
Exploring New Markets Diversifies Your Portfolio and Helps it Grow
Choosing a different market can be a great way to diversify what you currently own. It can expose you to a new pool of tenants, new rental values, and opportunities to grow your portfolio. This is an especially good way to diversify if you’re an investor who lives in a more expensive market. Maybe you are an investor based in San Francisco or San Diego. Maybe you live in New York. You’ll find that diversifying into a market like Palm Springs can bring you a better deal. It’s more accessible. Home values are still high here, and you’ll need to plan your financing before you invest. But, there’s a lower threshold for entry than in some of California’s more expensive markets. When you can access good technology and you have a relationship with a local property manager, investing from out of state is easier than ever. Keeping all of your real estate investments in a single market is never as safe as it may feel. In fact, it creates some extra risk. The economy is shifting right now, and there’s no telling where the real estate market will land at the end of 2022 and into 2023. A strong market in one area of the country does not necessarily match the growth and the opportunities in other markets. Diversifying into different markets like Palm Springs protects you against relying too much on one specific city and one local economy.Why Choose Palm Springs as an Investment Market?
Palm Springs is an ideal location for your next investment because it’s a destination that attracts a lot of tenants. People come to visit, they come to retire, and they come to live permanently when they want warm weather, access to southern California, and a high quality of life. This area of California is experiencing economic growth. We expect it to continue. Palm Springs has a strong pool of tenants. Investors won’t have to worry about whether they’ll be able to rent out their Palm Springs properties; there’s a demand for well-maintained and high-quality housing, and the renters in this community are stable, well-paid, and a reliable source of rental income. This is also a huge tourist draw. If you find you don’t want to rent out the property you own here full-time, you can make it a seasonal or vacation rental. This is another excellent way to diversify your portfolio and get more out of what you own.Low Inventory, High Demand
New construction is on the rise in Palm Springs to meet the rental market’s high demand and low inventory. That’s going to help the current shortage without compromising your ability to leverage the assets you own or acquire. The Palm Springs rental market is healthy and stable, and there is no reason to believe it will face a downturn, even if things become less stable around the country. Every market has its own risks and rewards. If you take some time to get to know what we have going on in Palm Springs, you’ll see it’s one of the best places to diversify your portfolio. Working with experienced Palm Springs property managers can help you make smart decisions. You’ll get some great advice on where the market is performing well and how you can maximize your investment.Consider a 1031 Exchange
