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Top Three Benefits of San Diego Real Estate Investments

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Top Three Benefits of San Diego Real Estate Investments

There is a lot of potential in San Diego Real Estate Investments because it is the second largest city in California by population and it is growing at a healthy pace. There is a growing demand for property with a growing population and it will continue to rise throughout 2017. The rising demand in addition to the increase in rents, suggest favorable conditions for San Diego investors. Here’s why you should consider San Diego Real Estate Investments:

Rising Property Values

Investors should consider San Diego Real Estate Investments because current rise in property value gives the investor the opportunity to make high returns and steady cash flow and the rate of increase is the nation’s second fastest behind Los Angeles. According to ActiveRain, “San Diego County home prices rose 0.6 percent between August and September, and are up 6.6 percent since September 2014, according to the Standard & Poor’s Case-Shiller Home Prices Indices. The monthly rise was one of the fastest among 20 large real estate markets included in the indices, while the annual climb ranked seventh. The indices were created by taking the cost of housing in each market in January 2000, assigning them a value of 100, and tracking the subsequent rise and fall. San Diego’s mark in September was 216.62, reflecting more than a doubling of home prices in nearly 16 years.”

Rising Rents

Real estate data provider RentRange reports that San Diego ranked the 10th place where rent is growing the fastest. San Diego rents increased 13.6% between the third quarter of 2014 and the third quarter of 2015. Rental prices nationally have grown at roughly twice the pace of average hourly wage growth, which was only 2.1 percent over the past year. Rising Rents means better cash flow for investors. According to Mashvisor, “The rise in property value gives the investor the opportunity to receive high rental returns and cash flow. The average rental return for traditional properties in San Diego is $2,520. Of course, figures differ from one neighborhood to the next, but the numbers are very promising.”

It’s a Landlord’s Market

San Diego’s population is growing and its tourist industry is one of the most successful in the nation. As the demand for rental property increases throughout 2017 and the there continues to be a limited inventory of property, it is the landlords who are benefiting the most in this equation. Additionally, San Diego’s college areas are doing very well. Investors should also consider investing in one of the city’s college neighborhoods which have high occupancy rates.

San Diego Real Estate is a great place to start when it comes to Trust Deed Investments. When investing in trust deeds, the investor is buying someone else’s real estate loan, which is secured by a trust deed. When a real estate investor purchases trust deed, they are setting up a relationship as an intermediary between the original lender and the borrower. Trust Deed Investing is when investors invest their money in Trust Deeds  which are secured investments backed by San Diego real estate. Basically, the investor becomes the bank and they can earn a much higher interest rate than a conventional bank.

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