August 2014 C.A.R. Investor Survey Results for Investment Property

 

 By Bob Angilella

 

 The article below is from the California Association of Realtor’s Investor Survey for 2014.   Big Bear Lake real estate has a big portion of the survey, even though it was not mentioned. 75% of our sales are investors, buying and then allowing our company to manage them on a vacation rental program through Destination Big Bear Vacation rentals.   To give you an idea as to what one could generate on a vacation rental, here are a few numbers:   A 3 bedroom, 2 bathroom, log style, good location would rent for $ 250.00 per night, at an average of 80 to 100 nights per year, that equates to $ 25,000 per year, less a 33% management fee, equates to approximately $ 17,000 per year income.  In addition, the home becomes a business write-off. (Please check with your accountant/CPA for further advise)

Big Bear Lakefronts and larger homes cam make up to $50,000 to $ 75,000 per year!   If you are interested in an investment home, contact me today!   

C.A.R. 2014 investor survey results by Ed Shandrew on August 25, 2014 in Market Information For release: August 20, 2014.

Housing recovery pushes investors into more remote areas to find deals, with more looking to flip properties, C.A.R. survey finds LOS ANGELES (Aug. 20) – Given the depletion of distressed homes on the market, investors are changing their strategy and are moving away from purchasing homes in more popular, urban areas in favor of more rural areas of the state where better deals can be found, according to a CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) investor survey.

In 2014, nearly half (45 percent) of investors said they purchased properties in such counties as Sacramento, San Joaquin, Fresno, Kern, Merced, and Tulare, up from 27 percent in 2013, C.A.R.’s “2014 Investor Survey” found. Fifteen percent of investors purchased properties in Northern California in 2014, down from 27 percent in 2013, and 40 percent purchased properties in Southern California in 2014, down from 50 percent last year. Additionally, with home prices on the rise, more investors are flipping properties instead of renting them. In 2014, 28 percent of investors flipped the property, up from 20 percent last year. Fifty-eight percent of investors rented their properties in 2014, down from 73 percent in 2013. More than eight out of 10 investors (83 percent) own other investment properties, with 7 percent owning more than 10 properties, 17 percent owning 6-10 properties, 47 percent owning 2-5 properties, and 12 percent owning one other property.

Among the reasons investors cited for buying now include profit potential (cited by 58 percent), good price (43 percent), location (26 percent), personal (21 percent), and low interest rates (14 percent). The median sales price of an investment property in 2014 was $320,000, up 9.6 percent from $292,000 in 2013, reflecting increasing home prices and fewer available distressed properties over the past year.

Additional findings from C.A.R.’s “2014 Investor Survey” include:

• Reflecting the recovering housing market, the majority of investment properties purchased (70 percent) were equity sales, while 18 percent were short sales, and 12 percent were foreclosures.

• More than two-thirds (67 percent) of investors paid cash • One-third of investors were foreign investors, with China, Mexico, Taiwan, and India being the top countries of origin.

• While most investors made minor or no repairs to the properties, the percentage of those who did major remodeling nearly doubled from 9 percent in 2013 to 17 percent this year.

• Investors spent more on remodeling costs in 2014, putting a median of $15,000 into the investment property, up 50 percent from $10,000 in 2013.

• Investors own an average of 8.3 properties in 2014, up from 6.5 properties last year.

• More than half of investors (55 percent) intend to keep the property less than six years.

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