What’s the best way to spend $470,000 in San Diego, California?
San Diego offers endless ways to spend, blow and invest for those with an extra $470,000 burning a hole in their pockets. Having said that, how far will $470k go in SoCal? Is it better to splurge on a new sports car or a slice of San Diego real estate?
One Canadian newspaper recently weighed the pros and cons of investing in a home versus a new Lamborghini Gallardo. So which one comes out on top?
There are numerous ways to spend and splurge in San Diego. With many of the country’s top restaurants, tourist destinations and great shopping, it’s relatively easy to spend your money in s short period of time. However, some people think San Diego may be out of their price range. It can be far more affordable than you think, but for those burdened by their wallets, it shouldn’t be a pressing issues for long. Of course, most San Diegans and visitors probably aren’t looking to aimlessly blow close to half a million dollars. So what might make a better investment?
According to recent statistics from the San Diego Association of Realtors (SDAR), the median price for a detached home in the area was $470,000 and rising fast. The Calgary Herald reports the new 2014 Lamborghini Gallardo selling for just a modest $250,000. So what are the pros and cons of each option?
Who doesn’t want to have their own Lamborghini? 0-60 in 3.9 seconds, heat, and plenty of cool all make the Gallardo a drool-worthy ride. On the downside, there isn’t much room to stretch out and sleep in it, and not much space for entertaining. Then of course, there is the fact that new cars have a tendency to not just depreciate incredibly rapidly, but lose a large chunk of equity the moment they are driven off the lot, and will continue to go down in value every single mile they are on the road. That puts most back in the territory of simply blowing hundreds of thousands in cash in minutes.
In contrast, a home in San Diego is a far better investment. Current trends and historical cycles suggest SoCal home prices will keep on going up in value for years; meaning buyers will actually make money instead of throwing it away. A home might never move faster than 60 miles an hour, but it comes with plenty of other benefits and perks.
For those desiring the mobility, not sure they’ll stick around in Southern California for too long, or all year round, a condo may not be a bad choice. SDAR reports the median price for attached properties at just $299,900; leaving enough spare change for a new ride.
In fact, many may find the best use of their money is buying a San Diego rental property. Whether single family or small multifamily, analysts expect ongoing equity building and rising rents will produce handsome returns. That means not actually ‘spending’ your capital and enjoying wealth building and cash flow which can pay for all of those extra toys.
