Real estate is one of the most surefire investment options out there. Except for in extreme circumstances, the value of the real estate will continue to increase regardless of external economic factors. Homes appreciate in value, and it’s easy to maximize a home’s value either by renovating, redecorating, purchasing new furniture, or even doing something as simple as making the yard more presentable. It’s important to know where the ideal place to buy is. Location is always the most critical factor when assessing where to invest in real estate, and Santa Monica is an excellent location with rising home values.
Buying Santa Monica real estate
Located west of Los Angeles on the Pacific Coast, Santa Monica is home to some of the most sought-after luxury real estate anywhere. Santa Monica properties for sale range from condominiums for a few hundred thousand dollars to mega-mansions worth tens of millions of dollars. Because of its ideal location, close to a major city, and a convenient distance from the Los Angeles International Airport but still right on the beach, these properties will always be valuable.
At the moment, there is a slight seller’s market in Santa Monica, but that just means the properties are in high demand. The reason for this is Santa Monica real estate is a fantastic investment. The median selling price is currently at a 5-year high at between 1.75-$1.8 million. The year-on-year growth rate is four times the national average. With Santa Monica real estate skyrocketing in value, you still have an opportunity to get in on the ground floor.
Buy when the market is in your favor
Although in recent months the values of Santa Monica real estate and year-on-year growth rates have increased significantly, there has actually been some fluctuation in the Santa Monica housing market. Santa Monica real estate has been trending up in value, as one would expect, but there have been some dips in the median selling prices of homes. It’s entirely possible that although it is a seller’s market right now, it could be a buyer’s market soon. This is something to consider if you’re interested in purchasing a property here. You’d ideally like to buy low and sell high. Fortunately, because real estate in this location is always in demand, even if you purchase now and prices dip, most likely the property will still be more valuable by the time you’re ready to sell. Whether you’re trying to flip Santa Monica real estate in the next couple of years or enjoy the house yourself and sell it in 30 years, you still stand to earn a nice profit. So regardless of the current median selling prices, with a location as good as Santa Monica’s, the market will always be in your favor.
Santa Monica mortgage rates
Another factor to consider when deciding if now is the right time to buy Santa Monica real estate is today’s mortgage interest rates. It may be a seller’s market, but mortgage rates are currently low and the sooner you purchase, the better chance you’ll have to take advantage of them. Thirty-year fixed mortgage rates in Santa Monica are as low as 2.875%, depending on the lender, which is well below the statewide average of 3.57%. If you’re thinking about investing in Santa Monica real estate, decide quickly as these rates likely won’t last forever.
Renting out property with intent to flip
If buying Santa Monica real estate is purely a money-making proposition for you and you don’t intend to live in the home you purchase, one option is to rent it out. This is where today’s seller’s market and buyer demand work to your benefit. The area is sought after by buyers and renters alike. The rents for even a modest home in Santa Monica are upwards of $2,000, and you would be able to charge more if you bought more expensive real estate. You could invest in Santa Monica real estate with the intent to flip it when prices go up and, in the meantime, rent out your property. The mortgage would practically pay for itself.
Renting out your property is easier than ever now with home-sharing apps like Airbnb. Not interested in renting out your property long-term? Worried about all the work that being a landlord entails? Fear not. You can rent out your property short-term to people who would likely only stay several days. This would cut down on maintenance, and you would probably be able to make even more per night. People who stay in Airbnbs are often on vacation and willing to spend a little more when it’s only for a few days. Santa Monica rentals on Airbnb range from $34 to $450 per night. You could buy a property that you could rent out for $2,000 per month. Or you could charge $100 per night on Airbnb and make $3,000 dollars in a month. The point is, you don’t have to wait until you sell your Santa Monica real estate to start making money. The investment will pay for itself until you’re ready to sell.
If you’re ready to start the buying process for Santa Monica real estate, reach out to trusted agent Alena Lehrer. Don’t miss out on this investment opportunity. The area is always in demand, and the properties will continue to appreciate in value. Today’s low mortgage rates mean that now is the right time to purchase.
Buying West Hollywood Real Estate | California Dream | Featured Properties
Pendry West Hollywood embraces the best of California modernism and glamorous life in the Hollywood Hills. With a fresh take on modern luxury, Pendry West Hollywood elevates the Sunset Strip to a new level of sophistication.
Pendry Residences West Hollywood by Montage Hotels & Resorts is an exclusive collection of 40 luxury Residences located adjacent to Pendry West Hollywood. Designed by acclaimed EYRC architects with interior design by Martin Brudnizki, Residences feature spacious interior living with thoughtful finishes throughout, expansive outdoor spaces, spectacular city views, private elevator access, and fully-serviced living by Montage.
The Pendry West Hollywood flagship property is the first Pendry to include a collection of private Residences, integrating sophisticated everyday living and Montage’s legendary service culture. Live a luxury dream of endless best in class hospitality, culinary and entertainment options at your fingertips. Owners enjoy distinct amenities, including a rooftop pool, a music venue, and seven bars and restaurants by acclaimed chef Wolfgang Puck. Resident-only amenities include private rooftop pool, garden deck, fitness center, owner’s lounge and wine tasting room.
PRIVILEGES OF OWNERSHIP | A PLACE TO BELONG
While in-residence, Pendry Residential owners appreciate effortless living with personalized services and
thoughtful touches, from a dedicated staff and resourceful concierge, focused on delivering the highest
standard of comfort, privacy and luxury. Turn-key living awaits with tailered residential services as well as
unique experiences and property management to meet all the desires and needs of Pendry living.
As an extension of the hotel, owners will have access to an unmatched array of lifestyle amenities, including
several unique dining concepts by Wolfgang Puck, Spa Pendry, a rooftop pool and bar, and more. In addition,
owners will also enjoy the exclusivity of residential living with the inclusion of a private entry lobby and valet
service, rooftop pool, fitness center, garden deck, lounge and wine tasting room.
Pendry living includes access to The Britely, a private social club, where residents and members will mingle at
its stylish bars and lounges, enjoy curated lifestyle events in its private rooms, or to indulge in private movies
or special music performances in its entertainment venue.
Now selling two- and three-bedroom Residences from $3M – $30M. Contact Alena today to find your next dream home!
Source: Pendry Residences
