Greater Palm Springs Community
bradschmett|March 1, 2020
Greater Palm Springs Community
Investing in real estate is a powerful way to generate wealth — provided you choose the right real estate in the right location. That brings us to our sunny home of Palm Springs, California.
Recent trends show California is a buyer’s market, with home values forecasted to increase in the coming years.
Palm Springs and the surrounding Coachella Valley are especially prime for real estate investors right now. The area is one of the most popular places to buy a home in the state. Why? Because Palm Springs is a very desirable place to live.
Why is Palm Springs so popular?
Palm Springs won’t be California’s best-kept secret forever. But for now, it’s popularity makes real estate investment here a no-brainer.
Home values in the area are up and headed higher, while mortgage rates are lower than ever. The value-to-rent ratios are very attractive here, and it’s also a hotspot for vacation rentals, which means property owners have options for generating revenue while waiting for the right time to sell.
Here are 5 reasons why Palm Springs is a real estate investor’s dream in 2020.
The average value of a home in Palm Springs is predicted to increase by about 2.4% in the coming year. If you buy a house now, you can expect it to be worth little bit more by the end of the year.
2.4% may not put dollar signs in your eyes, but the long-term trends in Palm Springs should. In the last 5 years, we’ve seen massive growth in home values here — in fact, they’ve gone up over 150%!
Our recommendation? Buy now and hold onto the property, rather than looking for a quick flip.
In the meantime, you can make that home pay for itself through renting to tenants or listing it on AirBnB. That brings us to the next two reasons to invest in Palm Springs real estate in 2020.
Out of entire state of California, Palm Springs is one of the most profitable places to own a rental property.
That means you can get a property for less, but rent it out for just as much as you would anywhere else in the state. You make more month over month, and at the end of a few years, you’re sitting on a property whose value has increased and that your tenants have paid for.
That makes it a great location to invest in a property that you can list on Airbnb, Vrbo, and other vacation rental sites. Just like with a rental, your property can make you money and pay for itself, all while you wait for its value to go up.
The perks of opting for a vacation rental versus renting the property out are:
This is a trend we took note of over a year ago, and it’s one that has continued even more over the last year.
A year ago, a 30-year fixed mortgage came with an interest rate of just under 4.5%. Today, the rates are even more attractive — just 3.75%!
Similar drops have been seen across all other mortgage types. Mortgage rates are at historical lows, which means you can get even more value out of owning an investment property, if you buy soon.
We may be biased, but we like to think that one of the best reasons to invest in real estate in Palm Springs is because the area has got it all!
For starters, look at the weather. It hardly ever rains, and even in the winter, we regularly see highs in the 70s. And we get over 300 days of sunshine a year — 90 days more than the national average. That’s 3 full months of extra sun.
Then there’s the landscape. Surrounded by not one, not two, not three, but four mountain ranges, there are stunning views everywhere you look in Palm Springs.
The weather and the views are probably why Palm Springs is considered to be one of the golfing capitals of the world. Well, that and the fact that we have over 100 golf courses here.
On top of all that, Palm Springs has some truly amazing properties on sale right now.