San Diego Real Estate Blog

6 Reasons to Purchase A Vacation Rental In San Diego

Lately, you've been thinking a lot about investing strategies. You have a small nest egg that needs to grow, but frankly you don't trust the stock market. (If you're like many investors, your 401(k) hasn't fared well in recent years.) And while real estate has been somewhat of a rocky road in recent years, it's still a solid long-term investment strategy—and clearly we're in a buyer's market. But you aren't really interested in being a landlord or delivering eviction notices. What to do?

Christine Karpinski has a suggestion: Purchase a vacation home in San Diego and rent it out to tourists.
"Vacation homes are almost always a good investment," says Karpinski, director of Owner Community for HomeAway—te the world's leading vacation rental marketplace—and author of How to Rent Vacation Properties by Owner, 2nd Edition: The Complete Guide to Buy, Manage, Furnish, Rent, Maintain and Advertise Your Vacation Rental Investment

"First, if you're looking for a good long-term investment, real estate tends to be a good bet," she adds. "Second, vacation properties have the ability to pay for themselves, and owners often earn a profit in rental income. Third, the investment comes with the desirable perk of having a place at the beach or in the mountains to call your own. And finally, there has never been a better time to buy a vacation home—it's like the planets have all lined up perfectly."

Karpinski, who owns vacation homes in several parts of the country, says she herself is looking for new properties to invest in. Overall, she says, the vacation home rental market is a burgeoning segment of the economy.

Want to know more? Read on for a few reasons why there's never been a better time to go vacation rental house hunting in San Diego:

There have never been so many properties on the market. For...

Buying a Home in San Diego with a VA Loan

This is a guest post by Kevin Pearia.  He is a mortgage commentator for Veterans United Home Loans, the nation’s leading dedicated provider of VA Home Loans.

For many veterans returning from Iraq and Afghanistan the thought of purchasing a home and finally settling down is a common one, and many choose to settle near familiar military bases. One popular destination for veterans is San Diego due to the large number and variety of bases around the city – not to mention the mild climate and numerous sunny days.

While conventional lending does offer financing options to veterans wishing to purchase a San Diego home, the VA home loan program, which specifically caters to the needs of military members, is by far one of the most affordable and accessible lending options available to veterans and active duty service members.  Through the VA home loan program veterans are able to purchase a home without the need of a down payment and without purchasing private mortgage insurance, both of which can save a borrower thousands in out of pocket expenses.

However, purchasing a home isn't as easy as applying for a VA loan.  One of the most difficult parts of the home buying process is simply finding a home. Previously, San Diego wasn't an easy place to find VA-approved homes, but that has changed in recent years as more property owners are seeking eligibility in order to sell to additional markets. Even with the influx of VA approved homes, one of the most stress free ways to find a dream home is to find the right realtor.

Realtors know the different neighborhoods, and will be more likely to cue any veterans to any home deals that may be listed in the area. They also take all the guesswork out of trying to decide if the neighborhoods, schools, and area commute is good, and will be able to keep an interested buyer within their designated pre-approval amount...

Santaluz Inventory Way Down

Santaluz inventory is significantly down and I wanted to share the facts. 

Traditionally, there has always been anywhere from fifty to sixty homes on the market within the gates of Santaluz.  Today there are only twenty nine homes listed for sale.  A quick glance at the MLS will show thirty five of them but six of those are actually vacant lots that are trying to market a build to suit package.

These numbers are hard to believe, but they are very real.  Inventory is actually down in many neighborhoods across the county.  One major reason for it is that there has been virtually no construction over the last three years. 

As a Santaluz agent, I can tell you that there is a lot of pent up demand for a great home in Santaluz, but buyers do not have much to choose from.  I particularly see a lot of demand for smaller empty nester homes, and for larger family homes that have multiple bedrooms near the master for the kids.

Does this mean prices are quickly rising in Santaluz?  No, it doesn't.  The market is still competing against the number one threat, which is the buyer's ability to do nothing.  To get buyers to come off the fence, the deal needs to offer buyers a high perceived value.  Nevertheless, I can't help but think there is opportunity for those that want to offer a great home at a competitive price. 

You can use this link to see the current home listing inventory in Santaluz.  Feel free to get in touch to discuss further.