Irvine is one of Orange County’s wealthiest cities. As a planned city in California, it was first developed in the 1960s by the Irvine Company. It was incorporated in 1971 and, according to the 2010 U.S. Census, has a population of 258,386. In 2016, Irvine was officially named as the city in the country with the largest Asian American plurality. In fact, approximately 45% of the population can be classified under that demographic. There are lots of industries in this city and these, include semiconductor and technology companies.
Income property is the type of property that people purchase and sometimes develop. The goal is to rent or lease the property until it appreciates in price, after which the investor sells it for profit. Income property is often commercial, although it can also be residential. In the latter case, financial experts talk about “non-owner occupied” properties, for which higher interest rates than owner occupied mortgages can be imposed because they are classed as high risk mortgages.
Irvine Income Property for Sale & Lease – Should You Buy or Lease?
If you are interested in income property, be that as an Irvine investment or for construction or other means, you have two broad choices available to you: buying or leasing. There are pros and cons to both of these options.
Looking first at buying income property, the pros include the fact that:
- The expenses are practically constant, which implies that there are no unexpected costs to be paid.
- You can file for tax deductions, including property taxes and mortgage interest.
- You can rent out some or all of your space to provide cash flow when necessary.
- You can build up funds, as the property is likely to increase in value over time.
On the other hand, there are also some disadvantages:
- Not having a lot of flexibility. Because you own the property, you will need to find a buyer if you want to move out.
- Substantial upfront costs. You will need to pay at least a 30% down payment because only 70% will be covered by the mortgage. You will also have maintenance, appraisal, and other property costs.
Your other option is to lease your income property, which has a number of benefits:
- You have the chance to get a prime piece of property, which should be able to boost your reputation
- You have a larger working capital because you don’t have to pay for a down payment.
- You can concentrate on actually running your business because you don’t have to be concerned about property management.
Meanwhile, there are some downsides as well:
- Costs increase with time because of rent increases.
- You do not build up any equity in the property, since you don’t own the property.
To help choose between the two alternatives, it is beneficial to be aware of the trends and statistics in terms of prices, supply, and demand.
Irvine Income Property for Sale – Trends and Statistics
Irvine 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 that exist as well. 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.
Irvine Income Property for Lease – Trends and Statistics
There are numerous income properties available for lease in Irvine, 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. The main consideration you have to make, therefore, is whether you are looking for income property solely to make money, in which case you should buy, or whether you want to run a business out of it, in which case leasing is also an option.