By Mark Mills
Savvy condo investors are looking to Downtown San Diego topurchase investment properties to replace the disappearingapartment buildings that are being converted to condos. Todaythere is a relative abundance of entry level condos availabledue to several new buildings being sold as condos that wereoriginally being constructed as apartments. According to MarkMills, Realtor with RE/MAX Real Estate Consultants, in SanDiego, you also have several existing apartment building thatwill soon evict all their tenants and sell their refurbishedunits as condos. This is really going to drive the rental pricesup in downtown. If a building is not currently being convertedto condos or in the planning stages, it is either below thequality standards required by downtown condo buyers or itslocation (usually in the East Village) is so bad the demand forthat is still a few years out.
Wealthy California real estate investors have know for yearsthat making money in California real estate is not about cashflow, its about appreciation. Stated another way, if you’reworried about cash flow, you bought the wrong property.Downtown’s housing market is very dynamic and the two influencesof local politics and the cashing out of apartment buildingowners will make housing less affordable in the next 5 to 10years. Local governments are subsidizing builders of low incomeapartment housing and no one is building anything for the middleor upper class to rent. Demand exists for luxury condo/apartmentrentals in downtown. According to Mills, there is a segment ofthe market looking for condos rentals over $3,000 per month.Most of these renters are either new to town or in transitionbetween homes they own.
If you’re looking for a rental condo in Downtown San Diego youwill be in for a pleasant surprise over the next few years asyou will get a bonus on your investment, increased cash flow.Rising rents are inevitable with the shrinking of the availablerental units. Remember, the cash flow bonus will also make yourinvestment property appreciate faster because it’s generatingmore cash.
You can visit the website of Mark Mills athttp://www.LiveAtTheTop.com
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