What time is the right time to invest in
San Diego real estate?

Interesting question these days.

You read the newspaper and get one opinion, turn on the nightly news and get another. You’re standing in line to get coffee at Starbucks and overhear two individuals expressing opinions on this question, and they both contradict each other.

Why would you want to invest in local real estate? Here are some typical reasons:

• You might have limited faith in the future performance of Wall Street stocks and are looking for a more solid investment.

• You know from history that San Diego real estate does have peaks and valleys, but fortunately the peaks typically long out-last the valley.

• You believe that with the huge drop in recent values, its only a matter of time before home prices start going up again. But the question still looms….WHEN is a good time to buy?

I'm a full time Realtor but I'm also a CPA, was a Finance Director of a Fortune 500 company - and I now make it a point to bring fiscal expertise to the table for my real estate clients. After careful consideration, let me answer your question with one word... NOW. That's right. I believe that the time is, finally, now, to invest in our local real estate market. Let me take a moment and explain why.

Stated most simply, the reason is that right now prices are discounted significantly from their all time high AND, 30 year fixed interest rates are at a 50 year low.

The combination of the two results in the investor being able to buy a property at a very good price, then turn around and rent it out for more than their monthly costs. That has not been the case in the San Diego market for quite some time. Rentals can now bring the investor a positive cash flow return on investment, while the investor waits for prices to go up again. I’m increasingly seeing investors swooping in for the opportunities that present themselves. Their motivation is to make the move now before interest rates go up.

Not every city (such as La Jolla or Del Mar) has investment opportunities with positive cash flow, but areas such as Oceanside, Vista and Escondido have a wide selection of solid investment options, starting in the very low $100’s.

For a separate opinion on this topic, go to the following link in Forbes Magazine http://www.forbes.com/forbes/2008/1208/156.html. The article talks about a long time local investor, Randy Perkins, who has made a good deal of money over the past 30 years in insurance and investment banking. But recently, he has gone heavily into real estate investing and has bought two dozen homes in the San Diego area – many in Oceanside and Escondido. He plans to rent out his properties for 5 to 10 years, and then sell at a substantial profit. In his opinion, “Lots of millionaires will come out of this,” for those who invest now.

My financial background has enabled me to become immersed in the bank-owned or lender-owned arena in recent months, in which properties are being moved at discount rates. Financial institutions have selected me to handle a number of homes in this category. I see it as an important part of my business, at least for the time being.

Are you ready?

Historically, most potential buyers wait too long, looking for markets to hit their absolute bottom or for ‘perfect’ conditions to arise. I’ve studied the numbers and I know the greater San Diego real estate market, and I believe that now is the time. Interest rates won’t remain low forever and the current foreclosure market will eventually dry up.

Give me a call or send me an e-mail for more specific information about opportunities that exist now, which may be the chance of a lifetime to realize your investment goals.

Best wishes,

Al Rex

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