How to Choose the Best Location for Real Estate Investment?

How to Choose the Best Location for Real Estate Investments

One of the biggest dilemmas real estate investor’s face is when they buy and invest in a property at a poor location.  With this, they don’t get to close a deal more often, if not, not ever.  How do you really choose a great location if you want to buy, sell or hold property as a long term investment?

best real estate locations

How to Choose the Best Real Estate Investment Location

Natural Disasters

Although rental fees in disaster-prone areas are so low, only the bravest souls are prepared to buy or rent commercial and residential spaces here.  I mean, if you really want to earn a huge amount of profit in real estate business, don’t risk your money by purchasing properties in an area prone to tornadoes, earthquakes, and flooding.  Plus, paying for premium natural disaster insurance is a waste of money when you can just outdo this and look for better locations.

Amenities

Check the neighborhood if there are great amenities that residents and professionals would love to use during their stay.  This could be a park, mall, fitness center, pool, theater, and other facilities that could attract potential buyers and renters.  You can also ask the local government of their future projects in the area so you will be informed of any risks and opportunities that could affect the property’s value.

Employment

Get your statistics and see if the area is calling out for more employees and workers.  Locations that have high employment rates are more likely to get higher property value.  And also, if there are more workers needed in the area, this means more tenants.  It is always wiser to invest in a town that has a diverse economy and doesn’t rely on one particular major employer, such as a local mine or large distribution center.

School’s rank

The rank of schools in the area affects your property’s value negatively or positively.  Why?  Because if the location has more schools that are on top of the best schools list, parents would want to enroll their kids in these schools.  Not only that, your tenants could also be thinking of growing their family some time soon, and this calls for a child who would be entering school after few years. And when there are students going into the location, these students will be your potential customers.

Crime rate

Who would ever want to live in a vicinity where he could be harmed or killed anytime?  Who would put their lives in danger?  Even you yourself won’t ever stay in the area for a long time.  Crime statistics is a great way to learn whether or not your commercial property’s location can generate sales.

Neighborhood

Speaking of crime rate, schools, and amenities, your neighborhood is one of the biggest factors in determining the value of a property.  Look for great amenities, learn about the ranks of the schools in your area, and get crime statistics to know if your tenants will have amazing neighbors.

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Based in Yucaipa, CA, Regioncy Real Estate provides commercial and residential property owners with advisory and management services. Regioncy focuses on multi family, retail, office, industrial, asset management and a broad menu of residential services.  Our mission is to help our clients build, grow and preserve long term wealth by providing superior advice, strong representation, professional market knowledge and expert analysis.  Contact us here.

Why To Invest In Real Estate?

Why you should invest in real estate? Is it, your passion or just you need to buy property for tax reasons! Here are the reasons below that will make you clear with the concept of why to invest in property rather than any other assets. Property investment is a way to go long.

Apartment Building Investment  Offering Long Term Wealth

Apartment Building Investment Offering Long Term Wealth

Here they are……

  • Portfolio Diversification That Minimizes Risk: With the investment in property, you minimizes the risk with the portfolio diversification. Buying property near your principle place is really a good idea, as by this you would be able to keep an eye on the tenants. Another reason, being known to the place and moreover you can rent it to someone known.

But, when the question comes upon the risk of diversification, you need to think like this.

The principle place where you are residing, if it is at risk and you have bought another property at that place, then not only the new one is at risk, but the old property also. People who, wish to overcome through this risk factor, needs to consider things ass given below:

  1. Make purchase of property in different state or city
  2. Within different areas and price ranges
  3. Need to use different investment strategies
  • Value of Tangible Assets: Real estate and share, two terms, are one of the most important investment areas for some people. Yeah! These should be considered for the long term investments. But, there is a huge difference between the amount required for starting it. When an investor needs to buy shares, he can buy it with few hundred dollars, but when the question is about buying a property, one has to investor has to make hundreds of thousand dollars. For this, you need to find an investor that can help you out in generating maximum benefits with the minimum risk factor. And Regioncy will be perfect choice when you plan out investing in the property. A stock market carries risk along with it, it can completely volatile or make you touch the sky. But, risk is just parallel to it. But, when compared to the investment in the property, it has capital growth & minimum risk with huge benefits like: rental income is consistent, advantages in tax, bricks & mortar security, total control on investment. This, complete specifies the fact, that property is tangible and you are always aware of the condition of your property & can make changes accordingly.
  • Rental Return Income: So, what the objective of buying a property? Simply, that it can achieve wealth for you somehow. You might be aware of the fact that, for every investor, rental income is important, so as to return the mortgage loan or medium to meet any other property expenses.
  • Capital Growth Is For Long-Term: For the property investor, this investment is carried as a steadfast return of the investment in the coming future. Over the period of time, property investment increases the capital growth for sure.
  • Are you Aware Of The Fact, What Things Drives Capital Growth Of Property?: Capital growth of property relies on few points, which are listed below:
  1. Location
  2. Size of the property
  3. Development of the area where the property is
  4. Sales value of the surrounding areas
  5. Population residing in that area
  6. Wage level of the property
  • Benefits in Tax: The good thing about investing in a property is that, there are various tax benefit upon buying. The deductions for which you claim upon taxes by buying a property are as follows:
  1. Interest, on which you have borrowed money for buying a property.
  2. Tenancy cost, the cost paid to the property managers for advertising your property.
  3. Maintenance & Repair, the cost for the maintenance & repair for restoring the items and goods, such as kitchen renovation.
  4. Cost Holding: This is the cost that includes the money upon buying a property, which also includes corporate fee, gardening cost, contents insurance, pest control and building cost. These   are tax deductible costs.

Always talk to your accountant to ensure you are claiming your maximum legal entitlement when it comes to tax time.

 These reasons, will help you out while you invest in property for making a right decision in the whole journey. By this, you will avoid costly mistakes and will reach your financial goals sooner than you expected.

Regioncy Banner Logo

Based in Yucaipa, CA, Regioncy Real Estate provides commercial and residential property owners with advisory and management services. Regioncy focuses on multi family, retail, office, industrial, asset management and a broad menu of residential services. Our mission is to help our clients build, grow and preserve long term wealth by providing superior advice, strong representation, professional market knowledge and expert analysis.  Contact us here.

Hire a property manager for my apartment building?

If you are the owner of an apartment building you might be considering whether or not it is worth it to have a property management company step in to manage the day-to-day functions of your apartment building. Here are some of the important factors that might influence this decision and help make it easier to determine if it is the right path for you:

Experience

If this is the first apartment building you have invested in it would be to your benefit to learn from the expertise of a property management company. Even if only in the beginning, they can help get you started. This company will assist you with navigating the common pitfalls and unforeseen problems which might arise in running the daily operations. They handle the paperwork and guide you in the process of running a multiple unit building.

If you are well-versed in managing a property with multiple units it might not be as necessary to hire a property management company. Although you might have experience in this area, it is wise to consider investing in a property management team in the short-term as they can help you establish a routine with your new property, as well as a clear direction for the future.

Time versus Size

Garden Style Apartment Building

Recently Remodeled Garden Style Apartment Building

Depending on the size of your apartment building and the amount of time you have to dedicate to this task, a property management company could very well be what you need to be successful. Consider that issues with units or tenants often arise with little to no warning at all hours. The larger your building the less you are able to do on your own. Factor in the other commitments in your life: other investment properties or jobs, family, friends, hobbies, emergencies. Be realistic with your assessment of the amount of time you have to put into completing these tasks.

If you have a smaller building that you are focused on running yourself you might want to skip the property management company. Again, this is particularly true if you have experience running a building with multiple units. It can be a daunting task, so really take the time to weigh whether you are ready to take on all the responsibility.

However, if this is one of many investments and you are already on a tight schedule as it is, bringing a property management company on board will probably be your best bet. Otherwise you will likely find yourself with too many fires to put out. The result will be many unhappy tenants. In this day and age of online reviews, it is imperative to do your best to create happy tenants.

Age and Condition

Another important consideration is the age of the property, as well as its current condition. For newer buildings there is rarely much maintenance involved. Many of the appliances are still under warranty and other repairs are often minor and infrequent.

However, even with a newer building its condition is an important component to consider. A poorly maintained yet fairly new building can become just as costly as an older apartment. In either of these instances a property management company will be your best bet. As any apartment building owner will tell, maintaining the frequent needs of an older building can be a full-time job in itself.

Weighing the Pros and Cons

In the end it is ultimately a decision of how hands on you wish to be with your investment property. It is crucial that you take all of these factors into consideration before deciding if a property management company is right for you. If you need additional information or would like a free market analysis of your building please contact Regioncy Real Estate by clicking here.

About Regioncy Real Estate

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Based in Southern California, Regioncy Real Estate is a full service commercial real estate services firm serving investors, landlords and tenants nationwide.   Regioncy focuses on multi family, office, retail, industrial and residential developments.   Core capabilities of Regioncy include real estate management, analysis, representation, acquisition and disposition.

Commercial Real Estate Owners Using Recycled Water Delivery Services to Increase NOI

Commercial Real Estate Owners Using Recycled Water

As the drought within California continues, the landscape is changing back to what it once was without lush palm trees and over watered grass.  Savvy commercial real estate owners are now finding ways to cut their own water use and increase their net operating income (NOI).  In addition to the many different types of water saving devices for both residential and commercial property owners, many investors are shutting off the sprinklers and turning to a water delivery service, more so a recycled water delivery service!  Such recycled water delivery services  are becoming more popular within California.  The cost effective delivery services can be set up on a regularly scheduled service and merely show up to water each property as needed.   The recycled water is free within certain areas so property owners simply pay for a service fee.  These service fees to each recycled water delivery company are lower than the cost of keeping the sprinklers on every other day and when coupled with the fact that less water promotes less vegetative growth, the costs savings are even greater due to the fact that the landscape doesn’t need the attention it normally would.   The benefits of using recycled water on real estate investments or even on our own homes is rapidly growing and should continue to do so even when California’s snow pack returns to normal levels. Commercial Real Estate Recycled Water

Commercial Real Estate Recycled Water Uses

Commercial Real Estate Recycled Water

Commercial Real Estate using a Recycled Water Delivery Service.

 

Regioncy Real EstateBased in Yucaipa, CA, Regioncy Real Estate provides commercial and residential property owners with advisory and management services. Regioncy focuses on multi family, retail, office, industrial, asset management and a broad menu of residential services.  Our mission is to help our clients build, grow and preserve long term wealth by providing superior advice, strong representation, professional market knowledge and expert analysis.  Contact us here.

Rents rise again in Southern California, but not so fast this time

The average rent paid for housing in Los Angeles County in the first quarter climbed 2.4% compared to last year, to $1,520 a month, according to new figures out Thursday from real estate data firm Reis Inc. That’s roughly in line with inflation. Orange County is up 3.5%, to $1,660.

Both counties rank among the costliest rental markets in the country — though well below the $2,277 average rent paid in San Francisco and $3,233 in New York — and also among the tightest.

Redlands Four Unit Building