Anaheim is located in the state of California’s Orange County. The 2010 U.S. Census reported a 336,265 population, which means it is Orange County’s most populous city, and the 10th most populous in the state. It is also the county’s second largest city after Irvine in terms of land area, and it is famous for its convention center, sports teams, and theme parks. Founded in 1857 by 50 German families, it was incorporated in 1876. Since then, the city has built on its extensive industry, as well as tourism. In 1955, the Disneyland Resort opened, making the city popular all over the globe.
Income property is the type of property that investors purchase and sometimes develop on. The goal is to rent or lease the property until it appreciates in price, after which the investor sells it. Income property is often commercial, although it can also be residential. In the latter case, financial experts warn about those that are allowed to be rented. For these properties, higher interest rates than owner occupied mortgages can be asked for, because they are classed as high risk mortgages.
Anaheim Income Property for Sale & Lease – Should You Buy or Lease?
If you are interested in income property, whether you are planning to use it as an investment or for construction or for some other purpose, you have two broad options available to you: buying or leasing. There are benefits and downsides for both of these options.
Looking first at buying income property, the pros include the fact that:
- Your costs are fixed, which means business expenses are predictable.
- You can get really good tax deductions, including property taxes and mortgage interest.
- You can rent out some or all of your space if you need extra cash inflow.
- You can build up substantial savings, as the property is likely to appreciate over time.
However, the cons are substantial as well and include:
- Not having much flexibility, which means that if your business decreases in size or grows substantially, you may have to sell the property much earlier than expected.
- Having high upfront costs, mainly because down payment, which is usually at least 30 percent of the total price. You will also have maintenance, appraisal, and other property costs to pay.
Your other option is to lease your income property, which also has clear benefits, including the fact that:
- You can get a prime piece of income property, which is important if your public image matters.
- You can free up some working capital because you don’t have to pay for a deposit.
- You can focus on actually running your business, rather than spend time handling the stresses of property ownership.
However, there are some downsides as well, including the fact that:
- Your costs will be variable, with regular rent increases.
- You do not build up any equity in the property, since you don’t own it.
To help choose between the two options, being aware of the trends and statistics in terms of prices, supply, and demand, can be very beneficial.
Anaheim Income Property for Sale – Trends and Statistics
Currently, there is just one income property for sale in Anaheim, which is a six bedroom luxury assisted living facility. At a price of $949,000, it can generate an income of $23,300 per month if five residents occupy the building. Each room is private with its own bathroom, which is an excellent selling point. Additionally, it has a great location, being near shopping centers, parks, and hospitals. However, because of confidentiality issues, further information can only be provided to those agreeing to sign an non-disclosure agreement, which is standard practice within the world of residential care homes. This agreement also includes not being allowed to discuss any element of the transaction in front of the home’s residents.
Anaheim Income Property for Lease – Trends and Statistics
There are numerous pieces of income property available for lease in Anaheim, however, which is mainly due to investors having purchased a large number of these types of properties during the last recession. They continue to wait for a housing market high before they agree to sell their properties, which could be indicative of a continuing rise in prices.
The income properties that are available for lease span a range of different zones, including:
- Office buildings
- Free standing buildings
- Street retail properties
- Flexible spaces
- Specialty centers
- Professional buildings
- District warehouses
- Medical centers
The world of leasing income properties is vast, and there are many different opportunities available for those with an interest in this field. Additionally, those who purchase these types of properties should easily be able to earn an income from them.