Real estate continues to be an excellent investment for several reasons. These include high return rates and strong tax advantages. Another major benefit is the ability to leverage these assets to build one's wealth. It is for these reasons that developing real estate investment partnerships remains a promising goal for many throughout the United States, including in Los Angeles.
Virtually all commercial real estate markets, including those in Los Angeles, have sites that appear to remain vacant no matter the curb appeal or location quality. In fact, these sites may stay vacant for several years and eventually develop a stigma among real estate buyers. However, savvy investors in real estate investment partnerships may be able to turn these sites into profitable treasures.
According to a survey that UCLA helped to conduct regarding commercial real estate in Los Angeles and elsewhere in the state of California, the result of the Nov. 8 election last year should cause no major economic shift in the Golden State's commercial real estate market this year. Thus, things are expected to be business as usual when it comes to the forming of real estate investment partnerships in 2017, for example. This is true despite the fact that Hilary Clinton was generally the favorite candidate among voters in the state.
There is always a risk when it comes to real estate investing. Unknown issues can crop up which result in money down the drain. The goal is to minimize these risks as best you can to get the most profit. If you keep these three tips in mind while searching for your next real estate investment then you will be on the right track.
Joint ventures such a partnerships in real estate development can be complex in Los Angeles. However, an attorney can help people to address the many facets of real estate investment partnerships. The types of projects in which investors can benefit from an attorney's assistance include office buildings, mixed-use projects, hotels, residential housing and industrial parks.
In our prior posts, we have noted how the near future is bright for construction of commercial projects in Southern California. Cheap money, job growth and population growth are all substantial drivers of this growth. But for investors and developers, the principal question is where to find appropriate deals.
In a number of our posts, we have highlighted how the commercial real estate industry has shown signs of optimism, both in the construction of new facilities and the creation of mixed use facilities that incorporate retail, office and residential living spaces.
As we noted in our last post, the demand for multifamily residential housing is expected to continue through the next few years. However, open spaces in Los Angeles to construct such buildings is becoming increasingly difficult to come by.
In a prior post, we highlighted the notion of “what’s old is new again” as a redevelopment plan in Los Angeles’ theatre district has revitalized that section of the city. However, making old new again may not be enough to accommodate the growing number of residents and transplants to the city. According to an estimate by UCLA’s Ziman Center for Real Estate, an estimated 300,000 people will move to the region in the next few decades.
Our last post voiced a word of caution with regard to commercial real estate. Essentially, with higher vacancy rates, prospective over-building and jitters in the commercial mortgage back securities market, signs pointing to a major downturn are visible in Southern California as well as other regions of the country.