After any election, there’s a period of moaning and groaning that goes on, no matter where you are or how the votes were actually tallied.
This is perhaps particularly true in California, where the referendum system allows a greater degree of direct interaction between average citizens and state legislation. Not only that, but naysayers who may have eased off during the flurry of election season are taking advantage of the enthusiasm-vaccuum to spew doubt and distraction with renewed vigor. Also, um, we’re broke.
If you ride the bus, take the train, listen to local radio, or basically spend any amount of time surrounded by or listening to your fellow Californians, you’ve probably heard from doom-and-gloom. Particularly when it comes to money, or real estate. Prices are unrealistic! Unemployment is out of control! Property taxes are insane! The rent is too damn high!
All that is probably true. But there are those who still believe in California as the ultimate land of promise and prosperity. And you know what? They’re right.
Sure, our state government may or may not have any idea what it’s doing. That’s not a political statement of any kind, by the way – it’s strictly literal. They might, and they might not – either way, California real estate will remain a good long-term investment.
Steve Dexter of the Bigger Pockets Blog recently posted on California Real Estate’s Inherent and Long-Term Value. To sum it up, Dexter reminds us of what, deep down, we already know – people will always want to live in California.
Governmental shenanigans aside, there’s only one Pacific ocean and we’re sitting on it. Large areas of protected wildlife and geographical obstacles like, say, mountains, will continue to limit the space available for new housing, while the best job markets will still be in concentrated areas like L.A., Silicon Valley, and San Francisco. Inflation is only going to go up – meaning renting is only going to get more expensive and less worthwhile to most residents.
California’s state motto is “Eureka” – “I have found it.” Not “I think I have found it”, nor “I have found it but never mind”. The value of this state is indigenous in every sense of the word, and it won’t go away anytime soon. So go take a good look at the ocean (wherever you are, it’s not far), say “Eureka” ten times fast, and buy real estate.