Today I want to quickly cover the top-five reasons why so many landlords are replacing their rental properties on the West Coast.
First, in the short term, yields on current equity have dropped to historic lows in many markets, sometimes generating less than four percent in markets like Seattle and lower than three percent in San Francisco or the west side of Los Angeles.
Secondly, however, reverse migration—particularly in California—is threatening to alter the supply/demand ratio that has supported rental housing for so many decades.
Third, landlords have never faced greater potential legal liability, a function of myriad local, state and federal regulations, as well as an increasing bias against landlords in western courts.
Fourth, California taxes are now the highest in the nation, and Oregon is not much better.
Finally, recent sweeping rent-control laws and other anti-landlord legislation has made property ownership nearly intolerable for many people.
If you, or your client, is a residential landlord on the West Coast, it may be time to consider your options.
For more information, please give 1031 Capital Solutions a call today. Thank you.
This information is for educational purposes only and does not constitute direct investment advice or a direct offer to buy or sell an investment, and is not to be interpreted as tax or legal advice. Please speak with your own tax and legal advisors for advice/guidance regarding your particular situation. Because investor situations and objectives vary, this information is not intended to indicate suitability for any particular investor. The views of this material are those solely of the author and do not necessarily represent the views of their affiliates.
Investing in real estate and 1031 exchange replacement properties may involve significant risks. These risks include, but are not limited to, lack of liquidity, limited transferability, conflicts of interest, loss of entire investment principal, declining market values, tenant vacancies, and real estate fluctuations based upon a number of factors, which may include changes in interest rates, laws, operating expenses, insurance costs and tenant turnover. Investors should also understand all fees associated with a particular investment and how those fees could affect the overall performance of the investment.
Securities offered through Concorde Investment Services, LLC (CIS), member FINRA/SIPC. Advisory services offered through Concorde Asset Management, LLC (CAM), an SEC registered investment adviser. Insurance products offered through Concorde Insurance Agency, Inc. (CIA). 1031 Capital Solutions is independent of CIS, CAM and CIA.