Which Type of Real Estate is the Best Investment in Riverside, CA?

Riverside, CA, is widely regarded as one of the best places to live in the United States for several years. Naturally, the city attracts individuals and families from across the country. Enticed by the city’s wonderful climate, diverse population, and small-town vibe, many people are moving to Riverside for a peaceful, small-town life. For this reason, Riverside, CA, real estate searches have sharply increased among the residents of San Francisco, Chicago, New York, Washington DC, El Centro, and other cities across the U.S.

If you’re planning a move to Riverside or wish to invest in its burgeoning real estate market, then you’ve come to the right place. We’ll help you identify the perfect real estate investment opportunity for your financial goals in Riverside. Before that, let’s take a quick look at some of the options available to you.

1. Residential Property

The easiest way to grow your money is to buy and hold a real estate property for several years. You can live there or rent it out to tenants. In the case of the latter, you also earn a decent cash flow. Both options are “relatively” easy and passive ways of growing your wealth. If you find a good tenant, you can rent it out for several years without worrying about it.

However, if you want to play a more active role and grow your wealth quickly, you can turn your property into a vacation house. Put it on Airbnb and earn attractive rates on it. Suppose you don’t want to deal with the hassle of managing the property for Airbnb vacationers. You can hire professionals who take care of everything from marketing to customer service for a nominal fee.

2. Commercial Real Estate

The concrete urban sprawl of Riverside does not have the most well-planned design. In fact, almost every Riverside resident needs a vehicle to get around to buy even simple things. Although there are plenty of shopping malls, commercial centers, retail stores, and so on, they are all located quite far from residential areas. And finding the city’s downtown is nothing short of a treasure hunt for new city residents.

There’s a dire need for more shopping options in the city, especially near residential areas. So, investing in commercial real estate closer to residential neighborhoods can fetch above-average lease rentals.

There are also other types of commercial properties to purchase or develop, including office spaces, strip malls, restaurants, and so on. However, not all commercial properties offer equal growth opportunities. So, speak to a local realtor to get insider info on which properties offer the best growth potential.

The most attractive feature of commercial properties is that you can lease them long-term, such as 5 years, 10 years, etc.

3. Real Estate Investment Trusts (REITs)

Real Estate Investment Trusts (REITs) own multiple real estate properties, such as shopping malls, offices, hotels, restaurants, etc. Some REITs are listed on stock exchanges, and you can buy their stocks. The stock valuations of these companies are closely related to the performance of their real estate investments. What’s more, REITs are required by law to share the bulk of their profits as dividends with their shareholders. So, you get cashflows each year.

While you don’t have to deal with the hassle of managing your property, you must perform extensive due diligence before you make your move. Ideally, you need to check the health, performance, and potential of all properties in a REIT’s portfolio. Secondly, stock performance does not always reflect actual company performance. Investor sentiments play a huge role in stock performance. An underperforming REIT may still have outsized stock valuations.

If you can spare the time and effort required for due diligence, REIT investments can be highly attractive.

4. Raw Land

One of the attractions of Riverside for outsiders is its peaceful vibe. Many city dwellers prefer it because it’s everything that congested cities like LA and San Francisco are not. That means no more apartments and no more mixed-use dwellings. They want their weekends to be quiet, restful, and uneventful. For them, a suburban house with a lawn or a garden is the definition of the American dream. If they cannot find a home that suits their purpose, they may even build one from scratch. Therefore, raw lands are a priced possession in Riverside.

From individual buyers to property developers, everyone wants raw lands in prime locations with access to good amenities. The best thing about raw lands is that the maintenance costs are almost nil.

Verdict

So, which real estate investment is the best?

If you’ve paid attention so far, you’ve probably identified what works for you best. That’s pretty much the gist of it. The right real estate investment is one that works perfectly for you, your financial goals, your needs, and your constraints.

For instance, if you’re looking for an investment that gives you access to liquidity during emergencies, then REITs are the right option. You can sell your stocks at fair prices and cash out anytime you want. With other options, you don’t have that choice.