It’s no secret that Santa Cruz is not an inexpensive market. In fact, many statistics and studies are showing that Santa Cruz is one of the most expensive markets in California. As the average price of a home in Santa Cruz edges over the $900,000 mark, it will be more common for residents in the area to seek rental units over mortgages. This provides a great opportunity for those looking for an investment property.
Here are some tips and tricks to find an exceptional investment property in an expensive market like Santa Cruz:
Be on the Lookout for Sales and Deals
In order to find a great property at a reasonable price, you’ll need to have your finger on the pulse of the real estate market in your area. This means working with a seasoned real estate agent and regularly checking forums and listings. Look at everything. If you look at over 100 properties, chances are there will be at least one that is suitable for your investment.
Give Yourself Time
Buying an investment property on short notice will not allow you to take advantage of the best deals. It may take some time to find the right property, especially in a market that is already expensive. Another idea is to wait for the off-season. Although the market is less saturated during the winter or holidays, you may find sellers want a quick sale and will, therefore, accept reduced offers.
Find Out What is Working in the Area
Purchasing an investment property only to find that it’s impossible to rent in the future is a waste of money and a huge missed opportunity. Before investing, make sure you do research on the area and find out exactly what the specific needs and wants are for that unique location. For example, buying a residential property in a commercial area may not yield the greatest returns. Knowing what the town is looking for and what people in the town want, will help steer you in the right direction.
Pretend You are Shopping for Yourself
When choosing an investment property, looking for traits and features that you would enjoy is the best way to determine what potential renters would also look for. For example, proximity to amenities, parks, grocery stores, and more is an important deciding factor for anyone looking for a new place to live.
Consider Your Operational Expenses
Once you have found your investment property, you will need to plan ahead for the operational expenses. These expenses can include upgrades, emergency repairs or other requests from the tenants. In an expensive market, your costs are usually higher, so it’s important to keep these operational costs in mind at all times.
Purchasing an investment property in an expensive market such as Santa Cruz is beneficial and possible for many people. For expert real estate advice and help planning your investment property purchase, call My Santa Cruz Real Estate at 800-226-4717 today.