Publisher’s Note from Dreams Real Estate Issue 2019
When it comes to real estate investments and lifestyles, Californians have many choices.
Living the California Dream with a diverse population of nearly 40 million people throughout the State’s beautiful natural landscapes and supported by the most dynamic industries, colleges and universities in the world, we have “choices” unlike any other region. However, the reality of our real estate market throughout the state comes down to the simple economics of supply-and-demand.
There has been a shift in where to buy and invest for second homes, vacation properties and long-term investments. And for many people that are retiring, they are choosing out-of-state primary residences for two primary reasons: taxes and prices.
Prices of luxury communities and properties in California have been driven by international buyers along with our exploding high-tech industries. Next, the current tax policies both Federal and State are playing a major factor in where people invest in real estate at all economic levels. And thirdly, environments outside of California with easy transportation that offer less congestion, specific recreational amenities and natural beauty are key factors in choosing where to invest for second homes.
The major out-of-state real estate investments are now taking place in Nevada, Arizona, Colorado, Utah, Mexico and Hawaii.
Return on Investment
As with any investment, the long-term security and appreciation of the asset is fundamental. With California real estate prices at some of the highest levels, along with the highest property and income taxes, California luxury communities and properties as compared to out-of-state investments are not as appealing.
For example, golf enthusiasts that want to be at the best private clubs in warm weather no longer are limited to moving or investing in Palm Springs. Scottsdale and Las Vegas offer the same lifestyle environments at less of a price. Meanwhile, beautiful beach communities in Cabo with luxury residences and golf resorts are luring California buyers from Orange County, San Diego and Santa Barbara. And wide-open spaces, along with mountain resort living are abundant in states like Colorado and Utah.
How to Find the Right Investment Lifestyle
Like so many of our readers, California is my home, heart and anchor. Yet, that doesn’t mean that I am boxed into California real estate only. I recommend you draw a circle away from your work and home and write down what lifestyle you want to enjoy. Find out if that location is conveniently available by flying or driving. And remember when selecting a state or location to evaluate prices, amenities and the long-term investment for yourself and family.
If you’re ready to explore real estate outside of California, my associates at DREAMS Luxury Residences are ready to open new doors for you!
Steve Tobia, Publisher Dreams Magazine