Buying Investment Properties? Why You Should Consider California
There are many places that you could consider when deciding on an area to purchase investment property, but an area you should consider is California. Not only is California a sunny, gorgeous place to live, but it is also projected to do very well for property investors in the coming years.
We’ve all seen the pictures of California—big cities, sprawling urban landscapes and a gorgeous coastline—which all adds up to one thing: people love California and want to live there. But what happens when there are more people than available places for them to live? One of the main reasons why California would make a great place to purchase investment property
from is that much of the liveable land in California is already developed—meaning as demand continues to increase, the property values will also rise. Even if you are simply buying land—and not a house—that area should increase in value as the need for available land to develop continues to rise in California. Less land equals more demand and more demand equals prices that you can set.
Property Taxes in California
Lucky for property owners, Californians decided that they were tired of their property taxes increasing every year (as in most other areas, when property values increase, the taxes go up), so they decided to change the laws. Now, in California, your property tax is 1% of the total value of your home (so a 200 000 dollar home would have property taxes of 2000 per year). The increases for property taxes have also been mandated, stating that they can only ever increase to a maximum of 2% per year (unlike many other states where property taxes can vary wildly year to year). In California, it is easier to know what you are getting yourself into—and that your land taxes will not be ones that overwhelm you. It also helps to know that, when you decide to sell your investment property, the taxes will not be completely overwhelming for the individual you are selling to—and therefore should not be a hindrance to them when they are budgeting for their purchase.
Increases in Population
The population of the United States is only set to increase over time—and many new families and individuals have their hearts set on living along the “golden coast.” It makes sense; California is one of the most beautiful states in the country—why would any want to live anywhere else? However, because California is already quite developed, this means that the available land for new individuals is scarce—which means that with increased demand, the prices for land and housing will also rise. This is great for investors looking for a solid return in their investment—with time and increased demand, the price for land will only increase, which means a great investment opportunity for those looking to buy property in California.
As with any investing, there is no sure thing. But with enough research and some smart decisions, California should be a solid place for anyone looking to purchase investment property. With population increases and a greater demand, California is poised to give great returns for anyone looking to benefit from property investments.
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