Buying property in Southern California appears to be promising for investors today. This is true for investors who are specifically interested in flipping houses in the residential real estate market. It is also true for those interested in commercial real estate.
Home sale prices continue to rise in the southern part of the Golden State, which means homes are less affordable for buyers. Median first-time home buyers would have to spend a whopping 88 percent of their incomes on homes. This is not practical, so not many people in this region simply cannot buy homes here. Since there are fewer buyers, it is expected that home prices will actually need to drop, and investors can capitalize on these price reductions for home-flipping purposes.
Commercial real estate also offers potential for the investor who wants to enter the real estate market or add to his or her portfolio. Right now, the vacancy rate of multi-family dwellings is only a little more than 3 percent. This means that the demand for new developments will be high. Likewise, the vacancy rates are a little more than 3 percent for industrial properties and more than 4 percent for retail properties, two other sound investments.
Because the Southern California commercial and residential real estate markets carry a lot of potential, now may be a wise time to explore investment opportunities in this part of the state. Both commercial and real estate deals, however, can be uniquely challenging to navigate. Proper legal guidance may help current or even aspiring investors to complete these types of transactions in a manner that will ultimately benefit them and assist them in accomplishing their objectives.
Source: nuwireinvestor.com, “Why Southern California Real Estate is a Great Investment in 2016“, Amy Sim, May 31, 2016