Are you a prospective real estate investor and considering property in the Los Angeles area? Now is a perfect time to begin looking for your next investment in the “westside” or “beach cities” of Los Angeles. With low mortgage interest rates and the high demand that will come when the pandemic eases, investors should act now.
Here are seven reasons why these particular areas of Los Angeles make a great investment.
1. High Demand for Rental Property
When you buy homes for sale in Manhattan Beach, Hermosa Beach, Redondo Beach, or on the Palos Verdes Peninsula, you will benefit from a local rental market with high demand. 64 percent of those in the Los Angeles area live in rental properties! Research shows this will only increase in the decades to come. This means that if you plan to buy a home to rent out to others, you will have no problems finding interested renters who are willing to pay premium rental prices. The Los Angeles area has been rated one of the best cities for rental income.
2. A Steady Market
Though the South Bay area did take a brief hit due to COVID, the real estate market stayed steady. As demand slowly increases in 2021, now is a better time than ever to invest in homes for sale in Manhattan Beach, Hermosa Beach, Redondo Beach, or on the Palos Verdes Peninsula. Home sales rebounded in June of 2020 after a slowdown in the market for a couple of months, and prices have been accelerating ever since. When you invest in South Bay beach homes in Hermosa Beach, Manhattan Beach, Redondo Beach, or on the Palos Verdes Peninsula, you can be assured the prices will continue to increase and that your investment will grow. The median home price in the Los Angeles area is 13.7% higher than it was in December 2019, illustrating how strong the market in this area is.
3. Single Family Investment Properties Are Hot
With the current low inventory and housing shortage in the westside of Los Angeles and South Bay areas, single-family homes for sale in Hermosa Beach, Manhattan Beach, Redondo Beach, or on the Palos Verdes Peninsula and other areas are becoming popular among investors. Occupancy rates are high and are predicted to become higher in these types of properties, which is a dream come true for those who invest. Additionally, unlike the city of Los Angeles, the South Bay area has much less stringent rent control laws.
4. Interest Rates Remain Low
If you’ve been considering investing in homes for sale in Manhattan Beach, Hermosa Beach, Redondo Beach, the Palos Verdes Peninsula, or nearby areas, you couldn’t find a better time. Mortgage interest rates are still below the 3 percent mark for primary, fixed 30-year mortgages and are not much higher for loans on second homes or investment properties. That means you can afford more property than you could have when rates were higher, and you can save hundreds of dollars on your monthly payments.
Experts know that these low rates can’t last forever, though most predict that they won’t rise much in the first part of the year. There’s no reason to wait, though — a jump by even one percentage point could mean throwing away thousands of dollars a year in extra interest. If you’re ready to buy beach homes in Manhattan Beach, Hermosa Beach, Redondo Beach, or on the Palos Verdes Peninsula, now is the time to do it.
5. The Secondary Home Market is Booming
Now that millions of Americans have the ability to work remotely, people are flocking to South Bay neighborhoods from the city. They are either buying beach homes in Manhattan Beach, Hermosa Beach, Redondo Beach, the Palos Verdes Peninsula for second homes where they can live part-time or get out of L.A. altogether since they no longer have to worry about commuting to their offices in the city.
This is good news for South Bay real estate — prices are climbing and will continue to do so. If you buy a South Bay property now, you know you will have no problems renting it or reselling it since interest in this area continues to grow. Some workers will eventually go back to their offices either part- or full-time, so now is the perfect time to strike while the iron is hot.
6. South Bay is a Wonderful Place to Live
Whether you plan to look at homes for sale in Manhattan Beach, Hermosa Beach, Redondo Beach or on the Palos Verdes Peninsula for you and your family to live or you’re exclusively looking with the eyes of an investor who plans to rent the property, the fact that the South Bay area is a wonderful place to live is a reason to buy. With its central location, communities that have tons of character, and plenty of exciting activities, South Bay will continue to attract new residents. From the San Diego Bay National Wildlife Refuge to the beautiful beaches and multiple golf courses, the South Bay area is the epitome of easy California living.
California will continue to be a place where millions want to live, and the South Bay area has a number of factors that make it a destination of choice. These factors, paired with the current economic conditions and mortgage rates, make now the perfect time to buy in the area. When you’re ready to start looking at homes for sale in Manhattan Beach, Hermosa Beach, Redondo Beach, or on the Palos Verdes Peninsula, contact an experienced agent like Jon Grogan to guide you through the process.