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Real Estate ArticlesCalifornia Real Estate in Flux
The headline to this article is something of an understatement. Frankly, California real estate is in trouble. Residential real estate continues to see price erosion while the commercial sector is just beginning to react to the economy. As more and more foreclosed homes come on the market, the prospect for price appreciation is minimal.
Commercial real estate is another matter, but tends to echo what is going on in the residential side. Shopping centers, business parks and other commercial ventures are facing serious financial problems as the economy keeps people away. Some analysts estimate that the next real estate bubble will come from the commercial sector. However, as the market continues to be unstable, more opportunities will arise for the smart real estate investor. Residential property prices will continue to fall due to the total number of properties facing lower valuation. Mix that with the number of homes for sale and the probable rise in property taxes, and some types of real estate present incredible investment opportunities. Top of the list is farmland. First, this type of property enjoys much lower property taxes. Normally the debt on farmland is significantly lower than residential or commercial properties. As the economy flounders, this may be the best time to accumulate farmland and adjoining properties. In California, a number of family-owned farms and ranches that in the past would have been passed down to the next generation are being sold. The reason is simple. The cost of running a farming operation has become too expensive for small family operators. Over the past 20 years, large corporations have purchased many small farms and ranches and thousands of acres of land. However, it is not too late for the serious real estate investor, one that has the financial ability, to consider farms and ranches as a solid investment. Some estimates are that this type of property will double or triple in value over the next ten years. As the saying goes, they are not making any more land. However, it may be time to buy.
You can talk about... California Real Estate in Flux Tags: • california • small farms • property taxes • homes for sale • property prices • foreclosed homes • shopping centers • farms and ranches • real estate bubble • financial problems • real estate investor • residential property • commercial properties • commercial real estate • california real estate • investment opportunities • Related articles:
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