If the S&P CoreLogic Case-Shiller Home Price Indices are anything to go by, then the West Coast real estate is experiencing a boom. More home buyers are looking to Phoenix, San Diego, and other West Coast cities for the best real estate opportunities. If you are an investor, what are the top 3 spots to consider for real estate investment at the West Coast? Check them out below.
San Jose is a high-income capital of Silicon Valley with an excellent history of long term investment opportunities. Here, home values are some of the most expensive in the United States. Yet, the San Jose market is currently a buyer’s market with some of the most successful high-tech firms on the listings. In turn, sellers are willing to accept the asking value or below. Zillow estimates the median prices for San Jose at $1,002,873. The last ten years saw the industry appreciate by 77.36%.
In the Los Angeles area lies Hawthorne, a hidden gem for rental properties. Up to 70% of the residents here own or live in rental units. In turn, expect a high and steady rental income from your investment. The average monthly rent stands at $1,736. Typical neighborhoods with rental values are on an upward trend of as high as 194%, including Delta, Washington Ave/W135th St, and Del Aire. Plus, most home sizes fall in the two bedrooms’ apartment complex category.
When you are looking for an affordable real estate investment opportunity on the West Coast, get to Anaheim. With a median price of $685,000 and an appreciation rate of 41% in the last three years, this buyer’s market is popular with single-family homes. Further, it is a favorite tourist spot home to attractions like Disneyland that push up the rental income of the houses. Average mortgage costs stand at $2,535. Then, expect the sellers to lure you with competitive listings as they tap into the lower demand.
Other prime real estate spots at the West Coast include east of Los Angeles as you get to the Interstate 710, Portland’s’ rental units that are popular with students, and Oakland that is now appealing to a higher class of tenants. Then, liaise with an experienced broker who will take you through the steps of owning a part of the West Coast today.
The liquid rate that an asset is converted into cash determines how easy you can enter or exit an investment. Time is a central factor when investing, and liquidity determines how much time it takes to get your money once an asset matures. Liquidity even helps when taking money out as the market shifts against you. As long as you decide on the liquidity of your investment assets, you can exit your positions according to a strategy that fits you.
When Market Assets are Liquid
Liquid assets are investment instruments that convert into cash with relative ease. The quality of the asset isn’t determined by its liquidity, however. A liquid investment can still present unsatisfying returns, though, it’s easy to get in and out of. Here are some factors that determine the liquidity of an investment:
- Market Participants:
The more people that are involved in buying and selling, the more likely it is that you can close a transaction when you need to.
- Transaction Size:
Large-buy orders, for example, can help clearing agencies, for the bulk of orders can accommodate the market’s sellers.
- Daily Turnover:
The number of transactions play a role, for even when the participants are few, the constant trade orders sustain opportunities for entering and exiting.
- Economic News:
Positive and negative news influences the liquidity of an asset. Positive news can lead investors to flood a market and make buying difficult. Sellers can, likewise, enter the market to make buying easy.
Factors that Establish Illiquid Conditions
An illiquid asset is one that you can buy or sell but with a longer timeframe needed to complete an order. Factors that lower liquidity are determined when you buy or sell.
- Long Term Investments:
The timeframe that someone holds an investment within dictates how long the market takes to acquire or sell an asset.
- Market Prices:
The higher that prices are, the fewer the buyers will be. Prices that go lower allow more participants to get involved and actively trade.
- Market Closures and News:
Bad news, for example, when a company goes bankrupt, can force you to hold an asset longer that you intend to.
Buying a house is always a challenge. There are plenty of hurdles to get over before taking possession. There are often realtors to consult, and commissions to pay. There are inspections that have to be completed. It can all be rather daunting.
Of course, there are ways to circumvent some of those steps. One option can be purchasing a home at auction. When investing in a house at auction, it’s a whole different ballgame. Sometimes, people can’t tour the interior of the home before buying. Nor is there an inspection. It can be a risk.
Additionally, potential buyers also aren’t usually making bids against other would-be householders. Instead, they’re competing with investors. Auctioned properties are popular with real estate investors seeking rentals or lots to develop more thoroughly.
Auctions are also attractive to prospective buyers because of the possibilities. Everyone in real estate has heard a story of someone scoring a diamond in the rough at an auction. Many people walk into an auction hoping for such a circumstance. However, it’s less likely to happen than most people would like to admit.
Competition for homes at auction can be fierce. Seasoned investors know exactly what they’re looking for. They also know the ins and outs of the real estate industry. It can be hard to go up against them in an auction. They may not be interested in homes themselves, but rather, the land they sit on. Anyone looking to score a habitable home at an auction should be cautious.
Homes going to auction generally have big problems. They’re generally up for sale because the prior owners fell behind in their mortgage or property tax payments. What’s more, the housing crisis of 2008 made the general public more aware of property auctions than ever before. So many people are heading down this route that buying at auction may not even lead to the steep discount it once did. This is particularly true for foreclosures in good condition.
Finally, it can be hard to even find properties for auction. Attractive pre-foreclosures sometimes don’t even make it to the auction date, if the owner finds a fix. Online property auctions are becoming more popular. Real estate agents can earn commission on these sales, unlike the traditional live auctions that take place in courtrooms.
Social media is a powerful tool that many real estate investors use to build their professional networks. Whether you like social media or not, it is changing the way people in all industries market their services and build relationships. If you want to build a real estate investor network using the internet and technology, you should embrace social media as a business tool
rather than looking at it as just a place to connect with friends.
Delivering High-Quality Content
If you want to establish yourself as a real estate pro, you must show people you are a leader in the industry. You can accomplish this by delivering high-quality content related to real estate investing using social media. If you have unique ideas and concepts you want to share with professionals in real estate, you can produce and promote those ideas in the form of content on social media.
You can post blogs on LinkedIn, post pictures related to what you do on Instagram or post real estate updates on Facebook. Another great idea is creating short informational videos that are eye-catching. Visual based content is a great way to attract audiences.
The possibilities are endless regarding how you can deliver content on social media to establish yourself as a thought leader. However, the content must be unique, and it must be your own. Recycling bland and cookie-cutter content that is plastered all over the internet is a sure-fire way to lose any credibility you have established. Take the time and create something new and original, it may take time but it will be worth it.
Connecting With Other Real Estate Pros
It is in your best interest to connect with as many real estate professionals as possible. Social media platforms, if you use them correctly, are a powerful tool to connect with others in the industry. LinkedIn is a social media platform specifically for business professionals, and it is popular among real estate investors. If you can learn to how to navigate LinkedIn, you will attract the attention of those who matter in the industry.
The idea behind using social media as a real estate investing tool is to communicate and engage anyone who might become a partner or a client. Social media is also a great way to promote what you offer as a real estate investor. However, avoid using sales pitches to promote yourself, especially on LinkedIn. You want to provide value to anyone who reads what you have to say on social media
For many Americans, owning a home has long been the way to accumulate wealth. Over the years a home will appreciate in value, or so people assume. Investing in the stock market, for those who have the means, is also an effective way to build wealth over the years.
A decade ago, when the housing market crashed in the Great Recession, the idea of building wealth through real estate was shattered. People saw how real estate values can fluctuate. Still, many millennials who witnessed the housing crash, are eager to invest in real estate. In fact, a recent real estate investment report delivered survey results showing that 55 percent of millennials are interested in real estate investing. Here are three reasons that millennials are interested in real estate investing.
Growth Over Time
The subprime mortgage crisis sounded the beginning of the Great Recession back in 2008. The bubble in the real estate market burst and housing prices plummeted. The real estate market has had a long climb back over the past several years. The point that millennials see though, is that the market did come back. The millennial generation did not rush into home buying, but now are moving into the home buying phase. They are the largest generation of Americans and will have a profound affect on the housing market.
Stock Market Skepticism
Anyone who has taken even a slight interest in the stock market knows that stocks go up and down. However, the millennial generation had a harsh, real-life lesson in this aspect of the market. Many millennials graduated into the Great Recession and the daily headline news about Wall Street crashing and people losing retirement savings. A large portion of millennials believe that real estate outperformed the stock market since 2000, and they are correct. Their witnessing of the Great Recession may make the millennial generation more likely to be skeptical of the stock market.
In this age of information it is easy to gather data about investing. The methods of investing in real estate are available to any millennial who wants to do some research. There is a tangible element to real estate investing that may appeal to the millennials sense of self-image and desire for uniqueness. In fact, findings show that 85 percent of millennials think real estate is a good investment.
Older generations may be interested in downsizing at this point, but millennials are starting families and advancing their careers. These facts, along with the great potential for positive returns, make buying a home and investing in real estate an appealing next step for millennials