You might be intrigued why Hollywood real estate is a good investment. Although they are usually priced steep, the returns are still on the positive side.
Here are the reasons why you may consider investing in Hollywood properties:
1. Prime Location Property with High Returns
It sells because it’s Hollywood! A prime real estate property to begin with, it sells because of its great location, being the center of the U.S. entertainment industry.
Just last year, Zillow, a real estate online marketplace, stated that home values have increased to more than 13 percent of its original value, as reported by Miami Herald. In just five years, the sale prices in the area, rose to 46.1 percent more, Zillow adds.
2. Influx of Tourists and Retirees
According to Miami Herald, Hollywood would be expecting a great influx of tourists and retirees for more years to come. A year ago, more than 97 million tourists willingly visited the area during the winter, says AAA, Florida, as reported by Miami Herald. Also, the tourists, composed of more than half a million Canadians, extend their stay by buying homes for themselves, Miami Herald noted.
There’s also some anticipation of welcoming retirees in Hollywood. One out of six retirees usually relocate to a different state, says a Merrill Lynch study done in partnership with Age Wave, as reported by Miami Herald. With 11 million expected to retire soon in the Baby Boomer generation, some of them will go to Hollywood eventually.
With the influx of these tourists, buyers and retirees, Hollywood would continue to be a hot real estate market.
3. Easier to Sell
Chances are, these homes for sale were once used in movies or were owned by famous celebrities. This is already a golden marketing strategy to resell your house. Celebrity homes are usually, relatively easier to sell. People would often be intrigued by how celebrities built and designed their homes to suit their needs.
The houses previously owned by celebs really provide the buyers with the luxury fitting of their money’s worth, because these famous stars — with their wealth and their connection to people with discriminating taste — do often have such glamorous and wonderful homes as Huffington Post reported.
4. Technology is moving to Los Angeles (LA)
Recently, LA Times revealed that several technology entrepreneurs, started buying LA properties. “Minecraft” creator Markus Persson spent $70 million for a Beverly Hills Mansion in December while Jeff Bezos of Amazon.com dropped $24.5 million for a Beverly Hills compound, LA Times noted.
Even Sean Parker, of Napster and Facebook, laid down $55M for Ellen DeGeneres’ Holmby Hills home last year, LA Times added.
“We’ve seen an uptick in buyers from the technology industry over the last several years – some moving to Los Angeles and some buying second homes here, as a kind of peaceful retreat,” said Charles Black, the listing agent in the Persson sale, as reported on LA Times.
In a matter of time, Hollywood, being a central district in Los Angeles, could become an even modern and glamorous version of itself, thanks to these bright businessmen entering the L.A. scene.