Investing In Real Estate In Los Angeles

Though it's seen much growth over the years so that early investors could reap the benefits of rising prices, the City of Angels is now crowded enough that the sprawl has spread to areas like Riverside and San Bernardino. To put it briefly, it can be tough, but it's certainly not impossible to succeed.

Real estate prices are still expected to bump up in the future; certain factors like rising populations, as well as certain building and use permits and restrictions, may mean that that supply is limited and property values may increase. So, for those who want and can afford to snap up real estate in LA, the time is now.

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And based on trends, potential investors may want to look into multi-family properties. With high and rising prices of homes, people in the area prefer to rent rather than buy, and investors can take advantage of having their property rented out for a good price.

But aside from residential properties, investors can also consider commercial or retail property. Certain growing communities in and around Los Angeles are very open to retail and restaurants opening in their areas, and it would be wise to take advantage of this.

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Fortunately, for those who can invest in real estate in LA, there are property tax limits in California, also known as the Proposition 13. This sets the state apart from others in that California property tax only increases at a maximum of 2 percent a year while property tax in other states increases yearly depending on the real estate value.

Proposition 13 aside, investors, especially those from out-of-state should do their due diligence about other taxes in California such as sales and income tax, as they're relatively higher than other states' and will have a significant impact on buying, building, and maintaining property in LA.

LA-based financial executive Bharti Jogia-Sattar has multiple areas of expertise ranging from financial and corporate management and real estate investment. Visit this LinkedIn page to learn more about her professional experience.