Real estate investing today allows you to buy properties anywhere and at any time. A lot of people are interested in investing remotely, where they can move into different markets that they don’t live in and don’t even go and visit. This can be an excellent way to diversify your portfolio and spread your investments into other areas.
However, there are also some excellent reasons to invest locally. This is an especially good idea if you’re new to real estate investing, trying to build a portfolio that you can watch closely, or working with limited resources.
Smart investors are strategic and choosy in their investment decisions.
When it comes to making choices, most investors choose big, established cities with high returns on investment. Like San Diego.
We’re lucky to live in a market that’s full of potential. Investing locally can lead to success because you already know the market. You understand the nuance of each neighborhood and you can get a detailed look at potential investments without enlarging photos on a screen or trusting data that comes in from other people.
Because San Diego is such a diverse and vibrant real estate market, we recommend that you skip the trend of investing from afar and focus some time and resources right here, where you can partner with local professionals you know and set yourself up for a pleasant and profitable investment experience.
Investing in Profitability and Growth
Investing locally offers a unique advantage over investing remotely: it’s almost always easier to identify untapped opportunities for growth. You’re living and working in the market that you’re investing in, so you have a natural understanding of how things work. You know when new companies are coming into town and new developments are under construction. You understand what’s going on politically and where the new laws are coming from.
A local investor understands neighborhoods and communities. You are reading and hearing about the development of public transportation or the construction of new schools. You know the challenges as well as the opportunities; traffic might be a real problem in a certain area, or maybe there are more vacancies in one area than another.
Your local real estate investment yields significant returns, which, over time, can be reinvested in purchasing more property to continue growing your wealth and serving your local community.
Community Impact with Local Investments
When you keep your money in the local community, you have more of a voice there. As a local investor, you won’t just be aware of what’s happening in the local real estate market and economy, you’ll also have an opportunity to make positive changes in your community and the market.
California legal changes and politics can be a lot. There’s always something happening and changing. You might find that legislation is being proposed locally that raises alarm bells for you and your fellow real estate investors. As a local leader in the investment community, you can make your voice heard and insist on a seat at the table where decisions are being made.
We know that investors in California are already working with resident protections such as rent control, just cause eviction, and strict security deposit and habitability laws. It’s important to remain aware of what is being discussed that can impact your investments and your ability to provide high-quality housing. It’s more difficult to pay attention when you’re investing in a distant market.
When you invest locally, you have the opportunity to contribute to the discussion around development, public transportation, environmental regulations and requirements, and smart growth management. You and your rental business will be impacted by decisions made over schools, commercial properties, zoning, and building.
Local investors can vote in local elections. You will pay local tax and support the local economy. This gives you a lot of power, which you can use to create a better climate for all real estate investors.
Local Partnerships and Relationships
Networking in person is simply more productive than networking over a Zoom call or via text.
When you’re investing locally, you’re attending the local business meetings. You’re joining the local Chamber of Commerce. You’re present and participatory in the meetings and conferences of local associations and organizations.
This makes a difference.
Think about how you operate when you need work done on one of your properties. If you’re a local investor, you likely know exactly who to call. That’s valuable, because finding reliable vendors isn’t as easy as it once was. Twenty years ago, you could get a referral from someone you trusted or pick a name out of the phone book, and you’d have a fantastic plumber, drywall expert, or HVAC tech ready to do the job you needed. Now, thanks to higher demand for this kind of work but a lower labor supply, finding vendors who can do work quickly, affordably, and to your standards can be a bit of a challenge.
Good relationships are required, and it’s difficult to establish those relationships when you’re investing from elsewhere. As a local investor, however, you can take the time to work on such a relationship. You’ll have better vendor relationships and you’ll get to know your service providers well, whether it’s a San Diego property manager, an insurance agent, or the pest control company that’s treating your properties.
You cannot possibly do everything yourself when it comes to investing in rental property. By growing your portfolio with properties in your local area, you can create and cultivate a fantastic vendor list.
We would love to talk to you more about the value and the benefits of investing locally. As San Diego property managers, we love our community and our market, and we’re always looking for ways to make it better. Let’s talk about the opportunities that currently exist and those that you can create for yourself.
Whether you’re investing for the first time or building a real estate portfolio, we want to talk. Contact us at PURE Property Management, and we’ll help you do better.