San Diego real estate is some of the most coveted in the country. Boasting views of the ocean, easy downtown access from almost anywhere in the county and a dynamic urban life, San Diego continues to improve and expand, pulling home prices up with it. This is both good and bad news for those in the market for new properties. On one hand, the steady climb means that every day you wait to make that down payment, the cost of your property is rising. On the other hand, some smart investment will mean that your property's value will continue to grow and your margin of return will stretch.
Downtown
One of the hottest places to invest right now is in downtown real estate. The construction of Petco Park, the San Diego Padres' new home, has turned what used to be a low-income and industrial district into one of the city's most coveted addresses. Almost the entire area has been torn down or refurbished to make way for luxury condominiums and funky homes, many with views of the Bay or the ball field. This property is the place to live for those who want the ultimate urban lifestyle. And investing in it is relatively low-risk: because most of the buildings are brand-new, you don't need to worry about home inspection or management. The average price of a downtown condominium is slightly above $600,000, but the new condominiums sell for about $1 million.
On the Beach
Another smart investment in the San Diego area is beachfront property—especially that which is ready to be refurbished. Investing in the Ocean Beach, Pacific Beach or Mission Beach areas is a particularly good idea if you're looking to rent out vacation homes. Many of these properties have worn themselves down over the years, and taking some time in the fall or winter to spruce them up will pay off in the summer, when families are willing to pay big bucks to stay near the beach and have such amenities as a kitchen and a living room. Single-family homes in one of these neighborhoods sell for around $750,000.
In the Suburbs
And finally, the less-glamorous investment: building now where San Diego is expanding. As the city pushes eastward, a smart investment is in these previously-rural neighborhoods. El Cajon and Santee continue to grow, as do their nearby communities. As more people crowd into the city, more will need to live outside city limits.
The San Diego Trolley is expanding to accommodate this shift, and this will only increase the home values in these areas as they become more downtown-accessible. And to prepare for this growth, city planners have made these communities great for families, with lots of parks, new schools and well-designed shopping areas.
Prices in these areas are relatively low compared to what they are expected to be in just a few years, so getting in now is a great way to invest in your future! Home costs vary by community, but range from about $300,000 to $600,000. Some area homes can go for up to $1 million, but these are not expected to jump extraordinarily high in value any time soon.
