Marin County has always been a desirable place to live and invest in due to many factors, including beautiful landscapes, sunny weather, its proximity to San Francisco, great schools, and high standard of living. Unlike many other places, approximately 56 % of land in Marin is designated open space. Due to county’s effort to preserve open space and maintain the high quality of life for its residents, there’s virtually no new construction of housing or office buildings. With the shortage of inventory levels and the demand for housing staying strong, it’s safe to say that real estate market conditions are favorable for the investors.
One of the Richest Counties in America
A healthy and very stable economic growth made Marin the fifth wealthiest county in America! In the last four years alone, the median household income has increased by 19 % making Marin the county with the highest per capita income in California at $108.000! Along with an increase in income levels, the unemployment rate decreased from 3.3% in 2016 to 2.2% at the end of 2017.
The expansion of high-value industries, primarily biotech and medical has had a significant impact on the economy of Marin. In the biotech industry, the projected average salary is expected to reach $226,958 in the next five years. Other sectors such as tourism, farming, food & beverage, and education will also continue to grow exponentially, driving the home prices up, therefore boosting the real estate market even more.
With higher property values come higher property taxes. Marin residents will pay a staggering $1 billion in property taxes this year. The county’s budget for the year 2017-2018 is $555 million; that’s a 7% increase from a year prior!
Real Estate in Marin
The housing remains expansive with a median single-family home price being $1.3 million in January of 2018. Even with an extremely high price tag, approximately 50 % of homes were selling within 30 days. There were also many closed sales of duplexes since many buyers are looking to offset the cost of buying a home by living in one property and renting the other.
In the multi-family housing sector, the sales of properties with over five units have increased approximately 30 % in the last year. In recent years, the rents in Marin County have increased dramatically, leveling with San Francisco rents, consequently providing an excellent return on the investment in multi-unit apartment complexes. An average yearly rent increase in Marin has been between 4-5%, with a slight decline in 2017 but still profitable for the investors, especially in San Anselmo and Greenbrae. And since renters are now seeking better amenities and units with modern finishes, investing in multi-family buildings that have been remodeled or are planned to undergo a renovation is a smart decision.
For both single family and multi-family properties, the investors should consider a long-term strategy and hold on to the property for at least five to seven years if they wish to gain substantial profits.
Ideal Conditions for Safe Investment
Overall, the market conditions are safe for investing in Marin since the value of the properties has always appreciated over time. The mortgage rates are still at historically low levels, rents are increasing, business continues to grow, and there is still no construction of new residential or office properties. All these factors combined make Marin one of the best places to invest in.
For assistance in investing in residential or commercial properties across Marin and Sonoma, contact Professional Financial Investors. All our properties have significantly appreciated with value added from rent increases resulting in investment returns after the sale of the property between 11- 16 % per year. The investments are organized as Limited Liability Companies (LLC’s) with 100 % personal liability protection. Learn how you can become an owner of Marin County real estate with professional help on all aspects of investing.
Resources: PFI Incorporated Newsletter, March 2018. Print.