Where would you invest $500k in real estate?

[kcal09]

I am thinking of investing about $500k in real estate in San Diego County. I would like to rent the place out first and move in once I retire so it should be a place in a better neighborhood (Scripps Ranch or UTC/LJ preferred). Do you think that the current prices are attractive and rental properties in these neighborhoods are good investment if I plan to keep the property for at least 15 years?
Any ideas would be appreciated.

[no_such_reality]

Skip San Diego and buy productive farm land.

Food inflation is just starting, it’ll make Gold look like chump change.

[sdrealtor]

My advice would be to figure out where you really want to live, buy something within 200K of that, put 20% down and get yourself a 30 yr ficed rate loan at 4% or lower. Keep your cash, let the renter pay the mortgage. When you are ready to retire you can pay it off or if interest rates skyrocket you can pay the mortgage with the interest you earn on a few hundred K invested in CD’s.

[Navydoc]

Does it have to be San Diego county? I know of a really nice house for sale in Gaithersburg Maryland……

[ocrenter]

[quote=Navydoc]Does it have to be San Diego county? I know of a really nice house for sale in Gaithersburg Maryland……[/quote]

Haha, nice.

The DC area housing market is doing pretty well I heard.

[Coronita]

I don’t know but this probably is a question for more experts like sdr or SDR…

But my gut tells me those “nice homes” that you want to move yourself into eventually
(1) probably don’t make good rentals right now
(2) probably haven’t fallen as much as we’d like to see.

I’m have seriously wanting to move into a better home, but I haven’t seen a home that I personally like that is what I would consider a “deal” for me to want to purchase, let alone treat as an investment.

Me, I personally would love to get into Derby Hills or Del Mar Mesa if we see another 10-15% off.

[desmond]

[quote=no_such_reality]Skip San Diego and buy productive farm land.

Food inflation is just starting, it’ll make Gold look like chump change.[/quote]

I have some acerage in Texas that I lease out each year for grazing and farming. I bought it over 10 years ago and it has almost doubled in value, although the value is not like the value of owning a home. I also got lucky and have had a producing oil and natural gas well on it for the last seven years. Another good thing is that the cows never call and need the plumbing fixed.

[The-Shoveler]

Maybe buy an ocean freighter and turn it into a floating Condo complex, I here they are selling them cheap right now.
Just kidding.

But I like the Idea for farm Land, cows etc…
We start shipping food to North Korea demand could skyrocket,

[Coronita]

[quote=desmond][quote=no_such_reality]Skip San Diego and buy productive farm land.

Food inflation is just starting, it’ll make Gold look like chump change.[/quote]

I have some acerage in Texas that I lease out each year for grazing and farming. I bought it over 10 years ago and it has almost doubled in value, although the value is not like the value of owning a home. I also got lucky and have had a producing oil and natural gas well on it for the last seven years. Another good thing is that the cows never call and need the plumbing fixed.[/quote]

Desmond, out of curiosity… How would one even get started with finding land that does this?

BTW: slight hijack, what are you going to do with valero? Keeping or selling?

[desmond]

Start about 80 years ago. This is my wife’s side of the family. Her Grandpa started buying and selling land back then looking for oil & gas. He ended up with some hits and misses. But, as usual, after he died a large tract that he owned was purchased by the Ft. Worth water distict and they turned it into a 45k acre lake. They kept some of the land that is now lakefront property and sold some lots and still have more. And with the price of oil and gas now they opened back up some old wells that they had and started out with income of 6 figures, monthly… I am holding VLO.

[sdrealtor]

I’m confused. Did you buy the land or was it a dowery?

[desmond]

It does help to be 6′ 3″ and good looking, but no need to be confused, I bought some land and my wife was also given some land. Just remember the next time you’re filling up your tank you are contributing to my retirement, thanks in advance.

[sdrealtor]

Mightily I might add! I filled up the SUV and the BMW yesterday…$150! OUCH!!

[The-Shoveler]

What! your still working ?
Just kidding.

[sdrealtor]

I was up at 4:30 this morning working:(

On the plus side the commute was very light:)

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