Are you looking to invest in Los Angeles, California real estate?
Real estate investments can be a wonderful source of passive income. Additionally, as the years pass, you can also benefit from property appreciation. So, if you decide to sell off your real estate asset, it will be at a higher rate than the price you purchased it.
Before purchasing a rental property, it’s best to understand the real estate market and conduct proper research. You want to find a property in an area that offers a high quality of life, a reliable economy, multiple local attractions, and a strong rental market.
The Los Angeles real estate market provides all that! Thus, a Los Angeles property is an attractive asset to purchase.
In this article, we’ll run through the reasons you should consider purchasing an investment property in Los Angeles, California.
Why Invest in Los Angeles, California Rental Properties
#1. Strong Local Economy
A major factor that draws investors to Los Angeles is its economic strength. Being named the world’s 5th largest economy, this city is highly attractive to investors.
It remains competitive in plenty of sectors. Los Angeles ranks high in the entertainment industry, technology, tourism, fashion, finance, transportation, and manufacturing. It has the 5th busiest port around the world.
This strong economy is alluring for real estate investors and enables property investments to thrive.
#2. Tourism is Booming
Visitors from all over the world flock to this city to experience the myriad of fantastic attractions. Los Angeles is home to world class tourist entertainment. This adds to the stability of Los Angeles’ economy.
Here are some of the famous spots visitors enjoy in Los Angeles:
- Disneyland Resort Park
- Universal Studios Hollywood
- Santa Monica Pier
- Griffith Park and Observatory
- The Getty Center
- Hollywood Boulevard
- Los Angeles County Museum of Art (LACMA)
- Museum of Contemporary Art (MOCA)
- Venice Beach
- Long Beach
The tourists will need a place to spend their nights, so owning a short-term rental unit in this city is a great idea! The demand is high, so there’s a lot of potential for real estate investors.
#3. Great Climate
Los Angeles' temperate climate makes it an ideal place to live and visit.
Often, people from other states who are experiencing cold winter months will visit Los Angeles for a few months for warmth. This further drives Los Angeles’ rental properties up during peak winter.
Los Angeles’ climate makes partaking in various outdoor activities enjoyable at anytime of the year!
#4. Hot Real Estate Market
The real estate market in Los Angeles is constantly growing. Homes are also significantly appreciating. Los Angeles is among the top global cities where property appreciation stands to benefit savvy investors in the coming years. The median home value in Los Angeles is $768K+ with a forecasted growth of 8.3%.
Considering the low interest rates, asset appreciation and property demand in Los Angeles, it’s a great time for buyers and investors. The future trends predict that Los Angeles is a lucrative area for rental property investors.
#5. Good Local Education
If your target demographic for your potential investment property is students, then Los Angeles is the supreme location. As a premier destination for higher education, students have a great number of choices. They can pick among the 3 renowned public universities:
- University of California, Los Angeles (UCLA)
- California State University, Los Angeles (CSULA)
- California State University, Northridge (CSUN)
There are also plenty of private colleges. Here are a few:
- American Film Institute Conservatory
- American Academy of Dramatic Arts
- The American Musical and Dramatic Academy
- Fashion Institute of Design & Merchandising
- Southern California Institute of Architecture
- Los Angeles Film School
- Southwestern Law School
- Marymount College
- University of Southern California
Moreover, there exists a Los Angeles Unified School District. This public school district is deemed the largest in the state and the second largest in the US. Thus, access to schools in the Los Angeles area is great.
#6. Plenty of Local Attractions
The limitless activities and exciting events that occur in Los Angeles is definitely appreciated by both locals and visitors.
No matter what you love, Los Angeles has something for you.
Here are some of the interesting things you can do in LA:
- Visit Griffith Park Observatory and take in the fascinating astronomy museum
- Hike in Griffith Park and see the Hollywood sign up close
- Enjoy the classic Pacific Park in Santa Monica Pier
- Check out the Walk of Fame Stars, Chinese Theatre Courtyard and Hollywood Wax Museum
- Stroll through Huntington’s famous themed botanical gardens
- Take walks along the Venice Canals
- Shop in Rodeo Drive in Beverly Hills
The Bottom Line: Why Purchase Los Angeles Real Estate
Los Angeles has a high economic growth, premium entertainment, access to many schools, wonderful year-round climate, and a hot real estate market. As an investor, these are outstanding factors.
If you’re a new investor and lack the experience and confidence in picking the perfect LA property, feel free to contact Pinnacle Property Management. We can make the process easier for you and help you avoid potential errors!
For tips on how to buy investment property in Los Angeles, read our post here!