By DESYANA WILLIS | Special to the Palisadian-Post
Owning a Single Family Residence means, for the most part, that you are exempt from the restrictions of rent control. With Rental rates increasing, it gets you to thinking if you’re cashing in on the opportunity of not only the appreciating value of owning a home but the value of having passive income. Interest rates have remained at a record low, with moderate increases forecasted into 2022. Since January, prices of apartments nationwide have decreased by 2.3%, but data shows SFR’s (Single Family Rentals) prices are up by 15%, driving an overall increase in median rent by 9.6%.
Lower mortgage rates have fueled demand among home buyers and increased individuals’ buying power. Exploring the opportunities of real estate investing has become more and more ideal. Due to Covid, it has allowed for people to live this nomad lifestyle working remotely from wherever they choose. So those who have lived in Places like New York, where winter tends to get pretty cold, now have the luxury of coming to California to bask in the sun for work and play. Owning real estate can serve as a huge plus allowing you to house this new nomad living.
Increasing interest in having more space and walkable neighborhoods all prove why people are reevaluating their current living environment.
With the Palisades arguably being one of the best places to live, this is undoubtedly the first look at places for well-to-do families when deciding to make a change. Now more than ever people have a preference for flexibility. Having a dependable tenant who loves living in your property, you may be able to generate a steady, reliable income.
According to Redfin, the median value of homes in Pacific Palisades is $3,973,750. Paired with Covid, the demand for single-family house rentals has grown more intense. Molly Boesel, economist at CoreLogic, had this to say about the current trends “Converging economic trends are driving a surge in single-family rent prices, and consumer confidence has driven an uptick in demand for both renters and buyers,”. On average, a rental per month is over $9,000 making owning real estate in this community an ideal opportunity. If you can afford to buy investment property in an affluent neighborhood, securing your likelihood of prime tenants, why wouldn’t you? Or if the nomad life is intriguing and you’ve always wondered what it would be like to live a different life. Explore different places. Having the option of using your home as a vacation rental, short-term rental, or lease can financially support your new lifestyle all while putting money in the bank.
Knowing your options is what it all comes down to, and partnering with a local realtor to advise on the process can always serve to point you in the right direction. Getting creative in today’s market is where the money is made. There are opportunities out there for every level, beginner or novice, in real estate. Now is the time to consider how to take advantage of a booming housing market.
Credits: Redfin and Corelogic