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4 Ways Buying Real Estate Can Build Wealth in the South Bay


1. Appreciation

Home prices have continually risen 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.

2. Leverage

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 school districts such as Redondo Beach, Palos Verdes, and Torrance Unified School Districts to name a few.

3. Paying Off the Debt

With each and every monthly mortgage payment you are actually paying down your loan balance and building equity instantly! You can also borrow against your home's equity and use that to leverage buying another South Bay Investment Property!

4. Forced Equity

Forced equity is a term used to refer to the wealth that is created when an investor does work to a property to make it worth more.” There are many inexpensive ways to increase the value of your South Bay property by adding square footage, adding new appliances, and remodeling your home.
These are 4 extremely lucrative reasons to Buy and Invest in South Bay Area Real Estate!
Looking to upgrade into a larger home or purchase an income property? Let Our Amazing South Bay Real Estate Experts Sam and Bindu Xavier Give You a Hand. Visit: Amazing South Bay Homes today!
Sam and Bindu Xavier, Realtors®, Compass
CA DRE# 01449986 & CA DRE# 01818247
Your resource for South Bay real estate

Additional Blogs

South Bay Homes: Sam Xavier the Interview

February 28, 2019 Xavier & Xavier Team

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