Shifted Investment Focus In 2015
California real estate investors are shifting their investment focus in 2015. Findings of a survey of real estate investor transactions by the California Association of Realtors include:
• More investors (65 percent) rented their properties, rather than flipped them (26 percent), up from 58 percent in 2014 but down from 73 percent in 2013.
• Investors held properties for a shorter period of time at an average of 6.1 years in 2015, down from 8 years in 2014, and 7.9 years in 2013.
• Investors also owned fewer properties on average in 2015 (6.4), down from 8.3 in 2014 and 6.5 in 2013.
• In a sign of optimism, the vast majority (70 percent) of investors believed their property would increase in value in one year, and three-fourths said the property would increase in value in five years.
• Investors intend to charge a median monthly rent of $1,850 and plan to increase that by $50 (2.7 percent) next year.
• Two-thirds (66 percent) of investors paid cash in 2015, essentially unchanged from 67 percent in 2014 and 2013.
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