The state of California is thought of as being a warm and inviting place where people travel from all around the world to make their dreams come true. These values are driven into the fertile Californian soil and make the state an excellent place to look for commercial real estate. The commercial real estate industry in California is a bright spot across the entire nation and offers a wide variety of opportunities for investors who are able to see the gold in front of them. In order to make sure that you’re making the right decision, it’s important to do your research about the state and explore all of the jewels of knowledge that make this place one-in-a-million. This view is what separates the beginners from the experts and will give you the key information you need to succeed as an investor. Read on to learn three reasons why California is the perfect place for your next piece of commercial real estate.
- Diversity
When it comes to diversity, California lives and breathes it. California is one of the most diverse places in the nation, if not the world. You can find representatives from every race, class, gender, ideology and more in the great state of California. In turn, it translates to diverse opportunities and personalities within the industry. Within the state’s diverse community, you’ll be able to gain your footing and find your niche rather quickly. If you’re just starting out, you’re bound to find a willing mentor within the industry that’ll help you navigate the state and make deals that matter. There are many real estate meetup groups in the state and a variety of free real estate teaching classes that you can take part in, to network your brand and business. Make sure to do your research on the events available in your area.
Also, there’s an incredible range of valuation in the state. You’ll be able to find a house that’s worth $500 thousand and a house that’s worth $5 million within minutes of each other. The various cities and counties within California are unique and cater to their own flourishing communities. This makes the state a great place to discover real estate and to be introduced to diverse, yet equally driven communities across the state. For example, a place like Midway City in Orange County has only about 9,000 people populating the small town. Even though it’s small, it boasts many different points of interest within the town, like the city’s biggest St. Patrick’s Day celebration and its way of thriving in its niche marketplace, which is made up of many rural and Vietnamese-owned businesses. Even such a small place like Midway City has the opportunity to foster a thriving economy. There are many small gold mines like this in California giving you a great chance to find a property that’ll stand on its own two feet and generate a great profit for you as an investor. You can utilize the diversity to exercise your knowledge of real estate and make substantial deals that’ll surely enhance your portfolio.
- Strong Local Economy
The economy of California thrives from its vibrant minds and innovative business practices. The state, home of Silicon Valley and the American film industry is booming and new ideas are being made into realities every day. Many people travel to California in an effort to be their best selves and make their dreams come true. Those people need a place to make it all happen and that’s where you come in. Having a stake in Californian commercial real estate is an excellent idea because business owners are being born and bred in California like strawberries and Adam Sandler movies. Also, when choosing to invest in commercial real estate in California, you have the luxury of constantly marketing to people from all around the world every single day.
Tourism in California is absolutely incredible. In 2017, it fueled $132.4 billion in travel spending. If you want your property seen, more renters and more money in your pocket, then California is a place that’ll be perfect for you.
- Rent Prices and Tax Deductions
If you know a Californian, you’re probably very familiar with this particular sentiment: “The rent is too high!” The average rent for a Californian studio is $1,680 which is $618 above the national average. Of course, this fact isn’t exactly a positive for the average renter, but on the other hand it’s excellent for you as a landlord. This’ll give you a quicker return on your investment. It also facilitates an excellent price-to-rent ratio. There is an immense number of tax deductions that can come from renting out commercial real estate in California. You’ll be able to get loan interest points, tax reductions and tax write-offs for the repairs that you make. Also, as real estate properties begin to depreciate, you may be able to reduce your annual tax bill as a result. It’s best for you to hire an experienced tax preparer in order to optimize these deductions. Thanks to the government and laws already in place, there are many benefits to gaining and sustaining commercial real estate in California.
The beauty of California lies in its diversity and visibility. Those are the key factors that make the golden state an excellent place for you to invest in. Not only do millions of people live in the state; it’s also a place where millions yearn to be. Due to the heavy tourism, more eyes see your property and you have the possibility of potential renters in the future. Also, due to its diversity, it’ll be fairly easy to find your niche as a real estate investor. No matter what you’re interested in surrounding commercial real estate, you’ll find your particular niche in California. If you’re interested in investing in Californian real estate, it’s important to start researching now. There’s a wealth of information at your fingertips in which you can find the first place to begin your journey as an investor. Make that first step now and you’ll be raking in the profits before you know it.