I am so happy to report that today the new owners of the 360 Residences in downtown San Jose have been given the green light to become rental units. This should bring in a slew of about 350 to 400 residents to the downtown area. As predicted by the company present at todays city hall meeting. There was not much hesitation to make this gorgouse highrise complex into rentals for the time being since the city will be getting about $790k in instant cash from the new owners to help pay some of the old owners bills. They have also agreed to pay the $1.7M if they ever convert them back to for sale condo units. There is no expectation of this happening for at least the next 3 to 5 years but the new owners could never turn them into for sale if they like because the city did not give them a time frame of when they have to start selling these units.
The rents are expecting to be in the $202.20 pre Sq Ft range or about $2000+ per month for the one bedrooms and $3000+ per month for the two bedrooms. Not sure that throwing rent money to a location that will be kicking you out in a few years is the best investment but there have been many renters lining up to get their pick of the views. Should you want one of the 7 penthouse units be expecting to pay over $4000 per month.
Seeing that a qualified renter usually can become a qualified buyer easily it is a wonder why a renter would not make use of the San Jose 20% Down payment assistance program to purchase a unit in Axis or The 88 instead of rent? Are we really becoming the Home Rentership Society that is excepting of spending half or more of their monthly income towards living expense with nothing to show from it when we move?