Are you looking to invest in Southern California real estate?
If you’re thinking of growing your income, real estate investments offer a lucrative opportunity. Besides earning income regularly from monthly rentals, the value of your real estate increases over time, given the inevitable property appreciation.
Nevertheless, keep in mind that real estate markets don’t perform in a similar pattern. Therefore, proper research is still a necessity if you want a bigger profit margin.
You should assess whether an area is characterized by a strong economy and has a stable job market. Moreover, you also want to evaluate if the area offers its residents a high quality of life. Lastly, you want to make sure that renowned attractions exist so plenty of visitors will travel. This equates to a healthy rental market, further channeling more growth in the area.
Southern California is an attractive property investment choice, given that it has the factors that make an area bankable.
In this article, we at Archer Management Group will be showing you reasons why you should purchase an investment property in Southern California. We’ll show you the essential features that contribute to this area’s high profitability returns, so you can make an intelligent real estate investment decision.
1. Strong, Local Economy Southern California is considered an attractive investment due to its robust economy supported by multiple industries in entertainment, technology, aerospace, biotech and business services. This contributes overall to a solid job market. You’ll find professionals working for world famous companies like Google, Disney, Apple, Intel and plenty more of the Fortune 500 firms with headquarters in Southern California. Thus, job growth doesn’t show any slowdown. This fact alone drives more property renters and buyers to settle here. Investors will do well to maximize this opportunity to generate more income. Southern California’s economy creates a desirable real estate investment environment for investors.
2. Booming Tourism It’s no secret that Southern California is peppered with famous tourist attractions. In fact, it’s the top visited state in the U.S., fueling their local economy in the tourism sector. People from all over the world travel ceaselessly to enjoy the spectacular, renowned entertainment Southern California has to offer. People come in droves no matter the season, and it has continued to generate massive appeal.
Southern California is filled with a plethora of impressive tourism hotspots. Here are some of them:
Santa Monica Pier
Joshua Tree National Park
Death Valley National Park
San Diego Zoo
Given the tourist attractions in Southern California, it’s a great contributor to a steady economy. Travelers from different states and countries need vacation rentals to stay in when they visit. Hotels can be pricey, so short-term rentals can stand to gain a big slice of the rental market.
3. Population Growth In terms of population growth, Southern California is among the most populous in the country, second only to New York City. As of 2019, it has a record of 23.8 million residents, captured by the U.S. Census. California experiences a .6% increase annually in population growth and almost 60% is found in Southern California. A growing population translates to more rental housing demands. It also contributes to a stable supply of workers suitable for a thriving economy. Thus, real estate investors would find the potential of Southern California progressively growing.
4. Great Local Climate With mild and pleasant weather all year round, visitors tend to come from snow-heavy cities. This further spikes up the demand for vacation rental homes during winter seasons. Residents and visitors can enjoy outdoor activities at any time of the year in this area.
Investors find the warm summers and mild winters of Southern California to be beneficial. This brings in more visitors who stay here for a few weeks.
5. Affordable Real Estate It’s true that California’s flourishing economy can mean housing is more expensive. However, it doesn’t mean that there are no pockets of affordable real estate found here. You’ll find median home prices ranging from $200,000 to $500,000. These are good deals considering the high quality living offered in this area.
Accounting for the advantages that Southern California brings to a resident, investors can find that the property prices are reasonable. This is given the maximum opportunities and high income returns that one can potentially earn here.
6. Hot Real Estate Market There’s high demand for Southern California real estate. In fact, property sales have risen for the 8th straight year. Buying interest shows strong figures considering the low mortgage interest for the year. Prices have increased by 15% and the shortage of properties has further churned the property values up. It is a seller’s market at the moment.
7. Good, Local Education If the demographics you’re aiming for in your Southern California rental are families, they won’t be disappointed with the notable army of schools and universities here. Depending on the specialization, they’ll find several law schools, graphic design schools, art schools, universities and liberal art colleges. Easy access to a quality education system is within reach. Parents can easily choose excellent public, private and charter elementary and high schools for their kids.
Bottom Line Southern California’s real estate investment appeal isn’t declining anytime soon. This is due to its continuous booming economy and world class attractions. People will continue to flock this area for its wonderful climate, access to topnotch schools and high property appreciation.
If you need professional expertise to help you make sound real estate investment decisions, contact Archer Management Group. It can be tricky for first-time investors to plunge in the middle of property biddings. We can help you decipher the ins and outs of property investment transactions and guide you towards a simpler process.