Real Estate Investment in Lake Forest, CA

Why Invest in Lake Forest, CA Real Estate?

Ranked as one of the safest cities in the US, Lake Forest is renowned for its two beautiful lakes, a surplus of leisure ops and a pleasant vibe. The city is home to more than 83,000 inhabitants and the numbers are constantly increasing. In 2017 alone, Lake Forest saw a population rate growth of 1.15%, which is significantly higher than the 0.7% national average. This, of course, translates into a decent rental demand, thus a stable rental income for real estate investors to own single-family homes.

Lake Forest enjoys a low unemployment rate, a strong job market, and a pretty diverse economy. The main industries in the city include manufacturing, retail trade, and healthcare & social assistance services. Although real estate in Lake Forest isn’t exactly in demand, the market compensates this with relatively low prices and high appreciation rates. To a patient real estate investor, this could provide plenty of solid opportunities.

Investment Considerations for Lake Forest Real Estate

There are a number of factors to consider, including:

  • Increasing Rental Demand- The continuously increasing population leads to numerous newly-arrived residents who are looking for a place to live. This translates into an increasing rental demand. Lake Forest is experiencing a rather low homebuyer activity, which can reduce the properties' prices. Thus, real estate investors in the city can benefit from the pocket-friendly prices and be able to choose from many potential tenants.
  • Affordable Entry Price of Homes- Lake Forest is more affordable than most real estate markets in the Orange County. The median price for a home in this city is $713,700; this is low even when compared to other affordable places, such as North Tustin with a median home price of $1,104,700. Hence, real estate investors can easily enter the market, purchase properties at a good price, and increase their positive cash flow likelihood through a wise rental strategy.
  • High Appreciation - Home values in Lake Forest have gone up by 4.8% in 2017 and are predicted to rise by 6% in 2018. This goes extremely well hand in hand with the affordable price of properties, as real estate investors can see profit from buying and renting out single-family homes until their value increases. Plus, the median rent price in Lake Forest is $3,300, which is $100 higher than in the Los Angeles Metro area. Therefore, renting out properties in the city is a potentially lucrative business with decent chances of generating nice returns on real estate investments.
  • Job Market Growth - The unemployment rate in Lake Forest is 2.6%, twice lower than the 5.2% US average. Companies like Del Taco, Panasonic Avionics Corporation, Kaiser Aluminum, and Oakley are headquartered in the city, creating new jobs and revenue. The job market in Lake Forest has increased by 2.3% in 2017 and is predicted to go up by 41.4% during the next decade, which is higher than the national percentage of 38%. As a result, the real estate market is a stable one and investors can find employed tenants who can afford to pay their rent on time.

What are the best neighborhoods to invest in Lake Forest?

  • One of the most sought-after neighborhoods in the city is Foothill Rach; its peaceful vibe, proximity to good schools and healthcare facilities make it an attractive place for families, thus investors should keep an eye on it.
  • Despite its low homebuyer activity compared to other parts of the Orange County, Lake Forest can provide some decent opportunities for real estate investors in rental properties. Its population growth, strong job market, and affordable prices turn it into an area worth considering.

 

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