Huntington Beach is one of the seaside cities in Orange County, California. According to the 2010 U.S. Census, it had a population of 189,992 at that point in time, which means it is the most popular beach city in the county, as well as the seventh in the Los Angeles-Long Beach-Anaheim area. The population is growing because there was an estimated 200,809 people living there in 2014. It also has a 9.5 mile stretch of beautiful, sandy beach and is perfect for the surfing and beach community. In fact, it is called “Surf City” and surfers from all over the world often come for a visit.
Obviously, income property is the type of property that is purchased for the purpose of generating income. The goal is to rent out the property until it appreciates in value, after which it is sold to gain profit. Income property is often commercial, although it can also be residential. For residential properties, which are “non owner occupied”, higher interest rates than owner occupied mortgages can be asked for, because these are classed as high risk mortgages.
Huntington Beach Income Property for Sale & Lease – Should You Buy or Lease?
For those who are interested in investing income property, there are two primary choices available: buying or leasing. There are both advantages and disadvantages for both of these options.
Looking first at buying income property, the pros include the fact that:
- Costs are basically constant month after month, which means you have clarity with regards to your business expenses for the property.
- You can take advantage of really good tax deductions, including property taxes and mortgage interest.
- You can rent out some or all of your property as a way to generate extra income.
- You can build up substantial savings or profit, as the property is likely to increase in value over time.
However, the cons are substantial as well, such as:
- Not having a lot of flexibility. Since you own the property, it is more difficult to move to another place. You will need to find a buyer first and complete the sale of the property.
- Having high upfront costs. This is primarily due to the required down payment, which is often at least 30 percent of the purchase price. You will also have maintenance, appraisal, and other property costs to take care of.
Your other option is to lease the income property, which also has clear benefits, including the fact that:
- It is possible to rent a prime piece of property, which is important for enhancing your reputation.
- You can free up substantial working capital because you don’t have to pay for a down payment.
- You can focus on actually running your business. The difficulties of property management will be handled by the owner.
However, there are some downsides as well, including the fact that:
- Your costs will be variable, mainly because of regular rent increases.
- You do not build up any equity in the property, since you don’t own it.
Being aware of the trends and statistics in terms of prices, supply, and demand, can be very beneficial before you finally make your decision on whether to buy or to lease.
Huntington Beach Income Property for Sale – Trends and Statistics
Huntington Beach 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. 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.
Huntington Beach Income Property for Lease – Trends and Statistics
There are numerous income properties available for lease in Huntington Beach. This is mainly due to investors having purchased these types of properties in large numbers 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 through them.