South LA county which is more affordable should be the second wave. For coastal, I see some good investment opportunities in Long Beach.
I hope that helps!
Mario Pinedo, CCIM
BRE Broker 01118365
1. Santa Monica
2. Beverly Hills
4. West LA
5. Hollywood/Hollywood Hills
6. Pacific Palisades
8. Marina Del Rey
9. Westwood/UCLA area
All of these areas continue to have good property values and continue to rise.
If you are thinking of buying, feel free to contact me anytime. I highly recommend higher your own exclusive buyers agent to assist you with your home buying needs. They will be able to assist you with locating the perfect property or properties that match what you are looking for, assist with setting up all showings, make offers and handle negotiations, inspections, all the way through the close of escrow. It costs you nothing to hire your own exclusive buyers agent as the seller pays the buyers agent commission, this will be a very valuable asset to you and your home search needs.
Have a great day,
Heather Paul, Broker Associate, Realtor
I've sold several over the years, this area has been going up & up for years. 310-702-6145
Excellent question. Unfortunately the answer to 'when' the best time to invest in real estate for short term gains here is... over the last two years.
Property values in many parts of Los Angeles, the Westside, and South Bay were as much 30% to 40% below their 2007-2008 'market bubble' highs from 2009 to 2011. Since then we've seen price increases almost monthly throughout much of 2012-2013 and values are now at or even over their previous highs in some neighborhoods. The market in L.A. from downtown to the beach cities now actually appears to be slowing and is possibly stabilizing. The real question may be â€˜will these new values be sustainable?â€™
Though investments from stocks to real estate seem to have been doing quite well over the last couple of years the overall economy has remained weak both here and abroad. Thereâ€™s also the question of how prices will respond as more houses come on the market and how the banks will handle the huge â€˜shadow inventoriesâ€™ of properties that they hold title on.
If an economic crisis can be avoided I think that the gains in local values are likely to be real and can be maintained. The upward trend of real property prices in the long-term is a proven tendency and the parts of L.A. and South Bay in question are some of the most valuable and in-demand real estate in the country.
The short answer to your question is that I don't see a lot of room for profit due to appreciation in Los Angeles from downtown to the beach cities over the next few years unless you're adding a lot of value to the properties by seriously rehabbing/expanding them or by putting a couple of condos on a lot where a house was.
It's also worth noting that properties in high-demand areas don't pencil out well as rentals. Even multi-unit investment properties often only offer cap rates of 1% or 2% while 4% or 5% is rare to unheard of and single family homes are even less profitable as income generating investments.
I've purposely excluded the San Fernando Valley, Glendale, Pasadena and (with the exception of L.A. proper) any area more than 5 or 10 miles from the beach in this discussion. This will make a lot of people mad, but the city itself and beaches are the areas that attract global interest and demandâ€¦ I think there are some spectacular profits awaiting longer-term investors here and that everything else is pretty much second rate when it comes to the potential for appreciation.
While the more well-known (and expensive) areas in L.A. proper and along the coast like Hollywood, Melrose, Fairfax, the Miracle Mile, Beverly Hills, West L.A., Brentwood / Palisades, Culver City, Santa Monica, Venice, Marina del Rey, and Manhattan & Hermosa Beaches will do very well over time I think that itâ€™s the more affordable, less well known areas which will offer really remarkable longer-term returnsâ€¦ especially if you have less money to invest!
In my opinion, the areas which will enjoy the greatest appreciation the soonest will include:
Some areas just west of Downtown particularly to the south of Silverlake and Echo Park, and by USC along the south and western edges of Koreatown.
All the suburban neighborhoods from Baldwin Hills, Crenshaw, and View Park to Ladera Heights and North Inglewood.
All the less-expensive areas west of the 405 Freeway by Baloona Creek / Culver Blvd. and in the eastern end of Westchester / La Tijera.
Some parts of Hawthorne, Torrance, and Lawndale that are closer to the ocean.
San Pedro (L.A.) and Long Beach â€“ These are no-brainers / both are very affordable and on the water.
As an added bonus cap rates on income properties can go as high as 5% to 6% or more in many of these areas.
Though my website focuses on Los Angelesâ€™ beach cities as a native of 55 years I have extensive knowledge about all of L.A.â€™s diverse neighborhoods. Please feel free to call or email me anytime if youâ€™d like to find out more about the opportunities available in any of these up and coming communities.
Best of Luck.
How about 2 single family homes?
It's not in the MLS yet, but I'm listing a "2 on a lot" in LA county today, total of 2360sqft, it's a 2b 1ba home & a 4b 2ba home for under $550K. Just a 2b 1ba home in this area is selling for near $300K. So you'd be getting the 2nd home with 4b 2ba for under $250K.
If you'd like to discuss this further, shoot me an email directly or give me a call. I don't look back on this same Trulia posting for Answers or Replies posted after mine.
Emily S. Knell
Realtor Since--- 1996
Realty ONE Group
Please call me at 818-730-8635, or e-mail me at firstname.lastname@example.org.
Clint Lohr, Keller Williams Realty- World Media Center.
Shel-lee Davis BRE #01817412
Real Estate Consultant
International Real Estate Specialist - IRESÂ®
Senior Real Estate Specialist - SRESÂ®
Certified Home Seller Advisor - CHSAÂ®
Certified Home Buyer Advisor - CHBAÂ®
Member - National Association of Certified Expert Advisors - NAEA
Certified Distressed Property Expert - CDPEÂ®
RE/MAX Estate Properties