San Clemente Income Property For Sale & Lease

San Clemente is a city in California’s Orange County, which had a population of 63,522 as of 2010, according to the U.S. Census. It is located on the coast of California, in between San Diego and Los Angeles. It is popular because of its pleasant climate, its pleasing views of nature, and Spanish Colonial architecture. It is often called a “Spanish Village by the Sea”.

The 2010 U.S. Census showed that 64% of all residential properties were owner-occupied while 36% were renter occupied. There was also a 1.3% vacancy rate for homeowners and a 5.8% vacancy rate for rental properties. The median household income in 2010 was $87,184, which is slightly lower that the income of $87,200 in 2000. The 2010 census also showed that 7.9% of the people within the city 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.

San Clemente Income Property for Sale & Lease – Should You Buy or Lease?

If you are interested in income property in San Clemente, 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 San Clemente 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 usually because you will be required to pay for a 30% down payment on the mortgage. You will also be required to take care of maintenance, appraisal, and other property management costs.

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.

San Clemente Income Property for Sale – Trends and Statistics

  • The asking price for income properties in San Clemente $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-San Clemente 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-San Clemente 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 income property for sale in the Los Angeles-Long Beach-San Clemente 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-San Clemente area is 21, which is a 12.2% increase over the past three months, but an 11% decrease year on year.

San Clemente 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 buy a vast array of different 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 that you could pick from.