Investment properties in the Coachella Valley
Investors in the Coachella Valley: The market is definitely shifting. More towards Buyers than sellers. If you are a buyer looking at purchasing an investment property in the Coachella Valley, be sure to look behind the curtain. Don’t be swayed by the presentation of a beautiful property, tear it apart. P & L’s are critical, market understanding NOW, not just over the past few years, location of the property in relation to future development, maintenance costs, management costs, marketing costs, and the actual condition of the property are critical. Local resident, equestrian and of course long time agent, Kim Kelly is available for consultation at 760-285-3578.
| What does the current market mean for investors in the Coachella Valley? A market where disciplined purchasing and operating-cost analysis matter more than speculation. For real estate investors, including vacation rental owners, the September numbers deserve careful attention. The decline in median sale prices may create opportunities to evaluate properties at potentially more attractive entry points. Condominiums have seen a larger percentage decrease in median values than single-family homes, while both property categories have experienced slower sales activity. But a lower purchase price doesn’t automatically translate into a profitable investment.
What investors should consider
Condominiums may offer a lower entry price, but HOA restrictions and operating costs may substantially affect returns. Single-family homes require a higher median purchase investment but may offer different rental, resale, and ownership characteristics. Neither is automatically a better investment. Bottom line for investors: The market may create interesting acquisition opportunities, but profitability depends on the individual property, financing, operating costs, and investment strategy. The reports do not include rental income or capitalization rates, so they cannot establish investment profitability by themselves. Take the tour of this amazing 35 acre, well positioned date farm and date production facility in the East Valley path of growth. Asking 8 million |
