Why is San Diego real estate so popular with sophisticated investors, and why is it a must-have to be included in every investor’s portfolio? There may be lots of exciting destinations to invest in real estate, and no matter where you live, you can probably find a deal or two close by. However, you’ll be glad you added a San Diego property to the mix.
There are actually lots of great reasons. Here are just 7 reasons you need to consider adding San Diego real estate to your portfolio:
1. Concentration of Top Earning Millennials
The Nielson report shows San Diego, CA in the top 10 U.S. cities for concentrations of affluent millennials making $100k a year or more. This makes it an exciting, vibrant place to live and a top center for business and innovation. These will be the cities enjoying the most growth, best rent increases and quality of life.
2. Awesome Food
UT San Diego reports the city recently dominated the list of top 100 places to eat with 8 entries. If you like food, you’ll love San Diego. The great food and buzzing culinary scene isn’t just great for visiting real estate investors either. It means innovation, attracting global visitors that fuel the economy and make it more attractive to stay too (keeping up occupancy levels).
3. San Diego is Beautiful
San Diego County is unique and rich in geography with magical mountain views, lush valleys, busy urban hubs and secluded beaches. There is something for everyone and a multitude of property types for fitting every real estate investor’s portfolio and investment strategy. Of course, it’s tough to beat the weather too. The only downside is that you may never want to leave after coming to scout out investment opportunities. At least it’s better than having to go check on your properties in the cold, greyness in the Northeast.
4. Strong Market & Demand
There is huge global demand for San Diego real estate. In fact, the population here has only kept on growing since 1860, according to the U.S. Census Bureau. Even during the last few years when many media outlets ran scare stories on an exodus from California, census data shows San Diego’s population rose 10% through 2010 and another estimate 2.6% from 2010 to 2012.
5. Equity Rich
One of the best things about the San Diego real estate market for real estate investors is the protection offered from such a great amount of equity. Since the market began recovering, a massive number of transactions have been cash buys, building in immense equity which will help the region weather any potential fluctuations in the future.
6. Room for Growth
Even though San Diego, California has sometimes been bashed for having such a strong housing market and showcasing one of the fastest recoveries, current property values in the county reflect plenty of room for growth, and are expected to keep on rising for years. This makes the timing hard to beat for those looking to bulk up their portfolios now.
Just as with any other type of investment, it pays to embrace diversification in real estate. Just adding some San Diego property to your portfolio could be a tremendous move. However, even within San Diego County, there are many diverse opportunities for investing and balancing portfolios. On top of this, San Diego itself is an incredibly diverse center which is a powerful ally in keeping up property values over the long run.