San Diego real estate can be some incredibly hot property, if for no other reason than “America’s Finest City” is in California. California real estate in general can be some of the most expensive sites around, at least when considering spots that are actually worth living in, so keep that in mind when checking out any San Diego homes for sale. Anyone considering buying property, whether for personal or commercial reasons, will do well to learn all they can about the area including the history, relevant taxes, and even where construction is scheduled. You don’t want to sink a bunch of money into a piece of property you intend to rent out, just to discover access is going to be blocked for the next six months by road construction.
That actually happened to Robert Kiyosaki, who wrote the “Rich Dad” book series. He describes it in his book “Cash Flow Quadrant.” It was his first piece of property and, even though he’d grown up with the benefit of being very close to his best friend’s father, a man to whom he refers as his “rich dad,” he simply was not accustomed to looking at all of the variables needed to make a deal work for him. As a result, the paperwork he showed his “rich dad” detailed a deal in which he was losing money each month. In the end, the older investor showed him to turn it into a winning deal, even with the road construction, but it could have easily turned into a financial disaster for Kiyosaki.
Real estate investments are the only type of investment in which local goings-on have a significant impact on the value of the purchase. And that value can fluctuate significantly. You need to be able to predict that fluctuation and the only way to do that is to keep on top of the news for that area. You also need to be able to know how to ride the information you come in contact with. For instance, once you check out the San Diego real estate market, what do you do with that information? Kiyosaki’s “rich dad” didn’t tell him his original investment was hopeless. He used the information he knew about the area to tell Kiyosaki what changes to push for in the contract.
For instance, talk of a quality of life tax could become a significant factor in determining the likely fluctuation in value of San Diego real estate. How such a tax (or even simply talk of such a tax) will influence people’s buying or renting patterns in that area, is something an investor will need to know. A potential tenant may be turned off by the idea of having to pay an additional tax, or he may be turned on by the fact that local authorities are concerned about making sure residents have adequate places to play.
When a person begins considering quality-of-life issues and real estate, California is a state that often comes to mind. But, of course, not every spot in California, and not every piece of San Diego real estate, is going to be a good investment or a bad investment. You have to study the area and learn what the pros and cons are of the actual San Diego real estate market. You need to learn to think like the general buying public and keep educating yourself. No matter what your endeavor, education is the keystone of your success.