North San Diego is a popular place for investors to buy real estate. The area really sells itself: with a gorgeous climate and proximity to beaches, military bases, and some really great shopping and recreational opportunities, it’s an ideal place to buy, rent, and sell properties. There’s a diversity of opportunities available. Investors can buy single-family homes, condos, apartment buildings, and commercial real estate.
At North San Diego Property Management, we’ve spent years managing multifamily and commercial properties in the North County area, including in Oceanside, Carlsbad, Vista, San Marcos, and Solana Beach. If you’re looking for a community in California that will increase the success of your portfolio, consider North San Diego. Here’s why.
Population and Economic Growth
The North San Diego area is growing in people and in jobs. The economy is strong, and people are feeling comfortable with their incomes and their job stability. It’s contributing to a strong sales and rental market in the area.
Tenant Pool is Stable
As an investor, you want to be assured of a strong tenant pool. North San Diego has that, and with more people moving into the area, landlords can expect to have well-qualified tenants trying to rent homes for years to come. Many of the jobs being created in San Diego are high-paying, which means the tenants you’re attracting to your investment home are earning enough to cover rent.
Rents are also higher in this area. At the end of 2018, the average rental rate was just under $2,000. Rental rates in San Diego are growing faster than the inflation rate, and market saturation and affordability issues have not had a negative impact on the rental market yet.
San Diego Home Values
It’s increasingly difficult to enter the real estate market in other California cities like San Francisco and Los Angeles. In San Diego, however, you can still find properties that are affordable and make sense for investors. Property values have climbed by about eight percent over the last three years, however they’re still affordable. Many investors are buying with cash, and every investor knows that a cash sale will afford better negotiating power.
Some of the best neighborhoods in North San Diego to have a rental property include Carlsbad, Escondido, Oceanside, Vista, San Marcos, and Solana Beach.
Diversifying Investment Portfolios
Single-family homes in North San Diego are attractive to investors, but right now the inventory for those properties is tight. Unless you have a home you’re currently living in or you find yourself with an inherited home, it’s going to be a challenge to find a new single-family residence for the right price that will make a good rental. So, investors in North San Diego need to think outside the box and consider different types of investment properties.
There are new buildings going up and communities being planned. If you can get behind the idea of buying some apartment units, condos, buildings, and even commercial real estate, you’ll have the potential to build a strong portfolio of real estate in this market.
We love talking about the market in North San Diego. It’s where we live and work, and we love the community. Contact us at North San Diego Property Management for more information.