Palm Springs is a beautiful city that has great shopping, dining, things to do for the whole family, and fantastic southern California weather year-round to boot. Because of its qualities, this crown jewel of the Mojave desert has some of the best real estate offerings in the country.
Because Palm Springs, CA is a popular luxury vacation destination, many real estate investors want to know the ins and outs of the local housing market and investing in Palm Springs properties.
Is Palm Springs a Good Investment?
After the housing market crash in 2008, the Palm Springs’ real estate market, along with the rest of the country, has slowly but surely made its comeback. Now that over 10 years have passed, people are once again turning to Palm Springs to purchase investment properties in the form of rental property and vacation homes.
Whether or not real estate in Palm Springs is a “good” long-term investment is entirely up to personal finances, what you want to do with the property, the market, and timing. If you are looking to purchase a luxury vacation rental, you are likely to see a solid profit because rental properties are a hot commodity in Palm Springs. Property owners working with high-quality property management companies can ensure that their rentals are presented to potential guests in the best possible light. If you are looking to buy a private vacation home for you and your family, your investment certainly has the potential to bring a substantial return, depending on when and if you decide to sell. The good news is that generally, barring any major market crashes, the value of your home is going to appreciate over time. Real estate investing anywhere has the potential for both profit and poor investment, but Palm Springs is a better place than most to put some skin in the game.
Is Airbnb legal in Palm Springs?
Airbnb has quickly become the premier online destination for booking short-term rentals at any price point. While it initially marketed to people traveling on a budget, they now offer extensive options at high price points that offer services that rival those offered at luxury hotels. With options like a personal chef and concierge services, potential guests can find everything they are looking for on luxury vacation Airbnb rentals.
Many cities have lots of rules and regulations regarding Airbnb and what practices jeopardize its legality; major tourist cities like Los Angeles and New York have some of the strictest Airbnb regulations in the country. While Airbnb is fully legal in Palm Springs, there are certain operating requirements that must be observed to ensure that your listing isn’t operating illegally.
What Are Property Taxes Like in Palm Springs?
Annual property taxes are set at a rate of 1.25%, which can be paid annually or semi-annually. If you are purchasing your house with a loan, you can request to impound your taxes, which means that your lender will add the property taxes to your monthly payments.
Is Palm Springs a Good Place for Retirement?
Recent studies show that the area is getting “younger,” with many creative types looking to retreat from the hustle and bustle of larger cities. The ever-growing opportunities for many employers to work by telecommuting, especially in the tech industry, the numbers of people of pre-retirement age looking to move out to the desert are growing. In spite of this, the atmosphere is still very much just as laid back and peaceful as it always has been.
Having been long-championed as a place that older couples go to chip away at their 401k, the Greater Palm Springs area remains a great place to retire. The great weather, access to the beaches of south California, the relative closeness of Los Angeles,, and the slow pace of desert life are all big draws for those looking to retire.
Even if you don’t make Palm Springs your full-time retirement residence, purchasing a home to escape to in the winter months could prove to be a solid investment; if you rent out your property when you aren’t in residence, it could serve as a great source of secondary income to help pay for all those great trips that you want to take your grandkids on.
Where is the Best Place to Live in Palm Springs?
The Greater Palm Springs area is full of great places to live. Popular locations include Indian Wells, Palm Desert, Bermuda Dunes, La Quinta, Rancho Mirage and Cathedral City. The Palm Springs area has lots of unique luxury neighborhoods that can cater to your every desire.
If you are looking to invest in Palm Springs by way of purchasing a rental property, but are not convinced that you can handle the stress of the day-to-day property management, look no further than Luxsy. We are a boutique, short-term vacation management company operating in the Greater Palm Springs area. Our mission is to provide vacationers with unique, incredible experiences with our collection of luxury vacation rental homes.