Why Los Angeles Is One of the Best Cities to Buy Real Estate
Can you afford to live in Los Angeles, California? If you’re considering moving to L.A, the first thing that will cross your mind is the city’s real estate economy. Beyond the glamorous life of the city, what it’s really like to own a property in LA?
According to a recent survey, LA is considered one of the best cities to buy real estate due to its great performance in the market. From sea view mansions to celebrity real estate, LA is well-known for housing elite and high profile individuals. The city is one of the most ethnically diverse and populous cities in all of California.
Los Angeles is also diverse when it comes to career opportunities and advancement. Contrary to popular belief, most people in LA do not work in the film/media industry. In fact, the city is the U.S healthcare’s largest manufacturing center.
The 2014 total direct investment in the housing industry in the United States reached around $700 million, which is far beyond the market performance in 2006 just before the economic downturn in America.
Real estate experts predict that within the year, there will be an increase of 10 to 15 percent on real estate investment in Los Angeles, making it one of the best cities in which to buy rental property in 2015. If real estate performance continues to grow, the US is expected to have $1 trillion worth of direct estate investments by 2020. This economically sound real estate prediction implies a more sustainable footing for home buyers, condo buyers, and apartment renters. This is the result of more evaluation and robust controls on investments.
The much improved controls on direct real estate investments are attributed to less dependence on leverage and more usage of equity combined with robust underwriting standards by investment committees. In addition, the US has gained new sources of capital coming from Asia, other emerging markets, and institutional investors, which allows for lower interest rates and a favorable regulatory environment.
LA has always been a strong candidate for the best city to buy rental property for direct commercial real estate investment. In the near future, there is big possibility that LA will become one of the four “supercities,” which include London, New York, Tokyo, and Paris. Mega real estate deals help these elite cities retain their rank as the best cities to buy real estate in.
[Image via biznews]
On the other hand, secondary cities like Charlotte, Miami, and Philadelphia also experienced an increased interest from local institutional buyers. If this continues there will be an expected increase in transaction volumes and more assets will come on the market in 2015. Moreover, an interest in multifamily assets, mostly seen in the US, is expected to spread to different countries such as Australia and the United Kingdom.
Just recently, residential developers from China have aggressively expanded into international markets with their main focus on cities such as New York, Los Angeles, San Francisco, Sydney, and Toronto. This only shows that the real estate industry is performing well not just in Los Angeles, but all over the world, which is a good indication of cheap homeownership and profitable real estate investments.
As always we look forward your thoughts in the comment section below! Let us know if we missed one of the best cities to buy real estate in.