cons are that it will cause more parking problems.

https://calcoastnews.com/2023/04/slo-city-council-approves-plan-calling-for-500-new-downtown-apartments/

What are your thoughts on the new ordinance? Let us know!


SLO County New Listings 

New listings in San Luis Obispo are at the highest they’ve been in six months! This is great news for new buyers entering the market as there are more options available.
 



The Schwaegerle Team’s Top Summer Activities 

The Central Coast is buzzing with exciting summer events. From lively festivals to outdoor concerts and scenic hikes, there is something for everyone to enjoy. The Mid-State Fair, one of the highlights of the season, showcases fantastic entertainment, thrilling rides, and delicious food, drawing visitors from all over. Music enthusiasts can groove to the rhythm of summer concerts. Outdoor lovers can explore the Central Coast’s natural beauty through hiking trails that offer breathtaking views of the coastline and rolling hills. One of our favorite hikes is at Hearst State Beach in San Simeon. Farmers' Markets brim with fresh produce and locally crafted goods, providing a vibrant community atmosphere. Whether you're seeking cultural experiences, musical performances, or outdoor adventures, the Central Coast offers an array of summer events to create unforgettable memories.

Check out some of The Schwaegerle Team’s Top Summer Activities Here! 


Local Music Equipment Sales Event

Looking for a fun gift idea for the music lover in your life? Check out the 20% sale for items at Grand Central Music in San Luis Obispo on McMillan Avenue. This promotion runs until the end of June. Let them know The Schwaegerle Team sent you and show them this coupon at checkout to receive the discount!
 



Current Listings 
7275 Nonpariel Road - $560,000


Just Sold
5089 Meadow Lark Lane - $515,000
4840 Rolling Hills Way - $740,000
5928 Gran Paseo Way - $385,000
41 Las Praderas Drive - $980,589


Let's Be Social
Thanks so much for reading our newsletter this month! We want to hear from you! Please let us know how we can support you on your real estate journey. Whether you just purchased a new home, want to explore home-buying options, are curious about what your property might be worth, or just want to know more about the market, please reach out! 

@theschwaegerleteam
@closeinslo
@your.realtor.slo

You can also follow us on YouTube and Facebook for more updates throughout the month.