Property investments in San Diego, California, are on the rise and it does not come as a surprise for many. After all, this location which has been called the birthplace of California is favoured by many because of its many features.
For one, it is the second largest city in the state of California and the eighth largest in the continental United States. It has approximately 70 miles of coastline, many of which feature white sand beaches that attract hordes of tourists every year. It is also known for its mild climate and recently as healthcare and biotechnology development centre.
Do investors consider it an attractive real estate investment option?
The short answer to this question is yes. After all, it landed on the 11th spot on the list of places where real estate investment can be profitable. This was the general consensus of million dollar investment entities like pension funds and insurance companies after being asked on the best places to invest in the United States.
According to these entities, there are many reasons why it has become one of the most popular real estate investment places. Among the factors mentioned is the city’s almost perfect weather at an average of 64 degrees all year round. Furthermore, almost 35 million tourists visit the place annually, making it an attractive option for landlords.
Its status as a technology hub has attracted thousands of startups to set up shop in the location. With its emergence recently as a leader in biotechnology and healthcare development hub, it will not come as a surprise if pharmaceutical companies might soon establish their presence there.
What are some of the financial data on its properties?
Like many cities in the United States, the rental prices in San Diego largely depend on which section of the city the property is located. According to the data made available by Rent Jungle, Carmel Valley, North City, and Torrey Hills are among the most expensive zones in San Diego. The rent in these places as of February of 2019 average around $2,234. The latest figure is higher than last year’s average in the same period at $2,059, or an increase of about 7.83%. It is also higher than last month’s rent average at $2,223 or an increase of 0.49%.
In the same information sheet, it listed Valencia Park, Emerald Hills, and Alta Vista, as among the most affordable neighbourhoods in the city. The average rent in these zones as of February 2019 is around $875.
How much does a rental property cost in San Diego California?
The answer would actually depend on the location, the number of square feet of property, and basically whether it is new or not. On average, however, rental property prices start around USD700,000 and upwards. At this price, you can avail of almost 3,000 sq ft of property with at least 3 bedrooms and 2 bathrooms. According to available data, such properties could give you yields of around 5% every year and in addition, robust capital growth of 8% or more. The completion upside is estimated to be up to 30%.
With all the financial data leaning favourably towards the investor, it is hardly surprising at all why the city is becoming an investment property haven for some. The growing rental prices and burgeoning economy of San Diego are proof enough of that.