Are San Diego Foreclosures a Good Investment?

What if you could move to one of the most beautiful cities in the country – and save tons of money doing it? Purchasing a San Diego foreclosure may help that dream become a reality. But before you jump right in and make a deal, you should consider that there are pros and cons to buying real estate in San Diego:


  • San Diego is historically expensive. Properties across the entire county tend to cost more than homes elsewhere. People flocked to San Diego in the 1980s, making the once-sleepy city the eighth-largest in the country by population. Even if you purchase a foreclosure, it may cost more than a home in another part of the country.
  • Look at your income. Before you sink money into a San Diego foreclosure, take a look at how much you make each year. If you can safely purchase a foreclosure for three times your income (plus a 20% down payment), go ahead and make an offer! If the house is more than you can afford (even after the lender’s discount), then reconsider whether or not the property is for you.
  • Research the city. Some neighborhoods in San Diego are nicer than others, so take a look at where that foreclosure is. Even if the price is right, you might want to go elsewhere if the home is not in a nice neighborhood. While some parts of the city are wonderful communities for your family, other places may not be right for you.
  • Are you living in the home or renting it out? If you’re looking for a rental property in San Diego, finding a foreclosure is a great way to save a lot of money on your purchase. Renting out a home until you’re ready to occupy it (say, for your retirement) can also be a smart investment, so consider buying foreclosure for that too.


Whether you choose to invest in a San Diego foreclosure depends mostly on your personal situation. If you have the income to afford it and you’re considering moving to the city anyway, making the leap and buying a foreclosed home can save you tons of money. Many nice homes are currently sitting vacant in southern California. Could you be the next owner?