Los Angeles has always been an excellent market for investors. The population has always been growing, the economy has always been stable, and according to Forbes, over a million real estate transactions occur in Los Angeles every year.
It’s also a competitive market. The median home price has been at or over $700,000 for several years. Finding the perfect investment property takes research, expertise, and a willingness to move quickly.
The pandemic has shifted some things for real estate investors, especially in markets like Los Angeles where prices are high but population growth is now on hold.
But with challenges come opportunities, and it’s still an excellent time to invest in Los Angeles income property. Here’s why.
Focus on Existing Demand with Los Angeles Investment Property
One of the things that make the Los Angeles rental market such a good investment opportunity is that the high home prices here keep our population of renters pretty large. Nationally, only 35 percent of Americans rent their homes. In Los Angeles, that percentage is much higher. There may not be a huge growth in population over the next year when people who are now working from home can live in cheaper markets. However, there are a lot of existing tenants in Los Angeles and they will always be looking for well-maintained homes.
Price Plateaus Mean Good Deals for Investors
With prices for real estate not rising the way they have in the past, it’s an excellent time to think about acquisitions. You can get more for less in this market, and the fact that lending rates are so low only makes the opportunity more attractive. Leverage what you can to finance the purchase of a new investment property. The pandemic won’t last forever, and home values will continue rising again. This is the best time to make a new purchase.
Los Angeles Investment Property Options
There is a lot of diversity in the Los Angeles rental market right now. Buyers can increase the size and strength of their portfolios with single-family homes, multi-family units, small apartment buildings, and even condos in professionally-managed associations. There is no single way to create a good investment experience for yourself. Get to know the market and work with experienced LA property management companies that can show you what kind of rental values and tenant populations you can expect from a specific neighborhood or property.
Anticipating the Marketing in 2021
While COVID has no doubt had an impact on the market trends in 2020, we expect things to get better quickly as we dive further into 2021. After all, this is Los Angeles. The city has one of the strongest and most dynamic economies in the world. The tech industry has been growing and the entertainment industry has the resources and the creativity to bounce back from any pandemic-related setbacks. We have tourism to look forward to as well as a strong university system that includes UCLA, USC, and Caltech.
If you’re interested in talking about your specific investment goals or you’d like some direction and support from a professional LA property management company, please contact us at EGL Properties.