Investing in San Diego’s luxury real estate market can be a lucrative endeavor—if done correctly. But before making any purchases, you need to know the ins and outs of the local market and the buying process. And if you want the best results, you need to be fully prepared.
In this guide, you’ll learn all about the whys, whats, and hows of luxury real estate investment.
Why invest in San Diego luxury real estate?
San Diego has a strong local economy with an unemployment rate of 3.4%, which is lower than the national average of 3.7%. Industries such as healthcare, telecommunications, and technology are thriving.
The positive economic atmosphere and abundant career opportunities are injecting much vigor into the local real estate market as seen in the rising demand for properties here, as well as a steady appreciation in values. This could spell out a healthy and lucrative profit over time, not overnight, if you are looking to invest in condominiums in San Diego.
More than having a vibrant economy, San Diego also makes luxury living a way of life. The real estate properties here are testaments to this. That’s because luxury real estate cannot be defined simply by its price tag – it’s also about the accommodations and lifestyle that come along with it.
When I talk about lifestyle, I’m referring to San Diego’s incredible shopping, dining, and entertainment destinations that make you feel like you’re on vacation 24/7. This beachside city also has that charming West Coast bohemian vibe that makes it so appealing to upscale buyers.
Tips on investing in luxury real estate
Get the most out of your real estate investment by following these tried-and-tested tips:
- Figure out how to finance your investment. For the past several years many of my buyers choose to purchase properties with cash because it’s quicker and more straightforward. However, there is beauty in using jumbo mortgages to buy luxury real estate.
- Shop around and do your research. Not all investment properties are created equally. To get the best deal possible, take your time and look at different properties available. Do your research on the various San Diego high rise condos for sale and compare them with other properties in the area. The location of your investment property affects its desirability and overall appreciation rate.
- Get the help of an expert San Diego, CA real estate agent. No one knows the San Diego luxury real estate market better than a local real estate agent. I can assist you in navigating through your investment purchase with ease and efficiency.
- Identify your investment goals. Before making any final purchases, assess how a potential property can help you achieve your financial goals. Consider your expected return of investment (ROI), timeline, and lifestyle needs when evaluating potential properties. I am here to offer my insight on the property that might best suits your needs.
- Renting – Decide whether you want to rent your property out full-time or make it a vacation rental. Buying a condo is the ideal route for this investment option. In renting it out full-time, you can expect a steady cash flow but you’ll also have landlord responsibilities unless you hire a separate management company. On the other hand, renting it out part-time may not provide as much extra income but on the plus side it gives you an opportunity to enjoy the property yourself.
- Flipping – This involves purchasing a property then renovating it for a significant profit. The main challenge of this option is finding a property that has the right conditions for the perfect remodeling project. You need to equip the property with amenities that can compete and truly over exceed with others available in the area. In other words you need to produce the “wow” factor that sets your property on a pedestal.
- Custom-building – Building from scratch offers the best profit margins but I want to be clear that it by far requires the most work. You need to meet with contractors, designers and the like to make sure your property meets the highest standards. Most importantly you will have to deal with the city officials in order to gain all necessary building approvals, which can be challenging.
Getting a jumbo loan can be a bit rigorou because of the amount you’re trying to borrow. But with this loan, you’ll be able to build equity and diversify the rest of your assets.
Ways to use your luxury investment
Real estate is a popular investment option because of its flexibility. Investors can take advantage of their luxury real estate investment by renting it out, flipping it, or perhaps even custom-building a property.
If you are ready to purchase in aluxury condo in San Diego, whether for investment or as one of yourprimary residences, please feel free to reach out to me.Call me today at 619.980.8385 or get in touch by clicking here.
Max Mervis is the founder of SanDiegoHighRises(dotted)com and is a leading authority on the purchase and sale of luxury residences in downtown San Diego and the surrounding areas.