Buying Investment Property in San Diego's College Town
College towns, with it's high population of students, create a strong need for rental properties. Students who are ready to live off campus need temporary housing that is affordable, yet comfortable. As a college town, the northwestern region of San Diego is one of these areas where rental need is strong. What's more, homes in this area sit just minutes away from some of the most coveted beaches in the U.S. Investors thinking of buying a second home in San Diego can profit by investing in a college town.
What Is a College Town?
As its name implies, a "college town" is a town that has a college or university as one of its central features. In order to qualify as a "college town," the population of the area needs to be primarily related to the school, including both the students, teachers and other staff. Sometimes, these communities will even appeal to families of students who will relocate as their student attends school.
Why Investing in a College Town Makes Sense
Real estate investors need to have renters in order to make money off of their investments. College towns, like San Diego, have a never ending supply of renters. These renters, especially if they are students, have to have a place to live, so this means vacancy rates are low.
Yet students are not the only types of renters that come to a college town. Faculty also often choose to rent rather than buy, particularly if they are not planning to stick with their position for the long term. This steady supply of renters and low vacancy rate makes a college town an excellent place to invest in real estate.
Investing in San Diego Real Estate Listings
As a college town, San Diego provides these benefits to potential real estate investors. Those who are considering buying a home in San Diego to recognize these benefits will find that it offers several types of properties that work well as investment properties.
One of the primary types considered by those investing in San Diego real estate listings is the multi-family property. A duplex or quadroplex, for example, can house a bunch of students, which makes the potential income greater. Apartments, condos and town homes all fall into this category.
However, multi-family houses are not the only properties that work well as investments. Small, affordable homes are also appealing to college students. Many will get a group of friends together to rent a home to make their time at college more comfortable. The key to making this type of investment work is choosing a home that is affordable enough to make the rent fit within a college student's tight budget.
Other aspects to look at when buying a home in San Diego as an investment include finding a property that is easy to maintain and shopping for listings close to the university. College students are not going to spend much time maintaining the home, so you want one with durable features like hardwood floors and low-maintenance exteriors. Also, the property should be close enough to the school to allow students who do not have cars to walk or bike to class. The University City neighborhood is popular for this reason. San Diego real estate listings in University City had a median sales price of $362,500 from November 2012 to January 2013.
Investing in San Diego real estate can be profitable because of the strong college community. If you are in the market for a new investments property, consider looking for homes in San Diego, and start profiting from the need for reliable rental properties in this college community.