Investment Properties

Coachella Valley real estate update

Coachella Valley, especially multi acre properties are hopping!

Things are hopping here in the Coachella Valley to end 2021 and begin 2022.  Not exactly news since real estate is selling pretty much everywhere right now.  Residential listings do not sit on the market unless they’re so extremely over priced for their community that it just doesn’t make any sense for a buyer.  The most interesting thing from my perspective is all the NEW money and buyers coming into our Coachella Valley..in particular the Eastern Coachella Valley.

Our beautiful Eastern Coachella Valley cities of Vista Santa Rosa, (which is unincorporated), Indio, Thermal, Coachella and even further East are drawing a lot of investment.  The land is still relatively inexpensive, it just isn’t that “far out”, as people once thought, and the development and activities moving Easterly continue to expand.

My vacant land  listings are generating interest, showings, and sales.  The price/acre hasn’t changed much, except that any land listings that are more Westerly..meaning closer to La Quinta amenities and nearer Coachella Festival grounds, have risen.  There isn’t a lot to choose from; certainly not if the location is close to the famed Coachella Music Festival grounds and polo fields.

Some recent changes in our Eastern Coachella Valley are the following..

1. Empire Polo Club no longer will host actual polo games. Goldenvoice has leased the Empire Polo Club grounds through 2050.  They will be having events year round!
2. Eldorado Polo Club right next door to Empire is already owned by Goldenvoice, but there are currently no plans to end the seasonal polo tournaments.
3. There are several water parks planned. Not sure what stage they are in with them.
4. There is a private golf course currently under development in Thermal.
5. The Jacqueline Cochran airport has had extensive additions and renovations over the past several years.
6. Multi acre properties in the county are generating strong sales. This is mostly due to local city ordinances limiting short term rentals and events, pushing buyers to the County.

Take the tour of this incredible listing at 54250 Monroe St., Indio.  It’s 9.4 fenced, secure and gated acres a walk or bike ride away from the Coachella Valley festival grounds.  Listed at 9.5 million and generating a strong short term lease return, this property is a great investment!

Small farms are such great luxury event sites and STVR properties.

High end market for investors; a new home model.  What’s left as far as a manner remaining to capitalize on the Coachella Valley real estate market?  With all the recent law change proposals for Short term vacation rentals, and luxury event site rentals, what’s next???  Call local realtor, Kim Kelly at 760-285-3578.

There is a one year old 1.5 billion company named Pacaso that is buying high end Coachella Valley homes and selling shares in them to investors.   Pacaso, (according to the Desert Sun) has bought properties in Palm Springs, Palm Desert, Indian Wells and La Quinta.  The idea is the now buyers who want a second home in the Coachella Valley, can now buy a 1/8 share of a luxury home.  If Pacaso does succeed, the company will probably be followed by others looking to cash in on this form of fractional home ownership.

Sound like a timeshare??  Does to me also.  Timeshares are banned in many areas of the Coachella Valley, and as we have all read, one of their prime problems is that an owner will find it very difficult to sell their time.  Pacaso categorically rejects this notion.  It says that it’s homes’ shareholders are buying shares in real property, not useage rights.  It remains to be seen how this fractional ownership will eventually be classified and if it can expand through our Coachella Valley.  In the meantime, take a tour of this lovely small farm that is for sale in Thermal, 20 acres, $1,775,000.

Investment Properties in the Coachella Valley range from homes, to farms and vacant land!

Inflation Cools a bit and consequently here in the Coachella Valley as everywhere else, mortgage Rates decline just a bit.  With the inventory already low, the reduced Mortgage rates will certainly drive buyers to our beautiful desert!  The following article is courtesy of Brad Tilford, with Franklin Loans, a local lender that can get your loans done!  Call local Realtor, Kim Kelly, if you are thinking of buying or selling your home, land or Equestrian property.  760-285-3578.

Overview: Over the past week, investors were mostly focused on the latest inflation data. The reading came in weaker than expected, and mortgage rates ended the week a little lower.

The Consumer Price Index (CPI) is a closely watched inflation indicator that looks at the price changes for a broad range of goods and services. To get a better sense of the underlying long-term trend, investors generally prefer to look at core CPI, which excludes the volatile food and energy components. In August, core CPI rose 0.1% from July, which was less than expected. On an annual basis, core CPI was 4% higher than a year ago, a very high figure by historical standards. However, this was down from an annual rate of increase of 4.5% in June, a level not seen since 1991. Since inflation is negative for mortgage rates, this lower-than-expected data caused rates to decline.

The Department of Labor releases the total number of new claims for unemployment insurance each week, and the latest reading was 310,000, the lowest level since March 2020. This was down significantly from the inflated figures seen during the early months of the pandemic, but still well above the readings around 220,000 that were typical during 2019.

As expected, the European Central Bank (ECB) announced at Thursday’s meeting that it will reduce its bond purchases, but it did not specify by exactly how much. Rather, the meeting statement said that it will proceed with a “moderately lower pace” of net asset purchases. While the U.S. Federal Reserve has not yet begun to scale back its bond buying program, it is expected to do so before the end of the year.

5 Acre Equestrian Estate just 1.7 miles from Coachella Music Festival grounds

Investment Properties in Coachella Valley.  What’s happening East of the Coachella Music Festival grounds?  Plenty!  The Festivals have brought more and more people seeking investment properties, out to the East Valley.  I can still remember when I had to tell people that I was in Palm Springs, rather than Indio, just so they’d know what part of the California world I was in.  Literally NOBODY knew where Indio was..not any more!  Call Kim Kelly, local Realtor, resident and Equestrian for a FREE consultation at 760-285-3578.

Investment Properties in the Coachella Valley range from homes, to farms and vacant land!

Why are the investors heading to the East Valley?  Lots of reasons, including large homes that are still priced well below our median.  Land prices/acre are still very low, ranging from approx. $25-35,000/acre for raw land out near the HITS showgrounds and Thermal Club, to $50-$100,000/acre as you get nearer to the actual Festival grounds.

The Kohl Ranch project encompassing 2200 acres near the Jacqueline Cochran Airport is said to be getting nearer to approval of it’s Surf Park and surrounding home sites.  Palm Springs, Cat City, Rancho Mirage, and all the desert cities are incredible, but Investment opportunists are moving on..closer and closer to our beautiful Eastern Coachella Valley.  Take a tour of the investment property below..20 acres with multiple living quarters, a 10-stall barn, horse safe fences, irrigated pastures, offered at $1,500,000..GREAT VALUE! 

COACHELLA VALLEY INVESTMENT OPTIONS:  

Indoor to outdoor living is why so many people choose the Coachella Valley for Investments.

The Coachella Valley is still a solid place to buy a property if you’re hoping for an investment return.  Especially if you like the Valley as a possible place to retire in the future, or even to visit when your property isn’t rented.  Some areas of our desert cities, and most HOA governed communities, now have 30 day minimum rental restrictions, but so what?  You can still cover all your carrying costs and put some money into your IRA, just not as much as before the restrictions were put into place.  Call Kim Kelly, local Coachella Valley Realtor, at 760-285-3578.

The Orchard in Indio has a 30 day minimum as do most HOA governed homes.

The Coachella Valley is still very friendly to buyers that want to make some money renting their properties, just for an occasional weekend, or as an investment opportunity.  It’s a GOOD thing that the Cities pay more attention to noise complaints, stuffing too many people into too few sleeping areas, letting people crash on your patios and around the pool..etc.  These practices do not enhance your property values, so be glad they’re paying more attention.  Be respectful of the neighborhood, keep tabs on your tenants, follow up on complaints, pay your City license fees and taxes, and count your extra income!  Here’s a short break down of Desert Cities/Rental Requirements.

Palm Springs:  No more than 32 rental contracts in one calendar year Plus 4 more contracts during July, August & September.  Good area for investments.

Cathedral City:  Currently a moratorium on new vacation rentals, that will expire shortly..CC&R’s and HOA’s must be observed.

Rancho Mirage:  Short Term Rentals are possible in RM, but beware of the rules as in all Coachella Valley cities.  RM has many CC&R and HOA governed communities, so know where you buy!

La Quinta:  The City allows short term rentals, as long as you are careful to comply with the City rules regarding STVR’s.  Again..HOA communities most often don’t allow less than 30 day contracts.

Coachella/Indio:  Friendly to vacation rentals as are most desert cities.  Good area for Investments as home purchase prices are a bit lower.  Always observe and understand that CC&R’s and HOA Rules & Regulations may set minimum rental restrictions. 

Contemporary home on 9 Acres for sale in Thermal-always beautiful to show!

5 steps to SOLD!  Are you thinking about selling your property?  Doesn’t matter if it’s a killer resident on a golf course, an entry level home near school, a cabin in the mountains, a mid century in Palm Springs, a piece of land, or an equestrian property..get your property ready to SELL!  Contact local Realtor, Kim Kelly at 760-285-3578 for your Free property consultation.

Investment properties in Coachella include PGA West, La Quinta

Investment properties, Coachella Valley.  If you’re thinking about purchasing an investment property in the Coachella Valley, there are a myriad of opportunities available to you.  A 1031 Investment may be an option for you.  Exchanging like kind properties saves taxes and can help to build wealth in your real estate portfolio.  Whether you are exchanging, or purchasing your first investment property, the Coachella Valley is a smart location to consider.  Call Kim, local Realtor at 760-285-3578.