La Habra is a city located in the northwest part of Orange County, California. It is not to be confused with La Habra Heights, which is to the north and belongs to Los Angeles County. According to the U.S. Census in 2010, La Habra had 60,239 residents. La Habra has a reasonably strong economy, with the top employers being CVS/Pharmacy, Wal-Mart, the City of La Habra, Target, Costco, the La Habra Bakery, Kohl’s, The Home Depot, La Habra Convalescence Hospital, Lowe’s, and VIP Rubber. Most of these companies belong to the retail and manufacturing industries.
The median household income, according to the 2010 U.S. Census, was $60,954. Furthermore, 14% of people lived below the poverty line. Although still quite substantial, this is a great improvement from the 2000 U.S. Census, when the median household income was just $47,652, and at least 19.1% of people lived below the poverty line.
Income property is the type of property that people or companies purchase. The goal is to lease out the property to generate regular income, 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, financial experts speak of “nonowner occupied”. For these properties, higher interest rates than owner occupied mortgages can be asked, because they are classed as high risk mortgages.
La Habra Income Property for Sale & Lease
If you are interested in income property, you usually have the two options of buying or leasing. However, for income properties, your choice would be only to purchase.
The benefits of purchasing an income property in La Habra include the fact that:
- The monthly amortization for the mortgage is usually constant.
- You can file for some good tax deductions, including property taxes and mortgage interest.
- You will lease out your income property to generate income.
- You have the option of using your income property for your own personal use should you not be able to find a lessee.
- The value of your income property tends to increase over time.
Meanwhile, the disadvantages include the fact that:
- You have high upfront costs. This is mostly because you will usually be required to pay a 30% down payment on the mortgage. You will also have maintenance, appraisal, and other property management costs to pay.
Income property, by its very definition, is not suitable for leasing. If you were to lease an income property, then you would do so for your own personal use, turning it into a residential property. As a result of this, the only statistics that should be of interest to you are those of prices, supply, and demand for purchased income properties. On the other hand, when available, we also include the statistics on leasing income properties as well, as those could give you an idea of what you will be able to earn from your property.
La Habra Income Property for Sale – Trends and Statistics
- The asking price for income properties in La Habra is $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) area and the metro ($254,071.41) area.
- The index of total dollars available for income properties for sale in Los Angeles-Long Beach-La Habra 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-La Habra 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-La Habra 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-La Habra area is 21, which is a 12.2% increase over the past three months, but an 11% decrease year on year.
La Habra Income Property for Lease – Trends and Statistics
Unfortunately, there are currently no trends and statistics available on potential income earned on leasing out an income property that you have purchased. This is in part due to the fact that you could purchase a vast array of different types of properties, and their monthly lease amounts will 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 that you could choose from.