So why bother buying a second home in Los Angeles.
Here are a few reasons.
1) The right time- prices have never been lower
2) The exchange rate
3) Location-location-location
4) The Market will come back
5) Lease opportunities
6) Appreciation
Before I begin , I will try to help you put things in perspective. The World Factbook published by the CIA, states that if California were an independent state, it would be the tenth largest economy in the world. Within that large economy we find Los Angeles the largest City of California and the second of the United States. Did I mention they make movies?
The right time: Prices are at an all time low. Studies show that we are very close to 2001 prices; this was prior to the bubble. This year we will have the last wave of foreclosures. That means we will have High inventory = lower prices. Great time to buy.
The exchange rate: The weak dollar is great for foreign national. Not only will you be buying a second home in a depressed economy you will be getting it cheaper because of your exchange rate.
Location: If you were to buy a second home, why not buy it in a place that is highly desirable. Easy to rent, short term and long and has and will have great appreciation. Well that sounds like Los Angeles, just think you have Beverly Hills, Hollywood Hills, Santa Monica, Bel Air, Santa Monica, Venice, Malibu, Pacific Palisades, Newport Beach, Laguna Niguel, etc.
The Market: The market always comes back, just look at the historical charts. The more people the more demand. We only have 3.8 million compare that to New York at 8.3 million or even Tokyo at 12. We have room to grow.
Lease: People are always looking for homes they can lease in good areas. On the Westside of Los Angeles it is not unusual to lease out a 4-5 bedroom for $ 10,000-$ 30,000 a month. I am sure you can get a great return on your investment beside it much better than having your money parted in a CD.
Appreciation: If there will be high appreciation in the next decade it will be in the areas I mentioned above. No matter what happens, Los Angeles is still Los Angeles, and as long as people continue to dream they will continue to want to live here.