Hello everyone; I thought you might find this research from the California Association Of Realtors of interest:

 

More Investors Purchasing California  Real Estate as a Long Term Investment

By: Bipandeep Ahdi, Research Analyst

 

Investors have  played a key role in the California housing market  recovery for the past  four years. Low mortgage rates, attractive home  prices, and  low yields on alternative assets have  fueled demand for investment properties, particularly in markets where  distressed homes have  dominated sales. As the California real estate market  has become more  affordable in recent years, most investors purchased a property  as a long-term investment.

 

Investors are  attractive clients for REALTORS® because they are  affluent and  pay cash when purchasing properties. According to results from the 2013  California Investor Surveys from the California Association of REALTORS®,  more  than  two-thirds of investors (67 percent) paid cash for their properties. Their primary motivation for purchasing real estate is based on the property’s profit potential and  they are  well-informed on the real estate business. Sixty-six percent of investors indicated they are going to keep  the property  for more than  a year  with the intent of renting, while about  one-quarter (26 percent) of investors flipped or had  the intention of flipping the property.  Low interest rates and  good  rates of return  have  encouraged investors to hold onto properties and  gain cash flows from renting.

 

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