Buying a House in Los Angeles
The Los Angeles economy has changed from what it used to be. Although most of the features remain the same, the people in it and the economy have made it different. In the last twenty years, over half a million jobs in the aircraft and manufacturing business have changed the way it thrives.
Tourism is also one of the major sources of revenue for the city and a lot of the jobs of this city now revolve around the service industry to the population of 19 million people that keeps increasing every year. The fastest growing industry in the area as of late 2016 was healthcare.
Seeing as the number of people residing within the Los Angeles region keeps growing at a fast pace, house prices is also increasing and this is due to the fact that the Los Angeles area is gradually running out of space to accommodate its growing population. Growth in the prices is in areas like Bel-Air, Riverside, San Bernardino and Beverly Hills among others. Real estate agent Jade Mills, notes the popularity of Beverly Hills luxury homes. After all, who wouldn’t want to live in the most famous zip code of all?
Los Angeles Real Estate Investing Trends
In the last three years alone, prices in these areas rose up by a significant 30% although this reaction can be said to be as a result of real home sales and foreclosed subprime properties. Regardless of the reason, prices are expected to be higher in the next few years so it is advisable that if you plan on owning a property in the Los Angeles area, the time to buy would be now. Places, where prices are up the most, are the Los Angeles County and West Hollywood area while Torrance is the least but with all the forecasts, the time to invest would be now so the margin of profit would be higher in subsequent years.
Although rent has also gone up over the years, home prices are still higher so whatever the choice is between buying a home for leasing, buying a vacation home, buying a retirement home or flipping properties there are still benefits to every option. For buying a home for flipping or to wait out the market until demand increases, future sale of those homes would bring about a great sales price especially if there are added bonuses like spa rooms, gyms, laundry room, indoor pools etc.
When it comes to buying a home for leasing out, here, rent can be set on a yearly basis to be changed the next year to reflect the housing economy and even if the current renter does not agree with the rent, the population of Los Angeles is ever growing to the point that there would always be someone willing to pay.
Single family rentals in this present day situation have also become a profitable investment so it would be worth looking into this 2017. In summary, the current state of the real estate market is favorable to those looking to invest in Los Angeles especially for leasing properties as the rental income gotten from it is relatively high which makes buying a house a good investment at the right price.