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Some of the Top Agent, Inc. staff recently attended a Bus Tour of the upcoming development projects in Carlsbad sponsored by the Carlsbad Chamber of Commerce. The city has many up and coming projects such as the desalination Plant, proposed La Costa Town Square and the new home development of Robertson Ranch. Once Robertson Ranch is complete 85% of the residential area in Carlsbad will be built out, limiting space for new developments and increasing demand. This may also have a positive affect on real estate prices over the long term. The desalination plant is a high tech solution to supply water to the city of Carlsbad. Once the plant is operational, it will be able to provide 100% of the water to the entire city. The plant works by converting salt water in the ocean to usable water. La Costa Town Square is a proposed development of diverse shops, dining and entertainment located in the heart of the La Costa community. Also in the works is a possible expansion of Lego Land including plans for a hotel and aquarium.

For more information on all the exciting expansion and activity in Carlsbad, go to: http://www.carlsbadca.gov/planning/mstplan.html

It is important to understand that just because a property is a short sale or REO it does not necessarily mean that the property is going to be a good deal. Overpriced properties come in all types of situations, what is important is that the buyer spends time researching whether or not the price he or she is willing to spend is justified. A short sale occurs when a homeowner having trouble with payments lists their home at a price less than the amount currently owed to their lender. The selling price is essentially “short” of repaying the loan balance even if the property were to sell at the full asking price . Short sales have been occurring more often lately because many homeowners adjustable rates have made their mortgage payments increase significantly. The problem is, because of the market downturn, many of these properties have more debt than the value of the home, which makes them “upside down”. Short sales require patience as they generally take much longer to negotiate and close. Sometimes it can take over six just to get approval from a bank for a short sale. This is because all banks treat these situations differently and large institutions move slowly. Since ultimately the banks will be the ones suffering the monetary loss, banks have the authority to approve a short sale or choose to go to foreclosure.

During the summer in San Diego residents enjoy the wonderful beaches, warm sun, good weather and many other attractions like the San Diego County Fair and the Del Mar Racetrack. People come to San Diego during the summer months as a result of these events and the city’s summer appeal. San Diego has become a vacation destination for millions each year and there are lucrative ways homebuyers both local and abroad can take advantage of this.

Second home sales accounted for one third of transactions in 2007 according to the National Association of Realtors. Income and second home investments can help build an owners wealth while still creating the benefit of living in a desired vacation community. For example, a purchased home can be rented seasonally according to the owner’s desired use schedule. When the owner is not using the unit, he or she is getting income from the property and the additional appreciation over time. An out of state buyer may find this scenario more cost effective than just renting someone else’s income property. Furthermore there are additional tax and other benefits that apply to homeownership still apply. For a local resident of San Diego, a second home in the right location may prove to be a profitable income property.

There is a large demand for second homes in San Diego and a very large seasonal rental market. With inventories on the rise, now is a great time to start looking for an investment or second home property.