4 Ways Buying Real Estate Can Build Wealth In The South Bay
Home prices have continually rose over the last 7 years and this is how the majority of South Bay Homeowners built their wealth by buying South Bay Real Estate at the bottom of the market! One thing to consider when it comes to South Bay Real Estate appreciation affecting your return on investment (ROI) is the fact that appreciation combined with leverage offers huge returns! If you buy a property for $50,000. and it appreciates to $550,000, your property has made you a 10% return However, you likely did not pay all cash for your property and instead you effectively used 90% of the bank's money... If you consider that your 10% down payment ($50,000.) actually has doubled your original investment, which is effectively a 100% return on your investment.
With mortgage interest rates still under 4.6% and down payments available under 15%, South Bay Real Estate is one of the easiest assets to leverage. The South Bay has higher demand than other parts of Los Angeles and people want to live here and raise their children at award winning public schools districts such as Redondo Beach, Palos Verdes and Torrance Unified School Districts to name a few.