There’s great value in real estate investments. The question, however, is where you would put your money. In the United States, one of the most attractive locations for real estate is California. It’s an area perfect for your investment, especially if you want long-term returns.
The number of homes for sale in St. Helena should be enough to convince you. If not, here are three more reasons to consider adding California investments to your portfolio:
By the numbers, California is getting denser every year. Reports show that in the last year alone, the state’s population went up to 38.7 million. This is greatly relevant if you want to start a property investment, as the number of people in an area has a strong impact on home prices. This is basic economics at work – a great demand without adequate supply would blow up the prices.
Rising House Prices
Speaking of blowing up prices, this phenomenon is already noticeable in California. Time Magazine has collected information on the fastest moving markets in the US, and 8 out of the top 10 areas are in California. It goes to show that the upward trend in prices continues.
Scarcity of Valuable Land
California’s major metropolitan areas are already well developed and well populated. In other words, there’s not much land to develop in these huge employment centers. This situation leads to development in areas outside these major locations.
Prices would go up once the developers finish their projects. It’s only a matter of time before you earn a lot of revenue from the low-cost property you bought before. Always remember that scarcity of valuable land increases the prospects of value increases in the long run.
In real estate investments, California is where the money is. The next time you look for properties to invest in, look for listings in California – you wouldn’t make a mistake with that.