Many investors shy away from the state of California because of its notorious home prices and its tenant-friendly landscape. However, California City is a little different from the rest of the state. You can still find investor-friendly properties for reasonable amounts of money, and you can
earn a healthy ROI
in both the short term and the long term.
Take a look at some of the best reasons to invest in this part of California’s Antelope Valley.
Investment Opportunities in California City
California City is the third-largest metropolitan area in the entire state, when you measure by area. That’s a lot of land with a lot of opportunity for investment real estate. The average home value in California City is around $155,000, and that is an increase of over 16 percent in the last year. With that kind of appreciation, investors can expect to earn a healthy return on any properties they buy in the area right now. Both current inventory and new development are attractive to investors looking to enter the California market at a comfortable price point.
Rental Rates are Stable
Unlike other markets in the state, California City is not affected by rent control. Rents are also fairly stable, with single-family homes in desirable neighborhoods often renting for at least $1,000 per month. Positive cash flow is likely considering the price point for many homes, and you’ll find a
well-qualified pool of tenants
who are looking to rent well-maintained properties. The market does not fluctuate the way it does in Los Angeles or San Francisco. You can plan on a steady rental income.
Economic Growth is Possible
There’s plenty of opportunity for economic growth in California City. Major employers such as Wind Hub Generation, Edwards Air Force Base, Mojave Air & Space Port, and Golden Queen Mines are within a commutable distance. There’s also a business park at California City Airport that’s busy attracting new businesses, and the city holds a Foreign Trade Zone satellite designation. These opportunities plus the sunshine, warm weather, and proximity to California’s coastal cities provide a high quality of life for California City residents. This impending growth will only feed your investment potential.
Real Estate Investments Create Financial Stability
When you
invest in California City real estate, you have a lot of options. You may be considering this part of California as a retirement destination. When you
buy a property
now, you can rent it out until it’s paid off, and then move into the home yourself when you’re ready to retire. Or, you hold onto the asset for as long as possible and pass it onto your children or heirs. The longer you keep your investment property, the more wealth you build. Rental homes also provide tax breaks for owners who need to reduce their tax liability. You can deduct the
cost of property management
and other professional fees, as well as depreciation and maintenance. Your long term returns will earn you money in California City.
We’d love to tell you more about why investing in California City real estate makes sense. Please
contact us
at JBL & Associates.
