Sacramento Real Estate Investment Boom

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Sacramento is Hot! And I'm not just talking about the weather. The real estate market is white hot, and there's a lot of good reasons. Look out Las Vegas, Sacramento is set up to be the next hot region for real estate investment. Whether you are just beginning in real estate investment, or an expert investor, you can make money investing in some of the most beautiful and relatively affordable property in the nation. And best of all, its California Real Estate! Some of the most valued property in the USA. The World knows California for so many wonderful things; Hollywood, Disneyland, Beaches, Mountains, Deserts. There's the Bay, Yosemite, Redwoods, The Silicon Valley, which, by the way, is some of the most valuable property not only in California and the United States, but the World. It has some of the most beautiful and desirable coastline; From the warm Southern California beaches to the cool, crisp, rocky Northern Coast. San Diego, L.A., Santa Barbara, Pismo Beach, Carmel, Monterey, San Francisco, Mendocino. And the literal heart and mind of California is Sacramento. Hidden in the shadow of so many great attractions to a great and golden state is this little river city so vital and vibrant, modest and regal, soft and spectacular, all at the same time. What makes this simple city so special, you ask? And why would I want to invest in Sacramento real estate? Let me explain. First of all, it is so perfectly located within California as to be within a two hour drive to some of the best attractions in California, and a half a days drive to many others. You can be in Lake Tahoe skiing in the morning, and in San Francisco for Dinner. The Greater Sacramento Region consists of seven counties, which includes:
  • Sacramento County
  • Placer County
  • El Dorado County
  • Sutter County
  • Yuba County
  • Nevada County
  • Yolo County
Each one of these counties has an outstanding location with a high quality of life for all its inhabitants. Each county also has its own growth and terrific opportunities for investment, both commercial and residential. There is a high quality lifestyle in Sacramento. Affordable housing can buy you a much bigger, newer house than in other areas. We have quality Indian Casinos in Western Placer County, which is the Gem of the Sacramento Region. The job market is strong. Sacramento is the State Capitol, so politics and government abound. The support structure for this activity affords a great service market. There are also several high-technology corporations in Sacramento like HP, Apple, NEC and Aerojet. In Sacramento they can afford more warehouse and manufacturing space than most other locations in the state. It is a central hub for both North/South and East/West transportation. There is a large rail and carrier presence in Sacramento Metropolitan area. Major Freight carriers are located here for many of the same reasons. There are great schools and universities. Cal State University at Sacramento (CSUS), UC Davis, known for its outstanding life sciences, engineering and medicine curriculums. There are numerous Community colleges: Sacramento City College, American River, and Sierra College to name a few. And the recently opened William Jessup University. Other schools are also considering satellite campuses. Agriculture is a key component. Sacramento is located in the heart of the California Central Valley. It has one of the most productive and fertile locations on Earth. The Port of Sacramento aids California growers to ship hundreds of thousands of tons of food to the world each and every year. And of course, you always have the freshest fruits and vegetable here because they are all grown locally. It has affordable housing, relative to the rest of California. You can buy a high quality housing and enjoy the one of the richest social and cultural environments ever. In fact, much of the phenomenal growth can be attributed to migrations of families from the San Francisco Bay Area and the Silicon Valley. With prices so high, many people are forced to move inland to seek affordable, quality homes. Basically, the economy is rock solid with a diverse and productive infrastructure. Along with this virile economy is a healthy job market, so demand for affordable housing has been outpacing supply at a record pace. And the great news is that the Greater Sacramento Metropolitan Region is forecasted to continue this record growth for at least the next 5 years! From an investment perspective, the market is on fire, with the average property value appreciating at around 17%, with many doing well over 20% annualized. This puts investors in an excellent position to profit from buy and hold, as well as fix and flip for the first-time homebuyer. There is a lot of flat, undeveloped land ready to build. Developers are swooping in to snatch up vast amounts of land for development. I personally believe that there is a huge opportunity here by simply following the path of development. There is, of course, development in all directions from Sacramento Proper. But there are differences. The East is basically limited by the Sierra foothills. Development is strong in this area, but limited. The West has growth also, especially in West Sacramento, which has long been dormant and overshadowed by industrial parks. South Sacramento has seen the biggest growth in the town of Elk Grove. It is limited ultimately by the Delta. But North Sacramento is a huge area just now being developed. The Highway 99 corridor is soon to become a major artery between Sacramento and Yuba City. There is ample land for development with no natural boundaries. It, I believe is the area for large scale development and the biggest future growth. There are already world-class developments like Del Webb Sun City in Roseville and Lincoln California. Elk Grove and Natomas, Yuba City and West Sacramento. All have tremendous opportunity for current and future growth. Real estate all over the US has risen in value over the last several years as people pulled money out of the stock market looking for better performing investments. There is no doubt that it will be worth watching Sacramento in the future.

Comments(0)

  • dstudeba15th September, 2004
    2
    Reply

    Interesting choice for a first post. I like how the high quality of life means bigger newer house and Indian casinos. Sorry If I don't think the long commute to San Fran is a high quality of life.



    Yes companies are moving out there, but I find it hard to believe that somewhere with virtually unlimited land is going to face a housing crunch. A lot of the money pouring in is from speculators in San Francisco. Also, new home sales are strong, but what about the resale of older homes? The same tracts that were popular 6 years ago, aren't popular now. I am not saying that the market will tank, but you can't cash flow property easily there so all you are betting on is appreciation. Too risky for me.

    • wizz7th October, 2004
      1
      Reply

      Hi dstudeba,



      Thanks for reading my article and commenting. No need to commute to SF, there is a strong job market within a half an hour's drive of almost anywhere in the SMA.



      I guess the Indian Casino thing could have been played down a bit, thanks for pointing that one out. We do have a really nice one here in Placer County though. I was definitely impressed. I even one a hundred bucks! Only been there once though as betting on REI seems a better bet than slots.



      The resale homes are also very strong in Sacramento, and the quality of life is not only more home for the money, but the proximity to all the abundant culture and recreation.



      You're right that cashflow has not been as good as other areas, but I have found a much better area for cash flow is the Yuba City area about 45 minutes north of Sac. And it is the space in between these areas that I foresee huge growth potential.



      Thanks Again for your time. Talk to you again soon.

  • robertt15th September, 2004
    1
    Reply

    Deals still exist here in Sacramento, but in my opinion the booms is almost over, not just beginning.





    Robert

    • wizz7th October, 2004
      1
      Reply

      Hi Robert,



      Thanks for reading my article and I appreciate your comment. Whether the boom is over or still has a way to go remains to be seen I suppose. I do know the prices keep going up though.

  • JuneSmith17th September, 2004
    1
    Reply

    Thank you for an enthusiastic article but speaking of California RE market, nothing (yet) beets So. California and even South in general, is not a sure thing... Bakersfield for example was "hot insider's pick" for several years now. Due to Alameda Corridor Project, it was expected to become the next gold-mine. Never the less, the RE balloon is about to... well... start leveling off, but for Bakersfield, it didn't happened yet. So not all California is created equal so when it comes to investing in "new hot" markets, I am a bit skeptical.



    Anyway, please remind me to cast my vote for you on the next Sacramento's Director of Tourism (or even City Major's) election! You did a fantastic job promoting the central valley region. The region (many believe) will become the next settler's boom due to enormous over-saturation in Southern part of the State; where in only 5 counties including LA, live more then 18mil people.

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