Are you ready to take advantage of low mortgage interest rates and build your investment portfolio by buying Manhattan Beach real estate or other properties in the Los Angeles area? The South Bay area is a perfect place for investors due to the stable economy, strong housing market, and demand for rentals.
If you want to maximize your investments, consider adding property in these six neighborhoods to your portfolio.
1. Manhattan Beach
Manhattan Beach is popular with outdoor enthusiasts as well as families. Its amenities, including Manhattan Beach Pier, multiple parks, a fun downtown area, and The Strand bike path, make this area perfect for tourists as well as those who want to relocate to a laid-back South Bay neighborhood. When you buy Manhattan Beach real estate, you invest in a community with a stable housing market that is continually developing. The economy in Manhattan Beach is robust — its largest industries include healthcare, finance, technical services, and retail. These industries regularly bring buyers and renters, which is good news for those investing in Manhattan Beach real estate. In addition to the economy, this area is the perfect place to invest due to its low unemployment rate, high rental demand, and rental price growth. Within the last 12 months, the average home sale price was approximately $3.1 million, and the average rental rate was approximately $7,900/month.
2. Hermosa Beach
Ranked as one of the best places to live in California by niche.com, Hermosa Beach is a suburb of Los Angeles with a population of approximately 20,000. With highly-rated public schools, plenty of entertainment due to the multiple bars, restaurants, shops, and parks, and large percentage of renters, Hermosa Beach makes an attractive investment option.
Within the last 12 months, the average home sale price was approximately $2.4 million, and the average rental rate was approximately $5,700/month. The median household income in this area is $136,000, and the neighborhood attracts many young professionals who commute to Los Angeles for work. When you invest in homes for sale in Hermosa Beach, you can expect a stable market with steadily increasing home values and plenty of interested renters.
3. Redondo Beach
With a population of more than 67,000, Redondo Beach is one of the larger cities in the South Bay area. It’s been rated as the eighth-best suburb to live in the Los Angeles area and has many public schools that have been rated A+ by niche.com. With easy access to both the Hermosa Beach Pier and Manhattan Beach Pier as well as the Pacific Coast Highway, Redondo Beach is popular with those who enjoy beach life but still want to work in Los Angeles.
Condos for sale in Redondo Beach make excellent investments, as they are in demand by both renters and buyers who want to live in this area. Thanks to the community’s continued efforts to relieve traffic congestion, improve existing developments, and improve green space, Redondo Beach will continue to grow and be a good place for investors to buy. Within the last 12 months, the average home sale price was approximately $1.2 million, and the average rental rate was approximately $4,000/month.
4. Palos Verdes Peninsula
With some of the best coastal views in all of Los Angeles County, the Palos Verdes Peninsula is often called South Bay’s hidden gem. The Palos Verdes Peninsula is made up of four cities: Palos Verdes Estates, Rancho Palos Verdes, Rolling Hills, and Rolling Hills Estates.
There are a variety of Palos Verdes Peninsula real estate options for investors to choose from, including condos, single-family homes, and townhomes. Considered one of the best places to raise children in the Los Angeles area, the Palos Verdes Peninsula is ideal for active families who enjoy hiking, biking, and surfing. A large number (86 percent) of residents own their homes on the Palos Verdes Peninsula, so this may not be the best place for investors who want to buy rental properties. However, for those who plan to flip a home, Palos Verdes Peninsula real estate could be a lucrative investment option. Within the last 12 months, the average home sale price for Palos Verdes Estates was approximately $2.4 million, for Rancho Palos Verdes was approximately $1.5 million, for Rolling Hills was approximately $4 million, and Rolling Hills Estates was approximately $1.8 million.
The average rental rate for Palos Verdes Estates was approximately $7,000/month, for Rancho Palos Verdes was approximately $4,600/month, for Rolling Hills was approximately $11,000/month, and Rolling Hills Estates was approximately $4,000/month.
5. Marina del Rey
Marina del Rey is a tech hotspot with employers like Facebook, Netflix, and Google that continually bring in new residents. This is also one of the most popular boating and water recreation destinations for those in the Los Angeles area and is a natural choice for a second home or vacation home ownership and rentals.
More than 90 percent of Marina del Rey residents rent their homes, so Marina del Rey condos and single-family homes make excellent investment opportunities. Within the last 12 months, the average home sale price was approximately $1.3 million, and the average rental rate was approximately $4,000/month. The median household income is a strong $118,000. This means there are plenty of people who have the money to spend on higher rents and, with the influx of residents who come to work for local tech companies, the market in Marina del Rey will only get stronger.
6. Playa del Rey
Considered one of the last small towns in the South Bay area, Playa del Rey is often called the best-kept secret in Los Angeles. With its rich history, gorgeous beach, and one of the last remaining saltwater wetlands in Southern California, this area is a wonderful place to live and invest.
The town has a 50/50 split of renters and owners, so those interested in Playa del Rey investment properties can expect to make solid decisions whether they decide to buy rental properties or flip homes. While the median rents are not as high as they are in Marina del Rey, they are still well above the national average. Its proximity to Loyola Marymount University is another benefit, as students often need rental housing. Within the last 12 months, the average home sale price was approximately $1.1 million, and the average rental rate was approximately $4,200/month.
California’s South Bay area will always be a popular place to live due to its perfect climate, large employers, and unbeatable lifestyle. Those who want to invest should consider doing so now, when mortgage interest rates are still low and ahead of the real estate rebound that will almost certainly occur as the pandemic eases. To make sure your real estate transaction goes as smoothly as possible, contact an experienced agent like Jon Grogan to guide you through the process.