Have you finally seen the allure of investing in Southern California real estate? Well, it’s about time! We can confirm that investors have been making inquiries and strategic purchases in the different neighborhoods. It’s not too late for you to join them.
California’s population increase over the years can be attributed to its diverse economy. While the entertainment industry is arguably the hottest industry, the technology, manufacturing, and finance sectors have stepped it up.
From time immemorial, the Golden State of California has been a target destination for both domestic and international tourists. From the famed Disneyland Park to glistening beaches to national parks and attractions, the revenue gained from tourism has spilled over to infrastructure, real estate, and entertainment industries.
Don’t let average California home prices discourage you from investing in the area. The unaffordability of the area is what makes it a lucrative option. California is a renters’ market since most cannot afford to purchase. A real estate investment can take advantage of this unique scenario. If you are looking to build your investment portfolio or realize a steady cash flow, real estate is the ideal asset. The favorable conditions of Southern California will allow you to enjoy good returns for the long term.
In addition, real estate is both tax deductible and depreciable. Normal and reasonable expenses from real estate ownership such as maintenance and renovations will offset your overall taxes. The tax system also permits depreciation deduction. Combined, you will be reporting lower income for tax purposes. Archer Management Group has been at the forefront since its establishment in 2010. Our experienced and qualified team has helped investors in the past, narrowing down on properties that meet their unique financial goals and preferences. This article can serve as a foothold as you join the growing class of investors in Southern California.
Best Neighborhoods in Southern California
We have established several areas in Southern California for promising investment opportunities. These are areas with stable housing markets and high rental demand. We have first identified the counties of interest before moving into specifics.
Riverside County Riverside County is one of the stand-out options in this list. The housing market has been appreciating steadily and also experiencing an increase in rental demand. Two notable areas within Riverside County that are worth mentioning are Beaumont and Lake Elsinore.
Beaumont is ideally located between two mountains, San Gorgonio and Mt. San Jacinto. The area has a competitive housing market that can be attributed to its more affordable houses compared to its neighbors.
As can be deduced from the name, Lake Elsinore is located next to a massive 3,000-acre freshwater lake in western Riverside Country. The city started out as a resort town and there have been great strides to expand tourism in the area. As a property investor, you can opt to go into short-term vacation rentals through booking platforms such as Booking.com, Airbnb, or Expedia.
San Bernardino County For the investor with a tighter budget, San Bernardino County will be your best pick from the listed options in this article. But don’t think you are getting any less. The average house prices, demand, and sales have been increasing steadily.
In terms of livability, very few neighborhoods can beat the high quality of life offered by Rancho Cucamonga. The city has been ranked severally as the place to live or rent in the United States. Residents of the area enjoy expansive park grounds, a shopping district, and a baseball stadium. The clincher has to be the view of the San Gabriel Mountains every morning.
Most neighborhoods in Southern California are expected to have a flamboyant and loud character. That’s what makes Joshua Tree such a unique option. The neighborhood offers a ‘small-town’ feel. Tenants attracted to the area will fall in love with its chilled atmosphere and very scenic environment. Los Angeles County Does the county need any introduction? Attractions such as Hollywood and Rodeo Drive make Los Angeles a popular vacation and tourist destination. Los Angeles county also boasts a strong job market, diversified in entertainment, technology, finance, and leisure.
Hawthorne is responsible for the high median home price of Los Angeles County. The neighborhood is the hometown of award-winning movie stars and musicians. Due to the high price, Hawthorne has a high renter-occupied household rate.
San Pedro is located along the waterfront and offers a mix of real estate investment options. You can choose to purchase one of the condominium apartments or turn of the century bungalows. The neighborhood boasts of a low crime rate thanks to the heavy military presence. There exists an active Air Force unit off Pacific Avenue.
Another viable and more affordable option in Los Angeles County is Lake Los Angeles. The neighborhood is used as the set for TV shows and commercials. Lake Los Angeles is also in close proximity to two outdoor destinations, Angeles National Forest and San Bernadino National Forest. Short-term leasing is a viable option in Los Angeles County.
The Bottom Line Southern California has been a major target for investors over the years. California demographic statistics will reveal that the population is more concentrated in Southern California compared to Northern California.
In addition, there has been a considerable expansion of the tech industry in Southern California. Silicon Beach has been attracting a lot of attention. Amazon and Microsoft are some of the notable mentions in the area. Ready to be the next real estate investor in Southern California? The three counties that you look into are Los Angeles, Riverside, and San Bernadino. Each neighborhood targets a different type of market that you can tap into.
Archer Management Group is the premier real investment company operating across the Southern California area. We offer professional, sound advice backed by in-depth research and extensive experience. There are a number of exceptional business opportunities in Southern California. With our team, we can help you get your hands on one. Contact us today!