San Diego a Bargain for $1 Million Homes?
July 18th, 2007 Categories: Real Estate Juice, Real Estate News
by Roberta Murphy
Thinking of buying a well-located $1 million luxury flat in London, Paris or Tokyo? Think again:
1. In London, youll get 328 square feet.
2. In Paris, youll do better with 522 square feet.
3. In Tokyo, you can really spread out with 594 square feet.
These are averages reported by a recent issue of Forbes magazine. The weakened dollar against the Sterling, Euro and other currencies has contributed much to a real estate situation where, for example, the U.S. dollar purchases 25 percent less in London than it did just five years ago.
But if the tables are turned, premier areas of the United States, such as coastal San Diego, are relative bargains for many international real estate buyers. We have a client who recently retired in Belgium, moved to the San Diego suburbs, and purchased a lovely La Costa Valley pool home (around 3000 sf) for just under $1 million. This jolly client still chuckles when mentioning that his retirement income arrives in Euros, which helps to create a very comfortable retirement given current U.S. exchange rates.
This is a situation that might be repeated throughout our San Diego regional real estate market. Excluding a few areas, real estate prices in San Diego have softened in the last couple of years. Consequently, an international real estate buyer might be able to purchase a prime San Diego property at a substantial discount not only because of weakened market conditions, but also because of the increased purchasing power of his or her native currency.
Given this interesting and favorable set of circumstances, we are actively courting international real estate buyers. Prime U.S. real estate has become a relative bargain for these shoppers. It is a market that cannot be ignored.
If you are an international buyer for San Diego real estate, please call Mike or Roberta Murphy at 760-402-9101/9102 and we can discuss your investment alternatives and possibilities.
