Whether you’re in Los Angeles or San Francisco there has been a rise in the number of people having bought or looking for a second property, both commercial and residential. Commercial office spaces for hot desking and residential rentals are the two big trends at the moment. There are a number of incredibly good reasons or the second property, and these are discussed herein.
Bricks and mortar are still the best investment
Investments in bricks and mortar are still consistent and will outperform most other investments over time. They may not be as exciting and quick to perform as some of the other trending investment options, but they will be the best long-term investment that you can make. Whether as a home to live in or a rental opportunity, as long as the mortgage is being paid the home or property will realize increased value.
The rise of Airbnb
The disruptors, Airbnb have seen the use of residential homes, rooms and more to accommodate staycationers and those who have decided to travel locally. It is a market that is seeing growth and spinoff increases in bookings, private room rentals or holiday swops.
As aforementioned there are more people now staying at home to holiday. The demise of international travel has meant that the local holiday-let business is on the rise.
Strong rental market
There is an overall strong rental housing market and with current rents only expected to rise, those who are in the market for a fixer-upper to then rent out are in at the right time. The rental market has also been positively affected by the move to have suburban office spaces that are cheaper and smaller, and closer to the employees.
A few things that you will need to consider before joining the trend
Regular professional cleaning and disinfection/sanitizing
The current health and safety concerns mean that any residential let, holiday accommodation or even residential offices will need to be professionally sanitized and cleaned on a regular basis. Preferably by a certified and reviewed team of professionals who are local to the building and can commit to a deep clean every time guests leave, or the office has new occupants.
You must know the market, and keep tracking prices
Not every renovating or house flipping dream has ended well and the best knowledge to have as a developer is the prices of both what’s selling, rentals and the costs of renovation per square meter. Having this knowledge at your fingertips will allow you to make appropriate investment and financial decisions at the right times.
The team to do the renovations
The team of professionals that you need to renovate and turn a house into a home or clean a new office space is one of, if not the most principal factor. Plan ahead and look for those who have definite and proven skills in the areas that your home needs.
More professionals than ever before are looking to buy a second property, whether for office rentals, holiday lets or simply an investment rental property. This article has provided you with some tips and advice should you too be considering how to enter the market.