Thanks to its relative proximity to the sprawl of Los Angeles, coupled with its quiet and unspoiled location on the coast, San Diego real estate is amongst the most expensive in California, and people flood into the city from all over the USA in order to invest in a home there, whether it is a weekend escape, or their main dwelling.

This fact, the number of second homes in the city, particularly on the coastal strip north of the main beaches means that San Diego real estate prices are always rising because the demand is always ahead of the available supply.

It is still possible to find bargains on the San Diego real estate market, but as the big investors move in to clean up with what is available, it is getting tougher year on year to find a starter investment in the city that you know that you will be able to make a really good return on.

One way of finding excellent returns on your San Diego real estate investment is to look at areas that have not yet attracted the attention of developers and speculators. Small beach towns to the north of the city offer a good option, while there are numerous golf courses inland from the city where many new condos and holiday homes have been built.

One of the best things about investing in San Diego real estate is that there are so many different options open to you with it. You could renovate the building and then look for a buyer that will give you a good profit after the costs of the building work have been covered, invest in numerous properties to let out on a long term basis, or even buy up high end sea facing homes and then rent them out on a short term basis as holiday homes. These options all have their own risks, but the pay off from them can be very attractive, particularly if you choose the tenancy route, and are able to get high levels of occupancy.

Of course, simply finding a place to live is also one of the main factors in the San Diego real estate market, and thanks to demand, there are numerous new developments under construction around the city that offer plenty of choice when it comes to finding your own home in this great city.