In today’s marketplace, if you’re a high-earning working professional with lots of cash on hand, there’s no shortage of investment opportunities to choose from. At the same time, if you’re a cautious investor who isn’t interesting in taking risks with your money, your options are much more limited.
If you’ve lived in Southern California for long, you’re probably familiar with its strong real estate market. With California’s economy only getting better, and demand for new luxury properties only rising, 2017 is the perfect time to invest in a custom Luxury home.
The Promise Of Real Estate
Since the 2007 Financial crash, many people have questioned the strength of multi-family homes as an investment vehicle. 10-years removed from the financial crisis; prices have not only rebounded, but they are also continued to increase year over year. This has been even truer in California, where demand has and will continue to outpace new housing developments.
The trend in real estate has stayed consistently up. In fact, even with the effects of the financial crisis, California real estate has gone up an average of 6.8%per year since 1975. It’s been even higher in high-demand cities like Los Angeles and the surrounding suburbs. In 1974 the median price of a home in Orange County was just shy of $34,000. In 2018, the average median sales price reached $660,000.
More Than An Investment
Even though a custom luxury home appreciates in value over time, it’s more than just an investment. Why? Because homes provide shelter, and unlike buying gold, oil, or stocks, owning a luxury custom home will have a direct effect on the overall quality of life for you and your family on daily basis.
Not Losing Money Paying Rent
If you’ve been renting for a while, you’ve written dozens of checks that have transferred thousands of dollars from your bank account into your landlord’s, all for the service of having access to your current home. Even though owning a home is a much larger investment, the moment you start paying your mortgage, equity will begin to accumulate. If you have enough cash to buy your new custom home outright, you’ll not only own an asset that will increase in value every year; you’ll also be saving the thousands of dollars a month you would have had to pay to a landlord.
Invest In Luxury
Even though home prices are high in California, they’re much higher for newer luxury homes. All though the average median sales prices in Orange County reached $660,000 in 2018, it crossed $900,000 or new homes. Why? If well off home buyers are going to purchase an already expensive home, they want luxury. The good news is for you as a homeowner is that they’re willing to pay for it.