Los Angeles Real Estate Investing – Trends and Forecast
Los Angeles real estate has always been a strong indicator of how the real estate market is really performing nationwide, not just for the West Coast. A couple of important facts, Greater Los Angeles is the second-largest urban region in the United States (New York being the first one.) Also 70 percent of the smallest cash buyer markets are located on the West Coast (according to Zillow.)
Los Angeles ranks as the top choice in the United States for international real estate investors. South Florida (Miami) had been the top choice for the last few years, but Los Angeles has definitely gained ground. The main reason is while real estate prices have settled and stabilized on the East Coast, the West Coast, and California in particular, is still gaining in values. Los Angeles property estate prices are also considered a bit of a bargain by international standards compared to San Francisco.
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Los Angeles Real Estate Investing
Los Angeles is the city where dreams come true, especially if these dreams have something to do with money or fame. The demand for properties is really high – either for purchase or rent.
What does this mean for real estate investors?
Vacancy rates are really low compared to other cities (LA has been named the city with least available rentals) and real estate prices keep going up. Since Los Angeles boasts a great climate, stable job market, all kind of opportunities in the entertainment industry, and exceptional diversity, it comes as no surprise that people, especially the younger age group, want to move there and are looking to rent instead of buying.
The following neighborhoods have gained attention for rental demand and investors who are looking to become landlords, should pay special attention to these areas: Westwood, Silver Lake, West Los Angeles, Mar Vista and Los Feliz.
Zillow has forecast house prices in Los Angeles to rise throughout 2018. It is still definitely a seller’s market – the demand is really high compared to the supply. Los Angeles County and Orange County are in short supply of inventory. Realtors and real estate investors are wondering how they can get people to sell their properties. The reality is that even in the best of real estate markets there are always distressed situations. People fall in economic or emotional distress and either default on their payments (mortgage or taxes) or just simply do not care about their property. Clever real estate investors, who are thinking outside the box, can research the “don’t wanters” real estate owners and offer solutions.
Los Angeles real estate is going through an uptrend real estate market – exponential population growth in the area with increasing demand for housing (rent or buy.) There are definitely a lot of investing opportunities for investors looking for above average ROI (Return On Investment,) long term wealth, passive income (rentals) and aggressive growth (fix and flip.)