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San Diego a Bargain for Foreign Investors

A client we’ll call Josef decided to retire to Encinitas a couple of years ago. He was ultra-specific as to what he wanted in his North San Diego County luxury home. He demanded a home with a pool, spacious outdoor entertaining areas, enough bedrooms to accommodate a couple of guests, a large office and a serious kitchen for cooking. He also wanted no houses looking into his windows or back yard.

And why did Josef want Encinitas? He wanted to be close to San Diego beaches, close to La Costa Resort and wanted perfect weather that was second to none. Josef wanted nothing more than to escape the gloomy skies of Northern Europe and spend the rest of his days basking and tanning in San Diego sunshine.

But Josef was also a very astute businessman: He knew he would be collecting his retirement pay in Euros and even at that time, was enjoying a favorable exchange rate with the dollar.

These days, when we run into Josef around Encinitas and San Diego's North Coastal area, we are greeted with an enormous smile and bear hug. He loves life along the coast, loves the great buy he made on his luxury home, and is ecstatic about the increasingly favorable US exchange rate for Euros.

Increasinglywith the weakening dollar, we are hearing of foreign investors who are drooling over real estate in San Diego. Not only have our real estate prices dropped to very attractive levels (in most areas), but foreign currency will now buy far more than it would have just a couple of years ago. As an added incentive for buying U.S. properties, European real estate prices have reached very lofty levels, even by Southern California standards. That creates an even better comparative bargain in the United States, In fact, we are hearing of Europeans who now come to vacation in the United States with empty suitcases.

Shopping here is a dream-come-true.

Because of this favorable foreign perspective on San Diego real estate, more and more of our marketing resources will be directed overseas.

The months ahead promise to be interesting ones!

Read also:

Welcome the Wealth to San Diego

San Diego Real Estate Market Wearing a Halo?

What Do Luxury Home Buyers Expect from Their Agents?

United States a Bargain for Luxury Homes?

Richistan Home Prices Continue to Soar

What is a Luxury Home?

The Luxury Blingdex

Search San Diego Real Estate

Luxury Homes and News

Posted by Roberta Murphy - Carlsbad Real Estate North County San Diego Realtor on 10/02/2007 01:08 AM

Comments (26)

san diego real estate, luxury real estate, encinitas, san diego beaches, foreign investment

Originally posted at: The Real View: San Diego a Bargain for Foreign Investors

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26 Comments on San Diego a Bargain for Foreign Investors

OCT

2007

I haven't been to San Diego, but your post inspires me. Thanks. BTW, I see you are near 100,000 points. Congrats!

Thank you for taking the time to read my post, 10 Short Sale Questions Answered by a Bank Loss Mitigator and for making a comment.

LOVE IT Roberta! And you barely even mentiond the weather! I wake up everyday feeling so good about living in San Diego, raising my family here, surfing at lunch, (my office is in UTC) and just generally feeling good about being here. That's what many of the so-called experts just don't get...the lifestyle and general sense of well being one gets from calling a place like San Diego home!

Roberta - Nice positive post. Great insight into the foreign money that will be moving into our country in general and into San Diego specifically.

Dan: Your post was terrific--and I guess I am becoming a high miler:-)

Jason: Our weather is E-X-Q-U-I-S-I-T-E! (and you really go surfing at lunchtime???)

Marlene: I was playing favorites (obviously). The Euros spend as well in Orange as they do San Diego County:-)

Roberta, what a great post. I wish I had Euros!!!

OCT

2007

Yes, can we have some Euros please. It's fairly humbling to watch the exchange rate. But what a fabulous way for someone to spend their Euros. My last trip overseas was to London and I did not get any Euros LOL.

I am seeing the Canadian Buyers coming out of the wood works to purchase right now. The dollar is down and they are jumping in. It had been as low as .56 cents to the US dollar. They are vaving fun right now.

Good to hear you are doing well.

Duane Hosek in the Black Hills of South Dakota

Very good post Roberta, and you sold him in my hometown of Encinitas (my favorite city). You made a great post regarding exchanges.

NAR has published a study about international home buying activity in the U.S.. You can google "National Association of REALTORS® Profile of International Home Buying Activity" to find it or we have published the link on our blog.

Tony

Roberta, If we could all only be that smart. The currency market is tough to call, but your friend did great!

Carole: We should have hoarded Euros 5 years ago. Or played some long term contracts:-)

Gary: Canadians are gloating and rightfully so.... Should have hoarded Loonies too!

Duane: Thanks for stopping by!

Haydon: Thank you! Encinitas is an amazing place to live--and a wonderful hometown. You are very fortunate.

What's not to love?... Encinatas is gorgeous and a bargain for foreigners.

Tony: Thanks for the link. I'll be going through the information later today--as well as your site. My first thought was that you should be in touch with Sotheby's Realty because of their strong international reach.

Charles: Those who are smart enough to profit from the fall of the dollar are also smart enough to know that those profits can be plowed into another beaten down investment --and one that can be enjoyed. That's why the rich get richer....

Roberta, yes surfing at lunch is great! A quick trip down to La Jolla shores. If not that then the driving range at Torrey Pines! Hey, I have to do something to get my mind off the 85 agents that need their problems solved right now!!!

Jason: Hang ten and break eighty. LOL!

give it another 18 months and it will be an even better deal.

Anonymous: You may be right. These are interesting times in which to practice real estate. We guide out clients with caution.

OCT

2007

Roberta:

Great post. I had not thought in this direction before. Very good insights. I love San Diego. Save me a beach front property, and I will go get some Euro's ha

JUN

2008

Thank you for sharing your thoughts and links! Now you are enticing me to make a visit to San Diego. P.S. I am seeing more foreigners, specifically Chinese and European buyers starting to hunt for properties here in Hawaii.