Garden Grove is a city found in the northern portion of California’s Orange County. It is just 34 miles to the south of the Los Angeles city border. According to the 2010 U.S. Census, it had a population of 170,883 at that point in time. The city is home to the Garden Grove Freeway, which is State Route 22, and this crosses the city from east to west.
Income property is the type of property that people purchase for generating income. The goal is to rent or lease the property until it appreciates in price, after which they sell it to gain profit. Income property is often commercial, although it can also be residential. In the latter case, there is the so-called “non- owner occupied” property. These properties have higher interest rates than owner occupied mortgages, because they are classed as high risk mortgages.
Garden Grove Income Property for Sale & Lease – Should You Buy or Lease?
If you are interested in income property, be that as an investment or for construction or other means, you have two broad options: buying or leasing. There are pros and cons to consider for both alternatives.
Looking first at buying income property, the pros include the fact that:
- Your costs are practically constant because mortgage payments don’t change from month to month, unlike rent.
- You can get really good tax deductions, including property taxes and mortgage interest.
- You can rent out some or all of your space to gain extra income.
- You can build up substantial profit, as the property is likely to appreciate over time.
However, the cons are substantial as well and include:
- Not having much flexibility. Because you own the property, you will need to find a buyer in the event that you need to another place.
- Having high upfront costs. You will likely have to pay a down payment of at least 30 percent of the purchase price. You will also have maintenance, appraisal, and other property costs to shoulder
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 property, which is important if your public image matters.
- You have more working capital because you don’t have to pay for a large down payment.
- You can focus on actually running your business, because it is the owner who will take care of property ownership issues, such as maintenance and repair.
However, there are some downsides as well, including the fact that:
- Your costs will grow, mainly due to rent increases from time to time.
- 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.
Garden Grove Income Property for Sale – Trends and Statistics
Garden Grove has numerous income properties for sale, spanning a range of different industries, uses, and zones. These include:
- An office building
- The largest marijuana dispensary in California
- A medical center
- A plaza
- A restaurant in a popular shopping center
- A rehab facility
- Commercial land
- A commercial square
- A car wash
- Land zoned for retail development
- A strip mall
- An office condo
- A warehouse
- A low rise building
These are just some of the examples of income properties that are available, showing the array of business opportunities in the area. Of importance to note is that the majority of these properties are already developed for specific purposes, which can be quite limiting for some people.
Garden Grove Income Property for Lease – Trends and Statistics
There are numerous income properties available for lease in Garden Grove, which is mainly due to investors having purchased these types of properties in large quantities 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. Additionally, it demonstrates that those who purchase these types of properties should easily be able to earn an income through them. Income properties can earn income in two ways. You can run a business out of them, in which case both leasing and buying are a possibility, or you can use them as an investment only, in which case only purchasing is the available option.