Diversity is the word in considering your Santa Cruz real estate and other investments

I am thinking as I read and fathom the carnage that happened and was somewhat averted with the Bear Stearns debacle. What came to mind was the word “diversity.” You may think, huh, but as I was reading about 15,000 people being affected, and many of then with their retirements heavily vested in their seemingly rock of Gibraltar company, Bear Stearns. What this reminds me is that people have not remembered the word “diversity” that so many employees of Enron learned.

Diversity is another thing to consider in your portfolio of investments. Not only do you need to have diversity in your 401K or SEPP-IRA, but you do significantly improve your returns by dollar cost averaging. Right now is a great time to be buying stocks as well as real estate. There are some great real estate values in Santa Cruz real estate. So as you consider value, you should consider long term ideas. Real estate is a 5-10 year investment in my view and probably for most of us; it is a big part of our wealth. Much like your stocks and bonds, you don’t buy them and expect to sell next year. You buy quality and hold. Having all your eggs in one basket, be it real estate, or a limited stock selection can lead to poor over all results.

Just as you buy quality, now is a great time to dollar cost average and buy quality real estate in Santa Cruz County. I am sure your stock broker probably says buy in down trends of quality companies. Much the same is true in Santa Cruz. While the real estate values have not plummeted generally and I suspect never will have the tremendous downturns that places such as Stockton or Las Vegas face. Santa Cruz has a built in protections. Much like a castle wall can keep others out, it can be used as a barrier to keep others in. by that I mean that Santa Cruz, with it’s anti development position has little room for growth and has kept the prices high. Can’t grow south as Capitola is there, can’t grow north as the farming is protected, and with the water on one side, the mountains are not conducive to development in their eyes. So what this does, it means that because there can’t be many new homes added, and the supply will always be constrained. Thus the prices will never fall drastically, and because Santa Cruz is one of the few ocean front cities that is easily accessible to millions, the demand will never evaporate, barring some contamination or such event. You can benefit though, by buying on a downturn such as this one. Dollar cost average your investments by buying while the housing cost is low. There are some great investments in homes and condominiums now that I think, if you act, you will look back and say I wish I had bought two. See what the market has to offer in Santa Cruz, with discounts of 10-30%.

Santa Cruz has a diversity of jobs from academic to marine sciences, to mining, to farming, organic and conventional. So when you consider where to invest, consider the area. Santa Cruz has vacation homes, second homes, and home for me and you. You can check out what we have in the diversity of Santa Cruz real estate and buy what you like.

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