Benefits of Southern CA Real Estate Investments

When it comes to investing, there are many different opportunities available. From stocks to bonds and business ventures, the options are limitless. Real estate has always been a popular investment for both new and seasoned investors, and with good reason. Here’s a look at the key benefits of Southern CA real estate investments and why you should consider investing in real estate, if you haven’t already.

Asset Tangibility

There’s some to be said about having a tangible asset. It’s quite unique compared to most other types of investments. Often, you rely on the expertise of investment advisors to help you select proper investments. You hope that their decisions are based on reliable and accurate information and that the value of those investments do not change drastically in a negative direction due to circumstances out of your control. With Southern CA real estate investments, there’s less uncertainty in that regard. You have a physical asset that is fairly predictable and easily controlled.

Stable Income Returns

Investments in Southern CA rental properties can provide a predictable and stable flow of income. This tends to be more reliable than other types of income investments. With rental rates on the rise in most areas, including Southern CA, income opportunities are becoming even more appealing. With a well managed property, much of this cash flow can be passive income.

Hedging Against Inflation

As inflation increases, so do rental rates. The pressures of increasing inflation are passed on to tenants, thereby benefiting real estate investors. Thus, Southern CA real estate investments are a great way to hedge against inflation.

Portfolio Diversification

Smart investing always involves diversification. Including Southern CA real estate in your investment portfolio creates a nice balance. Real estate can often increase in value when other types of assets decrease, so it can help counteract other negative investment conditions.

Tax Benefits

Southern CA real estate investments offer several tax benefits. First and foremost, passive income, such as that from rental properties, is taxed at a lower rate than regular income. There is no self-employment tax applied. Depreciation can also be used to your advantage. If managed properly, you can leverage your real estate investments to positively impact your income tax liabilities.

Capital Gains Deferment

Upon the sale of Southern CA investment real estate, you can actually defer payment of capital gains tax on your earnings. This is accomplished through a tax-free exchange. You essentially use the funds received from the sale of real estate investments towards other, like-kind, investments. As you continue to invest in real estate in this manner, you are able to leverage your investment dollars and continually defer payment of capital gains.

Appreciation

After the real estate market declined in 2008, many wondered whether real estate investments would remain a viable investment path. Historically, real estate investments have always exhibited an upward trend, and this pattern remains to be true. Many Southern CA real estate markets have fully recovered from the downturn. In fact, the market is pretty hot right now and those who remained committed to real estate investments are reaping the benefits.

More on the Benefits of Southern CA Real Estate Investments

Southern CA real estate investors are benefiting from quicker home appreciation rates, higher rental incomes, and overall great investment conditions. Whether you’re interesting in flipping rehabbed properties or investing in rental properties, there is an abundance of opportunity and earning potential. The key is to work with individuals who understand this market and how to best leverage it for investment gain. That’s where we come in! You don’t need to be an expert in real estate transactions and maintenance to be a real estate investor. Our partnerships allow you to participate in the booming Southern CA real estate market with the support of an experienced team of professionals. Contact us today for additional information.