Palm Springs, CA is not only a place that has exceptional weather throughout the seasons, it's also a place with so much to see and do for all members of the family. Palm Springs has amazing shopping and dining, as well as being only about a 1.5 hour drive to Los Angeles and San Diego. All this and some of the best real estate offerings in the country. Since the decline in real estate across the country in 2007, the Palm Springs real estate market has been slowly increasing with the rest of the country. The prices are expected to keep increasing as more and more people understand what a lucrative investment property truly is in this area. You may still have questions about what the area is like and whether it is the right investment for you and your family. Here are a few things to think about when deciding to invest in Palm Springs real estate:
How Do You Want To Use Your Palm Springs Property?
The Palm Springs lifestyle is all about sunshine, golfing, shopping, and enjoying the beauty of your stunning home. There are a number of ways for you to reap the rewards of owning a home in Palm Springs. If you are relocating to the area full-time, then congratulations to you for choosing to live in paradise! If you are working and living somewhere else in the country, then you can enjoy your home when you want to and rent it out when you are not there. Maybe you are a wise investor and feel that you want a foothold in the property market, and therefore you can rent the property out full-time until you are ready to sell or move to Palm Springs permanently. No matter your situation, making the decision to buy is the biggest step in the process and the logistics and scenarios can be talked through with Palm Springs real estate specialist Ron Parks and his team when you're ready.
Is Palm Springs a Good Long-Term Investment For Me?
The answer to whether something is a good and bad investment is essentially timing. Whether you have mutual funds, stocks and bonds, or property, if you can wait out a possible market downturn then you will be laughing all the way to the bank. The Palm Springs real estate market is a major benefit for anyone looking to rent out their home as the area is a prime destination for vacationers. People flock from all over the world to spend time in this iconic city. So, not only will you gain from increases in the overall value of the home, you'll benefit from an area filled with potential renters all year long. The amount of rent you can charge will vary on the size of the property, the types of amenities available, as well as the time of year you are renting out in.
How Do I Determine What Property I Can Afford?
This is a very good question and one that we know you are mulling over at great length. We have determined the investment is a good one, now what property is right for you? It comes down to dollars and cents! How much do you want to spend and what rental income are you expecting for the property. If you are not sure about the rental income, then please chat with the Ron Parks team so we can give you are general range of what we are seeing in the current market. It is also good to know that if you live in the property less than 10 percent of the days you rented it or less than 2 weeks, you'll be able to deduct all the operating expenses. This includes the mortgage interest, management fees and expenses, cleaning fees, and any utility fees you paid. This is a huge benefit to you when you are considering how long you are spending in the property and weighing up the costs and benefits.
If you are looking at this property as a place to live for the majority of year, then use a mortgage calculator to determine what you can afford, as your primary goal is to relax and enjoy the space. As a second home that is not a rental, you may not see all the cost-saving advantages that you would if you were renting, but we strongly advise you speak with your accountant and tax professional to get their opinion.
What Types Of Homes Should I Be Looking At?
When you are thinking about a home to buy in Palm Springs, you should start by considering how long you are going to be there and what you want out of the home itself. If you are looking for a maintenance-free property, then maybe a gated golf community or condo complex is where you should be focusing your search. This type of community offers amenities within the community itself, which is ideal if you want everything you need in one location. It is also great when you are not there all the time as you may have 24/7 security patrolling the area. If you are looking for a detached home, then there are some wonderful properties to choose from. This option is great for those living in the area full-time who want a nice quiet secluded property. The RonParksTeam has worked with so many buyers in the Palm Springs area and we are a great sounding board should you have any further questions about the property that is right for you!