Changing locations is a significant transition for any family, but it can be especially challenging for military families who have only a few months to make decisions that impact their safety, children's education, and financial well-being. Whether you’re coming to a new place or moving from your current home, decisions about buying or selling a home are almost always going to have a major financial impact and require contemplation. For active-duty service members who relocate every 2-3 years, those deliberations become even more complex.
Military Housing Options: Moving In
Military families have a few different options when it comes to finding a home in a new Permanent Change of Station (PCS):
- Government-Owned Base Housing: These units within the military installation are owned by the U.S. Department of Defense. Residents have rent and utilities covered by the military.
- Privately Owned Base Housing: The Department of Defense partners with private developers to create housing on bases. Service members receive a Basic Allowance for Housing (BAH) to help cover the cost of rent or a mortgage. Any leftover allowance can be used to cover utilities.
- Off-Base Housing: Families can buy or rent properties outside of the base using their BAH. However, expenses beyond the allowance must be paid out of pocket.
As an
experienced property management company in San Diego since 2001, we have served a multitude of military families making this transition. We understand the unique challenges that accompany housing the families who serve our country. If you're in the Navy, Marines, or Coast Guard and are coming to the San Diego area, here are some considerations when contemplating off-base housing.
Moving to San Diego: Should You Buy or Rent?
When you receive PCS orders to San Diego and are considering off-base housing, one of the first decisions you'll face is whether to buy or rent a home. Here are some factors to consider:
Renting:
- Flexibility: Renting offers the flexibility to move easily if you receive new orders. It's often less stressful than dealing with the sale of a home.
- Financial Predictability: With renting, you'll know your monthly housing expenses, making it easier to manage your budget.
- No Maintenance Worries: Landlords handle maintenance and repairs, which can be a relief when you're busy with your military duties.
- BAH (Basic Allowance for Housing): Ensure your rental fits within your BAH to avoid out-of-pocket expenses. San Diego's high cost of living can make this challenging, but finding a rental that matches your needs and budget is possible.
- Commute: San Diego traffic can be heavy at certain times of day, so consider the commute from your potential new home to your base.
- Be Careful of Potential Scams:
Scams targeting military families
looking for housing are unfortunately common. Avoid properties with below-market rates or "military discounts" that seem suspiciously low. Don’t make any upfront payments. Use reputable real estate agents,
property management companies and verified rental platforms.
Buying:
- Building Equity: Purchasing a home allows you to build equity, which can be a significant financial advantage over time.
- Customization: Owning a home means you can personalize it to your liking without restrictions.
- Long-Term Investment: If you plan to stay in San Diego for a while, buying could be a
smart investment. You can also rent out the property if you get relocated.
- VA Loan: Take advantage of the VA home loan program, which offers favorable terms for military families.
- Market Conditions: The housing market in San Diego can be competitive. Work with a real estate agent familiar with military moves to navigate the market effectively. And since you know that you may have new PCS orders in another couple of years, a local real estate agent can help you find a home that would be a good rental for when you’re off to your next port of call.
- Long-Term Impact: Since you may receive transfer orders again, it’s important to weigh the long-term impact of buying a home versus renting. Consider whether you’ll be in the home long enough to build sufficient equity to cover closing and selling costs.
- Be aware of scams:
Don’t respond to unsolicited offers of help with mortgage payments. If you’re having any trouble, contact your loan servicer directly.
Moving from San Diego: Should You Sell or Rent Out Your Home?
If you're already a
homeowner in San Diego and receive PCS orders to relocate, you have a few options about what to do with your home. We’ve listed some considerations for each option below.
Selling Your Home:
- Market Timing:
Selling a home can be a lengthy process, and the market conditions may not always be favorable.
- Costs of Selling: Remember to factor in real estate agent commissions, closing costs, and potential repairs needed to get the home market ready.
Renting Out Your Home:
- Financial Benefits:
Renting out your home can provide a steady stream of income and help pay down your mortgage. The
San Diego rental market is strong, with
stable and increasing rental rates.
- Tax Advantages: Renting allows you to
benefit from tax deductions such as depreciation, mortgage interest, insurance, and maintenance costs.
- Future Investment:
Holding onto your property means you can re-enter the San Diego market without the challenge of higher prices in the future if you decide to return.
- Financial Preparedness: Be prepared for periods between renters and ensure you can cover the mortgage if the property is vacant.
- Military Clause: Ensure your lease includes a military clause, allowing you or your tenants to break the lease if orders change.
How a San Diego Property Management Company Can Help
If you receive PCS orders to San Diego and are considering off-base rental housing, you can search Onyx Property Management’s website under the “Availability” tab for properties on the market to rent.
