Property owners in the state have numerous options to see excellent returns on their investments! From stocks to bonds to bitcoin, investments come in different forms and sizes. But, regardless of the type of investment, investors want something that provides them with security, regular dividends, and a higher-than-average return on their money. Jamell Tousant says real estate is one type of investment that checks all of these boxes. Investing in real estate provides you with a buffer against economic downturns. Property is a solid source of passive income and has the potential to appreciate; thus, it also provides regular earnings in the form of rent. You must spend your resources in the right market if you want to gain the full benefits of property investing. Many investors have been drawn to the California real estate market over the years, and Oakland Realtor, Jamell Tousant, will explain why.
Factors Affecting the Real Estate Market in California- The following are some of the most important factors that have a big impact on California real estate:
- A thriving economy
The total number of Fortune 500 firms is based in California. Oracle, Disney, Apple, Intel, and Google are among the notable mentions. According to Jamell Tousant, these businesses will undoubtedly expand as a result of the growing demand for their services from both the local and international communities. If you want to invest in a region with a thriving economy and job market, this is one to consider. Low unemployment rates benefit you as a landlord since you can rest assured that your tenants will be able to satisfy their rental obligations without difficulty.
- Property is in high demand.
Professionals are moving into the state daily to take advantage of the abundant career opportunities. Jamell Tousant explains that this means there will be a larger pool of potential tenants to pick from.
- Tourism Market Is Strong
Even if you’re an out-of-state investor, you’ll enjoy the views, attractions, and activities that California has to offer. You may have even visited with your family in the past. This is just another compelling incentive to invest in California real estate now that you’ve decided to do so. California attracts millions of visitors each year thanks to its amusement parks, entertainment hubs, beaches, and other interesting activities. While they may be arriving for various reasons, they all have one thing in common: the need for lodging. In order to save money, more tourists are opting for short-term vacation rental homes rather than typical hotels. You can always choose to invest in a market with a constant supply of short-term renters instead of leasing out your property traditionally. You can also choose from a variety of apps and platforms on the market, such as Airbnb, Booking.com, and Expedia, to mention a few.
- Property Taxes That Aren’t Too Expensive
Property ownership and leasing are similar to running a business, explains Jamell Tousant. Cash flow, revenue, and expenses must all be closely monitored. This implies that you must also pay taxes and keep meticulous financial records.
Although California’s property taxes are not the lowest in the country, they are modest when compared to other states such as Washington and New Jersey. As a landlord, this can help you increase your cash flow!