The City of Orange, which is a part of Orange County, is located just outside of Santa Ana, the county seat. A distinctive feature of Orange when compared to other cities in the county is that it has chosen to preserve its old architecture, which these buildings have been demolished in the other cities during the 1960s. But if you notice the proliferation of antique stores in the city, you will easily understand the reason for preserving the old buildings. In fact, these buildings in the Old Town District are from the pre-1920s and unsurprisingly, these buildings and the antique stores have served to attract a lot of tourists, including visitors from other parts of the United States. This city had a population of 139,812 in 2014 and the predominant employers there are the government, schools, and health care providers.
Income property is the type of property that people or companies purchase for investment, with a particular purpose. The goal is to rent or lease the property until it appreciates in price, after which they sell it again. Income property is often commercial, although it can also be residential. In the latter case, these are considered by financial experts as “nonowner occupied”. Such properties have higher mortgage interest rates compared to owner occupied mortgages because they are considered as high risk mortgages.
City of Orange Income Property for Sale & Lease – Should You Buy or Lease?
If you are interested in getting an income property, you can either buy or lease. To decide on which option to choose, you will need to look at the pros and cons of both choices.
Purchasing income property has a number of advantages:
- Monthly costs are fixed because amortizations generally do not change, unlike rent.
- You can get really good tax deductions, including property taxes and mortgage interest.
- You can lease out some of the space in order to earn your income, depending on the type of property.
- You have the option of using your income property for your own personal use should you not be able to find a lessee.
- You can build up funds, as the income property increases in value over time.
Let us now take a look at the disadvantages of buying:
- It is not easy to dispose of the income property. It is not a liquid asset because it requires several months to complete its sale.
- You need a fairly large amount of funds at the start. This is to pay for the down payment, which is often 30 percent of the total price.
- You will also need to take care of maintenance, appraisal, and other property management costs.
The other option is to lease your income property, which has some benefits:
- You can get a prime piece of property to boost your reputation.
- You don’t have to pay for a down payment.
- You don’t have to spend time handling the problems of property ownership.
There are disadvantages to leasing:
- 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.
City of Orange Income Property for Sale – Trends and Statistics
- The asking price for income properties in Orange $314,841.90, which is a 0.7% increase over the past three months, and a 10.5% increase year on year. This is higher than the state ($206,014) and the metro ($254,071.41) area.
- The index of total available income properties for sale in Los Angeles-Long Beach-Orange is 29, which represents a 13.4% increase over the past three months but a 2.5% decrease year on year.
- The index of total number of listings of income properties available in Los Angeles-Long Beach-Orange is 24, which is an 8.9% increase over the past three months, but a 1.3% decrease year on year.
- The profile view index of income property for sale in the Los Angeles-Long Beach-Orange metro area is 97, which is a 24.9% increase over the past three months, and a 22.5% increase year on year.
- The index of total number of units of income property for sale in the Los Angeles-Long Beach-Orange area is 21, which is a 12.2% increase over the past three months, but an 11% decrease year on year.
City of Orange Income Property for Lease – Trends and Statistics
Unfortunately, there are no trends and statistics available on potential income earned on leasing out a property that you have purchased. This is in part due to the fact that you could purchase a huge array of various types of properties, and their monthly lease amounts vary greatly. Investing in income property is one of the commercial real estate investments most likely to give you the highest possible returns if managed properly. At the same time, it is one of the most complicated options out there, due to the variety of opportunities available.