Is 2015 the year you should be buying San Diego real estate?
With foreclosures declining, interest rates still at historic lows, and healthy value gains being made, San Diego County appears to be one of the best U.S. markets for buying and investing in homes. But who specifically should be leaping over the fence or increasing their home buying activity in the Southern California market this year?
U.S. Property Investors
The northeast has offered many distressed property investment opportunities over the past few years. There are still attractive options for income property investors in places like Connecticut. However, building on the above, there is a real need for diversification. Serious buy and hold investors who plan and hope to be able to retire are going to sleep a lot better with a more diverse portfolio. It’s always best to be safe rather than sorry. Between interest rates and asset prices, San Diego County rental properties probably won’t be this attractive and profitable to buy for at least another decade, probably far longer than that. So why pass on the best returns? San Diego offers strong and growing rents and yields, along with rising equity.
Global Property Investors
Recent polls signal that international buyers will again be one of the most significant forces in the U.S. market in 2015. Around 80% of those questioned said they planned to expand their U.S. portfolios (their top pick) in 2014. That is only expected to grow this year. For global real estate investors, San Diego just makes sense. It is a solid market for asset protection and wealth preservation, with good yields, and a bright outlook for growth. In a nutshell, San Diego offers more value than its overpriced counterparts, yet more security than some off the beaten path markets.
Northern Californians
Silicon Valley may not have lost its mojo yet. Still, San Francisco, Orange County and Los Angeles property has become very expensive. There can be good reasons to buy in these markets, but right or wrong; most analysts consider their property prices to be frothy. In contrast, San Diego offers far more value for home buyers, real estate investors, developers, corporate asset managers and business owners. At least it is worth diversifying south into San Diego County to hedge bets and ensure longer term performance.
San Diego County Renters
Between locals, inbound workers and job seekers, rental demand in San Diego County is huge. This has led to significant rises in local rental rates. San Diegans can keep moving outward and eastward to find cheaper rents, but this isn’t a trend which is likely to slow anytime soon. Zillow reports that it is now half as cheap to buy a home as rent. This gap will only widen as rents keep rising and homeowners keep enjoying low fixed-rate payments. The sooner San Diego County renters make the leap into homeownership, the bigger their rewards. This will make all the difference in how much surplus and disposable income they have going forward, and perhaps even if they’ll be able to continue to afford to live in SoCal.
Locals
Beyond the personal financial benefits of buying verses renting in San Diego, there are many benefits of owning a piece of the local community. It’s the opportunity to help build the community, preserve it, and ensure that it is developed in a responsible way.
Generation Y & Z
Younger generations are coming of buying age. They are incredibly lucky to be coming into this part of their lives with home buying being so cheap. Those that make the move to buy Sand Diego homes and rental properties now will be setting themselves up for far easier and greater financial success throughout their lives. They’ll enjoy financial security, surplus, and freedom of lifestyle.
