Beverly Hills real estate has long been some of the most desirable and luxurious in the country. For a century, this Los Angeles neighborhood has offered some of the best luxury living that Southern California—or the world—has to offer. Homes for sale in Beverly Hills are always in high demand, and if you don’t already own property in Beverly Hills, early this year may be the right time to make your move. The current seller’s market will continue to strengthen into 2022 and home prices will continue to increase. Investing in Beverly Hills real estate sooner rather than later will pay off, especially since mortgage rates are still low
Below are some solid indicators that Beverly Hills real estate is worth investing in.
Home prices are trending upward
If you’re interested in Beverly Hills real estate, it’s important to note that home prices are on the rise. This year, the median price of homes for sale in Beverly Hills rose above the mid-three million mark
and the price of Beverly Hills real estate is projected to continue rising, which is great news if you plan on selling your property. If you’re looking to buy, it will still pay off in the long run—especially if you buy early—as you’ll have a chance at getting a lower price before home values increase further.
As a buyer interested in a home in Beverly Hills, it can be difficult to get your offer accepted, even if it’s above the asking price. In the current seller’s market, sellers have their pick from a large pool of interested potential buyers. On average, homes in this neighborhood sell within 39 days of being listed. Working with an experienced real estate agent (who is familiar with Beverly Hills real estate in particular) will help you craft the perfect offer for the home you want.
Home values continue to increase
It’s no secret that the luxury homes in Beverly Hills hold tremendous value over time. In the last ten years alone, Beverly Hills real estate has appreciated over a whopping 97.02%
. Compared with the national average appreciation rate of 7.02% over the same time period. Statistically speaking, Beverly Hills real estate is a clear winner, so when considering investing in a home in Beverly Hills, keep in mind that property in the area has a strong history of growth. Your investment will continue to appreciate for however long you hold onto it. The best part is, Beverly Hills real estate will appreciate at a higher rate than almost anywhere else in the country. This makes it one of the best places nationwide that you can choose to invest in a luxury home for sale.
Property taxes are high
As Beverly Hills real estate tends to be expensive, prepare for your property taxes to be expensive, as well. Luckily, there are some tax deductions that you can use to your advantage to reduce the expense of taxes associated with your property. You can deduct your state and local property taxes up to $10,000 from your tax bill, and while this deduction likely won’t cover the entirety of your property tax, it will still save you some money to reinvest in the home. If you want to be able to cut your taxes further, consider renting out your property to take advantage of more deductions.
Potential to rent
You may want to invest in Beverly Hills real estate as a primary residence or as a rental property. Surprisingly, 59% of Beverly Hills
residents rent, making investing in a rental property in this neighborhood a profitable choice. Rent prices in Beverly Hills are significantly higher than in the rest of the country, so you can generate serious rental income from a property here. The median rent in Beverly Hills is $2,244, compared with a national median rent of $1,062. While the cost of living in Beverly Hills is higher, people are also willing to pay premium prices to live in this prestigious neighborhood.
As the owner of rental property, you’re also entitled to tax deductions
that decrease your taxable rental income. You can deduct the interest on your mortgage and related expenses, operating expenses, depreciation, property taxes, and any necessary repairs. You can also deduct the cost of advertising your rental property to potential tenants. When you rent out your piece of Beverly Hills real estate, you stand to make a profit as well as reduce your income tax burden.
Ready to explore Beverly Hills homes for sale?
Homes for sale in Beverly Hills make solid investment properties, whether you want to use your home as a primary residence or see the benefits of renting it out. With home prices and values increasing, the sooner you jump into the Beverly Hills real estate market, the more it will pay off. It’s never been a better time to pursue homeownership in one of the most sought-after neighborhoods in the country.
When you’re ready to tour Beverly Hills homes for sale, contact the experienced local realtors at The Di Prizito Group
. Timothy Di Prizito and his team of experts will be happy to help you buy (or sell) Beverly Hills real estate for the best price possible. They will offer superb customer service, market analysis, and recommendations throughout the entire transaction.