Real estate is a classic way to invest your money. Owning a second home may bring you pleasure, a place to retreat from day to day life and a place to bring your family together. One of the best places to buy a vacation home right now is San Diego. Here are 3 reasons that makes San Diego the perfect place to buy a second home.
One benefit of owning a vacation home is that you can rent it out when you aren’t using it. San Diego has an excellent rental market – if you’re a landlord. Vacancies in San Diego are around 4%. If your property is in good shape and priced right, you’ll have plenty of applicants. For example, rents in San Diego are growing quite quickly. The metro area was tenth in the nation for how fast rents were rising. They grew 13.6% between 2014 and 2015. Yet this was a bargain compared to the 20% rise in rental rates for apartments. This means there are many people who want to rent a house. Now you have rental income on the vacation home when you aren’t using it.
Suppose you don’t want to have tenants move in to live there for months at a time. San Diego is one of the fastest short-term vacation rental markets in the country. Beach communities are generating short term rental rates of around five thousand dollars a month compared to less than two thousand a month for a long-term rental.
As an Investment
Population growth is one the major factors behind the price increases for both rents and home purchase prices. More than thirty thousand people a year are moving to the area. On top of that is the strong natural growth due to high birth rates relative to the death rate. San Diego County’s population is expected to see four million people by 2060, and there is a relative lack of land available to develop to meet the housing demand.
Let’s be honest – San Diego is a great place to live. The city averages 146 sunny days a year. It sees another 117 partly cloudy days a year. On top of that, the climate is mild. Here, you get the sunny weather that retirees in the desert Southwest brag about but without the heat. In comparison, San Diego is so mild that many rental properties don’t have air conditioning because they don’t need it. And you don’t get hurricanes like Florida. Ice and snow are also very rare.
Then there’s the location. San Diego puts you in reach of the beach and the mountains. In fact, in this metro area, you can find both beach homes and mountain homes. However, if you want to get your hands on these type of properties, you should start looking for reputable realtors in San Diego since these coveted properties are hard to find on your own.
One potential tactic is buying a second home on the beach or in the mountains that you’ll use from time to time in addition to your home in the city. Now you own a vacation home in easy reach of your primary residence, and its value is going to skyrocket because of their limited supply.
San Diego is an excellent place to invest in a second home or vacation home. It’s a hot destination for vacationers and retirees and the quality of life surpasses many other metro areas in the region.