Investing in a property is a good idea period. As long as you consider the right factors, you can make a lot of money. And, when you do it once, you can do it over and over to accumulate a fortune. However, if there is one place to invest in the world, California is up there as a contender. Sure, there are great houses in the hills and famous neighbors. But, there is more to the Golden State than meets the eye. Here’s why you need to invest in California.
Property Tax Limits
What is great about America is that the states can take matters into their hands. That is the case with property taxes. The people of California were sick and tired of paying astronomical fees. So, the state changed the law. Now, thanks to Proposition 13, the amount you pay in taxes doesn’t depend on the value of your house. Instead, it is set at 1% of the buying price. So, a $150,000 house would cost $1,500 in tax. And, that amount can only go up by 2% every year, yet it mainly averages at 1.5%. With Proposition 13, you will save a fortune in tax.
Lack Of Land
The state is fast becoming a concrete jungle as demand for property rises. Places like Los Angeles and San Diego are always on the lookout for fresh places to build. However, the land isn’t very forthcoming, and they are running out of places to build. That means that houses that already exist are going to rise in value. In fact, they are going to hit the roof as the demand continues to rise. For the simple fact that people want a house in the area, you will make a killing. If you can get on the market while the price is lower, your profit margins will be a lot higher.
Even though California is popular, there is still a lot of potential for growth. Orange County is a good example. With condos for sale throughout the county, there is a lot of opportunities to get on the ladder. And, you don’t have to pay through the nose for the privilege. Okay, you will have to pay a lot of money for a new property, but that is the same anywhere in the country. Regardless of the area, there is always an opportunity to make hassle-free money in California.
California was hit hard by the housing crash in 2008, and it is still recovering. Although it sounds a little immoral, the crash does mean that there is more opportunity to buy. If you have the money, there are lots of properties that are below the market average. You won’t be able to find one that is dirt cheap because there is some recovery. Still, some properties aren’t what you might imagine when you hear the price.
With the lack of land and rise in population, they are well worth a punt.