Should I buy Rental Income Properties in California?
Rental Income properties are a great way to generate a steady income flow for your future.. with savings accounts yields at abysmally low rates, generating 6% or more in interest income, plus long term inflation adjusted appreciation is definitely worth looking into..
But is the California market saturated? Are yield curves flattening?
To me the answer is straightforward: If you live here, say in SF Bay Area, you obviously know that home values have gone up 30-35% past 6 years..yield curves in key urban pockets will likely flatten from an investment perspective…but outside of the ‘hot’ job market areas, the actual appreciation has been slower (10-15% ave), at a Lower purchase price… in part due to the drought..
But, as the demographic is aging, home equities at an all time high, broad band connectivity improving leaps and bounds, I think there is significant investment upside as well as life style benefits for moving to outer areas, away from traditionally dense urban centers.
Which areas? That’s a somewhat subjective question, depending on the investors risk appetite, long term financial goals.
Happy to chat more.. call/txt me @510.676.1940
Till next time.. I will answer a question I get asked a lot: What if any are the tax advantages to buying income properties?